U.S. WELCOMES APPOINTMENT OF UN SPECIAL ENVOY FOR SYRIA

FROM:  U.S. STATE DEPARTMENT 

Appointment of Staffan de Mistura as UN Special Envoy for Syria

Press Statement

John Kerry

Secretary of State

Washington, DC

July 10, 2014

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The United States welcomes the decision by United Nations Secretary-General Ban Ki-moon to appoint Staffan de Mistura as the new UN Special Envoy for Syria. Special Envoy de Mistura is a distinguished diplomat who brings a wealth of experience to this pressing crisis from his work on Afghanistan, Iraq, Lebanon, Somalia, Sudan, and the former Yugoslavia.

We applaud his readiness to continue the important mission of trying to bring an end to the suffering and brutal violence inside Syria and to forge a path toward a political transition consistent with the principles of the Geneva Communique that ultimately leads to an inclusive government and fulfills Syrians’ aspirations for freedom and dignity. We encourage Special Envoy de Mistura to build upon the outstanding work of his predecessor, Mr. Lakhdar Brahimi, and expand upon UN engagement with Syrians from all strata of society.

We look forward to supporting Special Envoy de Mistura as he works to achieve a negotiated political solution, which we believe is the best way to address all dimensions of this crisis and to end the conflict sustainably.

REMARKS BY SECRETARY KERRY AT ECOPARTNERSHIPS SIGNING CEREMONY IN BEIJING, CHINA

FROM:  U.S. STATE DEPARTMENT 

Remarks at EcoPartnerships Signing Ceremony

Remarks

John Kerry

Secretary of State

Great Hall of the People

Beijing, China

July 10, 2014

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Well, State Councilor Yang and all of our ecopartners today who traveled so far in order to sign these landmark agreements, we are delighted to be here. I was sitting here, thinking, listening to the State Councilor -- the amazing journey we have traveled in very few years.
I was in Rio in 1992 for the first Earth Day for the Earth Summit, when we first began to discuss, globally, the challenge of climate change. And even five years ago, when I was in the United States Senate, I would not have imagined that we would have been standing here in Beijing, joining together in this kind of initiative. And the reason we are here is because the science is growing so significantly, and coming back at us not just with the truth of what was predicted, but coming back in greater quantities, faster than anybody predicted.

And so, it is no secret that China and the United States have a very special role to play together in combating climate change. Our words and our actions will set the tone. Either we create the momentum to galvanize global action in order to deal with this, or we risk a global catastrophe. That is the science. You can't be half pregnant on this. If you accept the science, and it tells you what is happening, you have to also listen to the people as they give us warnings about what will happen if we don't take action.

All of us in this room recognize that governments cannot meet this challenge alone. And that is why we are harnessing the ingenuity and the innovation of the private sector, universities, civil society, in order to promote economic growth, energy security, and environmental sustainability. And our EcoPartnerships program is a tremendous jumping-off point to help us do exactly what we need to do in those three objectives.

Some of you here are working on biofuels and battery storage technology. Some of you are focused on reducing air pollution in ports, and promoting low-emission cities, creating city planning that works on sustainability and efficiency, and also developing clean technologies. But all of you are turning a singular challenge into a moment of great opportunity.

The former Speaker of the U.S. House of Representatives, my friend -- I had the privilege of serving with him -- Speaker Tip O'Neill, had a terrific saying, that all politics is local. Well, our ecopartnerships are applying the Tip O'Neill doctrine to climate. If you want to make progress globally, start locally.

And I will just share one example. The Center for Climate Strategies in the United States has been working very closely with the Global Environmental Institute in China in order to develop ideas for reducing greenhouse gas emissions. And the Center has already worked with 36 states in the United States on ways to reduce greenhouse gas emissions, and it is transferring these best practices to Chinese provinces. It is doing so directly. In the next three years, the partnership will develop 30 low-carbon plans across China. And that is exactly how we are going to make the most progress in this fight.

Now, it is easy to get caught up in the conventional wisdom that says no big change is going to be able to happen without big bureaucracies, big government, big decisions. But, frankly, a lot of us have learned in the last 20 years that you've got to begin somewhere.

I still remember participating, back in 1970, in the first Earth Day in the United States of America. On that day, 20 million Americans came out of their homes and demonstrated, because they didn't want to grow up drinking water that came from pollution from local dumps, or from toxic chemical sites, and so forth. We had no Environmental Protection Agency in 1970 in America. We had no laws preventing paint from being used in people's homes or on babies’ cribs that was lead and could do injury, if not death to those children. We had no one that was safeguarding our public drinking water. Polluters were even dumping medical waste directly into the oceans. And by 1970, our rivers were so dirty that, famously, one particular river in one of our states actually caught fire.

The explosion of our activism at that moment in time, on that very first Earth Day, was people-driven, local citizens demanding something better. And that first Earth Day led, ultimately, to the creation of the Environmental Protection Agency, signed into law by Richard Nixon; the passage of the Clean Air Act; the Clean Water Act; the Safe Drinking Water Act; the Marine Mammal Protection Act; the Coastal Zone Management Act; and the EPA, itself. So, I have seen the power of grass roots action, of local efforts becoming magnified and ultimately creating action at a larger, federal level. And I see that same kind of drive, that same kernel of innovation, and of demand for a difference right here, today.

What one country does with respect to the environment impacts the livelihoods of people in other countries. And what we all do to address climate change will now determine the kind of planet that our children and our grandchildren will live on. That is not a question about who wins and who loses. If you tackle climate change and you lead the way to a clean energy future, the fact is it is win-win-win: win for China, win for America, and win for the world. And today, these ecopartnerships are a signal to everybody that we are serious, we are on our way, and we intend to seize the opportunity. Thank you. (Applause.)

SECRETARY KERRY'S REMARKS AT CEO ROUNDTABLE IN BEIJING, CHINA

FROM:  U.S. STATE DEPARTMENT 

Remarks at Opening of CEO Roundtable

Remarks

John Kerry

Secretary of State

Secretary of Treasury Jacob Lew, State Councilor Yang Jiechi

Diayuotai State Guesthouse

Beijing, China

July 10, 2014

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MODERATOR: (Via interpreter) Special representatives, friends of the business community, (inaudible) joining us in the Strategic and Economic Dialogue through a cultural performance, then the roundtable is a routine program of this cultural show. So I will first give the floor to State Councilor Yang Jiechi.

