Friday, December 5, 2014
BILLION-DOLLAR INVESTMENT SCAMMER SENTENCED TO 10 YEARS IN PRISON
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
Paul Greenwood Sentenced to 10 Years in Federal Prison for Billion-Dollar Investment Scam
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Paul Greenwood of North Salem, New York, who operated a $1.3 billion investment scam where he and a co-Defendant misappropriated at least $554 million from commodity pool participants, was sentenced to 10 years in federal prison for charges related to his participation in the scam. Earlier, on July 28, 2010, Greenwood pled guilty to a six-count criminal indictment on the charges, including a commodities fraud charge in violation of the Commodity Exchange Act (CEA).
The criminal charges arose from Greenwood’s solicitation fraud and misappropriation of pool participant funds, as charged in a Complaint filed by the CFTC on February 25, 2009 (see CFTC Press Release 5621-09) and a companion Complaint filed by the Securities and Exchange Commission. According to findings in Consent Orders entered earlier in the CFTC case, from at least 1996 to 2009, Greenwood and a co-Defendant solicited more than $7.6 billion from institutional investors, including charitable and university foundations and pension and retirement plans through Westridge Capital Management, WG Trading Investors, LP, and other entities. The Defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Greenwood and the co-Defendant siphoned funds.
Of the approximately $554 million in pool participants’ funds misappropriated, over $130 million was used for Greenwood and the co-Defendant’s personal expenses, including purchasing rare books, horses, and Steiff teddy bears for as much as $80,000.
In a sentencing letter filed with the Court in the criminal proceeding, the U.S. Attorney’s Office for the Southern District of New York acknowledged that Greenwood had cooperated and had provided substantial assistance to the government and the court-appointed receiver in the CFTC and SEC cases. The receiver’s efforts to marshal assets to date have resulted in the recovery of over $900 million dollars, or close to 90 percent of investors’ claims.
Aitan Goelman, the CFTC’s Director of Enforcement, stated: “The sentence in this case should serve as a warning that those who willfully violate the CEA face the very real chance of a significant term of imprisonment. The CFTC will continue its vigilance in protecting commodities and derivatives investors from fraud and other forms of financial crime.”
The CFTC greatly appreciates the assistance of the National Futures Association, the office of the U.S. Attorney for the Southern District of New York, the Federal Bureau of Investigation, and the Securities and Exchange Commission.
The following CFTC Division of Enforcement staff members are responsible for this matter: Patricia Gomersall, Kyong Koh, JonMarc Buffa, Peter Haas, Joan Manley, and Paul Hayeck.
Paul Greenwood Sentenced to 10 Years in Federal Prison for Billion-Dollar Investment Scam
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Paul Greenwood of North Salem, New York, who operated a $1.3 billion investment scam where he and a co-Defendant misappropriated at least $554 million from commodity pool participants, was sentenced to 10 years in federal prison for charges related to his participation in the scam. Earlier, on July 28, 2010, Greenwood pled guilty to a six-count criminal indictment on the charges, including a commodities fraud charge in violation of the Commodity Exchange Act (CEA).
The criminal charges arose from Greenwood’s solicitation fraud and misappropriation of pool participant funds, as charged in a Complaint filed by the CFTC on February 25, 2009 (see CFTC Press Release 5621-09) and a companion Complaint filed by the Securities and Exchange Commission. According to findings in Consent Orders entered earlier in the CFTC case, from at least 1996 to 2009, Greenwood and a co-Defendant solicited more than $7.6 billion from institutional investors, including charitable and university foundations and pension and retirement plans through Westridge Capital Management, WG Trading Investors, LP, and other entities. The Defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Greenwood and the co-Defendant siphoned funds.
Of the approximately $554 million in pool participants’ funds misappropriated, over $130 million was used for Greenwood and the co-Defendant’s personal expenses, including purchasing rare books, horses, and Steiff teddy bears for as much as $80,000.
