Wednesday, August 20, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR AUGUST 20, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
NAVY
BAE Systems Technology Solutions & Services, Inc., Rockville, Maryland (N00039-14-D-0121); General Dynamics C4 Systems, Taunton, Massachusetts (N00039-14-D-0122); Global Technical Systems,* Virginia Beach, Virginia (N00039-14-D-0123); Northrop Grumman Systems Corp., Herndon, Virginia (N00039-14-D-0124); and Serco, Inc., Reston, Virginia (N00039-14-D-0125), are each being awarded an indefinite-delivery/indefinite-quantity, firm-fixed-price, cost-plus-fixed-fee contract for Consolidated Afloat Networks and Enterprise Services (CANES) production units. The estimated, cumulative value of the multiple award contract is $2,529,500,000. CANES serves as the bridge to the future of Navy afloat networks, consolidating existing legacy and standalone networks, providing the necessary infrastructure for applications, systems and services to operate in the tactical domain. CANES delivers its capabilities within a single complete system, bringing the necessary infrastructure that will enable timely and interoperable information exchange among tactical, support and non-tactical or administrative users, applications and information technology platforms. This contract has an eight-year ordering period up to the contract award amount. There are no options. Work will be performed in North Charleston, South Carolina; Taunton, Massachusetts; Virginia Beach, Virginia; Madison, Alabama; and San Diego, California, as delivery orders determine. Work is expected to be completed by August 2022. No funds will be obligated at the time of award. Funds will be obligated as individual delivery orders are issued. The multiple award contracts were competitively procured by full and open competition bids via the Space and Naval Warfare e-Commerce Central and the Federal Business Opportunities websites, with seven offers received. The Space and Naval Warfare Systems Command, San Diego, California, is the contracting activity.

Caddell Construction Co. (Delaware), LLC, Montgomery, Alabama, is being awarded a $110,809,000 firm-fixed-price contract for construction of nuclear power training facilities at Joint Base Charleston. The work to be performed provides for construction of a new multistory, blast hardened training operation facility; construction of a single story secured area entry point; and construction of a pier extension of steel and concrete piles and slabs. The contract also contains six unexercised options and two planned modifications, which if exercised and/or issued, would increase cumulative contract value to $157,810,500. Work will be performed in Goose Creek, South Carolina, and is expected to be completed by June 2018. Fiscal 2014 military construction (Navy) contract funds in the amount of $110,809,000 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 five proposals received. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-14-C-1756).

Lockheed Martin Corp., Mission Systems and Training, Moorestown, New Jersey, is being awarded a $60,802,243 fixed-price-incentive, firm-fixed-price, cost-plus-fixed-fee, and cost-only contract for ship integration and test of the Aegis Weapon System (AWS) for AWS Baselines through Advanced Capability Build 12. The contract provides for Aegis shipboard integration engineering, Aegis test team support, Aegis modernization team engineering support, ballistic missile defense test team support, and AWS element assessments. This contract includes options which, if exercised, would bring the cumulative value of this contract to $420,379,808. Work will be performed in Moorestown, New Jersey (27 percent); Norfolk, Virginia (22.5 percent); San Diego, California (20 percent); Pascagoula, Mississippi (6.5 percent); Bath, Maine (6.5 percent); Mayport, Florida (6.5 percent); Pearl Harbor, Hawaii (5.5 percent); Everett, Washington (4 percent); Syracuse, New York (1 percent), and other locations totaling less than 1 percent (0.5), and is expected to be completed by November 2018. Fiscal 2011 and 2013 shipbuilding conversion (Navy); fiscal 2014 operations and maintenance (Navy); and fiscal 2012 and 2014 other procurement (Navy) funding, in the amount of $21,839,327 will be obligated at time of award. Contract funds in the amount of $6,485,936 will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one or limited number of sources and no other suppliers will satisfy the requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-14-C-5104).

Raytheon Integrated Defense Systems, Portsmouth, Rhode Island, is being awarded a $59,159,691 modification to a previously awarded contract (N00024-11-C-6410) to exercise an option for the production of MK54 Mod 0 Lightweight Torpedo (LWT) Kits, and related engineering and repair services for upgrade of U.S. Navy LWT. Although the MK54 Mod 0 LWT is primarily intended as an anti-submarine torpedo for littoral scenarios, its basic capabilities includes operation in both shallow and deep water acoustic environmental conditions, and exceeds MK46 anti-submarine warfare capabilities in deep-water scenarios. This modification involves purchases for the U.S. Navy and the governments of India, Turkey and Australia under the Foreign Military Sales program. Work will be performed in Keyport, Washington (60 percent), and Portsmouth, Rhode Island (40 percent), and is expected to be completed by January 2018. Fiscal 2012 and 2014 weapons procurement (Navy), and FMS funds, in the amount of $59,159,691 will be obligated at the time of award. Contract funds in the amount of $2,073,984 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Northrop Grumman Systems Corp., Herndon, Virginia, is being awarded a $34,774,652 indefinite-delivery/indefinite-quantity contract utilizing firm-fixed priced orders for production hardware for Ship Self-Defense System (SSDS) Mk2 production hardware. The scope includes hardware production, assembly, configuration, alignment, integration, testing and shipping of the SSDS hardware. Work will be performed in Virginia Beach, Virginia (80 percent), and Huntsville, Alabama (20 percent), and is expected to be completed by August 2017. Subject to availability of funds, fiscal 2014 and 2017 other procurement (Navy), and fiscal 2015 and 2016 shipbuilding and conversion (Navy) contract funds, in the amount of $799,056 will be obligated at contract award and will not expire at the end of the current fiscal year. This contract was competitively solicited via the Federal Business Opportunities website, with two offers received. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity (N00178-14-D-3035).