STATE COUNCILOR YANG: (Via interpreter) Vice Premier Wang, Secretary Kerry, Secretary Lew, business leaders from China and the United States, ladies and gentlemen, good morning. First of all, let me warmly welcome all the business leaders from China and the United States at this breakfast. I’ve seen many old friends and new friends here today. So all of the four special representatives are here, and we also have the leading figures from important ministries and agencies of China, and I think this shows – the presence of them shows how much importance our two governments attach to our business relationship. And I’ll be looking forward to the remarks from all the business leaders as well as your insights.

And business is a backbone of China-U.S. economic relationship. Over the past 35 years, our bilateral trade increased by over 200 times. It was up from U.S. $2.45 billion in 1979 to $520 billion in 2013. Bilateral investment, which was hardly in existence, grew to U.S. $100 billion last year. So without your hard work, there would not have been such big progress in our bilateral economic relationship and trade.

The businesses also drive our cooperation. Trade and investment between our businesses’ leaders – businesses not only brings goods and jobs to us, but also mutual understanding and friendship among our peoples. Over the past 35 years, we have been expanding the areas of our cooperation and have seen a big increase in our people-to-people exchanges, and we ought to thank our enterprises for their hard work.

Finally, the business is also the pillars for our new model of major-country relationship, which is an unprecedented and innovative endeavor. We need to work very hard and work continuously. And we also look forward to the active support and participation of people from all sectors so that our companies and businesses play very important roles.

And I believe that the government departments from those countries will attach great importance to your views and your comments, and we will try our best to include them into the agenda of S&ED so as to remove the obstacles for cooperation between our two – between the companies of the two sides and create a better development environment for all of you. Thank you.

MODERATOR: (Via interpreter) Secretary Jacob Lew please.

SECRETARY LEW: Thank you very much, Vice Premier. On behalf of President Obama and all of my colleagues in the States, I’d like to thank our Chinese colleagues for hosting this morning’s discussions, and to all the business leaders who’ve come (inaudible). As we all know, we’re in the middle of our sixth U.S.-China Strategic and Economic Dialogue, and over the past five years, this has really become a foundation of our economic engagement.
I think that the dialogue itself is the government-to-government engagement. But what’s really driving a lot of what we do economically is the people-to-people engagement that goes on in the business world. I think it’s important to remember that before we had diplomatic relations, we did have commercial relations. They were small, and as the State Councilor noted, they’ve grown tremendously over the last 35 years. But it began with relationships in commerce and grew into government-to-government relationships.

Today, strengthening the commercial relationship remains an important task ahead of us. It’s a way of creating economic growth and jobs in our two countries, and it’s a way to help drive the global economy forward. You, the business leaders, are the strongest champions of the robust, fair and expanding U.S.-Chinese relationship.

The United States welcomes foreign direct investment. It has been the backbone of our economy for our entire history, and we look forward to discussions that will continue (inaudible) the next few years. Foreign direct investment from China in the United States has grown tenfold, and we hope that we can, through conversations like this, continue to identify opportunities (inaudible) in both countries.

Last year marked the first time that Chinese direct investment in the United States was greater than investment from the United States into China. Chinese firms are making important contributions to U.S. output and employment and are valued members of the communities in which they invest.

U.S. firms, which, I believe, are the most dynamic and innovative in the world, likewise are contributing to the Chinese economy. And they’re capable contributing to even more of China’s efforts to transform its development model, develop its services industry, deepen financial sector reform, and improve access to capital and boost domestic demand. It’s important that these firms are able to participate in healthy competition on a level playing field that will produce benefits to both our nations and the global economy.

And that’s where each of you, the business leaders here this morning, comes in. Each of your firms plays a pivotal role in helping to propel the U.S.-China relationship forward. And with that, I look forward to hearing your comments this morning about the successes you’ve had in the collaboration, and importantly, the challenges you face where we, as government officials, can perhaps play a role to help make things easier on both sides.

With that, I look forward to hearing what all of my colleagues on both sides – the government part of the table, but mostly what the business side of the table – have to say here this morning. Thank you very much.

MODERATOR: (Via interpreter) Secretary Kerry please.

SECRETARY KERRY: Vice Premier Wang, thank you very, very much. Thank you very much for your generous welcome here over the last 48 hours. We’re really delighted to be here with so many high-level, extraordinarily successful, confident business leaders. And I’m very happy to be joined with a very strong American delegation. Our – in addition to the Secretary of the Treasury Jack Lew, we have our Commerce Secretary Penny Pritzker, our Trade Representative Mike Froman, our Counselor to the President John Podesta, our ambassador – well, Senator Max Baucus. And we really have come here to listen to you. We want to hear your thoughts.

But I would just say as a preface to that, the State Department today is very clear that economic policy is foreign policy and foreign policy is economic policy. And all of our people – the people of China, the people of the United States, really the people of the world – are looking for their fair opportunities. That was part of the unrest that we see in certain parts of the world. Huge numbers of young people connected to everybody in the world, every day, all the time. So everything that happens anywhere is now known to everybody.

The fact is that it’s a world of rising expectations, but it’s also a world of rising possibilities. And nobody defines that more than your businesses. When half the world is still living on less than $2 a day and a large percentage of it on $1, there’s immense opportunity for growth and development. How we manage that is really what is going to define, I think, this century.
And the fact is that you’ve heard the figures. Thirty-five years ago, $2 billion of trade in goods; now, well over 500 and growing, with foreign direct investment moving in both directions – not yet even, but something we need to work at, but it doubled last year from China to the United States. We want to do better. We are in the middle of negotiating now a bilateral investment treaty. We’ll want to get that completed. We want to have an intellectual/technology trade agreement. We need to make sure we’re protecting intellectual property rights; make sure we’re creating transparency in the regulatory process; make sure that we are raising the bar for everybody in a sense, in terms of the standards by which we do business.

