Friday, April 18, 2014

OPERATION CERBERUS NETS 400+ ARRESTS IN ROCKY MOUNT, NORTH CAROLINA

FROM:  U.S. MARSHALS SERVICE 
For Immediate Release
 Over 400 Arrested in Rocky Mount Month-Long Operation

Rocky Mount, NC – The U.S. Marshals Service, Eastern District of North Carolina, and the Rocky Mount Police Department announce the successful conclusion of Operation Cerberus. Law enforcement officers from numerous agencies fanned out across the city of Rocky Mount and the surrounding areas of Nash and Edgecombe Counties over recent weeks, with the goal of locating and apprehending subjects wanted for a variety of offenses. By end of the operation, 404 subjects had been arrested and 634 warrants had been served. Additionally, officers seized 21 firearms, 579.9 grams of heroin, 95.2 grams of Marijuana, 11.78 grams of MDMA, and $4230 in U.S. currency.

Operation Cerberus was initiated by the Rocky Mount Police Department on March 17 to combat the increase in violent crimes in Rocky Mount, and officers worked tirelessly to identify those individuals responsible. In early April, the operation culminated with a two-day sweep that saw the combined resources of the U.S. Marshals Service Violent Fugitive Task Force brought to bear on those perpetrating the offenses and a clear message was sent to the citizens of Rocky Mount. Agencies participating during this operation include the U.S. Marshals Service, Rocky Mount Police Department, Greenville Police Department, Kinston Department of Public Safety, Nash County Sheriff’s Office, N.C. Department of Public Safety – Division of Adult Correction, Pitt County Sheriff’s Office, Raleigh Police Department, and Federal Bureau of Investigation Safe Streets Task Force.

Darrell James, 34, wanted for Assault With a Deadly Weapon (4 counts), Discharging a Weapon into Occupied Property, Discharging a Weapon inside City Limits, Possession of a Weapon while Intoxicated, and Injury to Personal Property .

Alfonso Moore, 43, wanted for Second Degree Kidnapping, and Assault on Female.

“The number of violent fugitives and weapons removed from the streets of Rocky Mount and surrounding areas during this operation is a direct result of Federal, State and Local law enforcement officers working together and being persistent in the common goal of ensuring that citizens of the community are safe from violent felons and probation violators,” said Scott Parker, United States Marshal for the Eastern District of North Carolina. “I want to thank the men and women of law enforcement who stood shoulder to shoulder during this operation, for their dedication to the citizens of the City of Rocky Mount and Eastern North Carolina.”

Rocky Mount Police Chief James Moore stated “The resolve of the Rocky Mount Police Department to identify and apprehend criminals is strong and our investigative capabilities are magnified when our federal and state law enforcement partners, each with its own areas of expertise, unite to achieve a common objective.”

Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov.

BUSINESSMAN ADMITS TO USING STRAW DONORS TO FUNNEL MONEY TO POLITICAL CAMPAIGNS

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, April 17, 2014
Hotel Magnate Pleads Guilty to Federal Election Campaign Spending Limits Evasion Scheme and Witness Tampering

Sant Singh Chatwal, 70, of New York – a businessman operating several restaurants, hotels and a hotel management company – pleaded guilty in the Eastern District of New York to conspiring to violate the Federal Election Campaign Act (the “Election Act”) by making more than $180,000 in federal campaign donations to three candidates through straw donors who were reimbursed and to witness tampering.   There is no allegation that the candidates participated in, or were aware of, Chatwal’s scheme.

Acting Assistant Attorney General David A. O’Neil of the Criminal Division of the U.S. Department of Justice, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Chief Richard Weber of the Internal Revenue Service–Criminal Investigation made the announcement.

The guilty plea proceeding took place before United States District Judge I. Leo Glasser of the Eastern District of New York.   As part of his plea agreement with the government, Chatwal agreed to forfeit $1 million to the United States.

“Chatwal admitted that he used straw donors to secretly funnel money to political campaigns so that he could gain access to the politicians, and he coerced another person to hide his crime,” said Acting Assistant Attorney General O’Neil.  “Chatwal went to great lengths to undermine both election laws and our system of justice.  Today’s guilty plea shows our vigilance and determination to prosecute those who damage the integrity of elections by masking the true sources of campaign contributions.”

“The Election Act’s spending limits are in place to limit financial influence in federal elections and to ensure transparency as to the identity of donors,” said U.S. Attorney Lynch.   “Chatwal’s scheme sought to subvert the very purpose of the Election Act.   Chatwal then rolled the dice to stymie the government’s investigation, thinking he could corruptly convince witnesses to his federal election crimes to stay silent.   That gamble did not pay off.   Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing crimes in connection with federal campaign donations and witness tampering.”

“Attempting to buy elections through illegal campaign contributions is unacceptable. It is also illegal,” said FBI Assistant Director in Charge Venizelos.   “Americans rightfully expect that elections will be free and fair. The FBI will continue investigating every case of abuse, wherever we find it.”

“Mr. Chatwal admitted his actions were designed to circumvent the Election Act,” said IRS-CI Chief Weber.  “IRS-CI's ability to adapt our financial investigative skills to cases where they are needed uniquely equips our agents to defend and uphold America's trust in the fairness of the electoral process.”

The Election Act limits the amount and source of money that can be contributed to a federal candidate or to an individual candidate’s political campaign committee and multi-candidate political campaign committees, commonly referred to as “political action committees” (PACs).   For example, in 2008, the Election Act limited primary and general election campaign contributions in a calendar year to $2,300 per campaign, for a total of $4,600, from any one individual to any one candidate.   In 2010, the Election Act limited primary and general election campaign contributions in a calendar year to $2,400 per campaign, for a total of $4,800, from any one individual to any one candidate.   The Election Act also prohibits making a campaign contribution in the name of another person, including giving funds to a “straw donor,” or a conduit, for the purpose of having the straw donor pass the funds to a federal candidate as the straw donor’s own contribution.

According to court filings and facts presented during the plea proceeding, Chatwal operated several businesses, including restaurants, hotels, and a hotel management company.   From 2007 to 2011, Chatwal used his employees, business associates, and contractors who performed work on his hotels (the “Chatwal Associates”) to solicit campaign contributions on Chatwal’s behalf in support of various candidates for federal office and PACs, collect these contributions, and pay reimbursements for these contributions.

Further according to court filings, Chatwal and the Chatwal Associates induced straw donors to make these campaign contributions, promising them that they would be reimbursed.   Chatwal orchestrated a scheme to make approximately $188,000 in campaign contributions to three candidates for federal office via straw donors, and he often arranged for the straw donors to be reimbursed through the Chatwal Associates, ultimately paying for the reimbursed contributions with funds belonging to Chatwal or one of Chatwal’s companies.

The evidence against Chatwal includes an October 2010 recorded conversation between Chatwal and a business associate who became an informant, in which Chatwal underscored his view as to the importance of political campaign contributions, stating that without campaign contributions, “nobody will even talk to you…That’s the only way to buy them, get into the system… What, what else is there?  That’s the only thing.”

Also according to court filings, Chatwal sought to obstruct the grand jury investigation into his Election Act scheme by tampering with a witness, a person whose business performed construction work for Chatwal and Chatwal’s companies and who had recruited straw donors at Chatwal’s direction.   In a June 2012 recorded conversation, Chatwal told the individual that if FBI and IRS agents approached him or his family, they should not speak with the agents and should instead refer them to a lawyer Chatwal would provide.   During this conversation, the individual said that he would not tell agents that Chatwal gave him money to reimburse straw donors.  Chatwal replied, “Never, never.”

A few days later, in a July 2012 recorded conversation, Chatwal directed the same individual to lie to agents about the Election Act scheme.   Chatwal said he would pay for the individual’s legal fees in connection with the investigation and offered to conceal the money within a payment for work the individual’s company had performed for Chatwal.   During the conversation, they discussed that investigators were seeking copies of campaign checks in the individual’s possession, and they then discussed that it was helpful that some of the straw donors had been reimbursed with cash.   Chatwal added, “Cash has no proof.”

The case was investigated by the FBI’s New York Field Office and the IRS-CI.   The case is being prosecuted by Trial Attorney Marquest Meeks of Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Martin Coffey, Carolyn Pokorny, Robert Capers and Brian Morris of the Eastern District of New York.

READOUT: PRESIDENT OBAMA'S CALL WITH CHANCELLOR MERKEL OF GERMANY

FROM:  THE WHITE HOUSE 

Readout of the President’s Call with Chancellor Merkel of Germany

The President and Chancellor Merkel of Germany spoke today regarding their deep concern about the situation in eastern Ukraine.  The President commended the government of Ukraine’s approach to today’s discussions in Geneva, where it put forward constructive proposals to expand local governance and ensure the rights of all Ukrainians are protected.  The leaders stressed that Russia needs to take immediate, concrete actions to de-escalate the situation in eastern Ukraine, including by using its influence over the irregular forces in eastern Ukraine to get them to lay down their arms and leave the buildings they have seized.  The President and the Chancellor agreed that the United States and Europe are prepared to take further measures if this de-escalation does not occur in short order.  The leaders also stressed their support for Ukraine’s May 25 presidential elections.