Lockheed Martin Sippican, Inc., Marion, Massachusetts, is being awarded a $31,905,389 modification to a previously awarded contract (N00024-11-C-6404) for fixed-price-incentive, firm-fixed-price, cost-plus-fixed fee, cost-type option for the production of 108 MK48 Mod 7 Common Broadband Advanced Sonar System (CBASS) Functional Item Replacement (FIR) Kits, related engineering services to support CBASS FIR kits, CBASS FIR kit spares, and CBASS FIR kit warranty. The objective of the MK48 Mod 7 CBASS kit production program is to supply the U.S. Navy with functional item replacement upgrade kits consisting of a guidance and control box, broadband analog sonar receiver, preamplifier, cable assemblies, and guidance and control assembly materials. Work will be performed in Marion, Massachusetts (95 percent), and Syracuse, New York (5 percent), and is expected to be completed by November 2017. Fiscal 2012 and 2014 weapons procurement (Navy) funds in the amount of $31,905,389 will be obligated at the time of award. Contract funds in the amount of $1,540,688 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $12,789,893 modification to the previously awarded F-35 Lightning II Low Rate Initial Production (LRIP) Lot VI contract (N00019-11-C-0083). This modification provides for the procurement of F-35 Deployable Spares Package spares for the U.S. Air Force. Work will be performed in Owego, New York (21 percent); Orlando, Florida (20 percent); Nashua, New Hampshire (18 percent); United Kingdom (18 percent); Torrance, California (15 percent); Marion, Virginia (3 percent); Melbourne, Florida (3 percent); Endicott, New York (1 percent); Williston, Vermont (0.5 percent); and Duarte, California (0.5 percent). Work is expected to be completed in May 2017. Fiscal 2012 aircraft procurement (Air Force) funds in the amount of $12,789,893 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

General Dynamics, Electric Boat Corp., Groton, Connecticut, is being awarded a $8,990,973 cost-plus-fixed-fee contract for the ongoing acquisition of the weapons systems shipboard development, integration requirements, and shipboard engineering for refueling support for the United States and United Kingdom Trident II D5 missile program. The maximum dollar value, including the base period and two option years is $32,334,273. The work will be performed in Groton, Connecticut (21 percent); Norfolk, Virginia (20 percent); Silverdale, Washington (19 percent); Bremerton, Washington (18 percent); St. Marys, Georgia (16 percent); and Cape Canaveral, Florida (6 percent), with an expected completion date of Sept. 30, 2014. Fiscal 2014 operations and maintenance (Navy) contract funds in the amount of $8,990,973 are being obligated at time of award and will expire at the end of the current fiscal year. This contract is a sole source acquisition negotiated under 10 U.S.C. 2304(c)(1). Strategic Systems Program, Washington, District of Columbia, is the contracting activity (N00030-14-C-0023).

The Boeing Co., St. Louis, Missouri, is being awarded a $6,948,500 modification to a cost-plus-incentive-fee delivery order issued previously against a Basic Ordering Agreement (N00019-11-G-0001). This modification provides for Phase C1 of the F/A-18 A-D Airframe Service Life Extension Program. The effort will include seven flight critical engineering change proposals for fracture and maintenance critical areas of the airframe. Work will be performed in St. Louis, Missouri (55 percent). and El Segundo, California (45 percent), and is expected to be completed in July 2015. Fiscal 2013 and 2014 aircraft procurement (Navy) contract funds in the amount of $6,948,500 will be obligated at the time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
AIR FORCE
BAE Systems Information and Electronic Systems Integration, Nashua, New Hampshire, has been awarded a $74,000,000 indefinite-delivery/indefinite-quantity contract for F-16 Stores System Tester sustainment. The contractor will provide F-16 Stores System Tester spares, as well as engineering and software development and maintenance support. Work will be performed at Nashua, New Hampshire, and is expected to be completed by Oct. 14, 2020. This award is the result of a sole-source acquisition. It is anticipated that fiscal 2014 procurement, operations and maintenance; consolidated sustainment activity group non-expiring working capital; and foreign military sales funds will be issued via delivery orders against this contract in support of the requirement. FMS is approximately 33 percent of the contract. The first delivery order will be obligated at time of award for fiscal 2014 FMS funds for Taiwan in the amount of $6,753,382. Air Force Sustainment Center, Hill Air Force Base, Utah, is the contracting activity (FA8251-14-D-0001).

ARCTEC Alaska Joint Venture, Joint-Base Elmendorf-Richardson, Alaska, has been awarded a $32,062,792 firm-fixed-price contract, plus one option year, for the operation and maintenance of 15 geographically separated long range radar sites, three remote radio sites, maintenance of the Regional Air Operations Center, and Maintenance Control and Communications Center within Alaska. Work will be performed at Joint Base Elmendorf-Richardson, Alaska, and at the 15 separate sites located throughout Alaska, and is expected to be completed by Sept. 30, 2027, if all 12 option years are exercised. This award is the result of a competitive acquisition and one offer was received. Operations and maintenance funds will be obligated subject to availability. 766 SCONS/OL AA, Joint-Base Elmendorf-Richardson, Alaska, is the contracting activity (FA5215-14-C-7007).

FlightSafety International, Flushing, New York, will be awarded a $27,471,325 firm-fixed-price requirements contract for Gulfstream Pilot/Flight Engineering Training services. This requirement is a recurring requirement within Headquarters Air Force Mobility Command/A3T. This contract will provide initial and refresher academic and simulator training, and a variety of technical courses for U.S. Air Force pilots and flight engineers operating the Air Force Gulfstream series aircraft. Work will be performed at Dallas, Texas; Savannah, Georgia; Wilmington, Delaware; and Long Beach, California, and is expected to be completed by Sept. 30, 2019. This award is the result of a competitive acquisition with no limit to the number of offers solicited; two offers were received. Fiscal 2015 operations and maintenance funds in the amount of $5,494,265 will be obligated for the base period, but no funds are being obligated at time of award. The 763 Specialized Contracting Squadron, Scott Air Force Base, Illinois, is the contracting activity (FA4452-14-D-0003).
ARMY
MedTrust LLC, San Antonio, Texas, was awarded a $20,746,039 modification (P00003) to contract W81K00-14-D-0014 for the extension of specialized nursing services. Work will be performed at the San Antonio Military Medical Center, Joint Base San Antonio-Fort Sam Houston, and Wilford Hall Ambulatory Surgical Center, Joint Base San Antonio-Lackland Air Force Base, Texas. Funding will be determined with each order. Estimated completion date is March 31, 2015. The Army Medical Command, Fort Sam Houston, Texas, is the contracting activity.

BAE Systems Ordnance Systems Inc., Kingsport, Tennessee, was awarded a $9,665,276 modification (P00545) to contract DAAA09-98-E-0006 to modernize infrastructure, Building G-4, Holston Army Ammunition Plant. Fiscal 2014 other procurement funds in the amount of $9,665,276 were obligated at the time of the award. Estimated completion date is Aug. 31, 2017. Work will be performed at the Holston Army Ammunition Plant, Kingsport, Tennessee. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.

