Sunday, November 30, 2014
U.S. CONGRATULATES PEOPLE OF BARBADOS' ON THEIR INDEPENDENCE DAY
FROM: U.S. STATE DEPARTMENT
Barbados' Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 28, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Barbados on the occasion of your 48th year of independence on November 30.
The United States and Barbados share a long history of friendship and cooperation based on common interests and values.
We are working together to advance citizen safety through the Caribbean Basin Security Initiative.
We are deepening our economic ties through the Caribbean Basin Initiative, which grants duty-free entry into the United States for many goods.
And we are expanding opportunities for our students through the EducationUSA college fair organized by our Embassy in Bridgetown. We are proud that more than 30 American universities participated in this fair. Educational exchange programs can have a transformative impact, which is exactly why they are such a high priority for me as Secretary of State.
On behalf of the American people, I wish you a happy and fulfilling Independence Day.
Barbados' Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 28, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Barbados on the occasion of your 48th year of independence on November 30.
The United States and Barbados share a long history of friendship and cooperation based on common interests and values.
We are working together to advance citizen safety through the Caribbean Basin Security Initiative.
We are deepening our economic ties through the Caribbean Basin Initiative, which grants duty-free entry into the United States for many goods.
And we are expanding opportunities for our students through the EducationUSA college fair organized by our Embassy in Bridgetown. We are proud that more than 30 American universities participated in this fair. Educational exchange programs can have a transformative impact, which is exactly why they are such a high priority for me as Secretary of State.
On behalf of the American people, I wish you a happy and fulfilling Independence Day.
FRANK A. ROSE MAKES REMARKS ON SPACE SECURITY AND OUTER SPACE EXPLORATION
FROM: U.S. STATE DEPARTMENT
11/25/2014 09:22 AM EST
Promoting Space Security and Sustainability
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
International Institute for Strategic Studies
London, United Kingdom
November 21, 2014
As prepared
Introduction
Thank you for that kind introduction, and thanks to the International Institute of Strategic Studies for having me back here today to discuss an issue of vital interest: ensuring the long-term sustainability, stability, safety, and security of the space environment.
For decades, we have been inspired by humanity’s space endeavors and reaped the benefits of the use and exploration of outer space. While some take these benefits for granted, let me be clear: space assets are essential to U.S. national security as well as the security of our allies and coalition partners. This shared interest is recognized here in the United Kingdom, where HM Government’s National Space Security Policy establishes the promotion of a safe and more secure space environment as a key objective.
Outer space is a domain that no nation owns but on which all rely. Yet today, space is becoming increasingly congested from orbital debris, including man-made threats—such as the testing of debris-generating anti-satellite, or ASAT, systems. Left unchecked, such debris could result in access to some space services being seriously degraded or even lost – creating a direct threat to international security.
The world’s growing dependence on the globe-spanning and interconnected nature of space capabilities mean that it is more important than ever for all citizens to understand that irresponsible acts in space by one entity can have damaging consequences for all. Therefore, all nations must work together to adopt a responsible approach to activities in outer space in order to preserve this domain for future generations.
Today, I would like to cover two aspects in regard to ensuring the security and sustainability of the space environment: first, the risks and dangers to space systems from debris generating ASAT tests; second, the role of international diplomatic initiatives in protecting the long-term sustainability and security of the space environment.
Threats to Outer Space
Let me start with the risks and dangers. On July 23 of this year, the Chinese Government conducted a non-destructive test of a missile designed to destroy satellites in low Earth orbit. Despite China’s claims that this was a missile defense test, let me assure you the United States has high confidence in its assessment, that the event was indeed an ASAT test.
And China is not the only one pursuing these capabilities. As Director of National Intelligence James Clapper noted in his January 2014 congressional testimony, “Russian leaders openly maintain that the Russian armed forces have antisatellite weapons and conduct antisatellite research.”
The United States believes that these threats, which include the continued development and testing of destructive anti-satellite systems, are both destabilizing and threaten the long-term security and sustainability of the outer space environment. Moreover, these threats affect all who benefit from outer space including the scientific, commercial, and civil space communities. Indeed, thousands of pieces of debris about 10 cm and larger from the 2007 Chinese ASAT test continue to endanger space systems from all nations, including China.
On the security side, ASAT weapons directly threaten satellites and the strategic and tactical information and services those satellites provide, and their use could be escalatory in a crisis or conflict. They also pose a direct threat to key assets used in arms control verification monitoring, command and control and communication, and warning and attack assessment. A debris generating test or attack may only be minutes in duration, but the consequences can last decades and indiscriminately threaten the space-based assets of all space-faring nations, and the information from space upon which all nations depend.
On the civil space side, between 2007 and 2014, NASA has had to perform eight debris avoidance maneuvers of its robotic spacecraft due to possible collisions with debris from the 2007 Chinese ASAT test. Two of these spacecraft maneuvers were conducted in 2014. Just as these systems threaten our national security space systems, they can threaten the civil satellites that are so essential to our everyday lives.
Multilateral Efforts toward a Stable and Sustainable Space Environment
Given these threats and the current era where many States and nongovernmental organizations are harnessing the benefits of outer space, we have no choice but to work with our allies and partners around the world to ensure the long-term sustainability of the space environment. We also must speak clearly and publicly about what behavior the international community should find both acceptable and unacceptable. Over the past few years, the United States has worked to support a number of multilateral initiatives that seek to establish consensus guidelines for space activities that are both in the national security interests of the United States, and will further the long-term stability and sustainability of the space environment.
Just last year, I served as the United States expert on a United Nations Group of Governmental Experts (GGE) study of outer space transparency and confidence-building measures (TCBMs). The consensus GGE report which was published in July of last year endorsed voluntary, non-legally binding TCBMs to strengthen sustainability and security in space. The GGE benefited immensely from the contributions of Professor Richard Crowther of the U.K. Space Agency, who worked with several other experts to define a rigorous set of criteria for considering space TCBMs. This work contributed to the GGE’s recommendation that States implement measures to promote coordination to enhance safety and predictability in the uses of outer space. The report also endorsed “efforts to pursue political commitments, for example, a multilateral code of conduct, to encourage responsible actions in, and the peaceful use of, outer space.”
This International Code of Conduct for Outer Space Activities is another important multilateral initiative. Among the Code’s commitments for signatories is to refrain from any action which brings about, directly or indirectly, damage, or destruction, of space objects and to minimize, to the greatest extent possible, the creation of space debris, in particular, the creation of long-lived space debris. The Code could also help solidify safe operational practices, reduce the chance of collisions or other harmful interference with nations’ activities, contribute to our awareness of the space environment through notifications, and strengthen stability in space by helping establish norms for responsible behavior in space.
Lastly, the UN Committee on the Peaceful Uses of Outer Space (COPUOS) is also doing important work to move forward in the development of new international long-term sustainability guidelines. U.S. and U.K. experts from the private sector as well the federal government have played a leading role in the COPUOS Working Group on the Long-term Sustainability of Outer Space Activities. These efforts contribute to the development of multilateral and bilateral space TCBMs. Exchanges of information between space operations centers also can serve as useful confidence building measures.