AG HOLDER'S REMARKS AT INTERFAITH SERVICE HONORING VICTIMS OF PASSOVER SHOOTINGS

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Eric Holder Delivers Remarks at an Interfaith Service of Unity and Hope Honoring the Victims of Last Week’s Tragic Shootings
~ Thursday, April 17, 2014

Thank you.  It is a privilege to be here today.  And it’s an honor to stand, and to pray, with this community as we pay tribute – and our last respects – to the three remarkable people who were taken from us just a few short days ago.

Terri LaManno was a dedicated occupational therapist; a loving wife to her husband, Jim – with whom she should have celebrated her 25th anniversary on Tuesday; and a wonderful mother to their three children.  She was also a devoted daughter who traveled, every Sunday, to visit her mother at Village Shalom.

William Lewis Corporon was a highly-respected physician who moved to Johnson County from Oklahoma to be closer to his grandchildren.  He cherished his family and dedicated his life to helping others.  And he planned to spend a portion of last Sunday bringing his talented grandson, Reat Griffin Underwood – a 14-year-old Eagle Scout with a beautiful voice and a passion for theater and debate – to a singing competition.

But on Sunday afternoon, as they and others went about their daily business, and as Kansas City’s thriving Jewish population prepared for the festival of Passover – this community was targeted by a senseless and unspeakable act of violence.  And Terri, William, and Reat were taken from us – far too suddenly, and far too soon.

In the midst of what ought to be a time of celebration – when Jewish families, often joined by relatives and friends of different faiths, come together to retell the story of the Exodus from Egypt – this community has instead been visited by terrible tragedy.  In this celebratory holy week when Christian families, often joined by relatives and friends, come together to proclaim their faith, a pall has been cast over our great nation.  And so we gather not in joy, but in solemn reflection – and in remembrance of those whose lives have been cut short.

We mourn the untimely losses of Terri, William, and Reat – and all that their futures should have held.  We grieve for the friends and family members who knew them best and loved them most.  And we pledge that we will support you – as one community and one nation – not only in sorrow, but in strength; united by tragedy, but bound together by unyielding resolve in the face of hate-fueled violence.

Every alleged hate crime, no matter the intended target, is an affront to who we are – and who we have always been – both as a country and as a people.  These acts cannot be ignored.  And their impact is not limited to particular communities or individuals.

That’s why, today – although our hearts are broken – all Americans stand with the people of Overland Park, of Leawood, and of Kansas City.  We are united in our condemnation of this heinous attack – and our commitment to see that justice is served.  We are inspired by the resilience of this community, the strength of those who lost loved ones, and the stories of heroism that emerged from Sunday’s tragic events – from the passersby and staff members who helped warn others about the danger, to the brave law enforcement officials who raced to apprehend the suspect – and prevented this horrific incident from becoming even more deadly.

In these acts of valor and selflessness are written the true story of what happened here – a story of light emerging from terrible darkness; a community rising above senseless violence; and a diverse group of people accepting the responsibility that all of us share:  to respond to intolerance and anti-Semitism not by pushing one another away, but by drawing each other close.

The Jewish religion speaks of a concept called “tikkun olam,” which means “repairing the world.”  These words may be unfamiliar to some, but the idea is universal to people of every faith:  that it is incumbent upon each of us to bring hope and help to those around us; to create a more loving society; and to help forge a more just existence.

At times – particularly on days like this one, when we stand in the shadow of such mindless destruction – I know it can seem as though the world is irreparably broken; that it is fractured beyond repair.  But all of us here, in this moment – surrounded by the people we love, and held in the hearts of innumerable others – we are a testament to the limitless desire in this country for healing, for compassion, and for peace.  And we reaffirm the spirit of fellowship that has always held this nation of immigrants together – and defined diversity as our single greatest strength.

A few days ago, many of you observed the beginning of Passover, marking the start of a long and difficult journey from tyranny and persecution toward freedom in the Promised Land.  Today, this community begins its own journey of healing.  And although the road ahead will not be easy, I promise you that I, and millions of others throughout our nation, will be here to walk alongside you – not only today, but always.  We will never stop fighting for justice.  And we will never forget the names, or the stories, of those we lost.

Terri, William, and Reat will live on in our hearts, and in the cherished memories of all who knew them.  They will live on in their children, their friends, and countless others whose lives they touched.  And they will live on in the work that we begin – here, today – to repair the world and forge a future that is worthy of their joy, their passion, and their love.

This world will be their legacy.  And we will build it together.

 Thank you, once again, for allowing me to be here.  God bless you.  And may God bless the United States of America.

AG HOLDER'S REMARKS AT 2014 POLICE EXECUTIVE FORUM

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Eric Holder Delivers Remarks at the 2014 Police Executive Research Forum
~ Wednesday, April 16, 2014

Thank you, Chuck [Wexler], for those kind words – and for your exemplary leadership, over the past two decades, as Executive Director of the Police Executive Research Forum.  I also want to thank my good friend, Philadelphia Police Commissioner [Charles] Ramsey, for his outstanding work as this organization’s President.  And I want to recognize PERF’s Board of Directors and professional staff for all they’ve done to bring us together for today’s important Summit.

Since its founding in 1976 – the same year I reported for work as a line attorney in the Justice Department’s Public Integrity Section – this group has worked hard to strengthen community policing, to minimize the use of force, and to guide and inform our national debate about criminal justice issues.  Over the years, you’ve helped to refine law enforcement’s response to crimes ranging from sexual assaults to active shooter situations.  Your members and leaders have promoted the highest standards of integrity, professionalism, accountability, and ethics.  And your consistent emphasis on proven, data-driven policing strategies and practices has bolstered the efficiency – and the effectiveness – of departments and agencies throughout the nation.

That’s why I’m so proud to stand with you today – as this Forum convenes once again to discuss one of the most urgent and complex challenges facing public safety professionals in this country:  the question of how best to combat illegal drug use – and confront the stunning rise in heroin and prescription opiate overdose deaths that so many of you have witnessed in the jurisdictions you serve.

Especially over the last few years, we’ve come to understand that the cycle of heroin abuse all too often begins with prescription opiate abuse.  Throughout America – between 2006 and 2010 – heroin overdose deaths increased by an alarming 45 percent.  This staggering rise is a tragic, but hardly unpredictable, symptom of the significant increase in prescription drug abuse we’ve seen over the past decade.  And it has impelled law enforcement leaders to fight back aggressively.

As you know as well as anyone, addressing this public health and public safety crisis will require a combination of rigorous enforcement and robust treatment.  I want to assure you this afternoon that the Justice Department is, and always will be, firmly committed to both.

As we speak, with DEA as our lead agency, the Department is doing more than ever to keep illicit drugs off our streets – and bring dangerous or violent traffickers to justice.  Since just 2011, DEA has opened more than 4,500 investigations related to heroin.  As a result of this work, the amount of heroin seized along America’s southwest border increased by more than 320 percent between 2008 and 2013.  And our comprehensive enforcement strategy is also enabling us to attack all levels of the supply chain – so we can proactively investigate the diversion of pharmaceutical controlled substances and prevent them from falling into the wrong hands.

From practitioners who illegally dispense prescriptions, to pharmacists who knowingly fill them; from notorious “pill mills,” to unscrupulous distributors that send controlled substances downstream without due diligence – DEA is standing vigilant against anyone who would divert prescription opiates from their legitimate use.  In targeted areas, they’re also using their regulatory authority to review and investigate new pharmacy applications – so they can identify and prevent storefront traffickers from obtaining DEA registrations.

This work shows tremendous promise – and it’s having a significant positive impact.  But all of it is only the beginning – because my colleagues and I understand, as you do, that although vigorous enforcement will always be critical, enforcement on its own will never be enough.

That’s why we’re partnering with leaders like you – and organizations like PERF – to increase our support for education, prevention, and treatment.  We’re working with doctors, pharmacists, and other health professionals – along with educators, community leaders, and police officers on the front lines – to identify and prevent controlled substance diversion during the health care delivery process.  Nationwide, we’re supporting more than 2,600 specialty courts that connect over 120,000 people with the services they need to avoid future drug use and return to their communities from incarceration.  And we’re focusing our engagement efforts on specific areas where this work is most needed – and where it can make the most difference.

For example, in Ohio’s Northern District, our United States Attorney convened a summit at the Cleveland Clinic to bring together law enforcement and public health professionals to confront that area’s 400-percent rise in heroin-related deaths.  Another U.S. Attorney’s Office – in Vermont – partnered with a family whose young son tragically lost his life to a heroin overdose.  Together, they created an award-winning documentary, called “The Opiate Effect,” to raise awareness about the devastating consequences of opiate abuse.

This powerful video has already reached more than 50,000 people.  But as law enforcement leaders, each of us has an obligation to do even more.  That’s why, today, I’m calling on all first responders – including state and local law enforcement agencies – to train and equip their men and women on the front lines to use the overdose-reversal drug known as naloxone.