Burleson Consulting Inc.,* Folsom, California, was awarded a $7,000,000 firm-fixed-price contract to restore the natural habitat and for habitat monitoring, at the former Fort Ord, California, with an estimated completion date of Aug. 19, 2019. Funding will be determined with each order. Bids were solicited via the Internet with two received. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W91238-14-D-0010).
DEFENSE INFORMATION SYSTEMS AGENCY
Harris IT Services Corp., Herndon, Virginia was awarded a ceiling $450,000,000 indefinite-delivery/indefinite-quantity hybrid contract (firm-fixed-price, fixed-price-award-fee, cost-plus-fixed-fee and cost reimbursement contract line items) for services to provide engineering, maintenance, and program management support for the Crisis Management System. The IDIQ total cumulative ceiling value of the contract is $450,000,000 over the one-year base period and nine one-year option periods. There is no guarantee that the contract will be extended beyond the base one-year ordering period. Performance will be at various locations in the continental United States, with an estimated completion date of August 2015. Fiscal 2014 operations and maintenance funds in the amount of $5,412,872 will be obligated on the first task order at time of award. The original solicitation was issued as other than full and open competitive action pursuant to 10 U.S.C. 2304(c) (6) or 41 U.S.C. 3304(a) (6), and two proposals were received. The Defense Information Technology Contracting Organization-National Capital Region, Fort Meade, Maryland is the contracting activity (HC1047-14-D-4006).
*Small business

BERKSHIRE HATHAWAY WILL PAY $896,000 PENALTY FOR VIOLATING PREMERGER RULES

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, August 20, 2014
Berkshire Hathaway to Pay $896,000 Civil Penalty for Violating Antitrust Premerger Notification Requirements
Violation Occurred When Berkshire Hathaway Acquired Voting Securities of USG Corporation

Berkshire Hathaway Inc. has agreed to pay an $896,000 civil penalty to settle charges that it violated premerger reporting and waiting requirements when it acquired voting securities of USG Corp., the Department of Justice announced today.

The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Berkshire Hathaway for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976.   At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.

Berkshire Hathaway is a Delaware corporation with its headquarters in Omaha, Nebraska.   As a result of its acquisition of USG voting securities in December 2013, Berkshire Hathaway held approximately 28 percent of USG voting securities, valued at more than $950 million.    

USG is a Delaware corporation with its headquarters in Chicago, Illinois.

The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review.

Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice.   For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.

President Obama Delivers a Statement on the Murder of James Foley



U.S. DOD VIDEO: NAVY CONTINUES UNMANNED AIRCRAFT TESTS


AUTOMOTIVE PARTS COMPANY PLEADS GUILTY TO PRICE FIXING AND WILL PAY $52.1 MILLION FINE

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, August 19, 2014
NGK Spark Plug Co. Ltd. Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. Cars
Company Agrees to Pay $52.1 Million Criminal Fine

NGK Spark Plug Co. Ltd., an automotive parts manufacturer based in Nagoya, Japan, has agreed to plead guilty and to pay a $52.1 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, standard oxygen sensors, and air fuel ratio sensors installed in cars sold to automobile manufacturers in the United States and elsewhere, the Department of Justice announced today.

According to the one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, NGK Spark Plug engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, spark plugs, standard oxygen sensors and air fuel ratio sensors installed in cars sold to automobile manufacturers such as DaimlerChrysler AG, Honda Motor Co. Ltd. and Toyota Motor Corp., among others, in the United States and elsewhere.   In addition to the criminal fine, NGK Spark Plug has agreed to cooperate in the department’s ongoing investigation.   The plea agreement will be subject to court approval.

“Today’s guilty plea is just another example of the commitment of the Antitrust Division to preserving fair and legal competitive practices,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “We will continue to do whatever it takes to protect U.S. consumers and businesses.”

According to the charge, NGK Spark Plug and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations on bids to be submitted to certain automobile manufacturers and to allocate the supply of the products to those manufacturers.  NGK Spark Plug sold spark plugs, standard oxygen sensors, and air fuel ratio sensors at non-competitive prices to auto makers in the United States and elsewhere in furtherance of the agreement.  NGK Spark Plug’s involvement in the conspiracy lasted from at least as early as January 2000 until on or about July 2011.

NGK Spark Plug manufactures and sells spark plugs, standard oxygen sensors and air fuel ratio sensors.   A spark plug is an engine component for delivering high electric voltage from the ignition system to the combustion chamber of an internal combustion engine.   Oxygen sensors are located in the exhaust system and measure the amount of oxygen in the exhaust.   Air fuel ratio sensors are “wideband” oxygen sensors that enable more precise control of the air/fuel ratio injected into the engine.            

The charge against NGK Spark Plug is the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry.   These are the first charges filed relating to spark plugs, standard oxygen sensors and air fuel ratio sensors sold to automobile manufacturers.

Including NGK Spark Plug, 28 companies and 26 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.4 billion in criminal fines.

NGK Spark Plug is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.   The maximum fine 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 charge is 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 the Antitrust Division’s criminal enforcement sections and the FBI.   Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office with the assistance of the FBI Headquarters’ International Corruption Unit.

U.S. EXTENDS WARM WISHES TO PEOPLE OF HUNGARY ON THEIR SAINT STEPHEN'S DAY

FROM:  U.S. STATE DEPARTMENT 

On the Occasion of Hungary's National Day

Press Statement
John Kerry
Secretary of State
Washington, DC
August 19, 2014




On behalf of President Obama and the people of the United States, I extend warm wishes to the people of Hungary as you celebrate Saint Stephen’s Day on August 20.

On Saint Stephen’s Day, we remember the enduring legacy of King Stephen I, who unified all Hungarians. The United States is proud of its role in honoring that legacy during the more than 30 years that we protected the Crown of St. Stephen on behalf of the Hungarian people.
My own family will always be connected to Hungary. My grandmother Ida was born and raised in Budapest, before crossing the Atlantic for the United States near the turn of the 20th century.
Today we share more than genealogical connections for so many. We also share democratic principles, economic interests, rich cultural ties, and a commitment to safeguard international peace and security.

U.S. and Hungarian troops continue to serve together around the world as NATO allies. And together, we promote the rule of law, transparency, and good governance, both abroad and at home.

The United States looks forward to continuing to work with Hungary in pursuit of our common goals in the years to come.

SEC MAKES FRAUD CHARGES INVOLVING SMART-PHONE APP TECHNOLOGY

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Securities and Exchange Commission v. Heidi Ann Gamer, Gamer Economic Systems, LLC, and Gamer Media Partners Corp., Civil Action No. 1:14-cv-02650-ODE (N.D. Ga.)

SEC Charges Colorado Resident with Offering Fraud Involving Smart-Phone App Technology


On August 15, 2014, the Securities and Exchange Commission ("SEC") filed an action in federal court in Atlanta charging a Colorado Springs, Colorado resident and her two companies with running a $771,900 offering fraud targeting investors in various states. Victims of the scheme included, among others, individuals who participated in substance-abuse support programs.