China and the United State represent the greatest economic alliance trading partnership in the history of humankind, and it is only going to grow. So this is a very important meeting and we really look forward to hearing from you your thoughts about how we, in the Obama Administration, can grow these possibilities, meet your needs, strengthen our countries, and strengthen the security relationship as well, which grows out of the economic relationship at the same time.

So thank you for coming today, and we thank the Vice Premier and the State Councilor for convening us.

MODERATOR: (Via interpreter) I want to thank the three special representatives for their opening remarks. Now I will open up the floor.

REMARKS BY SECRETARY KERRY, CHINESE PRESIDENT XI JINPING AT GREAT HALL OF THE PEOPLE

FROM:  U.S. STATE DEPARTMENT 

Remarks With Chinese President Xi Jinping

Remarks

John Kerry

Secretary of State

Great Hall of the People

Beijing, China

July 10, 2014

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PRESIDENT XI: (Via interpreter.) A historical experience in our relationship is a valuable asset that both sides need to keep in mind. President Obama and I have agreed that we will work together to build a new model of major country relations between China and the United States. And from my words and the words of President Obama, people can see our sheer determination to do that. I hope through the joint efforts of both sides, we can make sure the China-U.S. relationship will make some progress in the right direction, and as we stress here, that China will continue to make unrelenting efforts in that direction.

When you go back, please send my best greetings and warm regards to President Obama and Vice President Biden. I welcomed President Obama to come to China in November for the APEC meeting and a bilateral visit, which will give us another opportunity (inaudible).
Now I’d like to listen to your comments please.

SECRETARY KERRY: Well, Mr. President, first of all, thank you on behalf of President Obama and our entire delegation. We’re very grateful to you and your team for the excellent dialogue over these two days.

And thank you for your strong (inaudible) yesterday (inaudible) the dialogue. I think that it helped to raise the level of discussion, and I know that President Obama is very much looking forward to being here for the APEC conference. He wants that conference to be a success, and we hope that these two days have helped to provide the building blocks for that success.
As you know, Mr. President, that Secretary Lew led the economic discussion, and we were engaged with principally State Councilor Yang Jiechi on the security dialogue. And I would just say to you very quickly and I think Secretary Lew would like to say the same thing. President Obama wants to emphasize that the United States welcomes and wants a strong, prosperous, stable China.

And we mean what we say when we emphasize that there is no U.S. strategy to try to push back against or be in conflict with China. There were many, many issues that we discussed. We really covered the waterfront, as we say. But I do want to emphasize that we reached agreement that we need to both do more and we are prepared to do (inaudible) in order (inaudible) Korea on the subject of denuclearization. Secondly, we came to agreement that must press forward together in unity with respect to Iran’s nuclear program, and we look forward to continuing to cooperate in the P5+1.

And third, and I think very importantly, because of your directives last year, because of the meetings we’ve held over this past year, we have really made significant progress in defining our mutual leadership role on climate change. And we believe there’s an enormous opportunity to be able to help (inaudible) internationally , and we’re very grateful to you for your serious effort that your team has made with us to sign EcoPartnerships, to designate specific measures you will take, and to continue to work on that very challenging (inaudible).

NASA SCIENCECASTS: A SUMMER OF SUPER MOONS

EX-IM BANK CLAIMS IT'S OPENING DOORS FOR SMALL BUSINESSES IN CHINA

FROM:  U.S. EXPORT-IMPORT BANK 

The Export-Import Bank Continues to Open Doors for U.S. Small Businesses to Export to China in 2014

Direct and indirect small business support part of record-high $1.8 billion authorizations for exports to China year-to-date

SHENZHEN, CHINA – As the Export-Import Bank of the U.S. (Ex-Im Bank) Chairman and President Fred Hochberg tours China to encourage the purchase of Made-in-America goods and services and participates in the U.S.-China Strategic and Economic Dialogue, new statistics reveal that Ex-Im Bank is on track to hit a new record for transactions supporting U.S. exports to China in fiscal year 2014. Already totaling more than $1.8 billion, Ex-Im Bank financing contributes to a more balanced trade relationship with China, where exports from American companies have nearly doubled since 2009.


”As the world’s second largest economy, and the third largest importer of U.S. goods, China represents an incredible opportunity for U.S small businesses,” said Chairman Hochberg. “Both through direct sales to China and supplying larger U.S. exporters, American small businesses, with the help of Ex-Im Bank are competing on a more level playing field while expanding their exports to China and creating jobs in the United States.”

Ex-Im Bank does not compete with private banks or lenders, but still continues to play a vital role in opening China’s vast market to U.S. small businesses through its loan-guarantee and trade-credit-insurance programs. That’s because, often times, small business exporters have shipments that are too small for commercial banks to deem worth their time. With just over 400 employees, Ex-Im Bank is nimble enough that there is no American small business exporter that is too small for Ex-Im to support.

“We are finding that the ability to talk about and offer a loan is critical to our success for fire apparatus and equipment sales in many parts of China,” said Peter Darley, vice president of W.S. Darley of Itasca, Illinois. “Due to the Ex-Im framework agreement, interested Fire Departments are able to purchase products from the U.S. and can spread out their payments, affording them the opportunity to purchase the right amount of equipment with the desired quality and technology. We have a lot of good people working for us that are employed because we are able to offer project financing that is backed by Ex-Im Bank.”

As a result of Ex-Im support, small businesses across the U.S. have been able to directly export to China in FY 2014, including:

Bassett’s Ice Cream – Philadelphia, PA. Bassett’s is a fifth-generation frozen dessert distributor and a Philadelphia tradition since 1861.

Cypress Creek Hardwoods – Austin, TX. Cypress Creek Hardwoods sells hardwood lumber to China.

Lions Gate Inc. – Honaunau, HI. Lions Gate exports Kona Coffee.

South Coast Products – Houston, TX. South Coast produces lubricants, greases, thread compound, sealants, lubrication equipment, and laboratory equipment and accessories used for testing/analysis of greases and lubricants.

Teledynamics LLC – Towaco, NJ. Teledynamics manufactures and supplies mail and material monorail systems for hospitals, libraries, and law firms.

W.S. Darley – Itasca, IL. Darley is a leading provider of firefighting equipment, rescue gear, tools and supplies.