When administered in a timely manner, naloxone – also known as narcan – can restore breathing to someone experiencing a heroin or opioid overdose.  This critical tool can save lives.  To date, a total of 17 states and the District of Columbia have taken steps to increase access to naloxone, resulting in over 10,000 overdose reversals since 2001.  And I urge state policymakers and local leaders throughout the nation to take additional steps to increase the availability of naloxone among first responders – so we can provide lifesaving aid to more and more of those who need it.

After all, it’s only by working together – and adopting a holistic approach – that we can confront this crisis, strengthen our communities, and save lives.  That’s why my colleagues and I are committed to supporting you.  And we’re determined to ensure that limited public safety resources are targeted to the most dangerous types of drugs – and the most serious drug offenses.

As you know, last August, I launched a new “Smart on Crime” initiative that’s enabling the Department of Justice to do just that – by using evidence-based reforms to improve the federal criminal justice system across the board, and to make our expenditures both smarter and more productive.  Going forward, the Department will work with Congress to secure the passage of President Obama’s budget request, which includes $173 million to sustain and advance this effort.  And we’ll strive to enact commonsense reforms like the bipartisan Smarter Sentencing Act – which would give judges additional discretion in determining appropriate sentences for people convicted of certain federal drug crimes.

In every case and circumstance, our efforts will continue to be guided by the recognition that – while smart law enforcement will always play a critical role in protecting communities from drug crime, we will never be able to arrest or incarcerate our way to becoming a safer nation.  We’ll keep relying on innovative leaders like you to apply 21st century solutions to 21st century problems.  And we’ll never stop driving investments in the kinds of groundbreaking research – and data-driven strategies – that so many of you have long championed.

This afternoon, as we come together to discuss this work – and to renew our shared commitment to carry it into the future – I want you to know how proud, and humbled, I am to count you as colleagues and partners.  I thank you – and all of this Forum’s members – once again for your service, your leadership, and your patriotism.  And I look forward to all that we must, and surely will, achieve together in the days ahead.

BP P.L.C. FORMER EMPLOYEE CHARGED WITH INSIDER TRADING AFTER DEEPWATER HORIZON OIL SPILL

FROM:  SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged a former 20-year employee of BP p.l.c. and a senior responder during the 2010 Deepwater Horizon oil spill with insider trading in BP securities based on confidential information about the magnitude of the disaster.  The price of BP securities fell significantly after the April 20, 2010 explosion on the Deepwater Horizon rig, and the subsequent oil spill in the Gulf of Mexico, resulted in an extensive clean-up effort.

According to the SEC’s complaint, filed in U.S. District Court for the Eastern District of Louisiana, BP tasked Keith A. Seilhan with coordinating BP’s oil collection and clean-up operations in the Gulf of Mexico and along the coast.  Seilhan, an experienced crisis manager, directed BP’s oil skimming operations and its efforts to contain the expansion of the oil spill.  The complaint alleges that within days, Seilhan received nonpublic information on the extent of the evolving disaster, including oil flow estimates and data on the volume of oil floating on the surface of the Gulf.

“Seilhan sold his family’s BP securities after he received confidential information about the severity of the spill that the public didn't know,” said Daniel M. Hawke, chief of the Division of Enforcement’s Market Abuse Unit.  “Corporate insiders must not misuse the material nonpublic information they receive while responding to unique or disastrous corporate events, even where they stand to suffer losses as a consequence of those events.”

The complaint alleges that by April 29, 2010, in filings to the SEC, BP estimated that the flow rate of the spill was up to 5,000 barrels of oil per day (bopd).  The company’s public estimate was significantly less than the actual flow rate, which was estimated later to be between 52,700 and 62,200 bopd.  The information that Seilhan obtained indicated that the magnitude of the oil spill and thus, BP’s potential liability and financial exposure, was likely to be greater than had been publicly disclosed.

According to the complaint, while in possession of this material, nonpublic information, and in breach of duties owed to BP and its shareholders, Seilhan directed the sale of his family’s entire $1 million portfolio of BP securities over the course of two days in late April 2010.  The trades allowed Seilhan to avoid losses and reap unjust profits as the price of BP securities dropped by approximately 48 percent after the sales on April 29 and April 30, 2010, reaching their lowest point in late June 2010.

Without admitting or denying the allegations, Seilhan consented to the entry of a final judgment permanently enjoining him from future violations of federal antifraud laws and SEC antifraud rules.  Seilhan, of Tomball, Texas, also agreed to return $105,409 of allegedly ill-gotten gains, plus $13,300 of prejudgment interest, and pay a civil penalty of $105,409.  The settlement is subject to court approval.

The SEC’s investigation was conducted by Matthew S. Raalf, Brian P. Thomas, John S. Rymas, Kelly L. Gibson, Brendan P. McGlynn, G. Jeffrey Boujoukos, Michael J. Rinaldi, and Christopher R. Kelly in the Philadelphia Regional Office.  The SEC appreciates the assistance of the U.S. Department of Justice’s Deepwater Horizon Task Force.

Thursday, April 17, 2014

U.S., POLAND FIND NEW WAYS MILITARIES CAN COOPERATE

FROM:  U.S. DEFENSE DEPARTMENT 


Secretary of Defense Chuck Hagel hosts a press briefing with Poland’s Minister of National Defense Tomasz Siemoniak at the Pentagon, April 17, 2014. DOD photo by Marine Corps Sgt. Aaron Hostutler.  
U.S., Poland Defense Leaders Find New Areas for Cooperation
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, April 17, 2014 – Amid deep concerns about the situation in Ukraine, the defense leaders of the United States and Poland met at the Pentagon today and identified new areas in which their militaries can work together, including special operations, air force cooperation, and more exercises and training.

Defense Secretary Chuck Hagel and Poland’s Minister of National Defense Tomasz Siemoniak held discussions that Hagel described as being “focused on reinforcing our solidarity and our partnership for the future of the Polish-U.S. defense relationship, especially in light of the situation in Ukraine and its impact on European security.”

During a joint news conference after their meeting, Hagel told reporters this a critical time for the NATO alliance and the Polish-U.S. bilateral relationship, adding that it is also an opportunity to capitalize on the strong relationship the United States and Poland have built together over 25 years.
“The solidarity and partnership roadmap we discussed today identified new areas where we can work together, including special operations forces, air force cooperation, and additional exercises and training,” the secretary said.
“It will also look at how we can further build onto our joint aviation detachment and air missile defense collaboration.”

In recent weeks, the United States has augmented Poland’s aviation detachment with 12 F-16 aircraft and 200 support personnel from Aviano Air Base in Italy, the secretary said, noting that the department is committed to maintaining the augmented presence through the end of 2014.

“This is a clear demonstration of America's bilateral commitment to Poland and to our other NATO allies in the region. The United States is also encouraging other NATO allies to contribute to the detachment,” Hagel said.

“Minister Siemoniak and I agreed,” the secretary added, “that it would be useful to open up the aviation detachment so that other nations in the region can participate.”
One example is Romania, Hagel said, the latest NATO member to acquire F-16s. Such a regionalized approach will help strengthen Poland and its neighbors, he added.

On air and missile defense, Hagel noted that as Poland explores options for its own new capabilities, the Defense Department should take advantage of the chance to work with Poland more closely, leveraging cutting-edge technology and enhancing NATO capability to benefit the entire transatlantic alliance.
“As Poland continues to invest in defense and military modernization,” he added, “the United States will increasingly look to Poland as a leader in the region and in NATO.”

The relationship between the U.S. and Poland and their shared commitment to NATO are critical to stability in Europe, the secretary said, adding that recent events underscore that the alliance and commitments to the alliance are as important as ever.

“As you all know,” Hagel said, “Secretary [of State John F.] Kerry is meeting now in Geneva with his counterparts from Russia, Ukraine and the [European Union]. We fully support these efforts to find a political solution and remain deeply concerned about Russia's ongoing destabilizing activities in eastern Ukraine. De-escalation has been our focus and Russia must take steps to make that happen.”
The United States continues to stand with Ukraine, he added, noting that earlier this morning he called Ukraine Acting Defense Minister Mykhaylo Koval to tell him that President Obama has approved more nonlethal military assistance for health and welfare items and other supplies.

“These supplies include medical supplies, helmets, sleeping mats and water purification units for Ukraine's armed forces,” Hagel said, “as well as shelters, small power generators and hand fuel pumps for Ukraine's state border guard service. The United States will continue to review additional support that we can provide to Ukraine.”

During today’s meeting, the secretary said, he and Siemoniak agreed that Russia's aggression has renewed their resolve to strengthen the NATO alliance.
NATO Secretary-General Anders Fogh Rasmussen yesterday announced a series of measures the alliance would undertake to demonstrate this resolve.
The measures, developed by Supreme Allied Commander Air Force Gen. Philip M. Breedlove, the secretary added, include more air policing sorties over the Baltics, more allied ships in the Baltic and in the eastern Mediterranean seas, and military staff deployments to enhance NATO's readiness training and exercises.
“NATO is also updating its defense plans and the United States has offered additional planners to help with that effort, Hagel said. “We're also assessing what additional contributions we can offer to reinforce our allies in central and eastern Europe.”