In a sentencing letter filed with the Court in the criminal proceeding, the U.S. Attorney’s Office for the Southern District of New York acknowledged that Greenwood had cooperated and had provided substantial assistance to the government and the court-appointed receiver in the CFTC and SEC cases. The receiver’s efforts to marshal assets to date have resulted in the recovery of over $900 million dollars, or close to 90 percent of investors’ claims.
Aitan Goelman, the CFTC’s Director of Enforcement, stated: “The sentence in this case should serve as a warning that those who willfully violate the CEA face the very real chance of a significant term of imprisonment. The CFTC will continue its vigilance in protecting commodities and derivatives investors from fraud and other forms of financial crime.”
The CFTC greatly appreciates the assistance of the National Futures Association, the office of the U.S. Attorney for the Southern District of New York, the Federal Bureau of Investigation, and the Securities and Exchange Commission.
The following CFTC Division of Enforcement staff members are responsible for this matter: Patricia Gomersall, Kyong Koh, JonMarc Buffa, Peter Haas, Joan Manley, and Paul Hayeck.
SECRETARY KERRY'S REMARKS AT OSCE
FROM: U.S. STATE DEPARTMENT
Remarks at OSCE Ministerial Plenary Session
Remarks
John Kerry
Secretary of State
Basel, Switzerland
December 4, 2014
Thank you, President Burkhalter, for hosting us, and thanks to you and your team for chairing the OSCE during a very turbulent year. Your excellencies, when this ministerial last convened, tens of thousands of Ukrainian citizens were on the Maidan. And they were not intimidated by police violence, the threat of further repression, or the freezing weather. They were warmed by a simple desire: to live in a country with an honest government. The people of Ukraine continue to persevere. Through – tested by external aggression, they are casting off the shackles of repression and opening a new and promising chapter in their nation’s history. Twice in the past year, they have chosen new leaders through genuine democratic elections, and President Poroshenko and Prime Minister Yatsenyuk have pledged to implement a robust agenda of reforms designed to make Ukraine more secure, just, inclusive, prosperous, and free.
As the people of Ukraine have fought for their country, the OSCE has played a pivotal role. The organization has proven to the world the value of collective security and human rights instruments that we have built there, and underlined how important it is that these tools be allowed to work. In Ukraine, the OSCE has deployed the Special Monitoring Mission and used the Vienna Document to send inspection teams. The High Commission on National Minorities and Representatives on Freedom of the Media have supported civil society, documented abuses, and defended the voiceless in Crimea and other parts of Ukraine. ODIHR and the Parliamentary Assembly organized the largest election observation effort in OSCE history, and the list goes on.
The international community is united in condemning the violence that has led to so much needless suffering in Ukraine, but the violence continues. Regrettably, Russia continues to supply new weapons and increase support for armed separatists. In doing so, it fails to meet its international and OSCE obligations and to live up to an agreement that it actually negotiated and signed. The result is damage to its credibility, and its own citizens wind up paying a steep economic and human price, including the price of hundreds of Russian soldiers who fight and die in a country where they had and have no right to be.
So let me emphasize: The United States and countries that support Ukraine’s sovereignty and rights do not seek confrontation. It is not our design or desire that we see a Russia isolated through its own actions. In fact, we are convinced that Moscow could rebuild trust and relationships if it simply helps to calm turbulent waters, if it takes steps now to implement the Minsk protocol in letter and spirit, end support for violence in eastern Ukraine, withdraw Russian weapons and fighters, use its influence on the separatists to release all hostages, guarantee safe and unfettered access for OSCE monitors, cooperate in securing and respecting the entire internationally-recognized Ukrainian-Russian border, and end the illegal occupation of Crimea. No one gains from this confrontation. The nations around this table have too much work to do, too many common challenges, from terrorism and nuclear proliferation to epidemic disease and climate change.