Multilateral diplomatic initiatives contribute greatly to defining acceptable and unacceptable behaviors in space and therefore are key components of the United States deterrence strategy. In addition, if we are serious about maintaining the space environment for future generations, we must support such measures that promote positive activities in space and further the creation of norms which dissuade countries from taking destabilizing actions such as the testing of debris-generating ASAT systems. By working with the international community, we can, and must, advance the long-term sustainability and security of the outer space environment for all nations and future generations
With that, I would like to thank you for your time and stop here in order to leave time for questions.
11/25/2014 09:22 AM EST
Promoting Space Security and Sustainability
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
International Institute for Strategic Studies
London, United Kingdom
November 21, 2014
As prepared
Introduction
Thank you for that kind introduction, and thanks to the International Institute of Strategic Studies for having me back here today to discuss an issue of vital interest: ensuring the long-term sustainability, stability, safety, and security of the space environment.
For decades, we have been inspired by humanity’s space endeavors and reaped the benefits of the use and exploration of outer space. While some take these benefits for granted, let me be clear: space assets are essential to U.S. national security as well as the security of our allies and coalition partners. This shared interest is recognized here in the United Kingdom, where HM Government’s National Space Security Policy establishes the promotion of a safe and more secure space environment as a key objective.
Outer space is a domain that no nation owns but on which all rely. Yet today, space is becoming increasingly congested from orbital debris, including man-made threats—such as the testing of debris-generating anti-satellite, or ASAT, systems. Left unchecked, such debris could result in access to some space services being seriously degraded or even lost – creating a direct threat to international security.
The world’s growing dependence on the globe-spanning and interconnected nature of space capabilities mean that it is more important than ever for all citizens to understand that irresponsible acts in space by one entity can have damaging consequences for all. Therefore, all nations must work together to adopt a responsible approach to activities in outer space in order to preserve this domain for future generations.
Today, I would like to cover two aspects in regard to ensuring the security and sustainability of the space environment: first, the risks and dangers to space systems from debris generating ASAT tests; second, the role of international diplomatic initiatives in protecting the long-term sustainability and security of the space environment.
Threats to Outer Space
Let me start with the risks and dangers. On July 23 of this year, the Chinese Government conducted a non-destructive test of a missile designed to destroy satellites in low Earth orbit. Despite China’s claims that this was a missile defense test, let me assure you the United States has high confidence in its assessment, that the event was indeed an ASAT test.
And China is not the only one pursuing these capabilities. As Director of National Intelligence James Clapper noted in his January 2014 congressional testimony, “Russian leaders openly maintain that the Russian armed forces have antisatellite weapons and conduct antisatellite research.”
The United States believes that these threats, which include the continued development and testing of destructive anti-satellite systems, are both destabilizing and threaten the long-term security and sustainability of the outer space environment. Moreover, these threats affect all who benefit from outer space including the scientific, commercial, and civil space communities. Indeed, thousands of pieces of debris about 10 cm and larger from the 2007 Chinese ASAT test continue to endanger space systems from all nations, including China.
On the security side, ASAT weapons directly threaten satellites and the strategic and tactical information and services those satellites provide, and their use could be escalatory in a crisis or conflict. They also pose a direct threat to key assets used in arms control verification monitoring, command and control and communication, and warning and attack assessment. A debris generating test or attack may only be minutes in duration, but the consequences can last decades and indiscriminately threaten the space-based assets of all space-faring nations, and the information from space upon which all nations depend.
On the civil space side, between 2007 and 2014, NASA has had to perform eight debris avoidance maneuvers of its robotic spacecraft due to possible collisions with debris from the 2007 Chinese ASAT test. Two of these spacecraft maneuvers were conducted in 2014. Just as these systems threaten our national security space systems, they can threaten the civil satellites that are so essential to our everyday lives.
Multilateral Efforts toward a Stable and Sustainable Space Environment
Given these threats and the current era where many States and nongovernmental organizations are harnessing the benefits of outer space, we have no choice but to work with our allies and partners around the world to ensure the long-term sustainability of the space environment. We also must speak clearly and publicly about what behavior the international community should find both acceptable and unacceptable. Over the past few years, the United States has worked to support a number of multilateral initiatives that seek to establish consensus guidelines for space activities that are both in the national security interests of the United States, and will further the long-term stability and sustainability of the space environment.
Just last year, I served as the United States expert on a United Nations Group of Governmental Experts (GGE) study of outer space transparency and confidence-building measures (TCBMs). The consensus GGE report which was published in July of last year endorsed voluntary, non-legally binding TCBMs to strengthen sustainability and security in space. The GGE benefited immensely from the contributions of Professor Richard Crowther of the U.K. Space Agency, who worked with several other experts to define a rigorous set of criteria for considering space TCBMs. This work contributed to the GGE’s recommendation that States implement measures to promote coordination to enhance safety and predictability in the uses of outer space. The report also endorsed “efforts to pursue political commitments, for example, a multilateral code of conduct, to encourage responsible actions in, and the peaceful use of, outer space.”
This International Code of Conduct for Outer Space Activities is another important multilateral initiative. Among the Code’s commitments for signatories is to refrain from any action which brings about, directly or indirectly, damage, or destruction, of space objects and to minimize, to the greatest extent possible, the creation of space debris, in particular, the creation of long-lived space debris. The Code could also help solidify safe operational practices, reduce the chance of collisions or other harmful interference with nations’ activities, contribute to our awareness of the space environment through notifications, and strengthen stability in space by helping establish norms for responsible behavior in space.
Lastly, the UN Committee on the Peaceful Uses of Outer Space (COPUOS) is also doing important work to move forward in the development of new international long-term sustainability guidelines. U.S. and U.K. experts from the private sector as well the federal government have played a leading role in the COPUOS Working Group on the Long-term Sustainability of Outer Space Activities. These efforts contribute to the development of multilateral and bilateral space TCBMs. Exchanges of information between space operations centers also can serve as useful confidence building measures.
Multilateral diplomatic initiatives contribute greatly to defining acceptable and unacceptable behaviors in space and therefore are key components of the United States deterrence strategy. In addition, if we are serious about maintaining the space environment for future generations, we must support such measures that promote positive activities in space and further the creation of norms which dissuade countries from taking destabilizing actions such as the testing of debris-generating ASAT systems. By working with the international community, we can, and must, advance the long-term sustainability and security of the outer space environment for all nations and future generations
With that, I would like to thank you for your time and stop here in order to leave time for questions.
Saturday, November 29, 2014
COLOR HIGHLIGHTS URANUS
Cption Credit: NASA. The false colors in this image indicate altitude. The green and blue regions show where the atmosphere is clear, allowing sunlight to penetrate deep into Uranus. In the yellow and gray regions, a haze or cloud layer is reflecting sunlight away. Orange and red colors indicate very high clouds, like cirrus clouds on Earth. Credit: Erich Karkoschka (University of Arizona) and NASA
U.S. MARSHALS SERVICE ISSUES UPDATE ON ACCUSED ARMED CASINO TAKEOVER FUGITIVES
FROM: U.S. MARSHALS SERVICE
November 21, 2014
Robert M. Alexander, Supervisory Deputy U.S. Marshal
District of Nevada, Reno Office
Update on the Status of Three Individuals Accused of Armed Casino Takeover
Reno, NV – Northern Nevada’s U.S. Marshals led fugitive taskforce is actively seeking the whereabouts of Timothy Tofaute and David Dixon. The two men are accused of an armed takeover of the Chukchansi Indian Resort and Casino in Coarsegold, California on October 9, 2014. Brian Auchenbach, who was also named on an arrest warrant related to this event, turned himself in to the Madera County Sheriff yesterday, November 20, and was subsequently released on $800,000 bail.