The measures are not meant to provoke or threaten Russia, he added, but to demonstrate NATO's continued dedication to collective defense.
“Article V [of the North Atlantic Treaty] is clear that an attack against any one NATO ally will be considered an attack against all members of NATO. The United States is fully committed to meeting its Article V responsibilities,” Hagel said.

Today’s meeting was the second between Hagel and Siemoniak this year.
Their first was in January in Poland when Hagel and Siemoniak visited the joint aviation detachment at Powidz Air Base where American and Polish airmen train and work side by side.

President Barack Obama and Polish President BronisÅ‚aw Komorowski agreed in 2010 to strengthen the U.S.-Polish security partnership through increased cooperation between both nations’ air forces.

The first full-time stationing of U.S. troops in Poland was established in 2012 with an aviation detachment at Lask Air Base, about 90 minutes from Powidz.
In addition to strengthening cooperation, the aviation detachment allows Poland to host other allied air force elements and serve as a regional hub for air training and multinational exercises.

PRESIDENT OBAMA SENDS CONDOLENCES TO FAMILIES OF S. KOREAN FERRY VICTIMS

FROM:  U.S. DEFENSE DEPARTMENT 
President Sends Condolences, Pledges Aid for Ferry Sinking
American Forces Press Service

WASHINGTON, April 17, 2014 – President Barack Obama and First Lady Michelle Obama have expressed condolences to the families of the victims of yesterday’s ferry sinking off the coast of South Korea.

In a White House statement, the president also said he’s directed the U.S. military “to provide any and all assistance requested by our Korean partners in the days ahead.”

The text of the president’s and first lady’s statement follows:
“On behalf of all the American people, Michelle and I send our deepest and heartfelt condolences to the families of the victims of the tragic ferry sinking off the coast of the Republic of Korea. The bonds of friendship between the American and Korean people are strong and enduring, and our hearts ache to see our Korean friends going through such a terrible loss, especially the loss of so many young students.

“South Korea is one of our closest allies, and American Navy personnel and U.S. Marines are already on the scene assisting with the search and rescue efforts. I’ve directed our military to provide any and all assistance requested by our Korean partners in the days ahead.

“As I will underscore on my visit to Seoul next week, America’s commitment to our ally South Korea is unwavering—in good times and in bad. As the Korean people deal with this heartbreaking tragedy, they will have the unending support and friendship of the United States.”

U.S. DEFENSE DEPARTMENT CONTRACTS FOR APRIL 17, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

NAVY

Watermark Environmental Inc.,* Lowell, Mass. (N40083-14-D-2719); Blackhawk-MILCON, A Joint Venture*, San Antonio, Texas (N40083-14-D-2720); Custom Mechanical Systems Corp.,* Bargersville, Ind. (N40083-14-D-2721); Krempp Construction Inc.,* Jasper, Ind., (N40083-14-D-2722); and Howard W. Pence,* Elizabethtown, Ky. (N40083-14-D-2723), are each being awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple-award design-build construction contract for construction projects at Naval Support Activity Crane located primarily within the Naval Facilities Engineering Command (NAVFAC) Midwest area of responsibility (AOR). The work to be performed provides for all labor, equipment, tools, supplies, transportation, supervision, quality control, professional design services, and management necessary to perform various construction, renovation, maintenance, and alteration projects at assorted buildings and structures. Work includes but is not limited to design, general construction, alteration, repair, demolition, and work performed by special trades. The maximum dollar value including the base period and four option years for all five contracts combined is $50,000,000. Watermark Environmental Inc., is being awarded task order 0001 at $1,403,808 for the Crane Army Ammunition Activity Building 102 renovation at the Naval Support Activity, Crane, Ind. Work for this task order is expected to be completed by September 2014. All work on this contract will be performed in Crane, Ind. (95 percent), and Sullivan, Ind. (5 percent). The term of the contract is not to exceed 60 months, with an expected completion date of April 2019. Fiscal 2013 Army working capital funds contract funds in the amount of $1,483,808 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with 22 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Midwest, Crane, Ind., is the contracting.

Caddell Construction Co., Inc., Montgomery, Ala., is being awarded $34,311,000 for firm-fixed-price task order 0002 under a previously awarded multiple award construction contract (N69450-09-D-1279) for construction of the Waterfront North Land Water Interface at Naval Submarine Base Kings Bay. The work to be performed provides for the construction of the waterfront restricted area land/water interface termination that connects the north end of the existing waterfront restricted area enclave fencing system to the floating port security barriers. Work will be performed in Kings Bay, Ga., and is expected to be completed by April 2017. Fiscal 2012 military construction, Navy contract funds in the amount of $34,311,000 are being obligated on this award and will not expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Fla., is the contracting activity.

Lockheed Martin Corp., Owego, N.Y., is being awarded $ 7,265,034 for firm-fixed-priced delivery order 7026 against a previously awarded basic ordering agreement (N00383-12-G-010F) for the repair of 12 items of the common cockpit for H-60R/S helicopters. Work will be performed at Owego, N.Y. (77 percent); Farmingdale, N.Y. (9 percent); Phoenix, Ariz. (6 Percent); Salt Lake City, Utah (6 percent); Hershey, Pa. (2 percent), and is expected to be completed by Jan. 12, 2016. Fiscal 2014 Navy working capital funds in the amount of $7,265,034 will be obligated at the time of award, and will not expire before the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C 2304(c)(1). The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pa., is the contracting activity.

ARMY

The Boeing Co., Ridley Park, Pa. was awarded a $43,340,932 modification (P00003) to contract W58RGZ-13-C-0114 to support fielding new equipment and equipment training for units receiving the CH-47F weapons system. Fiscal 2014 other procurement funds in the amount of $43,340,932 were obligated at the time of the award. Estimated completion dated is Feb. 29, 2016. Work will be performed at continental United States and overseas locations. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

Ensign-Bickford Aerospace & Defense Co., Simsbury, Conn., was awarded a $26,977,402 firm-fixed-price contract to test, manufacture, package and deliver M21/M23 blasting cap assemblies. Funding and work performance location will be determined with each order. Estimated completion date is April 16, 2019. Bids were solicited via the Internet with one received. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity (W15QKN-14-D-0016).

DEFENSE LOGISTICS AGENCY

Heyltex Corp.,* Katy, Texas, has been awarded a maximum $43,292,852 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various pharmaceutical products. This is a competitive acquisition, and 35 offers were received. This is a one-year base contract with seven one-year option periods. Location of performance is Texas with an April 16, 2015 performance completion date. Using services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D0-14-D-0005).

Direct Energy Business, LLC, Pittsburgh, Pa., has been awarded a maximum $11,918,926 firm-fixed-price contract for electricity. This is a competitive acquisition, and three offers were received. This is a two-year base contract. Locations of performance are Pennsylvania and Illinois with a May 31, 2016 performance completion date. Using services are Army, Air Force, and federal civilian agencies. Type of appropriation is fiscal year 2014 through fiscal year 2016 service funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SPE600-14-D-8004).

AIR FORCE

Lockheed Martin Corp., Marietta, Ga., has been awarded a $14,713,606 firm-fixed-price modification (P00312) on contract (FA8625-11-C-6597) for initial spares for the C-130J program purchased under the five-year option contract IV. The contractor will provide initial spares for the C-130J program that are provided for 64 aircraft, comprised of 42 delivered C-130J aircraft and 22 HC/MC-130J aircraft. Work will be performed at Marietta, Ga. Initial spares delivery dates vary depending upon the lead time to procure. Fiscal 2014 aircraft procurement funds ($13,685,100) and fiscal 2013 aircraft procurement funds ($1,028,506) are being obligated at time of award. Air Force Life Cycle Management Center/WLNN, Wright-Patterson Air Force Base, Ohio, is the contracting activity

Quantech Services Inc., Lexington, Mass., has been awarded a $14,402,703 modification (P00050) on cost-plus-fixed-fee, cost reimbursable contract (FA8721-13-C-0016) for professional acquisition support services. This contract modification provides an extension for an additional nine months of professional acquisition support services under the basic contract in support of Air Force Life Cycle Management Center, HBG, HBA, and HBS divisions, including foreign military sales (FMS). Work will be performed at Hanscom Air Force Base, Mass. and Langley AFB, Va., and is expected to be completed by Jan. 17, 2015. FMS support accounts for approximately 38 percent of the stated modification. Fiscal 2014 research and development, procurement and foreign military sales funds in the amount of $3,318,686 were obligated at time of award. FMS countries include Saudi Arabia, Korea, Japan, Australia, France, United Kingdom, Egypt, Oman, Poland, Kyrgyzstan, Afghanistan, and Jordan. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom AFB, Mass., is the contracting activity.