My friends, more broadly, the crisis that we have experienced in Europe this past year is not the fault of the international system. It stems from the unwillingness of individual actors to abide by the rules and the principles of that system. When rules are broken, they need to be enforced, not rewritten. Despite numerous violations of Helsinki this year, the timeless wisdom of the final act – that sustainable security can only be achieved when fundamental freedoms and human rights are protected – has been reaffirmed. To build a more secure OSCE area, we need to acknowledge the serious failure of some member states to live up to their responsibilities, and these failures affect us all. In too many of the countries gathered here, the space for independent civil society and media is shrinking, breeding abuses of power and corruption. Laws have been enacted that repress religious freedom and unfairly punish legitimate political dissent. We have seen a rising tide of intolerance across the OSCE region, including hate crimes targeting Roma, Jews, Muslims, the LGBT community, and others. This organization is at its best when it sheds light where there is darkness and when it stands up against repression and for human rights and fundamental freedoms, including internet freedom. It is at its best when it speaks out, when we speak out, when society and independent activists and journalists – wherever people’s rights are denied or in jeopardy.
In closing, I thank President Burkhalter once again for his stewardship, the people of Switzerland for their hospitality, and we look forward to working with Prime Minister Vucic and Foreign Minister Dacic during Serbia’s chairmanship next year. And you will be sure that you will have our support as we celebrate the 40th anniversary of the Helsinki Final Act. Thank you.
Remarks at OSCE Ministerial Plenary Session
Remarks
John Kerry
Secretary of State
Basel, Switzerland
December 4, 2014
Thank you, President Burkhalter, for hosting us, and thanks to you and your team for chairing the OSCE during a very turbulent year. Your excellencies, when this ministerial last convened, tens of thousands of Ukrainian citizens were on the Maidan. And they were not intimidated by police violence, the threat of further repression, or the freezing weather. They were warmed by a simple desire: to live in a country with an honest government. The people of Ukraine continue to persevere. Through – tested by external aggression, they are casting off the shackles of repression and opening a new and promising chapter in their nation’s history. Twice in the past year, they have chosen new leaders through genuine democratic elections, and President Poroshenko and Prime Minister Yatsenyuk have pledged to implement a robust agenda of reforms designed to make Ukraine more secure, just, inclusive, prosperous, and free.
As the people of Ukraine have fought for their country, the OSCE has played a pivotal role. The organization has proven to the world the value of collective security and human rights instruments that we have built there, and underlined how important it is that these tools be allowed to work. In Ukraine, the OSCE has deployed the Special Monitoring Mission and used the Vienna Document to send inspection teams. The High Commission on National Minorities and Representatives on Freedom of the Media have supported civil society, documented abuses, and defended the voiceless in Crimea and other parts of Ukraine. ODIHR and the Parliamentary Assembly organized the largest election observation effort in OSCE history, and the list goes on.
The international community is united in condemning the violence that has led to so much needless suffering in Ukraine, but the violence continues. Regrettably, Russia continues to supply new weapons and increase support for armed separatists. In doing so, it fails to meet its international and OSCE obligations and to live up to an agreement that it actually negotiated and signed. The result is damage to its credibility, and its own citizens wind up paying a steep economic and human price, including the price of hundreds of Russian soldiers who fight and die in a country where they had and have no right to be.
So let me emphasize: The United States and countries that support Ukraine’s sovereignty and rights do not seek confrontation. It is not our design or desire that we see a Russia isolated through its own actions. In fact, we are convinced that Moscow could rebuild trust and relationships if it simply helps to calm turbulent waters, if it takes steps now to implement the Minsk protocol in letter and spirit, end support for violence in eastern Ukraine, withdraw Russian weapons and fighters, use its influence on the separatists to release all hostages, guarantee safe and unfettered access for OSCE monitors, cooperate in securing and respecting the entire internationally-recognized Ukrainian-Russian border, and end the illegal occupation of Crimea. No one gains from this confrontation. The nations around this table have too much work to do, too many common challenges, from terrorism and nuclear proliferation to epidemic disease and climate change.