Tofaute, 46, Dixon, 35, and Auchenbach, 38, along with other private security contractors, are facing multiple felony charges including kidnapping, false imprisonment, and assault with a deadly weapon stemming from the events at the casino that day. Tofaute and Dixon remain outstanding and are still being pursued. Both men have extensive military and private security training. Tofaute is a former Navy SEAL. Due to their background and the nature of the charges, they should be considered armed and dangerous. The Madera County Sheriff’s Department is the lead investigative agency for this case.
The U.S. Marshals Office in Reno would like to thank the public and local media outlets for their efforts in this important matter. The results achieved so far would not have been possible without the assistance of both. Anyone with information about the fugitives being sought in this case is encouraged to call the U.S. Marshals led Fugitive Taskforce at 775-686-5780, Secret Witness, or local police. All callers may remain anonymous.
Original News Release
November 21, 2014
Robert M. Alexander, Supervisory Deputy U.S. Marshal
District of Nevada, Reno Office
Update on the Status of Three Individuals Accused of Armed Casino Takeover
Reno, NV – Northern Nevada’s U.S. Marshals led fugitive taskforce is actively seeking the whereabouts of Timothy Tofaute and David Dixon. The two men are accused of an armed takeover of the Chukchansi Indian Resort and Casino in Coarsegold, California on October 9, 2014. Brian Auchenbach, who was also named on an arrest warrant related to this event, turned himself in to the Madera County Sheriff yesterday, November 20, and was subsequently released on $800,000 bail.
Tofaute, 46, Dixon, 35, and Auchenbach, 38, along with other private security contractors, are facing multiple felony charges including kidnapping, false imprisonment, and assault with a deadly weapon stemming from the events at the casino that day. Tofaute and Dixon remain outstanding and are still being pursued. Both men have extensive military and private security training. Tofaute is a former Navy SEAL. Due to their background and the nature of the charges, they should be considered armed and dangerous. The Madera County Sheriff’s Department is the lead investigative agency for this case.
The U.S. Marshals Office in Reno would like to thank the public and local media outlets for their efforts in this important matter. The results achieved so far would not have been possible without the assistance of both. Anyone with information about the fugitives being sought in this case is encouraged to call the U.S. Marshals led Fugitive Taskforce at 775-686-5780, Secret Witness, or local police. All callers may remain anonymous.
Original News Release
"STEALTHGENIE" SPAYWARE APP SELLER PLEADS GUILTY
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 25, 2014
Man Pleads Guilty for Selling "StealthGenie" Spyware App and Ordered to Pay $500,000 Fine
A Danish citizen today pleaded guilty in the Eastern District of Virginia and was ordered to pay a fine of $500,000 for advertising and selling StealthGenie, a spyware application (app) that could remotely monitor calls, texts, videos and other communications on mobile phones without detection. This marks the first-ever criminal conviction concerning the advertisement and sale of a mobile device spyware app.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement after a hearing before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia.
“Spyware is an electronic eavesdropping tool that secretly and illegally invades individual privacy,” said Assistant Attorney General Caldwell. “Make no mistake: selling spyware is a federal crime, and the Criminal Division will make a federal case out if it. Today’s guilty plea by a creator of the StealthGenie spyware is another demonstration of our commitment to prosecuting those who would invade personal privacy.”
“The defendant advertised and sold a spyware app that could be secretly installed on smart phones without the knowledge of the phones owner,” said U.S. Attorney Boente. “This spyware app allowed individuals to intercept phone calls, electronic mail, text messages, voicemails and photographs of others. The product allowed for the wholesale invasion of privacy by other individuals, and this office in coordination with our law enforcement partners will prosecute not just users of apps like this, but the makers and marketers of such tools as well.”
“Mr. Akbar is the first-ever person to admit criminal activity in advertising and selling spyware that invades an unwitting victim’s confidential communications,” said FBI Assistant Director in Charge McCabe. “This illegal spyware provides individuals with an option to track a person’s every move without their knowledge. As technology evolves, the FBI will continue to evolve to protect consumers from those who sell illegal spyware.”
According to the statement of facts accompanying the plea agreement in the case, Hammad Akbar, 31, is the chief executive officer of InvoCode Pvt. Limited and Cubitium Limited, the companies that advertised and sold StealthGenie online. StealthGenie could be installed on a variety of different brands of mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry. Once installed, it could intercept all conversations and text messages sent using the phone. The app was undetectable by most users and was advertised as being untraceable.
Akbar was arrested on Sept. 27, 2014, in Los Angeles and pleaded guilty today to sale of an interception device and advertisement of a known interception device. After accepting the guilty plea, the court immediately sentenced Akbar to time served and ordered him to pay a $500,000 fine. He was also ordered to forfeit the source code for StealthGenie to the government.
On Sept. 26, 2014, the court issued a temporary restraining order authorizing the FBI to temporarily disable the website hosting StealthGenie, which was hosted from a data center in Ashburn, Virginia. The court later converted the order into a temporary injunction, and the website remains offline.
According to Akbar’s admissions, StealthGenie had numerous functions that permitted it to intercept both outgoing and incoming telephone calls, electronic mail, text messages, voicemail, and photographs from the smartphone on which it was installed. The app could also turn on the phone’s microphone when it was not in use and record sounds and conversations that occurred near the phone. All of these functions could be enabled without the knowledge of the user of the phone.
In order to install the app, the purchaser needed at least temporary possession of the target phone. During the installation process on an Android smartphone, for example, the person installing the app was required to grant a series of permissions that allowed the app to access privileged information on the device. Once the app was activated, it was started as a “background” (i.e., hidden) service and set up to launch automatically when the phone was powered on. The only time that the app interacted with the screen was during activation, and the icon for the app was removed from the phone’s menu. Akbar admitted that because of these characteristics, a typical smartphone user would not know that StealthGenie had been installed on his or her smartphone.
Akbar also admitted to distributing an advertisement for StealthGenie through his website on Nov. 5, 2011, and to selling the app to an undercover agent of the FBI on Dec. 14, 2012.
This case was investigated by the FBI’s Washington Field Office, and was prosecuted by Senior Trial Attorney William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jay V. Prabhu and Alexander Nguyen of the Eastern District of Virginia.
Tuesday, November 25, 2014
Man Pleads Guilty for Selling "StealthGenie" Spyware App and Ordered to Pay $500,000 Fine
A Danish citizen today pleaded guilty in the Eastern District of Virginia and was ordered to pay a fine of $500,000 for advertising and selling StealthGenie, a spyware application (app) that could remotely monitor calls, texts, videos and other communications on mobile phones without detection. This marks the first-ever criminal conviction concerning the advertisement and sale of a mobile device spyware app.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement after a hearing before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia.