READOUT: DEPUTY AG COLE'S TOUR OF BORDER STATION IN MCALLEN, TX

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 9, 2014

Readout of Deputy Attorney General’s Tour of Border Station in McAllen, Texas
Deputy Attorney General James Cole made a return trip today to the U.S. Customs and Border Protection’s McAllen Station and processing facility to discuss steps the Department of Justice is taking to help address the influx of migrants crossing the southwest border.

Chief Patrol Agent Kevin Oaks and Deputy Chief Patrol Agent Raul Ortiz gave the Deputy Attorney General a tour of the facility and a briefing on the operations at McAllen.  McAllen staff discussed the numbers of migrants that are arriving each day, including the numbers of unaccompanied children, families and adults; and the reasons, including violence in Central American countries, that many are giving for making the dangerous trek to the U.S. border.  Cole also viewed the station’s processing facility, where migrants who have arrived in the past few days are housed.

During his talk with McAllen staff, Cole took the opportunity to highlight the Justice Department’s commitment to prioritizing adjudication of cases that fall into the following four groups: unaccompanied children who recently crossed the border; families who recently crossed the border and are held in detention; families who recently crossed the border but are on “alternatives to detention;” and other detained cases, including border crossers and significant public safety threats.  He also emphasized that the department’s intention to reassign immigration judges in immigration courts around the country from their current dockets to hear the cases of individuals falling in these four groups.

Cole noted that the department is also seeking new funding for as many as 40 more immigration judges and to provide technical assistance to Central American countries in identifying and dismantling smuggling operations that take advantage of migrants seeking to enter the U.S.  He also noted that the department has requested funding to provide technical assistance in combating transnational crime and the threat posed by criminal gangs.  Cole reiterated that the department continues to focus on investigating and prosecuting smugglers who exploit and victimize vulnerable migrants, including children, in partnership with DHS and foreign governments. The discussion with McAllen staff also included a productive exchange of ideas on strategic ways to combat smuggling.

The Deputy Attorney General was impressed by the professionalism and dedication of the McAllen staff and thanked them for their service.  Cole last visited the facility in November 2013.

WHITE HOUSE PRESS SECRETARY MAKES STATEMENT ON INDONESIAN PRESIDENTIAL ELECTION

FROM:  THE WHITE HOUSE 

Statement by the Press Secretary on the Indonesian Presidential Election

We congratulate the people of Indonesia on the successful completion of their historic presidential election.  The high voter turnout, spirited campaign, and strong participation by Indonesia’s public, civil society, and media underscore the strength and dynamism of Indonesia’s maturing democracy.

As the world’s second and third largest democracies, the United States and Indonesia have many shared interests and values, including a strong belief in the importance of respect for human rights, inclusive governance, and equal opportunities for all people.  The Comprehensive Partnership that our two countries launched in 2010 is a long-term commitment to build on our common interests to broaden, deepen and elevate bilateral relations between the United States and Indonesia, as well as to promote mutual understanding and work together on issues of regional and global concern.  The President looks forward to continuing that important partnership with the new Indonesian President, as well as with the recently elected parliament.

President Obama and his Administration have valued the partnership with President Yudhoyono, who has worked closely with the United States to strengthen our bilateral relationship and our engagement with ASEAN. As President Yudhoyono nears the end of his term, he can look back on an important legacy of helping Indonesia achieve strong economic growth, strengthened democratic institutions, and a role as a regional and global leader. This Administration recognizes with deep appreciation his efforts to build greater understanding between Indonesia and the United States, and we look forward to continuing close ties going forward.

FDA APPROVES MEDTRONIC COREVALVE SYSTEM

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 

Medtronic CoreValve System - P130021/S002

This is a brief overview of information related to FDA’s approval to market this product. See the links below to the Summary of Safety and Effectiveness Data (SSED) and product labeling for more complete information on this product, its indications for use, and the basis for FDA’s approval.

Product Name: Medtronic CoreValve System
PMA Applicant: Medtronic CoreValve LLC
Address: Medtronic CoreValve LLC, 3576 Unocal Place, Santa Rosa, CA 95403
Approval Date: June 12, 2014
Approval Letter: http://www.accessdata.fda.gov/ cdrh_docs/pdf13/P130021S002a.pdf

What is it? The Medtronic CoreValve System (often referred to as the CoreValve) consists of a catheter-based artificial aortic heart valve and accessories used to implant the valve without open-heart surgery. The valve is made of pig tissue attached to a flexible, self-expanding, nickel-titanium frame for support.

How does it work? The CoreValve is compressed and placed on the end of a tube-like device called a delivery catheter. It is then inserted through the femoral artery in the leg. If the femoral arteries are not suitable, the valve can also be inserted through other arteries or through the aorta. The catheter is pushed through the blood vessels until it reaches the diseased aortic valve. The valve is then released from the catheter, it expands on its own, and anchors to the diseased valve. The CoreValve functions the same as a normal valve, helping the blood flow properly by opening and closing like a door to force the blood to flow in the correct direction.

When is it used? The CoreValve is used in patients whose own aortic heart valve is diseased due to calcium build up, which causes the valve to narrow (aortic stenosis) and restricts blood flow through the valve. As the heart works harder to pump enough blood through the smaller opening, the heart eventually becomes weak. This can lead to symptoms and life-threatening heart problems such as fainting, chest pain, heart failure, irregular heart rhythms (arrhythmias), or cardiac arrest. Once symptoms of severe aortic stenosis occur, over half of the patients die within two years if the diseased valve is not replaced.

The CoreValve should only be used in patients who cannot undergo, or are at high risk for open heart surgery as determined by their heart team (a cardiologist and surgeon).

What will it accomplish? The CoreValve can help correct the blood flow problem associated with aortic stenosis in patients who need open-heart surgery to replace the diseased valve, but the surgical procedure is highly risky, or too risky. In the U.S. clinical trial, the CoreValve was shown to be reasonably safe and effective for those patients without the need for open-heart surgery. However, implanting the CoreValve also carries the risk of serious complications such as death, stroke, acute kidney injury, heart attack, bleeding, complications with the arteries used to insert the valve, and the need for a permanent pacemaker. For some patients with coexisting conditions or diseases, the risks may be especially high. Patients should discuss with their doctors the benefits and risks of this device.