Oasis Systems LLC, Lexington, Mass., has been awarded an $11,801,189 modification (P00050) on cost-plus-fixed-fee, cost reimbursable contract (FA8721-13-C-0025) for professional acquisition support services. This contract modification provides an extension for an additional of six months of professional acquisition support services under the basic contract in support of Air Force Life Cycle Management Center HNA, HNS, and HNI divisions. Work will be performed at Hanscom Air Force Base, Mass., and Langley AFB, Va., and is expected to be completed by Oct. 17, 2014. Fiscal 2012 procurement and fiscal 2014 research and development, procurement and operations and maintenance funds in the amount of $11,077,504 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom AFB, Mass., is the contracting activity.

Odyssey Systems Consulting Group Ltd., Wakefield, Mass., has been awarded an $11,445,617 modification (P00050) on cost-plus-fixed-fee, cost reimbursable contract (FA8721-13-C-0022) for professional acquisition support services. This contract modification provides an extension for an additional of nine months for professional acquisition support services under the basic contract. Work will be performed at Peterson Air Force Base, Colo., Hanscom AFB, Mass., and Dahlgren, Va., and is expected to be completed by Jan. 17, 2015. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center, HBQ and HBD Divisions, including foreign military sales. FMS support account for approximately 11 percent of the stated modification. Fiscal 2014 operations and maintenance, procurement, research and development and foreign military sales funds in the amount of $8,869,158 were obligated at time of award. FMS countries include Taiwan, United Arab Emirates, Saudi Arabia, Kuwait, Israel, and Japan. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom AFB, Mass., is the contracting activity.

Odyssey System Consulting Group Ltd., Wakefield, Mass., has been awarded a $9,167,656 modification (P00050) on cost-plus-fixed-fee, cost reimbursable contract (FA8721-13-C-0020) for professional acquisition support services. This contract modification provides an extension for an additional nine months of professional acquisition support services under the basic contract in support of Air Force Life Cycle Management Center HBU and HNJ divisions. Work will be performed at Hanscom Air Force Base, Mass., Warner Robins, Ga., and San Antonio, Texas, and is expected to be completed by Jan. 17, 2015. Fiscal 2012 procurement funds and 2014 research and development, procurement, and operations and maintenance funds in the amount of $7,169,369 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom AFB, Mass., is the contracting activity.

Oasis Systems LLC, Lexington, Mass., has been awarded an $8,983,870.00 modification (P00050) on cost-plus-fixed-fee, cost reimbursable contract (FA8721-13-C-0026) for professional acquisition support services. This contract modification provides an extension for an additional nine months of professional acquisition support services under the basic contract in support of Air Force Life Cycle Management Center HB and HBAJ divisions including foreign military sales (FMS). Work will be performed at Hanscom Air Force Base, Mass., Langley AFB, Va., and Topeka, Kan., and is expected to be completed by Jan. 17, 2015. Fiscal 2013 procurement and fiscal 2014 research and development and procurement funds and FMS funds in the amount of $5,331,180 were obligated at time of award. FMS (84 percent of the contract) countries include Iraq, Saudi Arabia, Jordan, Qatar, Egypt, Belgium, Romania, Poland, and Columbia. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom AFB, Mass., is the contracting activity.

P E Systems Inc., Fairfax, Va., has been awarded a $7,280,498 modification (P00050) on cost-plus-fixed-fee, cost reimbursable contract (FA8721-13-C-0029) for professional acquisition support services. This contract modification provides an extension for an additional six months of professional acquisition support services under the basic contract in support of Air Force Life Cycle Management Center HNA and HBD Divisions, including foreign military sales (FMS). Work will be performed at Hanscom Air Force Base, Mass., Langley AFB, Va., Washington, D.C., and Wright-Patterson Air Force Base, Ohio, and is expected to be completed by Oct. 17, 2014. FMS support account for approximately 13 percent of the stated modification. Countries include Jordan, Germany, Pakistan, Saudi Arabia, Singapore, Oman, Greece, Thailand, France, Sweden, and United Kingdom. Fiscal 2012 procurement and fiscal 2014 operations and maintenance, research and development, procurement and foreign military sales funds in the amount of $6,351,766 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom AFB, Mass., is the contracting activity.

*Small Business

SECRETARY KERRY'S REMARKS WITH EU HIGH REPRESENTATIVE CATHERINE ASHTON

FROM:  U.S. STATE DEPARTMENT 
Remarks With EU High Representative Catherine Ashton After Their Meeting
Remarks
John Kerry
Secretary of State
Geneva, Switzerland
April 17, 2014

SECRETARY KERRY: Well, good afternoon, everybody. Or good evening, actually, I guess. I’m very, very grateful to be joined here today by the High Representative Cathy Ashton, my friend and colleague, and a terrific partner in this and in other efforts. And I thank her for her leadership throughout this particular initiative.

Diplomacy requires willing partners, and I also want to thank Minister Deshchytsia and also Minister Lavrov for their willing work in the course of today, their readiness to engage in a constructive dialogue. We worked hard, and we worked in good faith, in order to try to narrow what are real differences, some of them significant, and to find a way forward for the people of Ukraine that helps them in achieving their aspiration to live in a stable, peaceful, and unified democracy.

As recent events in eastern Ukraine make clear, they need our support now, and they need it more than ever. Ukraine has shown admirable – sometimes, I think, even remarkable – restraint in the face of considerable challenge. But no one should expect the leaders of a sovereign state to always stand by passively while public order is threatened. And the public order of Ukraine has been threatened in recent days.

Our most urgent task is to de-escalate the situation in Ukraine. So let me just outline where we are and some initial concrete steps that we have agreed to take in the course of the discussions today in order to de-escalate the tensions and restore security for all Ukrainians.

The parties agreed today that all sides must refrain from the use of violence, intimidation, or provocative actions. And we strongly condemned and rejected all expressions of extremism, racism, and religious intolerance, including anti-Semitism.

Let me say a quick word about that. Just in the last couple of days, notices were sent to Jews in one city indicating that they had to identify themselves as Jews. And obviously, the accompanying threat implied is – or threatened – or suffer the consequences, one way or the other.

In the year 2014, after all of the miles traveled and all of the journey of history, this is not just intolerable; it’s grotesque. It is beyond unacceptable. And any of the people who engage in these kinds of activities, from whatever party or whatever ideology or whatever place they crawl out of, there is no place for that. And unanimously, every party today joined in this condemnation of that kind of behavior.

In addition, recently, the Ukrainian – the Russian Orthodox Church members in Ukraine were threatened that the Ukrainian Orthodox Church was somehow going to attack them in the course of the next days. That kind of behavior, that kind of threat, has no place. And all parties agreed that that kind of behavior is not just grotesque and unacceptable, but it will not stand the test of the direction that Ukraine wants to move in.

We agreed today that all illegal armed groups must be disarmed, that all illegally seized buildings must be returned to their legitimate owners, and all illegally occupied streets, squares, and other public places in Ukrainian cities and towns must be vacated.

The Government of Ukraine itself affirmed, and again today, that it will grant amnesty to protestors and to those who have left buildings and other public places and surrender weapons, with the exception of those people who are found guilty of capital offenses.

We also agreed – and I think this is a key part of what was focused on today – we wanted to find concrete steps, not just words, but concrete steps that could be acted on immediately in order to defuse the situation. And so we agreed that the OSCE Special Monitoring Mission, which is already on the ground, whose mission has already been defined and granted, that they undertake a special role in assisting Ukrainian authorities in local communities in the immediate implementation of the de-escalation measures, that they will do so wherever they are needed the most in the coming days. That means beginning immediately. The United States, the EU, and Russia committed to support this mission, including by providing monitors directly.

Now I want to emphasize that Ukraine’s leaders indicated that they are prepared to go to extraordinary lengths to address regional demands for more autonomy, for local self-government, for the protection of minority rights. And I talked this afternoon with Prime Minister Yatsenyuk, and he indicated and reaffirmed his and the government’s strong commitment to a genuine, comprehensive, and inclusive process by which they will engage in the constitutional reform process of Ukraine.

Foreign Minister Deshchytsia briefed us on the extensive and inclusive constitutional reform process already underway, which is geared to address all of the legitimate grievances, but importantly, he and Prime Minister Yatsenyuk committed themselves to going as far as they can to reach out to opponents, to people with different ideas, from people from different constituencies, from different geography, and bring them together over the course of these next days in order to have a comprehensive, inclusive process.

Today, the Ukrainian foreign minister, Minister Deshchytsia, affirmed all of us repeatedly that they will have an inclusive, transparent, and accountable constitutional reform process, and it will include the immediate establishment of a broad national dialogue with outreach to all of Ukraine’s regions and political constituencies, and it will allow for the consideration of public comments and proposed amendments that will be considered. The parties also agreed on the importance of the economic-financial stability of Ukraine, and the importance of all of us being engaged in that effort going forward.