“Spyware is an electronic eavesdropping tool that secretly and illegally invades individual privacy,” said Assistant Attorney General Caldwell. “Make no mistake: selling spyware is a federal crime, and the Criminal Division will make a federal case out if it. Today’s guilty plea by a creator of the StealthGenie spyware is another demonstration of our commitment to prosecuting those who would invade personal privacy.”
“The defendant advertised and sold a spyware app that could be secretly installed on smart phones without the knowledge of the phones owner,” said U.S. Attorney Boente. “This spyware app allowed individuals to intercept phone calls, electronic mail, text messages, voicemails and photographs of others. The product allowed for the wholesale invasion of privacy by other individuals, and this office in coordination with our law enforcement partners will prosecute not just users of apps like this, but the makers and marketers of such tools as well.”
“Mr. Akbar is the first-ever person to admit criminal activity in advertising and selling spyware that invades an unwitting victim’s confidential communications,” said FBI Assistant Director in Charge McCabe. “This illegal spyware provides individuals with an option to track a person’s every move without their knowledge. As technology evolves, the FBI will continue to evolve to protect consumers from those who sell illegal spyware.”
According to the statement of facts accompanying the plea agreement in the case, Hammad Akbar, 31, is the chief executive officer of InvoCode Pvt. Limited and Cubitium Limited, the companies that advertised and sold StealthGenie online. StealthGenie could be installed on a variety of different brands of mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry. Once installed, it could intercept all conversations and text messages sent using the phone. The app was undetectable by most users and was advertised as being untraceable.
Akbar was arrested on Sept. 27, 2014, in Los Angeles and pleaded guilty today to sale of an interception device and advertisement of a known interception device. After accepting the guilty plea, the court immediately sentenced Akbar to time served and ordered him to pay a $500,000 fine. He was also ordered to forfeit the source code for StealthGenie to the government.
On Sept. 26, 2014, the court issued a temporary restraining order authorizing the FBI to temporarily disable the website hosting StealthGenie, which was hosted from a data center in Ashburn, Virginia. The court later converted the order into a temporary injunction, and the website remains offline.
According to Akbar’s admissions, StealthGenie had numerous functions that permitted it to intercept both outgoing and incoming telephone calls, electronic mail, text messages, voicemail, and photographs from the smartphone on which it was installed. The app could also turn on the phone’s microphone when it was not in use and record sounds and conversations that occurred near the phone. All of these functions could be enabled without the knowledge of the user of the phone.
In order to install the app, the purchaser needed at least temporary possession of the target phone. During the installation process on an Android smartphone, for example, the person installing the app was required to grant a series of permissions that allowed the app to access privileged information on the device. Once the app was activated, it was started as a “background” (i.e., hidden) service and set up to launch automatically when the phone was powered on. The only time that the app interacted with the screen was during activation, and the icon for the app was removed from the phone’s menu. Akbar admitted that because of these characteristics, a typical smartphone user would not know that StealthGenie had been installed on his or her smartphone.
Akbar also admitted to distributing an advertisement for StealthGenie through his website on Nov. 5, 2011, and to selling the app to an undercover agent of the FBI on Dec. 14, 2012.
This case was investigated by the FBI’s Washington Field Office, and was prosecuted by Senior Trial Attorney William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jay V. Prabhu and Alexander Nguyen of the Eastern District of Virginia.
Friday, November 28, 2014
U.S. CONGRATULATES PEOPLE OF MAURITANIA ON THEIR INDEPENDENCE DAY
FROM: U.S. STATE DEPARTMENT
Press Statement
John Kerry
Secretary of State
Washington, DC
November 28, 2014
On behalf of the American people, I send best wishes to the people of Mauritania on the 54th anniversary of your independence on November 28.
Mauritania and the United States have a strong partnership founded on shared interests for regional peace and security, and countering the spread of Ebola in West Africa.
Last August, I hosted President Mohamed Ould Abdel Aziz in Washington at the U.S. – African Leaders Conference. I thanked President Aziz for his work in crafting a ceasefire agreement in Mali and for your country’s commitment to counter-terrorism efforts throughout the Sahel.
I look forward to working with the Mauritania government and civil society to expand trade and increase prosperity for all Mauritanians in the years ahead.
On this day of celebration, I wish all Mauritanians a joyful Independence Day.
Press Statement
John Kerry
Secretary of State
Washington, DC
November 28, 2014
On behalf of the American people, I send best wishes to the people of Mauritania on the 54th anniversary of your independence on November 28.
Mauritania and the United States have a strong partnership founded on shared interests for regional peace and security, and countering the spread of Ebola in West Africa.
Last August, I hosted President Mohamed Ould Abdel Aziz in Washington at the U.S. – African Leaders Conference. I thanked President Aziz for his work in crafting a ceasefire agreement in Mali and for your country’s commitment to counter-terrorism efforts throughout the Sahel.
I look forward to working with the Mauritania government and civil society to expand trade and increase prosperity for all Mauritanians in the years ahead.
On this day of celebration, I wish all Mauritanians a joyful Independence Day.
RECENT U.S. DOD PHOTOS: RAPTORS AND LIGHTNING
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| F-22 Raptors and F-35 Lightning IIs fly in formation over the Eglin Training Range, Fla., after completing an integration training mission, Nov. 5, 2014. The F-22s are assigned to the 94th Fighter Squadron on Joint Base Langley-Eustis, Va. The F-35s are assigned to the 58th Fighter Squadron on Eglin Air Force Base, Fla. U.S. Air Force photo by Master Sgt. Shane A. Cuomo. |
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| F-22 Raptors and F-35 Lightning IIs taxi on the runway on Eglin Training Range, Fla., during an integration training mission, Nov. 5, 2014. U.S. Air Force photo by Master Sgt. Shane A. Cuomo. |
SEC CHARGES PRINCIPALS OF OIL AND GAS COMPANY WITH FRAUD
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23144 / November 26, 2014
Securities and Exchange Commission v. Paul R. Downey, et al., Civil Action No. 1:14-CV-00185-C (N.D. Tex. Abilene Division)
SEC Charges Principals of a Texas Oil and Gas Company with Conducting a Fraudulent Offering, and Charges Seller with Acting as an Unregistered Broker
On November 20, 2014, the Securities and Exchange Commission charged two principals of Quest Energy Management Group, Inc. (Quest), Paul Downey of Naples, Florida and Jeffry Downey of Abilene, Texas, with conducting a fraudulent offering of preferred stock and limited partnership interests. The SEC also charged John Leonard, a salesman residing in Naples and Chicago, with acting as an unregistered broker in offering and selling the investment.
The SEC alleges that between January 2010 and May 2011, the father-son duo of Paul and Jeffry Downey used Quest, an Albany, Texas-based oil and gas company, to fraudulently offer Quest preferred stock and limited partnership units in an entity called Permian Advanced Oil Recovery Investment Fund I, LP (PAOR). Investors were told that PAOR would acquire working interests in oil and gas leases from Quest and receive revenue from those leases. With assistance from unregistered salesman John Leonard, the Downeys raised $4.8 million from approximately 17 investors. The PAOR offering was fraudulent on account of blatantly deceptive misstatements about Quest and PAOR. More particularly, the Downeys made false statements in the private placement memorandum about the financial viability of Quest; the purchase debt and liens associated with certain leases in which PAOR was acquiring an interest; the current and projected petroleum production from the leases; the use of investor funds raised in the offering; independent audits of PAOR; and foreseeable litigation against Quest and the Downeys.