When should it not be used? The CoreValve should not be used in patients who:

have an infection in the heart or elsewhere.
have an artificial (mechanical) aortic valve.
cannot tolerate blood thinning medicines.
have sensitivity to Nitinol (Titanium or Nickel) or to fluid used during the procedure to   see internal structures (contrast media).
Additional information: The Summary of Safety and Effectiveness Data and labeling are available online.

BNP PARIBAS PLEADS GUILTY TO CONSPIRING TO VIOLATE TRADING WITH THE ENEMY ACT

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 9, 2014

BNP Paribas Pleads Guilty to Conspiring to Violate U.S. Economic Sanctions in Manhattan Federal Court

Court Accepts Plea Agreement Requiring BNP Paribas to Forfeit More Than $8.8 Billion and to Pay a Criminal Fine of $140 Million

BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, pleaded guilty today before U.S. District Judge Lorna G. Schofield in the Southern District of New York to a one-count information charging the bank with conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), for its role in processing billions of dollars of U.S. dollar transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions from 2004 through 2012.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara for the Southern District of New York made the announcement.

In accepting BNPP’s guilty plea, the court accepted the plea agreement that had been entered into by the government and BNPP on June 30, 2014, under which BNPP agreed to forfeit a total of $8.8336 billion, pay a criminal fine of $140 million, cooperate with U.S. authorities, and be subject to a five-year term of probation, during which BNPP must enhance its compliance policies and procedures in accordance with settlement agreements BNPP has entered into with its principal U.S. regulators, the Board of Governors of the Federal Reserve System and the New York State Department of Financial Services.

According to the plea agreement, statements made during today’s plea proceeding, and the statement of facts containing further admissions by BNPP, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of entities subject to U.S. embargo from 2004 through 2012, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. government as being cut off from the U.S. financial system.

BNPP admitted that the majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses.   BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period.   Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”

One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States.   As early as August 2005, a senior compliance officer at BNPP warned several legal, business, and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”

Similarly, BNPP admitted that it provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages.   From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities.   In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities.   BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.

BNPP also admitted to engaging in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the government.   The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.

This case was investigated by the Internal Revenue Service-Criminal Investigation’s Washington Field Division and the FBI’s New York Field Office.   This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York.   Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.

The New York County District Attorney’s Office also conducted its own investigation alongside the Department of Justice on this investigation.   The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services, and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.

U.S. EXTENDS BEST WISHES TO PEOPLE OF REPUBLIC OF SOUTH SUDAN ON THEIR INDEPENDENCE DAY ANNIVERSARY

FROM:  U.S. STATE DEPARTMENT 

The Republic of South Sudan's Independence Day

Press Statement

John Kerry

Secretary of State

Washington, DC

July 9, 2014

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On behalf of President Obama and the people of the United States, we extend our best wishes to the people of the Republic of South Sudan on the third anniversary of their country’s independence.

Three years ago I witnessed the people of South Sudan vote to forge a new nation, founded on the promise of a more peaceful and prosperous future for all of South Sudan’s people.
Now that promise for which the people of South Sudan suffered and sacrificed so much is being threatened by the current conflict. Too much blood has been spilled, and too many lives have been lost, to allow South Sudan’s moment of hope and opportunity to slip from its grasp. As I told President Kiir when I visited South Sudan on May 2 of this year, and have discussed with President Kiir and Riek Machar in numerous phone conversations, it is high time to honor fully the Cessation of Hostilities agreement of January 23 to end the violence, especially the violence being targeted against civilians. The people of South Sudan need their leaders to use the Intergovernmental Authority on Development peace process to end the conflict and establish a transitional government that can ensure stability, prosperity, and peace for all. Now is the time for South Sudan’s leaders to show courage and leadership, and to reaffirm their commitment to unity, to reconciliation and accountability, and to a better future for the people of South Sudan.

The United States remains committed to supporting the people of South Sudan during this time of incredible difficulty, and continuing to lead the international response to the looming humanitarian and refugee crisis. Looking forward, the United States will continue to be a steadfast partner to the South Sudanese people in support of their efforts to achieve a more peaceful and prosperous future for their young country.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JULY 9, 2914

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

ARMY

Alliant Techsystems Operations, LLC, Plymouth, Minnesota (W15QKN-14-D-0061); Battelle Memorial Institute, Columbus, Ohio (W15QKN-14-D-0062); Booz Allen Hamilton Inc., McLean, Virginia (W15QKN-14-D-0063); Concurrent Technologies Corp., Johnstown, Pennsylvania (W15QKN-14-D-0064); General Dynamics Ordinance Tactical Systems, St. Petersburg, Florida (W15QKN-14-D-0065); and Leidos Inc., Reston, Virginia (W15QKN-14-D-0066), were awarded a $300,000,000 multiple award order dependent contract to obtain materials and services to meet the Armament, Research, Development, and Engineering Center's mission requirements with an estimated completion date of July 9, 2019. Bids were solicited via the Internet with nine received. Funding and work location will be determined with each order. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity.

R. J. Zaval & Sons Inc.*, East Grand Forks, Minnesota, was awarded a $12,272,783 firm-fixed-price contract for the Roseau Flood Risk Management Project to construct a 6,500 foot diversion channel, a channel inlet structure, a concrete restriction structure and drainage system. Work will be performed in Roseau, Minnesota, with an estimated completion date of Aug. 12, 2015. Bids were solicited via the Internet with five received. Fiscal 2014 other procurement funds in the amount of $12,272,783 are being obligated at the time of the award. U.S. Army Corps of Engineers, St. Paul, Minnesota, is the contracting activity (W912ES-14-C-0011).