Now, all of this, we believe, represents – excuse me – all of this, we are convinced, represents a good day’s work. But on the other hand, this day’s work has produced principles, and it has produced commitments, and it has produced words on paper. And we are the first to understand and to agree that words on paper will only mean what the actions that are taken as a result of those words produce. So it is absolutely clear now that what is important is that these words are translated immediately into actions, and none of us leave here with the sense that the job is done because the words are on the paper.

The job will not be done until these principles are implemented, until they are followed up on. And what is vital is that the OSCE needs to get to work immediately to de-escalate the security situation in Luhansk, in Donetsk, in Sloviansk, and all the other towns that have been destabilized. And people need to provide them the immediate access in order to be able to do that job, and we intend to be watching extremely carefully to make certain that our monitors and our embassies and our eyes on the ground are able to verify what is taking place.

We fully expect the Russians, as they said they would here today, to demonstrate their seriousness by insisting that pro-Russian separatists, who they’ve been supporting, lay down their arms, leave the buildings, and pursue their political objectives through the constitutional processes that the agreement guarantees. No more incidents of this kind should occur, and if they do, it will be clear that it will elicit a response.

I made clear to Foreign Minister Lavrov today that if we’re not able to see progress on the immediate efforts to be able to implement the principles of this agreement this weekend, then we will have no choice but to impose further costs on Russia.

The Ukrainian Government has exhibited extraordinary patience and fortitude in the face of enormous challenges and pressure. They have asked their people to restrain themselves. They have purposefully assumed a nonviolent posture in the face of challenges that might have invited others to engage in violence. And the Ukrainian people now deserve a right to choose their own future. The international community remains firmly by their side as they travel the difficult, democratic path to prosperity and to peace.

Lady Ashton.

HIGH REPRESENTATIVE ASHTON: Thank you, Secretary Kerry. Thank you, John, very much. I just want to add a few comments. You’ve set out very clearly the discussions on the agreement that’s been reached today. As you’ve said, these have been very frank, but I think constructive discussions that are looking to find the concrete steps, real, practical things that can de-escalate the tensions in Ukraine.

I think it was extremely important to bring us all together here to have that process of dialogue begin. It has to be the first priority that we focus on, to see a de-escalation of the situation, and collectively, as you’ve indicated, we agreed a number of concrete steps that we can see implemented immediately. The word “immediately” is extremely important in this context. We want to see these happen so that we can see things achieved.

The OSCE’s Special Monitoring Mission, as you’ve indicated, will play a leading role in this. It will assist the Ukrainian authorities and local communities to take the necessary measures that they need to take. And we absolutely welcome the Ukrainian commitment to conduct an inclusive and transparent constitutional process. We know that free and fair presidential elections on the 25th of May are the best way to express the will of the people of Ukraine, as is this process of constitutional reform, and we want to see all candidates behaving well and being treated with great respect in that process.

We remain committed to the unity, sovereignty, and territorial integrity of Ukraine. In the meantime, the European Union will continue to support efforts to stabilize the situation in Ukraine economically, financially and politically.

Today, President Barroso of the European Commission wrote to President Putin on behalf of the European Union, accepting President Putin’s proposal for consultations with Russia and Ukraine, trilateral consultations on the security of gas supply and transit.

I end by saying that I believe that by discussing constructively the solutions and actions, that this is the best way to find a way out of the current crisis. Thank you.

MS. PSAKI: The first question will be from Karen DeYoung of The Washington Post.

QUESTION: Thank you. Mr. Secretary, did you discuss or did you receive any Russian commitment for the withdrawal of Russian troops along the border of Ukraine? And did the United States and Europe make any commitments regarding the removal of existing sanctions against Russian individuals? Just to follow up on something you said, you mentioned that Russia had committed to call on those it is supporting inside eastern Ukraine to lay down their weapons. What happens if they don’t respond to that? And finally, did Russia make any commitment on Ukraine’s debt and the gas payments it says are overdue?

SECRETARY KERRY: The answers are no, no commitments with respect to the debt, no commitments with respect to the gas payments overdue, but a commitment to engage in a dialogue that Lady Ashton just described, which will begin to tackle the whole question of energy. And with respect to the withdrawal of troops, they – excuse me – they’ve made it clear that over a period of time, assuming this can de-escalate and it does de-escalate, as the rights of the people they are concerned about are represented, as the constitutional process unfolds and the future government of Ukraine takes place, they are absolutely prepared to begin to respond with respect to troops and larger numbers.

They indicated and reiterated that they have withdrawn one battalion in response to the efforts we’ve made to insist on some movement, and I raised the question of whether more couldn’t now also become part of the equation. And our hope is that as these steps are taken, that that can happen. That would be part of a managed de-escalation.

We said at the beginning, and the document says, “initial concrete steps.” We do not envision this as the full measure of de-escalation. So if this starts and starts effectively, and we can begin to see some progress, we intend to continue to have our meetings, and we discussed with Foreign Minister Lavrov at the end of the meeting the notion that we would continue to talk and to follow up on this. So this is just the beginning. It depends, obviously, as I said, on the good faith of parties and pursuing and following through. And we’re going to watch that very, very closely.

You had one other part to your question?

QUESTION: There were two, actually. One, did you discuss at all lifting any existing sanctions? And finally, if the separatists in eastern Ukraine decline to lay down their arms, who is responsible for making sure that they do?

SECRETARY KERRY: Well, on the question of additional sanctions, the other sanctions, no. There was no discussion at this point in time of removal of any of the existing sanctions. I think everybody understands that would be premature at a moment where we’re putting to test the bona fides of the proffers made today in the course and context of this agreement. So if this agreement pans out and they do indeed produce some change on the ground, then obviously, as we go down the road, I’m sure that is going to become a topic of conversation, but it’s premature right now.

In addition to that, I would just say – thank you very much, thank you, thanks – on the subject of the laying down of weapons, the responsibility will lie with those who have organized their presence, equipped them with the weapons, put the uniforms on them, supported them, and been engaged in the process of guiding them over the course of this operation. And we’ll have to – before we start making judgments about exactly where that accountability will fall, we’ve made it very, very clear that Russia has huge impact on all of those forces. And we’ve made clear what the evidence is. It’s out in the public domain. I think almost everybody in the world has drawn their conclusions about what is happening, and so that’s why these next days will be very important to making judgments.

And I repeat what the White House policy is and what we have said: That if there is not progress over the course of these next days and we don’t see a movement in the right direction, then there will be additional sanctions, additional costs as a consequence.

MODERATOR: The next question is for Julian Borger in the front row. If you could raise your hand, Julian.

SECRETARY KERRY: Can I just say one other thing? Our goal is not to come here and be threatening or to be talking about the downsides. We’re just trying to express a reality about what has to happen. Our hope is that we’ve opened the door so that both of the entities that have an ability in Ukraine to make a difference, or all the entities, will respond. Russia clearly has an enormous ability to be able to impact that outcome, and the Government of Ukraine has an ability to affect it.

So to the degree that both of them can take steps here that will help to provide space for each of them to take further steps, that’s what we’re encouraging, and that’s what we hope will happen.

QUESTION: Did the talks today and the agreement make any progress to finding a compromise between Kyiv and Moscow on just how much autonomy the eastern Ukraine should have ultimately?

SECRETARY KERRY: Well, let me say – and Cathy can obviously respond here too and I think would want to – we were both very impressed by Prime Minister Yatsenyuk’s definition of what he is prepared to do, and he and the government – the interim government in Kyiv are prepared to do. It’s quite extensive. And they have laid down their own vision of autonomy which includes election of local officials; election of the governors; election and management of their budget to a large measure, to the largest measure; management of education; other functions of governance, really reserving to the federal government the principal initiatives of defense, justice, and foreign policy.

It’s frankly far more extensive an offer of autonomy than anything that exists in any oblast in Russia. And so I think we were impressed by it and they are committed to it and their constitutional process will now open up significantly in an effort to bring all of the political players in Ukraine together.

HIGH REPRESENTATIVE ASHTON: Just to echo and endorse that, but the whole process of constitutional reform, the capacity of people to have the kind of public meetings, opportunities to receive ideas from different parts of the country, for people to have a genuine debate about what kind of country they want to live in and how far they want centralization and decentralization – in some ways, this is actually a very exciting moment to be able to try and do that in a proper way. And we want to see that process happen in ways that will enable people to feel that they are engaging in serious discussion about the future of their nation and looking at how local and national governments work together. And that’s a really, really important part of going forward, and I think we want to support that in every possible way.

MS. PSAKI: Margaret Brennan from CBS.

QUESTION: Thank you very much. Mr. Secretary, what is the specific timeframe and specific consequences if these steps are not followed through on? Do we understand you correctly in saying that any and all sanctions are put on pause here? And with the type of autonomy you just described Ukraine being willing to offer, aren’t you concerned that Russia has seemingly carved out a mechanism for influence in Ukraine without even having to launch an overt military invasion of east Ukraine? Vladimir Putin said today he hopes he doesn’t have to demonstrate his right to take military intervention there.