On May 24, 2013, the U. S. District Court for the Middle District of Florida, Tampa Division, appointed Burton Wiand, a Tampa attorney, as receiver over Quest, based on Quest's receipt of funds from a Ponzi scheme conducted by Arthur Nadel and others. In re Arthur Nadel, et al., Lit. Rel. No. 20858 (January 21, 2009). The receivership is ongoing.
The SEC's complaint against the Downeys and Leonard alleges that the Downeys violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and that Leonard violated Section 15(a) of the Exchange Act. The SEC's complaint seeks from the Downeys and Leonard disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and permanent injunctive relief, and additionally against the Downeys, officer and director bars.
The SEC's investigation was conducted by Jeffrey Cohen, Carol Hahn, and Joann Harris, and the SEC's litigation is being led by B. David Fraser. The SEC appreciates the assistance of the Texas State Securities Board.
Litigation Release No. 23144 / November 26, 2014
Securities and Exchange Commission v. Paul R. Downey, et al., Civil Action No. 1:14-CV-00185-C (N.D. Tex. Abilene Division)
SEC Charges Principals of a Texas Oil and Gas Company with Conducting a Fraudulent Offering, and Charges Seller with Acting as an Unregistered Broker
On November 20, 2014, the Securities and Exchange Commission charged two principals of Quest Energy Management Group, Inc. (Quest), Paul Downey of Naples, Florida and Jeffry Downey of Abilene, Texas, with conducting a fraudulent offering of preferred stock and limited partnership interests. The SEC also charged John Leonard, a salesman residing in Naples and Chicago, with acting as an unregistered broker in offering and selling the investment.
The SEC alleges that between January 2010 and May 2011, the father-son duo of Paul and Jeffry Downey used Quest, an Albany, Texas-based oil and gas company, to fraudulently offer Quest preferred stock and limited partnership units in an entity called Permian Advanced Oil Recovery Investment Fund I, LP (PAOR). Investors were told that PAOR would acquire working interests in oil and gas leases from Quest and receive revenue from those leases. With assistance from unregistered salesman John Leonard, the Downeys raised $4.8 million from approximately 17 investors. The PAOR offering was fraudulent on account of blatantly deceptive misstatements about Quest and PAOR. More particularly, the Downeys made false statements in the private placement memorandum about the financial viability of Quest; the purchase debt and liens associated with certain leases in which PAOR was acquiring an interest; the current and projected petroleum production from the leases; the use of investor funds raised in the offering; independent audits of PAOR; and foreseeable litigation against Quest and the Downeys.
On May 24, 2013, the U. S. District Court for the Middle District of Florida, Tampa Division, appointed Burton Wiand, a Tampa attorney, as receiver over Quest, based on Quest's receipt of funds from a Ponzi scheme conducted by Arthur Nadel and others. In re Arthur Nadel, et al., Lit. Rel. No. 20858 (January 21, 2009). The receivership is ongoing.
The SEC's complaint against the Downeys and Leonard alleges that the Downeys violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and that Leonard violated Section 15(a) of the Exchange Act. The SEC's complaint seeks from the Downeys and Leonard disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and permanent injunctive relief, and additionally against the Downeys, officer and director bars.
The SEC's investigation was conducted by Jeffrey Cohen, Carol Hahn, and Joann Harris, and the SEC's litigation is being led by B. David Fraser. The SEC appreciates the assistance of the Texas State Securities Board.
LONG RUNNING CONFLICT IN SENEGAL
FROM: U.S. STATE DEPARTMENT
Sant'Egidio Playing Vital Role in Effort to End 30-Year Conflict in Senegal
Bureau of Conflict and Stabilization Operations
November 25, 2014
The insurgency in Senegal’s Casamance region is one of the longest-running conflicts in the world—and one of the least known. It began 32 years ago when the Movement of Democratic Forces of Casamance (MFDC) demanded that the area be granted independence. Geography is a critical factor in this standoff. Casamance is the southern-most portion of Senegal, but another country, The Gambia, runs east-to-west between the region and the northern areas of Senegal.
In January 2011 President M. Abdoulaye Wade stated his willingness to engage Sant'Egidio, a Catholic lay organization in Rome with experience in helping parties resolve conflicts
A few weeks later, the military wing of the MFDC agreed to participate. Little happened, however, until Macky Sall was elected president in 2012 and injected new energy into the quest for peace. “We saw an opportunity for the State Department to promote peace,” said CSO’s Rebecca Wall, who proposed that her bureau send a senior official to provide diplomatic support and international partner coordination for the peace process.
That official was retired Ambassador James Bullington, who had 12 years of Africa experience in hot spots such as Chad and Burundi, a great respect for local leadership, and plenty of Chattanooga charm.
“We can’t bring peace to the Casamance,” Ambassador Bullington said in late 2012, after his arrival in Dakar. “Only the Senegalese can do that. But we can provide political and material support for the peace process.” To build on the momentum and to keep this issue on the embassy’s radar screen despite competing priorities, Ambassador Bullington coordinated with Embassy Dakar staff and other U.S. government agencies to ensure a focused, interagency approach. He began speaking regularly with the Government of Senegal and Sant’Egidio, while encouraging regional neighbors, especially The Gambia, to cooperate in the peace initiative. In late 2013, Sue Ford Patrick served as the U.S. Casamance advisor, and in 2014, the State Department’s Africa Bureau deployed Ambassador Mark Boulware to continue this role. The UN and other international partners also made important contributions.
Sant'Egidio contacted MFDC leader Salif Sadio, and high-level delegations from MFDC visited the Community of Sant'Egidio in Rome three times between January and July 2012 to prepare the negotiations. “Sant’Egidio understands that negotiations take a long time and that relationship-building is the key to the ultimate success of a peace process,” said CSO’s Wall, who helped secure U.S. government funds to enlist Sant’Egidio.
The first round of talks between representatives of the MFDC and the government of Senegal took place that October. Sant’Egidio asked Sadiò to release eight hostages as a humanitarian gesture and as an act to promote a favorable climate for negotiations. On December 9, in Casamance, Sadio delivered the prisoners to an international delegation. At about the same time a de facto ceasefire took hold, and it remains in effect.
“Interreligious and ecumenical dialogue between Christian and Muslim community leaders and the political leaders promoted and created a positive synergy that is favourable to reconciliation,” Sant’Egidio said on its website. Negotiations in Rome and Senegal continue, in hopes that before long this conflict can be considered at an end.
Sant'Egidio Playing Vital Role in Effort to End 30-Year Conflict in Senegal
Bureau of Conflict and Stabilization Operations
November 25, 2014
The insurgency in Senegal’s Casamance region is one of the longest-running conflicts in the world—and one of the least known. It began 32 years ago when the Movement of Democratic Forces of Casamance (MFDC) demanded that the area be granted independence. Geography is a critical factor in this standoff. Casamance is the southern-most portion of Senegal, but another country, The Gambia, runs east-to-west between the region and the northern areas of Senegal.