Investors were told that funds raised would be used by the companies to acquire interactive technology licensing rights for products such as smart-phone applications, or "apps," that the companies planned to develop and market. False statements about contracts and licensing deals that did not exist also were used to solicit investors. Throughout the fraud, significant amounts of investor funds were diverted for such non-business expenses as casino gambling, vacation travel, and shopping.
Named in the Complaint are:
  • Heidi Ann Gamer ("Gamer"), 41, a resident of Colorado Springs, Colorado;
     
  • Gamer Economic Systems, LLC ("GES"), a Colorado limited liability company based in Colorado Springs, Colorado for which Gamer served as CEO; and
     
  • Gamer Media Partners Corp. ("GMS"), a Georgia corporation based in Atlanta for which Gamer also served as CEO.
The Complaint alleges:
  • Beginning in 2011, Gamer began soliciting individuals for investments in GES, telling them that funds raised would be used as operating capital. Gamer falsely told prospective investors that GES had secured licensing rights for certain products. After investors provided their funds, Gamer diverted sizeable portions of the monies raised for her personal expenses, including gambling in Las Vegas and a vacation in Mexico.
     
  • In 2012, Gamer moved to Atlanta, where she created GMP and offered and sold GMP shares in exchange for investor funds which she again claimed would be used for company operating expenses. Gamer also told prospective investors that GMP had secured high-dollar contracts with a movie studio, a college and the Atlanta Falcons football team. No such finalized deals or funding existed. Gamer again diverted investor funds for her personal use, including her condominium rent, pet grooming, and to help send an acquaintance to a private California weight-loss resort. Ultimately, Gamer raised from investors approximately $400,500 through GES and $371,400 through GMP, respectively. Among those targeted by Gamer's scheme were friends and acquaintances, some of whom Gamer met through substance-abuse support programs.
The complaint alleges that Gamer, GES and GMP by virtue of their conduct, directly or indirectly, violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder, and seeks injunctive relief, disgorgement of ill-gotten gains with pre-judgment interest and penalties against each of the defendants.
The SEC's investigation was conducted by Brian M. Basinger with assistance from Stephen E. Donahue and Robert F. Schroeder in the Atlanta Regional Office. The Commission acknowledges the assistance and cooperation of the Massachusetts Securities Division.


U.S. CYBER COMMAND EXPANDING

FROM:  U.S. DEFENSE DEPARTMENT 
Rogers: Cybercom Defending Networks, Nation
By Cheryl Pellerin
DoD News, Defense Media Activity

FORT MEADE, Md., Aug. 18, 2014 – U.S. Cyber Command continues to expand its capabilities and capacity, Navy Adm. Mike Rogers said Aug. 14.
The Cybercom commander was speaking during an interview at the NSA headquarters building here. Rogers is also director of the National Security Agency and chief of the Central Security Service.

“The decision to create [Cybercom] was a … recognition of a couple things. No. 1, the increasing importance of the cyber domain and the cyber mission set in Department of Defense operations in the 21st century,” Rogers said.

Such a command would add to the department’s ability to protect and defend its networks, and give policymakers and operational commanders a broader range of options, he said.

The second consideration involved DoD’s mission to defend the nation, coupled with the potential of nation-states, groups and individuals to conduct offensive cyber activities against critical U.S. infrastructure.

In that scenario, the admiral said, defense officials thought it was likely the president would “turn to the secretary of defense and say, ‘In your mission to defend the nation, I need you to do the same thing here in the cyber arena against this mission set critical to U.S. infrastructure, and I need an organization capable of doing that.’”

These conditions led the department to realize the need to create a traditional warfighting organization capable of executing a spectrum of cyberspace missions, Rogers said.

And, he added, they knew they needed to do so “with a dedicated professionalized workforce. This is not a pickup game where you just come casually to it.”
Rogers said he focuses on five priorities for Cybercom.

These are to build a trained and ready cyber force, put tools in place that create true situational awareness in cyberspace, create command-and-control and operational concepts to execute the mission, build a joint defensible network, and ensure Cybercom has the right policies and authorities that allow it to execute full-spectrum operations in cyberspace.

Making progress is important to Rogers, who characterized his ultimate goal as bringing Cybercom to a level where it’s every bit as trained and ready as any carrier strike group in the U.S. Central Command area of responsibility or any brigade combat team on the ground in Afghanistan.

“My objective during my time as the commander, first and foremost,” the admiral said, “is to ensure that we have brought to fruition the operational vision in cyber … [to make sure] it’s something real, it’s something tangible, and it is operationally ready to execute its assigned missions.”

That is happening as Cybercom brings its warfighting capability online, with the services generating a total cyber mission force of about 6,000 people by 2016, all trained to the same high standard and aligned in 133 teams with three core missions:

-- The Cyber National Mission Force, when directed, is responsible for defending the nation’s critical infrastructure and key resources.

-- The Cyber Combat Mission Force provides cyber support to combatant commanders across the globe; and
-- The Cyber Protection Force operates and defends the DoD information network, or DoDIN.

Defending the DoDIN is the focus of a partnership in progress with the Defense Information Systems Agency, or DISA.

The agency provides command and control and information-sharing capabilities and a globally accessible enterprise information infrastructure to warfighters, the president and national leaders, and other mission and coalition partners.
DISA, Rogers points out, is also a combat support agency.

The agency reports to acting DoD Chief Information Officer Terry Halvorsen, and its director is Air Force Lt. Gen. Ronnie D. Hawkins Jr.

“I have always believed … that we need to integrate operations and networks and our defensive workforce into one team,” Rogers said, “and that you are more effective in operating a network and in defending a network when you do it with one integrated approach.”

As a result, Rogers’ team decided they needed to create a relationship with DISA, he said, adding, “At the moment there’s no formal [command and control] line between us, but we’re in the process of creating one.”

As part of that process Rogers collaborates with Halvorsen and Hawkins.
“What I think we need to do,” he said during their meeting, “is create an operational construct that creates a direct linkage [between] U.S. Cyber Command, DISA and U.S. Cyber Command service components.”

It’s critical that the relationship includes the service components, Rogers said, “Because, under the current network structure today, those networks are largely run by [the] services. So we’ve got to create a relationship between DISA and the services that is very operational because you’ve got to maneuver networks, you’ve got to react to changes, and you can’t do that in a static kind of environment.”
He added, “We're in the process of doing that and I expect to roll it out in the fall. … You’ll hear it referred to as JFHQ DoDIN,” he said, or Joint Force Headquarters DoD Information Networks.