My friends, more broadly, the crisis that we have experienced in Europe this past year is not the fault of the international system. It stems from the unwillingness of individual actors to abide by the rules and the principles of that system. When rules are broken, they need to be enforced, not rewritten. Despite numerous violations of Helsinki this year, the timeless wisdom of the final act – that sustainable security can only be achieved when fundamental freedoms and human rights are protected – has been reaffirmed. To build a more secure OSCE area, we need to acknowledge the serious failure of some member states to live up to their responsibilities, and these failures affect us all. In too many of the countries gathered here, the space for independent civil society and media is shrinking, breeding abuses of power and corruption. Laws have been enacted that repress religious freedom and unfairly punish legitimate political dissent. We have seen a rising tide of intolerance across the OSCE region, including hate crimes targeting Roma, Jews, Muslims, the LGBT community, and others. This organization is at its best when it sheds light where there is darkness and when it stands up against repression and for human rights and fundamental freedoms, including internet freedom. It is at its best when it speaks out, when we speak out, when society and independent activists and journalists – wherever people’s rights are denied or in jeopardy.
In closing, I thank President Burkhalter once again for his stewardship, the people of Switzerland for their hospitality, and we look forward to working with Prime Minister Vucic and Foreign Minister Dacic during Serbia’s chairmanship next year. And you will be sure that you will have our support as we celebrate the 40th anniversary of the Helsinki Final Act. Thank you.
DOD REPORTS ON PREVENTING SKIN TRANSPLANT REJECTION USING STEM CELLS
FROM: U.S. DEFENSE DEPARTMENT
Research Team Finds Promising Way to Prevent Skin Transplant Rejection
Story Number: NNS141203-03Release Date: 12/3/2014 10:02:00 AM Email this story to a friend Print this story
By Doris Ryan, Naval Medical Research Center Public Affairs
SILVER SPRING, Md. (NNS) -- A team of Navy researchers and collaborators working at the Naval Medical Research Center may have found a way to stop skin tissue rejection and published their results in the latest issue of STEM CELL Translational Medicine.
The research team developed and tested a laboratory skin transplantation treatment strategy model that supports the indefinite survival of donor transplanted skin grafts without use of long-term immunosuppression drug therapy.
This novel approach entails the intravenous injection of a small number of donor bone marrow cells and human stem cells.
"We demonstrated in the laboratory that a single infusion of adipose-derived stromal cells (ASC), stem cells taken from human body fat in a minimally invasive procedure, from an unmatched donor combined with an extremely low dose of bone marrow cells resulted in stable long-term tolerance of the skin graft without rejection for 200 days after the initial graft," said Thomas Davis, Ph.D., lead author on the paper and a contractor from the Henry M. Jackson Foundation. Davis is working at the Naval Medical Research Center's Regenerative Medicine Department.
Researchers still have a lot of work to do. From these preliminary studies, the next step is to test this strategy in preclinical studies to determine safety and efficacy. With promising results, this research will provide important knowledge about new ways to prevent rejection of transplanted organs.
"As we move forward, we are cautiously optimistic, appreciating that the transition from a laboratory model to proof-of-principle preclinical studies is challenging and not straightforward. If successful, this technology has diverse therapeutic applications in clinical transplantation in both military and civilian settings," Davis said.
Capt. Eric A. Elster, professor and chairman at Norman M. Rich Department of Surgery, Uniformed Services University of the Health Sciences, helped lead the study.
"ASC constitutively produced high levels of anti-inflammatory immunoregulatory factors," Elster said. "While further work is needed to validate this approach in other laboratory models before clinical trials can begin, the ability to use ASC, which are non-donor specific and clinically feasible, to induce tolerance opens a new horizon in transplantation."
Traumatically injured warfighters often undergo complex tissue and limb reconstruction that includes procedures involving skin, muscle, bone, joint, cartilage and nerve. Preservation and reconstruction is critical to long-term rehabilitation related to daily activities such as walking, eating, bathing and dressing. Doctors are using reconstructive surgery to treat devastating combat wounds and burns and that includes tissue transplantation combined with long-term immune-suppression medications. Rejection of transplanted tissue from an unmatched donor can lead to critical complications.