SECRETARY KERRY: Well, first of all, we obviously would contest the notion of a right to do so, and we do. And we obviously differ over the exercise of that so-called right with respect to Crimea, which we believe was taken illegally, against the constitution of Ukraine as well as against the standards of international law. So we begin with a difference there.

But that said, let me make it clear that what has been promised by the government – the interim Government of Ukraine – what Prime Minister Yatsenyuk has promised was promised way before any of these exercises by Russia took place. Almost immediately, Prime Minister Yatsenyuk promised increased autonomy. And the reason he promised the increased autonomy is that he was sensitive to and aware of the fractures within the social fabric of Ukraine and the differences of representation and the complaints that have existed for some period of time, long preceding the events of the Maidan and the change of the government.

So I just – I don’t think that – I think the premise of the question is incorrect that this has happened because of Russia’s pressure. This has happened because this is something that the moment Crimea took place, they made clear they cared about, they thought was important, and they thought represented a better way to manage the differences of background, culture, history, language, and other things that have been reflected in the politics of Ukraine for some period of time.

So I think they’ve taken these steps because they believe it’s the best way to strengthen Ukraine. It’s the best way to have a Ukraine that can be united but still respect some of the passions and differences that exist in the constituencies of Ukraine. And I think it’s an act of – it’s a visionary act, I think it’s a courageous act, and I think it does offer the best prospect going forward for a strong and united, sovereign Ukraine in which all people feel proud to be Ukrainian, but at the same time feel like their day-to-day lives are reflected in the way that they want them to be.

QUESTION: And what about the timeframe for the steps?

SECRETARY KERRY: The timeframe for the steps taken right now? As I said earlier, we expect in the next few days, over the course of this weekend and the earliest part of next week, some of these steps need to begin to be seen and be evident. They don’t have to all be accomplished by then, and it would be hard to see how they would be, but if there’s a clear indication that this is moving in the right direction, then the President will – our President will make his decision and the leaders in Europe will make their decisions, obviously in consultation with each other.

MODERATOR: Final question. Gentleman in the third row.

QUESTION: Thank you. Steve Sedgwick, CNBC. I’m amazed, up until the last answer, Secretary of State and Baroness Ashton, that we haven’t heard the word “Crimea” at all today. Could I confirm now that the West and Ukraine have given up on Crimea and that the whole sanctions process and escalation of sanctions or de-escalation of sanctions has now got nothing to do with Crimea anymore; it’s all about the south and the east of remaining Ukrainian territory?

SECRETARY KERRY: No, you cannot confirm that. And I’m amazed that you asked that question after the answer I just gave. Maybe it was a question you really felt you had to ask, and despite my prior answer you asked it anyway. But I said very clearly that we differed on Crimea, and I said it was illegal, and I said we disagree with the basis, on the constitution of Ukraine as well as on international law. I just said it. In addition to that, the fact is that we just sanctioned them two days ago, I believe, on the issue of Crimea.

So the fact is that we have made it crystal clear that there is a significant difference over Crimea. We are not, quote, “given up,” but today we didn’t come here to talk about Crimea. Today we came here to get something done to reduce the violence, reduce the potential for a complete and total implosion, and to try to move away from what is a spiraling downwards confrontation that takes nobody to a great place. And our hope is that we’ve opened up the opportunity to be able to do that.

But no, nobody has left behind the issue of Crimea, which remains as differentiated today as it was on the day that we first raised the issue and put the sanctions in place.

Cathy?

HIGH REPRESENTATIVE ASHTON: When I said territorial integrity of Ukraine, I meant the territorial integrity of the whole country. I didn’t think I needed to spell out where the European Union stands on that. We’ve been absolutely crystal clear, and the measures we’ve taken equally remain for that reason.

SECRETARY KERRY: Thank you all very much. Appreciate it. Thanks.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR APRIL 16, 2014

FROM:  U.S. DEFENSE DEPARTMENT
CONTRACTS
NAVY

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $54,574,234 modification to a previously awarded fixed-price-incentive-fee, cost-plus-incentive-fee contract (N00019-12-C-0004) for production non-recurring technical assistance in support of the F-35 Lot VII effort for the U.S. Navy, U.S. Air Force, and international partner governments. Services to be provided includes manufacturing technology transfer and planning tasks required to ensure a manufacturing base with sufficient technical knowledge to support F-35 production requirements. Work will be performed in El Segundo, Calif. (38 percent); Fort Worth, Texas (24 percent); Warton, United Kingdom (16.5 percent); San Diego, Calif. (14 percent); Orlando, Fla. (3.4 percent); Nashua, N.H. (2.3 percent); Palmdale, Calif. (1.2 percent); Marietta, Ga. (.3 percent) Amityville, N.Y. (.2 percent); and Laval, Canada (.1 percent), and is expected to be completed in January 2015. Fiscal 2012 aircraft procurement, Navy and Air Force and international partner funds in the amount of $54,574,234 are being obligated on this award, $42,966,294 of which will expire at the end of the current fiscal year. This modification combines purchases for the U.S. Navy ($21,912,810; 4 percent); the U.S. Air Force ($21,053,484; 38.7 percent); and F-35 international partner governments ($11,607,930; 21.3 percent). The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
FTSI-Phelps Joint Venture,* Irvine, Calif., is being awarded a $13,961,000 firm-fixed-price contract for the design and construction of a low-rise composite shop and Marine Aviation Logistics Squadron (MALS) Ground Support Equipment (GSE) holding shed at Marine Corps Base Hawaii. The work to be performed provides for the demolition of an existing engine test cell facility and the removal of an existing tension fabric structure that was used for equipment storage. The composite shop building will include areas for epoxy storage and mixing, paint storage and mixing, machining and grinding, cleaning and preparation, layup and bonding, open storage, preparation room, offices, restrooms and supporting mechanical, electrical and communication spaces. The MALS GSE holding shed will include open equipment storage, restrooms and supporting electrical and mechanical spaces. The contract also contains one unexercised option, which if exercised would increase cumulative contract value to $14,372,716. Work will be performed in Kaneohe, Hawaii, and is expected to be completed by September 2015. Fiscal 2010 and 2014 military construction, Navy contract funds in the amount of $13,961,000 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with seven proposals received. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity (N62742-14-C-1315).

Alutiiq Security & Technology,* Anchorage, Alaska (N65236-14-D-4978); Atlantic CommTech, Corp.,* Norfolk, Va. (N65236-14-D-4979); Forward Slope Inc.,* San Diego (N65236-14-D-4980); The Cameron Bell Corp., doing business as Government Solutions Group,* Daniel Island, S.C. (N65236-14-D-4981); Mandex Inc.,* Fairfax, Va. (N65236-14-D-4982); and Systems Applications & Solutions,* Hanahan, S.C. (N65236-14-D4983), are each being awarded an indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee with provisions for firm-fixed-price task orders, performance based multiple award contract. The contracts are for the procurement of Ashore Systems engineering services. The services required include engineering development, design, procurement, fabrication, configuration, integration, installation, logistics, maintenance and life cycle support services for Ashore Systems. The cumulative, estimated ceiling value of the base year is $9,980,000. These contracts include options which, if exercised, would bring the cumulative ceiling value of these contracts to an estimated $49,900,000. This contract action merely establishes a potential ceiling value and does not obligate the Navy to fund to the ceiling. Work will be performed in Charleston, S.C. (85 percent) and Washington, D.C. (15 percent). Work is expected to be completed by April 2015. If all options are exercised, work could continue until April 2019. SPAWAR Systems Center Atlantic Navy working capital funds in the amount of $25,000 will be obligated at the time of award as the minimum guarantee and will be split among the six awardees; these funds will not expire at the end of the current fiscal year. This contract action establishes a potential ceiling value, in which funds are obligated on individual task orders for efforts that fall within the core competency areas. The multiple award contracts were competitively procured by full and open competition after exclusion of sources under small business set-aside provisions (10 U.S.C. 2304 (b)(2)) via the Space and Naval Warfare Systems Center e-Commerce Central website and the Federal Business Opportunities website, with 20 offers received. Space and Naval Warfare Systems Center Atlantic, Charleston, S.C., is the contracting activity.

DEFENSE LOGISTICS AGENCY

The Source Group Inc.,* Signal Hill, Calif., has been awarded a maximum $13,810,540 firm-fixed-price contract for environmental remediation, assessment, and emergency response services. This is a competitive acquisition, and five offers were received. This is a five-year base contract. Location of performance is California with an April 30, 2019 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-5410).

The Source Group Inc.,* Signal Hill, Calif., has been awarded a maximum $10,432,295 firm-fixed-price contract for environmental remediation, assessment, and emergency response services. This is a competitive acquisition and five offers were received. This is a five-year base contract. Location of performance is California with an April 30, 2019 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-5411).