Rogers said that he, Halvorsen and Hawkins agree, this is the future of DISA.
“[DISA] will operate on the networks. They'll be part of our defensive effort so they will be out operating on the networks just like us,” he added.

“One of the core missions is the defense of the DoDIN,” Rogers said. “The forces associated with that mission will be assigned to DISA, to the services [and] to the combatant commanders.” So, he added, DISA will have operational control over some of the cyber mission force to help execute their mission.

Another of Rogers’ priorities for Cybercom is to help develop a common situational awareness of “what’s happening in DoD networks,” he said.

The commander highlighted the need for speed and agility in the cyber arena, adding, “If you can’t visualize what you’re doing … you’re not going to be fast or as agile, and thus arguably not as effective as you need to be.”

Rogers said, “As an operational commander I am used to the idea of walking into a command center, looking at a visual depiction that through symbology, color and geography enables me to very quickly come to a sense of what's happening in this space. We are not there yet in the cyber arena.”

Establishing situational awareness in the cyber realm is a combination of technology and capability, the admiral said, and determining what knowledge is needed and what elements contribute to that.

“Is what U.S. Cyber Command needs to know about what's going on in the network world the same thing as a strike group commander needs in the Western Pacific? The same thing an Air Force air wing needs in Minot, North Dakota? The same thing a brigade combat team needs in Afghanistan? It will vary, so we've got to create a system that you can tailor to the needs of each commander,” he said.
Rogers noted there are many ongoing efforts to improve situational awareness, pointing out the need to work collaboratively to fix the problem.

“We do have some tools right now,” he added. “They’re just not as mature and comprehensive as I'd like them to be.”
Cyber is foundational to the future, the admiral said, and he often comments to his fellow operational commanders that cyber is a mission they have to own.
“The wars of the 20th century taught most warfighting professionals that, no matter what you do, a good foundational knowledge of logistics is probably going to stand you in good stead,” Rogers explained.

In the 21st century, he added, operational commanders may find that, regardless of their mission, they will need a sense of what’s going on in their networks, where they’re taking risk, and the impact of network structure and activities on their ability to execute the mission.

“It’s not something you turn to your communications officer … or your CIO and say, ‘I don't really understand this. Go out and do some of that for me.’ That isn't going to get us where we need to go,” the admiral said.

Rogers elaborated on the need for Cybercom to be ready.

During his time as Cybercom commander, he said he expects that a nation-state, group or individual will attempt to engage in offensive, destructive capability against critical U.S. infrastructure, from the power grid to the financial sector.
The Presidential Policy Directive for Critical Infrastructure Security and Resilience outlines 16 designated U.S. Critical Infrastructure sectors.
Rogers says he tells his team they have to be ready to respond to such a call. But for an attack on the United States, Cybercom will support the Department of Homeland Security, which is the lead agency for broader security protections associated with critical infrastructure, and partner with the FBI, which is the lead agency for domestic attacks and law enforcement.

“Our biggest focus really is going to be bringing our capabilities to bear to attempt to interdict the attack before it ever gets to us,” the admiral said.

“Failing that,” he continued, “we'll probably also have some measure of capability that we can provide to work directly with those critical infrastructure networks to help address the critical vulnerabilities and where the networks could use stronger defensive capability.”

To prepare for such interagency collaboration in the event of a domestic cyberattack, the command trains as it will fight, Rogers said.

“In the military I'm used to the idea that you train like you fight. So we exercise [and] we replicate the things we think are going to occur in a combat scenario,” the admiral said. “I want to do the exact same thing with the same set of teammates I'm going to operate with if we get the order to do so.”

The department and Cybercom already do internal exercises, he said, as well as ongoing interagency exercises such as Cyber Guard, in which elements of the National Guard, reserves, NSA and Cybercom exercise their support to DHS and FBI responses to foreign-based attacks on simulated critical infrastructure networks.

The whole-of-government exercise, completed June 17, was designed to test operational and interagency coordination and tactical-level operations to prevent, mitigate and recover from a domestic cyber incident.

Cyber Guard is a good example, Rogers said, “but I want to build on that. DHS and FBI were there but I think we can do even more.”

Information sharing and partnerships with the critical infrastructure sectors is an important aspect of enabling Cybercom to more effectively interdict and stop an attack, if directed to do so by the president and defense secretary, he added.
The cyber threat is growing increasingly complex, the Cybercom commander said, and a more diverse set of actors is involved in the mission set, “from nation-states that continue to increase their capabilities, to groups, to individuals.”

In broad terms, he added, “you don’t see a crisis in the world today that doesn’t have a cyber aspect to it.”

For that reason and others, the ultimate construct of Cybercom must be flexible, the admiral said.

“If you want to develop full-range capabilities and generate the maximum flexibility for their application, you’ve got to build a construct that recognizes we’re going to be supported sometimes, we’re going to be supporting other times, and sometimes we’re going to be doing both simultaneously,” Rogers said.
In one scenario Cybercom might be helping the commander in the Pacific, he said, and “at the same time we might be driving efforts to secure the U.S. financial infrastructure … and trying to support U.S. Central Command.

“It’s just the nature of things,” Rogers said, “because cyber is so global and so foundational.”


DRUG ORGS PATRIARCH PLEADS GUILTY FOR ROLE IN COCAINE IMPORT CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, August 18, 2014
Former Patriarch of the Lorenzana Drug Trafficking Organization Pleads Guilty to Drug Conspiracy Charges

Waldemar Lorenzana Sr., 75, the patriarch of the Lorenzana drug trafficking organization in Guatemala, pleaded guilty today to conspiracy to import over 450 kilograms of cocaine into the United States.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Special Agent in Charge Robert W. Patterson of the Drug Enforcement Agency’s (DEA) Special Operations Division made the announcement.   The guilty plea was entered by U.S. District Judge Colleen Kollar-Kotelly in the District of Columbia.

“For more than a decade, the Lorenzana drug trafficking operation received, stored, and transported massive quantities of cocaine for distribution in the United States,” said Assistant Attorney General Caldwell.   “The kingpin and patriarch of this family has now been extradited and convicted in the United States, and two of his sons are currently awaiting extradition from Guatemala.   This case once again affirms the Justice Department’s unwavering commitment to working with our international law enforcement partners to bring transnational drug traffickers, wherever they may reside, to justice for their crimes.”