Research Team Finds Promising Way to Prevent Skin Transplant Rejection
Story Number: NNS141203-03Release Date: 12/3/2014 10:02:00 AM Email this story to a friend Print this story
By Doris Ryan, Naval Medical Research Center Public Affairs
SILVER SPRING, Md. (NNS) -- A team of Navy researchers and collaborators working at the Naval Medical Research Center may have found a way to stop skin tissue rejection and published their results in the latest issue of STEM CELL Translational Medicine.
The research team developed and tested a laboratory skin transplantation treatment strategy model that supports the indefinite survival of donor transplanted skin grafts without use of long-term immunosuppression drug therapy.
This novel approach entails the intravenous injection of a small number of donor bone marrow cells and human stem cells.
"We demonstrated in the laboratory that a single infusion of adipose-derived stromal cells (ASC), stem cells taken from human body fat in a minimally invasive procedure, from an unmatched donor combined with an extremely low dose of bone marrow cells resulted in stable long-term tolerance of the skin graft without rejection for 200 days after the initial graft," said Thomas Davis, Ph.D., lead author on the paper and a contractor from the Henry M. Jackson Foundation. Davis is working at the Naval Medical Research Center's Regenerative Medicine Department.
Researchers still have a lot of work to do. From these preliminary studies, the next step is to test this strategy in preclinical studies to determine safety and efficacy. With promising results, this research will provide important knowledge about new ways to prevent rejection of transplanted organs.
"As we move forward, we are cautiously optimistic, appreciating that the transition from a laboratory model to proof-of-principle preclinical studies is challenging and not straightforward. If successful, this technology has diverse therapeutic applications in clinical transplantation in both military and civilian settings," Davis said.
Capt. Eric A. Elster, professor and chairman at Norman M. Rich Department of Surgery, Uniformed Services University of the Health Sciences, helped lead the study.
"ASC constitutively produced high levels of anti-inflammatory immunoregulatory factors," Elster said. "While further work is needed to validate this approach in other laboratory models before clinical trials can begin, the ability to use ASC, which are non-donor specific and clinically feasible, to induce tolerance opens a new horizon in transplantation."
Traumatically injured warfighters often undergo complex tissue and limb reconstruction that includes procedures involving skin, muscle, bone, joint, cartilage and nerve. Preservation and reconstruction is critical to long-term rehabilitation related to daily activities such as walking, eating, bathing and dressing. Doctors are using reconstructive surgery to treat devastating combat wounds and burns and that includes tissue transplantation combined with long-term immune-suppression medications. Rejection of transplanted tissue from an unmatched donor can lead to critical complications.
SECRETARY KERRY'S REMARKS AT COUNTER-ISIL MEETING
FROM: U.S. STATE DEPARTMENT
Remarks at the Counter-ISIL Meeting
Remarks
John Kerry
Secretary of State
Brussels, Belgium
December 3, 2014
Good morning, everybody. Thank you very, very much for being here. Can everybody hear?
Mr. Secretary-General, Mr. Prime Minister, Excellencies, welcome everybody. I just want to begin the meeting by stressing that despite the location, this is not a NATO event. And as you noticed, there are no signs or any evidence other than the location, which is purely a matter of logistics but nobody is meant to misinterpret.
This is the first ministerial-level meeting of the anti-ISIL coalition, and we’re very, very grateful for everybody finding the time to be here. Many have traveled some significant distance to be here. Frankly, this impressive turnout reflects a shared determination to degrade and defeat ISIL, or to use the Arab term, Daesh.
Two and a half months ago, this didn’t exist. This is the work of two and a half months, and it reflects an extraordinary rapid coalescing of effort. And frankly, it is important that everybody reflect on the fact that this is not cosmetic; this is a reflection of actions that have taken – have been taken by more than 62 countries and entities in order to respond to the challenge of Daesh.
I’m very pleased that we’re going to have a chance to hear from Iraqi Prime Minister al-Abadi, whose government and citizens are on the front lines of this battle. And we’re very grateful for the steps that he has taken. Just yesterday he announced a significant agreement on the oil revenues. As everybody knows who’s been involved with Iraq, for years now that has been a long-sought goal and it’s a very significant achievement among many. In addition, there have been significant visits in recent days. Abdullah bin Zayed, Foreign Minister of the Emirates, Prime Minister Davutoglu of Turkey, others have visited Iraq and begun to indicate a new moment in the relationship with Iraq and indeed within the region.