NAVY

Spry Methods Inc.,* Arlington, Virginia (N65236-14-D-4158); Gateway Ventures Inc.,* Norfolk, Virginia (N65236-14-D-4159); Gemini Industries Inc.,* Burlington, Massachusetts (N65236-14-D-4160); and MH Harbor, LLC,* North Charleston, South Carolina (N65236-14-D-4161), are each being awarded an indefinite-delivery/indefinite-quantity, firm-fixed-price, with provisions for cost-plus-fixed-fee task orders, performance based multiple award contract for the procurement of Information Dominance Program and financial management support services. The cumulative, estimated value (ceiling) of the base year combined is $33,326,967. The contracts include options which, if exercised, would bring the cumulative value (ceiling) of these contracts to an estimated $99,980,901. Work will be performed worldwide. Work is expected to be completed by July 2015. If all options are exercised, work could continue until July 2017. SPAWAR Systems Center Atlantic Navy working capital funds in the amount of $10,000 will be obligated at the time of award as the minimum guarantee and will be split among the four 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. 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 13 offers received. The Space and Naval Warfare Systems Center Atlantic, Charleston, South Carolina, is the contracting activity.

Atlas Executive Consulting,** Charleston, South Carolina (N65236-14-D-4162); CBAIA Logistics,** Fredericksburg, Virginia (N65236-14-D-4163); and Compendium Federal Technology,** Lexington Park, Maryland (N65236-14-D-4164), are each being awarded an indefinite-delivery/indefinite-quantity, firm-fixed-price, with provisions for cost-plus-fixed-fee task orders, performance based multiple award contract for the procurement of program management and financial management support services including non-inherently governmental services to perform analyses and research. The cumulative, estimated value (ceiling) of the base year combined is $33,326,967. These contracts include options which, if exercised, would bring the cumulative value of these contracts to an estimated $99,980,901. Work will be performed worldwide. Work is expected to be completed by July 2015. If all options are exercised, work could continue until July 2017. SPAWAR Systems Center Atlantic Navy working capital funds in the amount of $10,000 will be obligated at the time of award as the minimum guarantee and will be split among the three 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. The multiple award contracts were competitively procured by full and open competition after exclusion of sources (100% service disabled veteran-owned small business set-aside) via the Space and Naval Warfare Systems Center e-Commerce Central website and the Federal Business Opportunities website, with 12 offers received. The Space and Naval Warfare Systems Center Atlantic, Charleston, South Carolina, is the contracting activity.

BAE Systems San Diego Ship Repair, San Diego, California, is being awarded a $15,866,612 modification to previously awarded contract (N00024-11-C-4408) for USS Decatur (DDG 73) fiscal 2014 Dry-Docking Selected Restricted Availability. A Dry-Docking Selected Restricted Availability includes the planning and execution of depot-level maintenance, alterations and modifications that will update and improve the ship's military and technical capabilities. Work will be performed in San Diego, California, and is expected to be completed by February 2015. Fiscal 2014 operations and maintenance (Navy); fiscal 2014 research, development, test and evaluation; fiscal 2014 working capital funds (Navy); and fiscal 2014 other procurement (Navy) funding in the amount of $15,866,612 will be obligated at time of award. Contract funds in the amount of $12,035,470 will expire at the end of the current fiscal year. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity.
Atlantic Diving Supply Inc.,* Virginia Beach, Virginia, is being awarded $9,695,389 for firm-fixed-price Blanket Purchase Agreement call 0001 for the procurement of 2,136 advanced integrated solar power case assemblies in support of the Marine Corps Ground Renewable Expeditionary Energy System program under the Program Manager for Expeditionary Power Systems. Work will be performed in Lafayette, Colorado, and is expected to be completed by August 2015. Fiscal 2014 procurement funding (Marine Corps) in the amount of $9,695,389 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the General Services Administration eBuy website, with two offers received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-14-A-5019).

AIR FORCE

The Boeing Company, St. Louis, Missouri, has been awarded an estimated $10,111,976 (P00005) modification to the firm-fixed-price contract (FA8119-12-D-0009) to extend the ordering period of a requirements contract for the repair of 23 B-1B Aircraft Secondary Structural Components. The total cumulative face value of the contract is $30,003,960. The contract modification is for the exercise of Option 1, a two-year option. Work will be performed at Dyess Air Force Base, Texas, and completed by July 9, 2016, with delivery to be cited on each individual order. No working capital funds are being obligated at time of award. This is not a multiyear contract. Air Force Sustainment Center/PZABC, Tinker AFB, Oklahoma, is the contracting activity.

Kaman Precision Products, Inc., Orlando, Florida, has been awarded a $8,475,368.48 firm-fixed-price modification (P00016) to FA8681-13-C-0029 for Lot 11 Production of Joint Programmable Fuze systems. The contract modification provides for the exercise of an option for an additional quantity of 3,069 state-of-the-art fuze systems being produced under the basic contract. Work will be performed at Orlando, Florida, and is expected to be completed by September 2016. This contract is 8 percent foreign military sales for Morocco and Singapore. Fiscal 2012, 2013 and 2014 ammunition procurement funds in the amount of $8,475,368 will be obligated at time of award. This is not a multiyear contract. Air Force Life Cycle Management Center/EBDK, Eglin Air Force Base, Florida, is the contracting activity.

Lockheed Martin Aeronautics Co., Marietta, Georgia, has been awarded a $8,074,584 firm-fixed-price modification (P00293) to FA8625-07-C-6471 for the C-5 Reliability Enhancement and Re-Engining Program (RERP) Production. The modification provides additional funding for Over and Above legacy work associated with Lot 5 aircraft. This Over and Above work allows Lockheed Martin Aero to complete necessary repairs related to legacy issues found during the course of the C-5 RERP aircraft modification. All work will be performed at Marietta, Georgia, and is expected to be completed by Sept. 15, 2015. This award is the result of a sole source acquisition. Fiscal 2013 aircraft procurement funds in the amount of $8,074,584 are being obligated at time of award. Air Force Life Cycle Management Center/WLSK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

DEFENSE LOGISTICS AGENCY

Custom Manufacturing & Engineering,*** Pinellas Park, Florida, has been awarded a maximum $7,085,250 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for purchase of power supplies for various weapons systems. This contract was a competitive acquisition and nine offers were received. Location of performance is Florida, with a July 8, 2015 performance completion date. This is a one-year base contract with two one-year option periods. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Aberdeen Proving Ground, Maryland (SPRBL1-14-D-0018).