Rockwell Collins-ESA Vision Systems, Fort Worth, Texas, has been awarded a maximum $10,307,718 modification (02) on delivery order (0009) to contract (SPRWA1-11-D-0007). The modification adds various items in support of the joint helmet mounted cueing system. The revised total based on this delivery order modification is $37,210,209. This is a firm-fixed-price contract. This is a sole-source acquisition. Locations of performance are Texas, Oregon, and Israel with a Sept. 30, 2015 performance completion date. Using military service is Air Force. This modification contains foreign military sales elements for Iraq. Type of appropriation is fiscal 2015 Air Force procurement funds and FMS funds. The contracting activity is the Defense Logistics Agency Aviation, Robins Air Force Base, Ga.
*Small Business

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

FROM:  U.S. STATE DEPARTMENT

On the Occasion of the Republic of Zimbabwe's National Day

Press Statement
John Kerry
Secretary of State
Washington, DC
April 17, 2014




On behalf of President Obama and the American people, I send best wishes to the people of Zimbabwe as you celebrate 34 years of independence on April 18.

The United States remains committed to the people of Zimbabwe. We will continue to support all Zimbabweans as you seek a more democratic, prosperous, and healthy future.

We look forward to strengthening our partnership with the Zimbabwean people to achieve our common goals of peace, security, and prosperity.

SUPERCOMPUTERS PREDICT SIGNS OF BLACK HOLES CONSUMING STARS

Right:  Black Hole Caught in a Stellar Homicide.  This computer-simulated image shows gas from a star that is ripped apart by tidal forces as it falls into a black hole. Some of the gas also is being ejected at high speeds into space.  Image Credit: NASA, S. Gezari (The Johns Hopkins University), and J. Guillochon (University of California, Santa Cruz).

FROM:  NATIONAL SCIENCE FOUNDATION 
Cosmic slurp
Georgia Tech researchers use supercomputers to understand and predict signs of black holes swallowing stars
April 14, 2014

Somewhere out in the cosmos an ordinary galaxy spins, seemingly at slumber. Then all of a sudden, WHAM! A flash of light explodes from the galaxy's center. A star orbiting too close to the event horizon of the galaxy's central supermassive black hole has been torn apart by the force of gravity, heating up its gas and sending out a beacon to the far reaches of the universe.

In a universe with tens of billions of galaxies, how would we see it? What would such a beacon look like? And how would we distinguish it from other bright, monumental intergalactic events, such as supernovas?

"Black holes by themselves do not emit light," said Tamara Bogdanovic, an assistant professor of physics at the Georgia Institute of Technology. "Our best chance to discover them in distant galaxies is if they interact with the stars and gas that are around them."

In recent decades, with improved telescopes and observational techniques designed to repeatedly survey the vast numbers of galaxies in the sky, scientists noticed that some galaxies that previously looked inactive would suddenly light up at their very center.

"This flare of light was found to have a characteristic behavior as a function of time. It starts very bright and its luminosity then decreases in time in a particular way," she explained. "Astronomers have identified those as galaxies where a central black hole just disrupted and 'ate' a star. It's like a black hole putting up a sign that says 'Here I am.'"

Using a mix of theoretical and computer-based approaches, Bogdanovic tries to predict the dynamics of events such as the black-hole-devouring-star scenario described above, also known as a "tidal disruption." Such events would have a distinct signature to someone analyzing data from a ground-based or space-based observatory.

Using National Science Foundation-funded supercomputers at the Texas Advanced Computing Center (Stampede) and the National Institute for Computational Sciences (Kraken), Bogdanovic and her collaborators recently simulated the dynamics of these super powerful forces and charted their behavior using numerical models.

Tidal disruptions are relatively rare cosmic occurrences. Astrophysicists have calculated that a Milky Way-like galaxy stages the disruption of a star only once in about 10,000 years. The luminous flare of light, on the other hand, can fade away in only a few years. Because it is such a challenge to pinpoint tidal disruptions in the sky, astronomical surveys that monitor vast numbers of galaxies simultaneously are crucial.

Huge difference

So far, only a few dozen of these characteristic flare signatures have been observed and deemed "candidates" for tidal disruptions. But with data from PanSTARRS, Galex, the Palomar Transient Factory and other upcoming astronomical surveys becoming available to scientists, Bogdanovic believes this situation will change dramatically.

"As opposed to a few dozen that have been found over the past 10 years, now imagine hundreds per year--that's a huge difference!" she said. "It means that we will be able to build a varied sample of stars of different types being disrupted by supermassive black holes."

With hundreds of such events to explore, astrophysicists' understanding of black holes and the stars around them would advance by leaps and bounds, helping determine some key aspects of galactic physics.

"A diversity in the type of disrupted stars tells us something about the makeup of the star clusters in the centers of galaxies," Bodganovic said. "It may give us an idea about how many main sequence stars, how many red giants, or white dwarf stars are there on average."

Tidal disruptions also tell us something about the population and properties of supermassive black holes that are doing the disrupting.

"We use these observations as a window of opportunity to learn important things about the black holes and their host galaxies," she continued. "Once the tidal disruption flare dims below some threshold luminosity that can be seen in observations, the window closes for that particular galaxy."

Role of supercomputer

In a recent paper submitted to the Astrophysical Journal, Bogdanovic, working with Roseanne Cheng (Center for Relativistic Astrophysics at Georgia Tech) and Pau Amaro-Seoane (Albert Einstein Institute in Potsdam, Germany), considered the tidal disruption of a red giant star by a supermassive black hole using computer modeling.

The paper comes on the heels of the discovery of a tidal disruption event in which a black hole disrupted a helium-rich stellar core, thought to be a remnant of a red giant star, named PS1-10jh, 2.7 billion light years from Earth.

The sequence of events they described aims to explain some unusual aspects of the observational signatures associated with this event, such as the absence of the hydrogen emission lines from the spectrum of PS1-10jh.

As a follow-up to this theoretical study, the team has been running simulations on Kraken and Stampede, as well as Georgia Tech's Keeneland supercomputer. The simulations reconstruct the chain of events by which a stellar core, similar to the remnant of a tidally disrupted red giant star, might evolve under the gravitational tides of a massive black hole.

"Calculating the messy interplay between hydrodynamics and gravity is feasible on a human timescale only with a supercomputer," Cheng said. "Because we have control over this virtual experiment and can repeat it, fast forward, or rewind as needed, we can examine the tidal disruption process from many perspectives. This in turn allows us to determine and quantify the most important physical processes at play."

The research shows how supercomputer simulations complement and constrain theory and observation.

"There are many situations in astrophysics where we cannot get insight into a sequence of events that played out without simulations. We cannot stand next to the black hole and look at how it accretes gas. So we use simulations to learn about these distant and extreme environments," Bogdanovic said.

One of Bogdanovic's goals is to use the knowledge gained from simulations to decode the signatures of observed tidal disruption events.

"The most recent data on tidal disruption events is already outpacing theoretical understanding and calling for the development of a new generation of models," she explained. "The new, better quality data indicates that there is a great diversity among the tidal disruption candidates. This is contrary to our perception, based on earlier epochs of observation, that they are a relatively uniform class of events. We have yet to understand what causes these differences in observational appearance, and computer simulations are guaranteed to be an important part of this journey."

Investigators
Roseanne Cheng
Pau Amaro-Seoane
Tamara Bogdanovic

3 BRIDGESTONE CORP. EXECS INDICTED FOR PRICE FIXING, RIGGING BIDS ON AUTO PARTS

FROM:  U.S. JUSTICE DEPARTMENT 
PRICES AND RIGGING BIDS ON AUTO PARTS INSTALLED IN U.S. CARS

WASHINGTON — A Cleveland federal grand jury returned an indictment against one current executive and two former executives of Bridgestone Corp. for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Northern District of Ohio in Toledo, charges Yoshiyuki Tanaka, Yasuo Ryuto and Isao Yoshida, all Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate sales of, to rig bids for, and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Nissan Motor Corp., Suzuki Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.

“Today’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”

Tanaka was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager at Bridgestone and executive vice-president at Bridgestone’s U.S. subsidiary Bridgestone APM Co., from approximately 1991 through at least February 2011.  He is currently manager of the anti-vibration rubber original equipment international planning section.  Ryuto was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including general manager and director, from approximately 1991 through at least June 2008; he is no longer employed by the company.  Yoshida was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager and general manager, from approximately 1997 through at least September 2008; he is no longer employed by the company.

The indictment alleges that Tanaka, Ryuto, Yoshida and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements regarding the sale of automotive anti-vibration rubber products to automakers in the United States and elsewhere.  The indictment alleges that the conspiracy involved agreements affecting the Tacoma, Camry, Tundra, Sequoia, Corolla, Sienna, Venza and Highlander.  According to the indictment, Tanaka participated in the conspiracy from at least as early as January 2004 until at least June 2008; Ryuto participated in the conspiracy from at least as early as April 2001 until at least May 29, 2008; and Yoshida participated in the conspiracy from at least as early as January 2001 until at least July 2008.

Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile.  They are installed in automobiles for the purpose of reducing road and engine vibration.  On Feb. 13, 2014, Bridgestone agreed to plead guilty and to pay a $425 million criminal fine for its role in the conspiracy.

To date, 32 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.

Each of the individuals is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  These cases were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio.

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