We’ll also hear from General Allen, our special envoy, who will update us on the five public lines of effort that we are engaged in. And we will hear from many of you and we want to hear from people. We don’t want this to be a speechifying session. We would really like to have a dialogue so that we can digest the best thoughts about ways to do things better, things that haven’t been done that should be, or things that could be done differently. We want to plan carefully for the months ahead. And we will hear, including from representatives from Kuwait, Bahrain, Morocco, who have sponsored key gatherings themselves on key issues like communications, money, foreign fighters. These gatherings are just one indication of the dynamic leadership role that the Arab states are playing in the work of this coalition. The Arab states are taking leadership, and this leadership is both necessary and appropriate given that the geographic center of gravity of our global effort is in the Middle East.
One outcome of this meeting will be a statement that encompasses our message that we are united in moving ahead on all fronts and that we will engage in this campaign for as long as it takes to prevail. And there’s a reason that we are confident that we will, and that is all of you around this table, the members of this coalition. Our countries differ in geography, history, background, culture, but we all recognize a common threat, and Daesh is a danger and a threat to the interests and the values of all of us.
In opposing these terrorists, our diversity is, in fact, a source of remarkable strength because it gives us the credibility and the breadth of reach to move against Daesh not only in Iraq and Syria, but to counter any support that might exist for it around the world. Our coalition has been together now for less than three months, as I mentioned, so we recognize the hard work that remains to be done.
Our commitment will be measured most likely in years, but our efforts are already having a significant impact. The roughly 1,000 coalition air missions that we have flown have reduced Daesh’s leadership and inflicted damage on its logistical and operational capabilities. In much of Iraq, Daesh’s earlier momentum has dissipated. With coalition support, Iraqi forces have regained ground at Mosul and Haditha dams. They have retaken territory in the vicinity of Tikrit and expanded the security perimeter around the Baiji oil refinery. In the north and west, Kurdish troops are battling bravely and Sunni tribal fighters are beginning to come on board.
We also continue to strike targets in Syria, where Daesh has seen its command facilities attacked, its oil infrastructure damaged, and its siege of Kobani blocked. It is much harder now than when we started for Daesh to assemble forces in strength, to travel in convoys, and to launch concerted attacks. No large Daesh unit can move forward aggressively without worrying about what will come down on it from the skies.
In coming weeks, the coalition’s train, advise, and assist missions for Iraqi Security Forces will expand. Air strikes will continue as necessary. Step by step, Iraqis are mobilizing to reclaim the land that they have lost, and as the prime minister will attest, to develop the kind of broadly representative government they must have in order to succeed.
We are therefore encouraged by the significant progress this government is making to implement its national program and to unite against Daesh. Just yesterday, the government reached a breakthrough agreement with the Kurdistan region on managing oil exports and revenue that I mentioned earlier. It also issued an order to release detainees being held without formal charges. These initiatives take strong leadership, as exhibited by Prime Minister Abadi, and they will help the work of our coalition.
Meanwhile, there are many ways to contribute to the work of this coalition. The United States is constantly looking for the means to enhance the effectiveness of our actions, and I am confident that each of the coalition members represented here is going to do the same. This matters because the rise of Daesh was rapid, but it, in fact, has left those terrorists very exposed. What was relatively easy for them last summer has become more difficult. Daesh casualties are going up by the day. Muslim leaders across the globe are speaking out against the killers who have sought to hijack a whole faith, and Daesh’s repellent nature is becoming more evident with every ugly execution and every former recruit’s admission of being duped into believing Daesh is something that it most clearly is not.
The leaders of Daesh recently asked their followers to unleash volcanic eruptions of hate in every country. Our own rallying cry is not so dramatic, but it is far more responsive to the needs of people everywhere, and especially in the Middle East where suffering and violence have gone on for far too long. Our coalition does not summon hate, but rather the courage to build a future that is based on shared interests, shared values, and a shared faith in one another. That contrast in goals marks the dividing line between barbarism and civilization, and it explains both why we dare not fail and why we will succeed.