DEFENSE THREAT REDUCTION AGENCY

InfoReliance Corporation, Fairfax, Virginia, has been awarded a time-and-materials and firm- fixed-price contract (HDTRA1-14-F-0017) with an estimated maximum amount of $8,932,350 for Microsoft Consulting Services (MCS) in support of the Defense Threat Reduction Agency Directorate of Information Operations (J6). The contract award was made off the GSA schedule. There are only six vendors who are licensed to provide MCS; Defense Threat Reduction Agency solicited all six vendors, and received two quotes and one no bid. Type of appropriation is fiscal 2014 research and development and operations and maintenance funds. Work will be performed at Fort Belvoir, Virginia, at the DTRA facility with a July 8, 2016, completion date. The contracting activity is Defense Threat Reduction Agency, Fort Belvoir, Virginia.

*Small business
**Service disabled veteran-owned small business
***Woman-owned small disadvantaged business

DOJ ANNOUNCES "NEW PRIORITIES" TO DEAL WITH MIGRANT BORDER CROSSING SURGE

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 9, 2014

Department of Justice Announces New Priorities to Address Surge of Migrants Crossing into the U.S.

Justice Department Proposes Establishing Legal and Law Enforcement Advisors to Aid in Disrupting and Dismantling Immigrant Smuggling Operations
Deputy Attorney General James Cole announced today that the Justice Department will implement a series of steps to help address the influx of migrants crossing the southern border of the United States.  These include refocusing immigration court resources to adjudicate the cases of recent migrants; providing support and training to help address violence in Central America; and redoubling efforts to work with other federal agencies and the Mexican government to investigate and prosecute those who smuggle migrants to the United States.

“Individuals who embark on the perilous journey from Central America to the United States are subject to violent crime, abuse, and extortion as they rely on dangerous human smuggling networks to transport them through Central America and Mexico,” Deputy Attorney General Cole said.  “We have an obligation to provide humanitarian care for children and adults with children who are apprehended on our borders, but we also must do whatever we can to stem the tide of this dangerous migration pattern.  The efforts we are announcing today are intended to address the challenges of this influx in a humane, efficient and timely way.”

Cole announced that the department’s Executive Office for Immigration Review (EOIR) will refocus its resources to prioritize cases involving migrants who have recently crossed the southwest border and whom DHS has placed into removal proceedings -- so that these cases are processed both quickly and fairly to enable prompt removal in appropriate cases, while ensuring the protection of asylum seekers and others.

“This refocusing of resources will allow EOIR to prioritize the adjudication of the cases of those individuals involved in the evolving situation at the southwest border,” said EOIR Director Juan P. Osuna.  “Although our case management priorities are shifting, our immigration judges will continue to evaluate and rule upon cases consistent with all substantive and procedural rights and safeguards applicable to immigration proceedings.”
         
To augment its capacity to adjudicate cases as promptly as possible, EOIR is committed to hiring more immigration judges.  EOIR this week will also publish a regulation allowing for the appointment of temporary immigration judges.  Further, EOIR plans both to expand its existing legal access programs, and enhance access to legal resources and assistance for persons in removal proceedings.

Cole also announced that the Department is seeking new funding, as a part of the President’s emergency supplemental appropriations request, to assist Central American countries in combatting transnational crime and the threat posed by criminal gangs.  This regional strategy for law enforcement capacity building would be aimed at addressing the issues that have been a factor in forcing many migrants to flee Central America for the United States.

The department will also redouble its efforts to work with Mexican authorities to identify and apprehend smugglers who are aiding unaccompanied children in crossing the U.S. border.  Later this week, the Deputy Attorney General will also be meeting with the five U.S. Attorneys who represent the southwest border districts to strategize on ways to disrupt and dismantle criminal organizations on the border that are facilitating the transportation of unaccompanied minors and others.

Today, Deputy Attorney General Cole will go to the U.S. Customs and Border Protection’s McAllen Station and processing facility to see the urgent situation at the border.  EOIR Director Osuna will be testifying before the Senate Homeland Security and Governmental Affairs Committee to highlight the Justice Department’s efforts to aid in the administration-wide response to the migrant influx.

SECRETARY KERRY'S PRESS STATEMENT ON 10TH ANNIVERSARY OF JOURNALIST PAUL KLEBNIKOV'S MURDER

FROM:   U.S. STATE DEPARTMENT 

Marking the 10th Anniversary of the Murder of American Journalist Paul Klebnikov

Press Statement

John Kerry

Secretary of State

Washington, DC

July 9, 2014

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Ten years ago today, an American journalist was shot and killed as he left his Moscow office. Paul Klebnikov did more than write about politics and business in Russia. He was a voice of conscience in the fight against corruption.

Paul’s senseless murder was a sickening punch in the gut. Ten years later, we remain deeply troubled that the mystery of who ordered the murder is still unsolved. We continue to call on Russia, as we have over the last decade, to bring the perpetrators of this heinous crime to justice.

It’s not lost on any of us that the unvarnished truth-telling and investigative journalism to which Klebnikov dedicated his life continues to be under attack in Russia. The space for independent voices in Russian media is rapidly shrinking.

Today of all days, we honor the memory of Paul Klebnikov and the other journalists in Russia who have lost their lives. We call on the Russian government to protect journalists from attacks and to respect fundamental freedoms of expression.

U.S. MARINES PROVIDE SECURITY IN HELMAND PROVINCE, AFGHANISTAN

FROM:  U.S. DEFENSE DEPARTMENT 

U.S. Marines provide security during an operation in Helmand province, Afghanistan, June 28, 2014. U.S. Marine Corps photo by Cpl. John A. Martinez Jr.

U.S. Marine Corps Pvt. 1st Class Michael Fabregat scans his sector while providing security during an operation in Helmand province, Afghanistan, June 28, 2014. Fabregat, a rifleman, is assigned to Charlie Company, 1st Battalion, 2nd Marine Regiment. U.S. Marine Corps photo by Cpl. John A. Martinez Jr.