“For years, members of the Lorenzana family smuggled cocaine to the United States with impunity,” said Acting Special Agent in Charge Patterson.  “The indictment, extradition and conviction of Waldemar Lorenzana, and the pending extradition of other members of his family, proves once again that no one is above the law when international partners cooperate.  This investigation could never have been brought to fruition without the unwavering support of our law enforcement colleagues and is another great example of international coordination.”

According to the superseding indictment, from March 1996 to April 2009, Lorenzana Sr. and three of his sons conspired to distribute multi-ton quantities of cocaine within Guatemala and elsewhere, knowing that the narcotics would be illegally imported into the United States for distribution.   As described in further court documents, the Lorenzana drug trafficking organization worked with drug trafficking organizations in Colombia and Mexico to transport shipments of cocaine by go-fast boats and airplanes to El Salvador and Guatemala for distribution to cities within the United States.   Lorenzana Sr. was arrested by Guatemalan authorities on April 26, 2011, detained in Guatemala, and extradited to the United States in March 2014.   Sentencing will be scheduled at a later date.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

The investigation was led by the DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office and was part of the Organized Crime Drug Enforcement Task Force.  The case is being prosecuted by Trial Attorneys Amanda Liskamm, Adrian Rosales and Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section.   The Criminal Division’s Office of International Affairs provided significant assistance in the extradition.   The Department expresses its gratitude and appreciation to the government of Guatemala for its assistance in this matter.

Tuesday, August 19, 2014

DOD VIDEO: HAGEL THANKS CREWS FOR ACTIONS OVER IRAQ


U.S. DEFENSE DEPARTMENT CONTRACTS FOR AUGUST 19, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
DEFENSE LOGISTICS AGENCY
Sysco Raleigh, Selma, North Carolina, has been awarded a maximum $281,250,000 fixed-price with economic-price-adjustment contract for prime vendor food and beverage support. This contract was a competitive acquisition, and five offers were received. This is a two-year base contract, with one one-year option and one two-year option periods. Location of performance is North Carolina, with a July 16, 2016, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-14-D-3030).
NAVY
Data Link Solutions, LLC, Cedar Rapids, Iowa, is being awarded a $124,326,550 modification under a previously awarded multiple award contract (N00039-10-D-0031) increasing the scope authorized to perform all of the necessary design and development work required to bring Tactical Targeting Network Technology (TTNT) capability to the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS) terminal and to achieve a successful critical design review. MIDS JTRS is a pre-planned product improvement replacement, transforming the MIDS low volume terminal into a four-channel, software- communications architecture-compliant JTRS terminal, while maintaining current Link-16 and tactical air navigation capability. TTNT will significantly increase operational Link-16 networks’ capacities, improve network performance, and provide more capable and flexible Link-16 network designs for the warfighter. Work will be performed in Wayne, New Jersey (30 percent), and Cedar Rapids, Iowa (70 percent), and is expected to be completed by Aug. 19, 2017. Fiscal 2014 research, development, test and evaluation funds in the amount of $11,600,000 will be placed on contract and obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. The Space and Naval Warfare Systems Command, San Diego, California, is the contracting activity.
ViaSat, Inc., Carlsbad, California, is being awarded a $72,673,450 modification under a previously awarded multiple award contract (N00039-10-D-0032) increasing the scope authorized to perform all of the necessary design and development work required to bring tactical targeting network technology (TTNT) capability to the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS) Terminal for a successful critical design review. MIDS JTRS is a pre-planned product improvement replacement that transforms the MIDS low volume terminal into a four-channel, software-communications architecture-compliant JTRS terminal, while maintaining current Link-16 and tactical air navigation capability. TTNT will significantly increase operational Link-16 networks’ capacities, improve network performance, and provide more capable and flexible Link-16 network designs for the warfighter. Work will be performed in Carlsbad, California, and is expected to be completed by Aug. 19, 2017. Fiscal 2014 research, development, test and evaluation funds in the amount of $11,600,000 will be placed on contract and obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. The Space and Naval Warfare Systems Command, San Diego, California, is the contracting activity.
Epsilon Systems Solutions Inc.,* San Diego, California, is being issued a $16,063,920 cost-plus-fixed-fee, cost-reimbursement contract to provide intermediate-level support to the Southwest Regional Maintenance Center in San Diego, California. The contract will provide professional and engineering support services, to include support to the product family departments in the areas of production operations, corrosion control, engines, machine, combat systems, production control, and offsite repair. This contract includes options which, if exercised, will bring the cumulative value of this contract to $84,979,741. Work will be performed in San Diego, California, and is expected to be completed by August 2019. Fiscal 2014 operations and maintenance (Navy) contract funds in the amount of $16,063,920 will be obligated at the time of award and will expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity (N55236-14-C-0014).
ARMY
Sikorsky Aircraft Corp., Stratford, Connecticut, was awarded a $30,351,927 modification (P00072) to foreign military sales contract (Saudi Arabia) W58RGZ-12-C-0008 for 12 UH-60M Black Hawk helicopters for the Saudi Arabian National Guard. Fiscal 2014 other procurement (Army) funds in the amount of $30,351,927 were obligated at the time of the award. Estimated completion date is Aug. 31, 2017. Work will be performed in Jupiter, Florida, and Stratford, Connecticut. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
General Dynamics Ordnance Tactical Systems, Scranton, Pennsylvania, was awarded an $8,420,783 firm-fixed-price contract for 23,960 M1 high fragmentation artillery shells. Work will be performed in Scranton, Pennsylvania, with an estimated completion date of Dec. 31, 2014. One bid was solicited with one received. Fiscal 2013 other procurement funds (Army) in the amount of $8,420,783 are being obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-14-C-0051).