In January 2011 President M. Abdoulaye Wade stated his willingness to engage Sant'Egidio, a Catholic lay organization in Rome with experience in helping parties resolve conflicts
A few weeks later, the military wing of the MFDC agreed to participate. Little happened, however, until Macky Sall was elected president in 2012 and injected new energy into the quest for peace. “We saw an opportunity for the State Department to promote peace,” said CSO’s Rebecca Wall, who proposed that her bureau send a senior official to provide diplomatic support and international partner coordination for the peace process.
That official was retired Ambassador James Bullington, who had 12 years of Africa experience in hot spots such as Chad and Burundi, a great respect for local leadership, and plenty of Chattanooga charm.
“We can’t bring peace to the Casamance,” Ambassador Bullington said in late 2012, after his arrival in Dakar. “Only the Senegalese can do that. But we can provide political and material support for the peace process.” To build on the momentum and to keep this issue on the embassy’s radar screen despite competing priorities, Ambassador Bullington coordinated with Embassy Dakar staff and other U.S. government agencies to ensure a focused, interagency approach. He began speaking regularly with the Government of Senegal and Sant’Egidio, while encouraging regional neighbors, especially The Gambia, to cooperate in the peace initiative. In late 2013, Sue Ford Patrick served as the U.S. Casamance advisor, and in 2014, the State Department’s Africa Bureau deployed Ambassador Mark Boulware to continue this role. The UN and other international partners also made important contributions.
Sant'Egidio contacted MFDC leader Salif Sadio, and high-level delegations from MFDC visited the Community of Sant'Egidio in Rome three times between January and July 2012 to prepare the negotiations. “Sant’Egidio understands that negotiations take a long time and that relationship-building is the key to the ultimate success of a peace process,” said CSO’s Wall, who helped secure U.S. government funds to enlist Sant’Egidio.
The first round of talks between representatives of the MFDC and the government of Senegal took place that October. Sant’Egidio asked Sadiò to release eight hostages as a humanitarian gesture and as an act to promote a favorable climate for negotiations. On December 9, in Casamance, Sadio delivered the prisoners to an international delegation. At about the same time a de facto ceasefire took hold, and it remains in effect.
“Interreligious and ecumenical dialogue between Christian and Muslim community leaders and the political leaders promoted and created a positive synergy that is favourable to reconciliation,” Sant’Egidio said on its website. Negotiations in Rome and Senegal continue, in hopes that before long this conflict can be considered at an end.
SONY COMPUTER ENTERTAINMENT AMERICA TO SETTLE FTC CHARGES OF PLACING MISLEADING ADS
FROM: U.S. FEDERAL TRADE COMMISSION
Sony Computer Entertainment America To Provide Consumer Refunds To Settle FTC Charges Over Misleading Ads For PlayStation Vita Gaming Console
FTC Also Charges Los Angeles Ad Agency with Promoting Console through Deceptive Twitter Endorsements
Sony Computer Entertainment America (“Sony”) has agreed to settle Federal Trade Commission charges that it deceived consumers with false advertising claims about the “game changing” technological features of its PlayStation Vita handheld gaming console during its U.S. launch campaign in late 2011 and early 2012.
As part of its settlement with the FTC, Sony is barred from making similarly misleading advertising claims in the future, and will provide consumers who bought a PS Vita gaming console before June 1, 2012, either a $25 cash or credit refund, or a $50 merchandise voucher for select video games, and/or services. Sony will provide notice via email to consumers who are eligible for redress after the settlement is finalized by the Commission.
“As we enter the year’s biggest shopping period, companies need to be reminded that if they make product promises to consumers -- as Sony did with the “game changing” features of its PS Vita -- they must deliver on those pledges,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to act on behalf of consumers when companies or advertisers make false product claims.”
As part of its launch campaign for the PS Vita, Sony claimed that the pocket-sized console would revolutionize gaming mobility by enabling consumers to play their PlayStation 3 games via “remote play,” and that they could engage in “cross platform” play by starting a game on a PS3 and then continuing it on the go, right where they left off, on a PS Vita. The FTC alleges that each of these claims was misleading.
In a related action, the Commission charged that Deutsch LA, Sony’s advertising agency for the PS Vita launch, knew or should have known that the advertisements it produced contained misleading claims about the console’s cross platform and 3G capabilities.
The FTC also alleges that Deutsch LA further misled consumers by urging its employees to create awareness and excitement about the PS Vita on Twitter, without instructing employees to disclose their connection to the advertising agency or its then-client Sony. Under a separate settlement order, Deutsch LA is barred from such conduct in the future.
The PS Vita is a handheld gaming console that Sony first sold in the United States in February 2012 for about $250. Unlike the PS3, which allows consumers to play video games on a television, the PS Vita is a portable device that enables gamers to play “on the go,” untethered to a television screen.
FTC Complaint Against Sony Computer Entertainment America
The FTC’s complaint against Sony charges the company with making false claims about the PS Vita’s “cross platform gaming” or “cross-save” feature. Sony claimed, for example, that PS Vita users could pause any PS3 game at any time and continue to play the game on their PS Vita from where they left off. This feature, however, was only available for a few PS3 games, and the pause-and-save capability described in the ads varied significantly from game to game. For example, with respect to “MLB 12: The Show,” consumers could only save the game to the PS Vita after finishing the entire nine-inning game on their PS3. In addition, Sony failed to inform consumers that to use this feature, purchasers had to buy two versions of the same game – one for their PS3 and one for the PS Vita.
The FTC’s complaint also alleges that Sony’s PS Vita ads falsely implied that consumers who owned the 3G version of the device (which cost an extra $50 plus monthly fees) could engage in live, multi-player gaming through a 3G network. In fact, consumers could not engage in live, multiplayer gaming.
The complaint further alleges that Sony also falsely claimed that with the “remote play” feature, PS Vita users could easily access their PS3 games on their handheld consoles. In reality, most PS3 games were not remote playable on the PS Vita. Sony also misled consumers by falsely claiming that PS Vita users could remotely play the popular PS3 game, Killzone 3, on the PS Vita. In fact, Sony never enabled remote play on its Killzone 3 game title, and very few, if any, PS3 games of similar size and complexity were remote playable on the PS Vita.
FTC Complaint Against Deutsch LA
The FTC’s complaint against Deutsch LA charges the company with similarly misleading consumers through ads that it created touting the PS Vita’s cross-platform gaming and 3G features.
The Commission also alleges that Deutsch LA misled consumers with deceptive product endorsements for the PS Vita. Specifically, the agency used the term “#gamechanger” in its ads to direct consumers to online conversations about Sony’s console on Twitter. About a month before the gaming console was launched, one of Deutsch LA’s assistant account executives sent a company-wide email to staff asking them to help with the ad campaign by posting comments about the PS Vita on Twitter and using the same “#gamechanger” hashtag, according to the complaint.
In response to the company-wide email, various Deutsch LA employees posted positive tweets about the PS Vita to their personal Twitter accounts, without disclosing their connection to Deutsch or Sony, the FTC alleged. The FTC has charged that the tweets were misleading, as they did not reflect the views of actual consumers who had used the PS Vita, and because they did not disclose that they were written by employees of Deutsch LA.