U.S. Marine Corps Cpl. Lucas A. Bankson observes his surroundings during an operation in Helmand province, Afghanistan, June 28, 2014. Bankson, a squad leader, is assigned to 2nd Platoon, Charlie Company, 1st Battalion, 2nd Marine Regiment. U.S. Marine Corps photo by Cpl. John A. Martinez Jr.

U.S. "STRONGLY CONDEMNS" TERRORIST ATTACK ON PRESIDENTIAL COMPOUND IN SOMALI

FROM:  U.S. STATE DEPARTMENT 

Al-Shabaab Attack on Presidential Compound

Press Statement

Jen Psaki

Department Spokesperson

Washington, DC

July 8, 2014

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The United States strongly condemns today's terrorist attack against Villa Somalia, the headquarters and residence of several Somali government officials in Mogadishu.

We offer our condolences to the victims and their families.

Incidents such as this further demonstrate that insecurity in Mogadishu persists, including very real threats from al-Shabaab. This is why we continue to support the efforts of the Somali National Security Forces and the African Union Mission to Somalia (AMISOM) to expand security and stability in Somalia. These forces stopped today’s attackers and prevented further harm.

The United States stands as a firm partner to the people of Somalia and the Somali government as they continue to forge their path towards stability.

NEW PRECIPITATION SATELITE SEES 2014'S 1ST ATLANTIC HURRICANE

HHS SAYS $100 MILLION AVAILABLE TO SUPPORT NEW HEALTH CENTER SITES

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

HHS announces the availability of $100 million in Affordable Care Act funding to expand access to primary care through new community health centers
HHS Secretary Sylvia Mathews Burwell announced today the availability of $100 million from the Affordable Care Act to support an estimated 150 new health center sites across the country in 2015. New health center sites will increase access to comprehensive, affordable, high quality primary health care services in the communities that need it most.  Later today, Secretary Burwell will also visit a Community Health Center in Decatur, Georgia to talk with its health care professionals about the important work they are doing to connect the community with high quality primary care.

“In communities across the country, Americans turn to their local Community Health Center for vital health care services that help them lead healthy, productive lives,” said Secretary Burwell.  “That’s why it’s so important that the Affordable Care Act is supporting the expansion of health centers.”

The investment announced today will add to the more than 550 new health center sites that have opened in the last three years as a result of the Affordable Care Act.  Today, nearly 1,300 health centers operate more than 9,200 service delivery sites that provide care to more than 21 million patients in every State, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and the Pacific Basin.  Health centers are also playing a critical role in helping the public learn about new coverage opportunities under the Affordable Care Act, by conducting outreach and enrollment activities that link individuals to affordable coverage options available through the Health Insurance Marketplace.

“Since last fall, health centers have provided enrollment assistance to more than 4.7 million people across the country,” said HRSA Administrator Mary K. Wakefield, Ph.D., R.N. “We are pleased that the Affordable Care Act is supporting the establishment of additional health center sites to provide expanded opportunities for the newly insured to receive care.”

SEC CHARGES SCHOOL DISTRICT WITH MISLEADING BOND INVESTORS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged a school district in California with misleading bond investors about its failure to provide contractually required financial information and notices.  The case is the first to be resolved under a new SEC initiative to address materially inaccurate statements in municipal bond offering documents. 

The SEC found that in the course of a 2010 bond offering, Kings Canyon Joint Unified School District affirmed to investors that it had complied with its prior continuing disclosure obligations.  The statement was inaccurate because between at least 2008 and 2010, the school district had failed to submit some required disclosures.  The California school district agreed to settle the charges without admitting to or denying the findings.

Under the Municipalities Continuing Disclosure Cooperation (MCDC) initiative, the SEC’s Enforcement Division agreed to recommend standardized settlement terms for issuers and underwriters who self-report or were already under investigation for violations involving continuing disclosure obligations.  The 2014 initiative, launched on March 10, expires on September 10.

“The integrity of the municipal securities market requires that issuers carefully comply with all of their disclosure obligations,” said Andrew J. Ceresney, director of the SEC’s Division of Enforcement.  “Our MCDC initiative is one piece of our efforts to ensure that issuers meet their obligations going forward.”

LeeAnn Ghazil Gaunt, chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit added, “An important component of the MCDC program is that it provides issuers who were already under investigation the opportunity to accept the standard terms and resolve their enforcement matters in a fair and efficient manner.  We are pleased that King’s Canyon has taken advantage of the program and we continue to encourage all eligible issuers and underwriters to do so while the MCDC terms are still available.”

The SEC’s order instituting settled administrative proceedings finds that in three bond offerings between 2006 and 2007, Kings Canyon contractually agreed to disclose annual financial information and notices of certain events pertaining to those bonds.  When it conducted a $6.8 million bond offering in November 2010, Kings Canyon was required to describe any instances where it had failed to materially comply with its prior disclosure obligations.  In the 2010 offering document, Kings Canyon inaccurately affirmed that there was “no instance in the previous five years in which it failed to comply in all material respects with any previous continuing disclosure obligation.”  Because Kings Canyon failed to submit some of the contractually required disclosures relating to the 2006 and 2007 offerings, the November 2010 bond offering document contained an untrue statement of a material fact.

Without admitting or denying the SEC’s findings, Kings Canyon consented to an order to cease and desist from committing or causing any future violations of Section 17(a) of the Securities Act.  It also agreed to adopt written policies for its continuing disclosure obligations, comply with its existing continuing disclosure obligations, cooperate with any subsequent investigation by the Enforcement Division, and disclose the terms of its settlement with the SEC in future bond offering materials.   

The SEC’s investigation was conducted by Monique C. Winkler and was supervised by Cary Robnett.  Both are in the SEC’s San Francisco Regional Office and are members of the Enforcement Division’s Municipal Securities and Public Pensions Unit.

MAN PLEADS GUILTY TO ASSAULT OF HURRICANE RELIEF WORKERS BASED ON RACE

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 2, 2014

Louisiana Man Pleads Guilty to Racially-Motivated Assault on Hurricane Relief Workers

Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.

In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status.  On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac.  During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S.  Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner.  When Jambon saw a third crew member, B.W., filming the incident on her cell phone, Jambon initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.

“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”

“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.

For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.

The case is being investigated by special agents of the FBI.