AIR FORCE
Lockheed Martin Information Systems & Global Services, Colorado Springs, Colorado, has been awarded a $24,191,749 modification (P00313) exercising an option to contract F19628-00-C-0019 to support critical mission operations for North American Aerospace Defense Command’s Cheyenne Mountain Complex/Integrated Tactical Warning/Attack Assessment (NCMC/ITWAA) in support of air, missile and space defense for the national command authority. This sustainment effort encompasses operations, maintenance and support to maintain mission integrity for the target system architecture systems at Cheyenne Mountain Air Force Station Colorado, the Alternate Mission Command Center, and forward user and sensor sites, as well as maintenance of legacy systems at the Peterson Air Force Base, Colorado; Test Development Facility, Space Training System and Joint Space Operations at Vandenberg Air Force Base, California; and the Integrated Space Command and Control Test and Integration Lab in Colorado Springs, Colorado. Also included is the 721st Cheyenne Mountain Communications Squadron (A-76) support. Work will be performed at Colorado Springs, Colorado, and Vandenberg Air Force Base, California, and is expected to be completed by Sept. 29, 2015. Fiscal 2014 operations and maintenance funds in the amount of $24,191,749 will be obligated at time of award. Air Force Life Cycle Management Center/HBQK, Peterson Air Force Base, Colorado, is the contracting activity.
Trailboss Enterprises, Inc.,* Anchorage, Alaska, has been awarded a $17,963,792 (two-month transition and base year) for forward operating location (FOL) base operation support services at FOL-Curacao. The contractor will be responsible for program management and mission support, including aircraft support equipment/servicing; maintenance and repair of all government furnished property and facilities while meeting environmental compliance requirements; civil engineering support for facility sustainment, restoration, and maintenance, fire protection, utilities, environmental, and operations; communications support of network infrastructure, wireless systems, transmissions, information, and planning; logistics support of vehicle operations, fuels, supply chain and traffic management; services support of lodging and custodial; and operations support; airfield management; airfield operations and management. Work will be performed at FOL-Curacao, and the base period is expected to be completed by Oct. 31, 2015. This award is the result of a competitive, small business set aside. The solicitation was posted on Federal Business Opportunities website and 10 offers were received. Fiscal 2015 operations and maintenance funds will fund the base year by subsequent modification released on or about Oct. 1, 2014. Headquarters Air Combat Command Acquisition Management and Integration Center, Joint Base Langley-Eustis, Virginia, is the contracting activity (FA4890-14-C-0012)
Jacobs Technology Inc., Bedford, Massachusetts, has been awarded a $11,514,275 cost-plus-fixed-fee and cost-reimbursable contract modification (P00006) for FA8721-14-C-0017 to provide engineering and technology acquisition support services which consists of disciplined systems/specialty engineering and technical/information assurance services, support, and products using established government, contractor, and industry processes. Work will be performed at Hanscom Air Force Base, Massachusetts; Lackland Air Force Base, Texas; Langley Air Force Base, Virginia; Peterson Air Force Base, Colorado; Randolph Air Force Base, Texas; Wright-Patterson Air Force Base, Ohio; and Gunter Annex, Alabama, and is expected to be completed by April 30, 2015. This award is the result of a sole source acquisition. Fiscal 2014 operations and maintenance, and research and development funding, including both Air Force and Department of Defense funds in the amount of $1,385,521 will be obligated at time of award. Air Force Life Cycle Management Center/PZM, Hanscom Air Force Base, Massachusetts, is the contracting activity.
NEXGEN Communications LLC, Dulles, Virginia, has been awarded an $8,432,040 cost-plus-fixed-fee completion contract for Miniaturized Receiver Transmitter (mRXTX) Prototype Modules. Contractor will develop and demonstrate a miniaturized Radio Frequency (RF) transmit/receive module to support Computational Leverage Against Surveillance Systems (CLASS) requirements. The CLASS program requires an integrated transmit and receive module capable of performing wideband self-filtering for frequency division duplexing with high dynamic range and efficiency, which this effort will provide. The scope of this effort encompasses the innovation, design, assembly and assessment of a miniaturized RF transmit/receive module. The fabrication of the receive module, and then the integration of transmit and receive modules, will be performed. Each module/assembly will be thoroughly tested and reported. Work will be performed at Palm Harbor, Florida, and is expected to be completed by Feb. 19, 2016. This award is the result of a competitive acquisition, and seven offers were received. Fiscal 2014 research, development, test and evaluation funds in the amount of $4,132,670 are being obligated at time of award. Air Force Research Laboratory/RIKD, Rome, New York, is the contracting activity (FA8750-14-C-0123).
*Small business
 

WHITE HOUSE STATEMENT ON WORLD HUMANITARIAN DAY

FROM:  THE WHITE HOUSE 

Statement by the Principal Deputy Press Secretary on World Humanitarian Day

Eleven years ago today, 22 humanitarian aid workers were killed in a horrific attack on the UN Headquarters in Baghdad.  Their lives were cut short as they worked selflessly to save others.  Each year on August 19 we pay homage to them, their colleagues worldwide who have been killed or injured in the line of duty, and the heroic efforts of those humanitarians currently in the field. 
Today, there is an unprecedented need for humanitarians and the spirit they embody. Some 108 million people need humanitarian assistance, and more people have been displaced by conflict than at any time since World War II.  Nearly eleven million Syrians and Iraqis have fled for their lives.  Millions need shelter, food, water, and medical care in the wake of factional fighting in the Central African Republic and a clash among South Sudan’s political leaders has put millions of people at risk of famine.  In these places and others—including Gaza, Somalia, Yemen, and now West Africa with the Ebola outbreak—humanitarians assume great personal risk to help those in need. 
Even as they do their utmost to help the most vulnerable, all too often humanitarians are harassed, kidnapped, or killed for their commitment.  There were 251 incidents of major violence against aid workers in 30 countries in 2013. These attacks resulted in 460 aid workers killed, kidnapped, or seriously wounded; many of them heroic local staff working to help neighbors in need. As the world’s largest humanitarian donor, the United States expresses its deepest respect to these individuals dedicated to serving others.  On behalf of the American people, we are proud to support their work and humbled by their sacrifice. The world needs more of their dedication, selflessness, and courage.

FTC SETTLES CHARGES AGAINST FANDANGO AND CREDIT KARMA

FROM:  U.S. FEDERAL TRADE COMMISSION 
FTC Approves Final Orders Settling Charges Against Fandango and Credit Karma
Following a public comment period, the Federal Trade Commission has approved final orders settling charges against Fandango, Inc. and Credit Karma, Inc.

According to the FTC’s complaints, the companies’ mobile apps left consumers’ sensitive personal information, including credit card information and Social Security numbers, vulnerable to interception by third parties. Among other things, the complaints allege that the companies disabled a process called SSL certificate verification that would have protected consumers’ information.

The settlements, first announced in March 2014, require Fandango and Credit Karma to establish comprehensive security programs designed to address security risks during the development of their applications and to undergo independent security assessments every other year for the next 20 years. The settlements also prohibit Fandango and Credit Karma from misrepresenting the level of privacy or security of their products and services.

The Commission vote approving the final orders and letters to members of the public who commented on them was 4-0, with Commissioner McSweeny not participating.