Proposed Settlement Orders
The proposed settlement orders prohibit both Sony and Deutsch LA from making similar misrepresentations in the future when promoting the features or capabilities of handheld gaming consoles. The proposed order against Deutsch LA also bars it from misrepresenting that an endorser of any game console product or video game product is an independent user or ordinary consumer of the product. In addition, the proposed order requires Deutsch LA to disclose a material connection, where one exists, between any endorser of a game console product or video game product and Deutsch LA or other entity involved in the manufacture or marketing of the product. These requirements are in line with the FTC’s Endorsement Guides,
The proposed order against Sony requires it to send email notifications to all consumers it can reasonably identify as having bought a PS Vita before June 1, 2012.
Information for Consumers
The FTC has information for consumers about how to detect and avoid advertisements that may be deceptive or misleading, including a new blog post, Sony Ads Shouldn’t Play Games.
The Commission vote to accept both proposed consent orders for public comment was 5-0.
Sony Computer Entertainment America To Provide Consumer Refunds To Settle FTC Charges Over Misleading Ads For PlayStation Vita Gaming Console
FTC Also Charges Los Angeles Ad Agency with Promoting Console through Deceptive Twitter Endorsements
Sony Computer Entertainment America (“Sony”) has agreed to settle Federal Trade Commission charges that it deceived consumers with false advertising claims about the “game changing” technological features of its PlayStation Vita handheld gaming console during its U.S. launch campaign in late 2011 and early 2012.
As part of its settlement with the FTC, Sony is barred from making similarly misleading advertising claims in the future, and will provide consumers who bought a PS Vita gaming console before June 1, 2012, either a $25 cash or credit refund, or a $50 merchandise voucher for select video games, and/or services. Sony will provide notice via email to consumers who are eligible for redress after the settlement is finalized by the Commission.
“As we enter the year’s biggest shopping period, companies need to be reminded that if they make product promises to consumers -- as Sony did with the “game changing” features of its PS Vita -- they must deliver on those pledges,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to act on behalf of consumers when companies or advertisers make false product claims.”
As part of its launch campaign for the PS Vita, Sony claimed that the pocket-sized console would revolutionize gaming mobility by enabling consumers to play their PlayStation 3 games via “remote play,” and that they could engage in “cross platform” play by starting a game on a PS3 and then continuing it on the go, right where they left off, on a PS Vita. The FTC alleges that each of these claims was misleading.
In a related action, the Commission charged that Deutsch LA, Sony’s advertising agency for the PS Vita launch, knew or should have known that the advertisements it produced contained misleading claims about the console’s cross platform and 3G capabilities.
The FTC also alleges that Deutsch LA further misled consumers by urging its employees to create awareness and excitement about the PS Vita on Twitter, without instructing employees to disclose their connection to the advertising agency or its then-client Sony. Under a separate settlement order, Deutsch LA is barred from such conduct in the future.
The PS Vita is a handheld gaming console that Sony first sold in the United States in February 2012 for about $250. Unlike the PS3, which allows consumers to play video games on a television, the PS Vita is a portable device that enables gamers to play “on the go,” untethered to a television screen.
FTC Complaint Against Sony Computer Entertainment America
The FTC’s complaint against Sony charges the company with making false claims about the PS Vita’s “cross platform gaming” or “cross-save” feature. Sony claimed, for example, that PS Vita users could pause any PS3 game at any time and continue to play the game on their PS Vita from where they left off. This feature, however, was only available for a few PS3 games, and the pause-and-save capability described in the ads varied significantly from game to game. For example, with respect to “MLB 12: The Show,” consumers could only save the game to the PS Vita after finishing the entire nine-inning game on their PS3. In addition, Sony failed to inform consumers that to use this feature, purchasers had to buy two versions of the same game – one for their PS3 and one for the PS Vita.
The FTC’s complaint also alleges that Sony’s PS Vita ads falsely implied that consumers who owned the 3G version of the device (which cost an extra $50 plus monthly fees) could engage in live, multi-player gaming through a 3G network. In fact, consumers could not engage in live, multiplayer gaming.
The complaint further alleges that Sony also falsely claimed that with the “remote play” feature, PS Vita users could easily access their PS3 games on their handheld consoles. In reality, most PS3 games were not remote playable on the PS Vita. Sony also misled consumers by falsely claiming that PS Vita users could remotely play the popular PS3 game, Killzone 3, on the PS Vita. In fact, Sony never enabled remote play on its Killzone 3 game title, and very few, if any, PS3 games of similar size and complexity were remote playable on the PS Vita.
FTC Complaint Against Deutsch LA
The FTC’s complaint against Deutsch LA charges the company with similarly misleading consumers through ads that it created touting the PS Vita’s cross-platform gaming and 3G features.
The Commission also alleges that Deutsch LA misled consumers with deceptive product endorsements for the PS Vita. Specifically, the agency used the term “#gamechanger” in its ads to direct consumers to online conversations about Sony’s console on Twitter. About a month before the gaming console was launched, one of Deutsch LA’s assistant account executives sent a company-wide email to staff asking them to help with the ad campaign by posting comments about the PS Vita on Twitter and using the same “#gamechanger” hashtag, according to the complaint.
In response to the company-wide email, various Deutsch LA employees posted positive tweets about the PS Vita to their personal Twitter accounts, without disclosing their connection to Deutsch or Sony, the FTC alleged. The FTC has charged that the tweets were misleading, as they did not reflect the views of actual consumers who had used the PS Vita, and because they did not disclose that they were written by employees of Deutsch LA.
Proposed Settlement Orders
The proposed settlement orders prohibit both Sony and Deutsch LA from making similar misrepresentations in the future when promoting the features or capabilities of handheld gaming consoles. The proposed order against Deutsch LA also bars it from misrepresenting that an endorser of any game console product or video game product is an independent user or ordinary consumer of the product. In addition, the proposed order requires Deutsch LA to disclose a material connection, where one exists, between any endorser of a game console product or video game product and Deutsch LA or other entity involved in the manufacture or marketing of the product. These requirements are in line with the FTC’s Endorsement Guides,
The proposed order against Sony requires it to send email notifications to all consumers it can reasonably identify as having bought a PS Vita before June 1, 2012.
Information for Consumers
The FTC has information for consumers about how to detect and avoid advertisements that may be deceptive or misleading, including a new blog post, Sony Ads Shouldn’t Play Games.
The Commission vote to accept both proposed consent orders for public comment was 5-0.
FDIC REPORTS COMMERCIAL BANK AND SAVINGS INSTITUTION NET INCOME FOR THIRD QUARTER
FROM: FEDERAL DEPOSIT INSURANCE CORPORATION
| November 25, 2014 | Media Contact: David Barr (202) 898-6992 dbarr@fdic.gov |
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $38.7 billion in the third quarter of 2014, up $2.6 billion (7.3 percent) from earnings of $36.1 billion the industry reported a year earlier. The increase in earnings was mainly attributable to a $7.8 billion (4.8 percent) increase in net operating revenue (the sum of net interest income and total noninterest income), the biggest since the fourth quarter of 2009. Almost two-thirds of the 6,589 insured institutions reporting (62.9 percent) had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the third quarter fell to 6.4 percent from 8.7 percent a year earlier.