The President Speaks on Iraq and Ferguson

NASA VIDEO | MAGNIFICENT ERUPTION IN FULL HD

DOD VIDEO: WEEKEND AIRSTRIKES HIT ISIL TARGETS


SUPREME ALLIED COMMANDER EUROPE SAYS NATO TRYING TO REASSURE MEMBERS REGARDING RUSSIA

FROM:  U.S. DEFENSE DEPARTMENT 

Breedlove Discusses Russian Threats in Europe

By Jim Garamone
DoD News, Defense Media Activity

WASHINGTON, Aug. 18, 2014 – NATO is examining additional ways it can reassure alliance members who feel threatened by Russia’s on-going actions in Ukraine, including positioning forces in new locations, the Supreme Allied Commander Europe told a German newspaper.
In an interview with Die Welt, Air Force Gen. Phillip Breedlove called Russia’s annexation of Ukraine’s Crimean peninsula a new type of warfare, labelling it the DIME model: diplomatic, informational, military, economic. “In this new hybrid warfare, we see Russia applying all of the elements of national power in a coercive way to affect change in other sovereign nations,” he said.
In February, Russia deployed a large force on its border with Ukraine and the Russian army conducted what were described as exercises near Crimea.
“Let’s just look at eastern Ukraine right now. In a diplomatic sense, the Russians are trying to build these international arguments that it is Ukraine that is causing the problem,” and that Russia needs to step in.
However, Breedlove said Russia continues to threaten Ukraine’s sovereignty and he said NATO allies in Eastern and Central Europe feel threatened by this new warfare as well.
A number of reassurance measures have been put in place including bolstering air policing in the Baltics, added ship visits to the Black Sea, increased infantry exercises in the Baltic Republics as well as the deployment of additional NATO air assets as well as infantry exercises in Poland.
“We’re going to look at … specifically the NATO Response Force,” he said. “We’re going to look at how to … be more prepared in a command and control stance to react to Article 5 defense.”
NATO will also station forces “in the right locations to be able to rapidly respond to this new form of warfare that we see being used,” Breedlove said.
NATO nations must develop the police and military capabilities to deal with this new form of war. “How do we now train, organize, equip the police forces and the military forces of nations to be able to deal with this?” he asked. “It is important … to remember that if we see these actions taking place in a NATO nation and we are able to attribute them to an aggressor nation that is Article 5, and it is a military response.”

ARMENIAN POWER ASSOCIATE RECEIVES 13 YEAR PRISON SENTENCE

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, August 18, 2014
Armenian Power Associate Sentenced to More Than 13 Years in Prison for Racketeering Conspiracy

An associate of the Armenian Power gang, who was convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers for accounts valued at more than $25 million, was sentenced to serve 168 months in prison today in federal court in Los Angeles.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.   The sentence was imposed by U.S. District Judge Philip S. Gutierrez of the Central District of California.

Andranik Aloyan, 41, of Los Angeles was found guilty by a federal jury on Feb. 11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft and possession of a firearm by a convicted felon.   According to evidence presented at trial, Aloyan possessed personal and financial information belonging to more than 75 mostly elderly customers of banks operating throughout the country.   This information was stolen by Aloyan and his associates.   The combined value of the accounts for which Aloyan possessed account information exceeded $25 million dollars.   In addition to his prison term of 168 months, Aloyan was sentenced to serve three years of supervised release and ordered to pay $3,516,711 in restitution to victims.

Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang.   The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and money laundering.   In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling.   Eighty-one defendants have previously been convicted or pleaded guilty to the charges, including 24 defendants who were convicted of or pleaded guilty to racketeering charges.

According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s.   The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc.   Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.

The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the Glendale Police Department, the Los Angeles Police Department, the Burbank Police Department, the Los Angeles Sheriff’s Department, the Internal Revenue Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Secret Service.

The case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California.


USDA VIDEO: WEEK IN REVIEW AUGUST 15, 2014

CHAIRMAN JOINT CHIEFS RECOMMENDS HELPING VIETNAM BUILD NAVAY

FROM:  U.S. DEFENSE DEPARTMENT 

Dempsey Favors Building Vietnamese Naval Capabilities

By Jim Garamone
DoD News, Defense Media Activity

WASHINGTON, Aug. 16, 2014 – If the United States lifts the embargo against the sale of lethal weapons to Vietnam, Army Gen. Martin E. Dempsey would recommend providing materials for the Peoples’ Navy, he said during a news conference in Ho Chi Minh City today.
In the first trip by a chairman of the Joint Chiefs of Staff to Vietnam since 1971, Dempsey visited Hanoi, Da Nang and Ho Chi Minh City.
Forty-five years ago, the United States was in a conflict with North Vietnam, and Dempsey was a cadet at West Point preparing to join that war. “The challenge now is to think 45 years ahead,” the highest-ranking U.S. military official said.
By 2050, there will be 9 billion people on Earth -- 7 billion of whom will live in the Indo-Pacific. “Where the people are is where the issues are,” the chairman said.
Vietnamese reporters questioned Dempsey on China’s territorial claims in the East China Sea. “We’ve been very clear that we don’t take sides in the territorial disputes, but we do care very much how they are resolved,” he said. “They should not be resolved through use of force.”
The United States has longstanding defense agreements with nations in the region -- Thailand and the Philippines are treaty allies. “We are interested in becoming a partner with a strong and independent and prosperous Vietnam,” the chairman said.
Still, at its core the solution to the East China Sea issue hinges more on stronger multinational response brokered through the Association of Southeast Asian Nations rather than a question of “‘What does the United States intend to do about it?’,” he said.
The United States and Vietnam have common interests. “We’re encouraging many of our ASEAN partners and friends to take a multinational approach to maritime security and maritime domain awareness,” he said.
Building capabilities for maritime domain awareness is important to any effort in the region, Dempsey said, including patrol boats, intelligence, surveillance and reconnaissance assets and search and rescue equipment.
“Our advice is that we look at this regionally, not country-by-country,” the chairman said. “We’re working our way forward in that spirit.”
There is a growing sense among U.S. elected officials and non-governmental organizations that Vietnam has made progress on the human rights issues that initially led to the embargo being put in place more than three decades ago.
“I think in the near term there will be a discussion on how to lift it,” Dempsey said. “My military advice … will be if it is lifted that we begin with assets that would make the Peoples’ Navy more capable in the maritime domain. That would generate a conversation on what that means, but I think the maritime domain is the place of our greatest common security interest right now.”
This could include intelligence, surveillance, reconnaissance assets and even some weapons they don’t yet have for their fleet, the chairman said.
Vietnam is uniquely and importantly positioned as the 13th largest economy in the world, he said. While it is located in Southeast Asia, the nation is the springboard into the Indo-Pacific region.
“I do see Vietnam occupying a key geostrategic region,” Dempsey said. “In terms of managing its maritime resources and managing the territorial disputes -- I’d suggest as goes Vietnam, I think as goes the South China Sea.”

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