"The banking industry had another positive quarter," FDIC Chairman Martin J. Gruenberg said. "Community banks, in particular, performed better than a year ago. Most importantly, third quarter income growth was based on revenue growth instead of lower loan-loss provisions. This can be a more sustainable foundation for continued earnings growth going forward."
Total loan and lease balances rose by $50.9 billion (0.6 percent) in the third quarter to $8.2 trillion. Commercial and industrial loans increased by $10.1 billion (0.6 percent), and auto loans grew by $9 billion (2.4 percent), while balances of one- to four-family mortgage loans declined by $6.7 billion (0.4 percent). Over the last 12 months, loan and lease balances increased by 4.6 percent.
Noninterest income was $5.4 billion (9.2 percent) higher than a year ago. Gains from loan sales were $1.2 billion (45.6 percent) higher, while trading income was up by $1.1 billion (25.3 percent). This is the first time in the last five quarters that noninterest income has increased year-over-year.
Net interest income was up $2.4 billion (2.3 percent) from a year ago, as interest-bearing assets were 5.9 percent higher. The average net interest margin (the difference between the average yield banks earn on loans and other investments and the average cost of funding those investments) was 3.14 percent, down from the 3.26 percent average in the third quarter of 2013. This is the lowest quarterly average margin since 3.11 percent in the third quarter of 1989, as larger institutions increased their holdings of low-yield, liquid investments.
Noninterest expenses for goodwill impairment were $1.1 billion higher than a year ago, while itemized litigation expenses were $1.6 billion lower. Expenses for salaries and employee benefits were $2.0 billion (4.3 percent) higher than in the third quarter of 2013. Banks set aside $7.2 billion in provisions for loan losses, up 23.9 percent from $5.8 billion a year earlier. This is the first time in five years that the industry has reported a year-over-year increase in loss provisions.
Asset quality indicators continued to improve as insured banks and thrifts charged off $9.2 billion in uncollectible loans during the quarter, down $2.4 billion (21.0 percent) from a year earlier. The amount of noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell by $9.7 billion (5.3 percent) during the quarter. The percentage of loans and leases that were noncurrent declined to 2.11 percent, the lowest level since the 2.09 percent posted at the end of the second quarter of 2008.
The average return on assets (ROA) rose slightly to 1.02 percent in the third quarter from 1.00 percent a year earlier. The average return on equity (ROE) rose from 8.94 percent to 9.04 percent.
Despite continued positive developments, Chairman Gruenberg noted: "Still, there are challenges ahead for the industry. Margins remain under pressure in this low interest rate environment. Institutions have responded by extending asset maturities, which raises concerns about interest-rate risk. And banks are increasing higher-risk loans to leveraged commercial borrowers. All of these issues continue to be matters of ongoing supervisory attention. Nevertheless, third quarter results were largely good news for community banks and for the entire banking industry."
Financial results for the third quarter of 2014 are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:
Community banks earned $4.9 billion during the quarter. Starting with the Quarterly Banking Profile released for the first quarter of 2014, the FDIC added a new section that reports on the performance of community banks – those institutions that provide traditional, relationship-based banking services in their local communities. Based on criteria developed for the FDIC Community Banking Study published in December 2012, there were 6,107 community banks (93.0 percent of all FDIC-insured institutions) in the third quarter of 2014 with assets of $2.0 trillion (13.0 percent of industry assets). Third quarter net income at community banks of $4.9 billion was up $351 million (7.8 percent) from a year earlier, driven by higher net interest income and lower loan-loss provisions. The report also found that loan balances at community banks in the third quarter grew at a faster pace than in the industry as a whole, asset quality indicators continued to show improvement, and community banks continued to account for 45 percent of small loans to businesses.
The number of "problem banks" fell for the 14th consecutive quarter. The number of banks on the FDIC's "Problem List" declined from 354 to 329 during the quarter, the lowest since the 305 in the first quarter of 2009. The number of "problem" banks now is 63 percent below the post-crisis high of 888 at the end of the first quarter of 2011. Two FDIC-insured institutions failed in the third quarter, compared to six in the third quarter of 2013.
The Deposit Insurance Fund (DIF) balance continued to increase. The DIF balance (the net worth of the Fund) rose to a record $54.3 billion as of September 30 from $51.1 billion at the end of June. The Fund balance increased primarily due to assessment income, recoveries from litigation settlements, and receivership asset recoveries that exceeded estimates. Estimated insured deposits increased by 0.4 percent, and the DIF reserve ratio (the Fund balance as a percentage of estimated insured deposits) rose to 0.89 percent as of September 30 from 0.84 percent as of June 30. A year ago, the DIF reserve ratio was 0.68 percent. By law, the DIF must achieve a minimum reserve ratio of 1.35 percent by September 30, 2020.
Thursday, November 27, 2014
EUROPA: THE JUPITER MOON
FROM: NASA
Caption credit: NASA. The puzzling, fascinating surface of Jupiter’s icy moon Europa looms large in this newly-reprocessed color view, made from images taken by NASA's Galileo spacecraft in the late 1990s. This is the color view of Europa from Galileo that shows the largest portion of the moon's surface at the highest resolution. The view was previously released as a mosaic with lower resolution and strongly enhanced color (see PIA02590). To create this new version, the images were assembled into a realistic color view of the surface that approximates how Europa would appear to the human eye. The scene shows the stunning diversity of Europa’s surface geology. Long, linear cracks and ridges crisscross the surface, interrupted by regions of disrupted terrain where the surface ice crust has been broken up and re-frozen into new patterns. Color variations across the surface are associated with differences in geologic feature type and location. For example, areas that appear blue or white contain relatively pure water ice, while reddish and brownish areas include non-ice components in higher concentrations.
The polar regions, visible at the left and right of this view, are noticeably bluer than the more equatorial latitudes, which look more white. This color variation is thought to be due to differences in ice grain size in the two locations. Images taken through near-infrared, green and violet filters have been combined to produce this view. The images have been corrected for light scattered outside of the image, to provide a color correction that is calibrated by wavelength. Gaps in the images have been filled with simulated color based on the color of nearby surface areas with similar terrain types. This global color view consists of images acquired by the Galileo Solid-State Imaging (SSI) experiment on the spacecraft's first and fourteenth orbits through the Jupiter system, in 1995 and 1998, respectively. Image scale is 2 miles (1.6 kilometers) per pixel. North on Europa is at right. The Galileo mission was managed by NASA's Jet Propulsion Laboratory in Pasadena, California, for the agency's Science Mission Directorate in Washington. JPL is a division of the California Institute of Technology, Pasadena.
SOYUZ TMA-15M ROCKET LAUNCHES FROM KAZAKHSTAN
The Soyuz TMA-15M rocket launches from the Baikonur Cosmodrome in Kazakhstan on Monday, Nov. 24, 2014 as seen in this long exposure carrying Expedition 42 Soyuz Commander Anton Shkaplerov of the Russian Federal Space Agency (Roscosmos), Flight Engineer Terry Virts of NASA, and Flight Engineer Samantha Cristoforetti of the European Space Agency (ESA) into orbit to begin their five and a half month mission on the International Space Station. Image Credit: NASA/Aubrey Gemignani
Wednesday, November 26, 2014
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