Remarks at the Counter-ISIL Meeting
Remarks
John Kerry
Secretary of State
Brussels, Belgium
December 3, 2014
Good morning, everybody. Thank you very, very much for being here. Can everybody hear?
Mr. Secretary-General, Mr. Prime Minister, Excellencies, welcome everybody. I just want to begin the meeting by stressing that despite the location, this is not a NATO event. And as you noticed, there are no signs or any evidence other than the location, which is purely a matter of logistics but nobody is meant to misinterpret.
This is the first ministerial-level meeting of the anti-ISIL coalition, and we’re very, very grateful for everybody finding the time to be here. Many have traveled some significant distance to be here. Frankly, this impressive turnout reflects a shared determination to degrade and defeat ISIL, or to use the Arab term, Daesh.
Two and a half months ago, this didn’t exist. This is the work of two and a half months, and it reflects an extraordinary rapid coalescing of effort. And frankly, it is important that everybody reflect on the fact that this is not cosmetic; this is a reflection of actions that have taken – have been taken by more than 62 countries and entities in order to respond to the challenge of Daesh.
I’m very pleased that we’re going to have a chance to hear from Iraqi Prime Minister al-Abadi, whose government and citizens are on the front lines of this battle. And we’re very grateful for the steps that he has taken. Just yesterday he announced a significant agreement on the oil revenues. As everybody knows who’s been involved with Iraq, for years now that has been a long-sought goal and it’s a very significant achievement among many. In addition, there have been significant visits in recent days. Abdullah bin Zayed, Foreign Minister of the Emirates, Prime Minister Davutoglu of Turkey, others have visited Iraq and begun to indicate a new moment in the relationship with Iraq and indeed within the region.
We’ll also hear from General Allen, our special envoy, who will update us on the five public lines of effort that we are engaged in. And we will hear from many of you and we want to hear from people. We don’t want this to be a speechifying session. We would really like to have a dialogue so that we can digest the best thoughts about ways to do things better, things that haven’t been done that should be, or things that could be done differently. We want to plan carefully for the months ahead. And we will hear, including from representatives from Kuwait, Bahrain, Morocco, who have sponsored key gatherings themselves on key issues like communications, money, foreign fighters. These gatherings are just one indication of the dynamic leadership role that the Arab states are playing in the work of this coalition. The Arab states are taking leadership, and this leadership is both necessary and appropriate given that the geographic center of gravity of our global effort is in the Middle East.
One outcome of this meeting will be a statement that encompasses our message that we are united in moving ahead on all fronts and that we will engage in this campaign for as long as it takes to prevail. And there’s a reason that we are confident that we will, and that is all of you around this table, the members of this coalition. Our countries differ in geography, history, background, culture, but we all recognize a common threat, and Daesh is a danger and a threat to the interests and the values of all of us.
In opposing these terrorists, our diversity is, in fact, a source of remarkable strength because it gives us the credibility and the breadth of reach to move against Daesh not only in Iraq and Syria, but to counter any support that might exist for it around the world. Our coalition has been together now for less than three months, as I mentioned, so we recognize the hard work that remains to be done.
Our commitment will be measured most likely in years, but our efforts are already having a significant impact. The roughly 1,000 coalition air missions that we have flown have reduced Daesh’s leadership and inflicted damage on its logistical and operational capabilities. In much of Iraq, Daesh’s earlier momentum has dissipated. With coalition support, Iraqi forces have regained ground at Mosul and Haditha dams. They have retaken territory in the vicinity of Tikrit and expanded the security perimeter around the Baiji oil refinery. In the north and west, Kurdish troops are battling bravely and Sunni tribal fighters are beginning to come on board.
We also continue to strike targets in Syria, where Daesh has seen its command facilities attacked, its oil infrastructure damaged, and its siege of Kobani blocked. It is much harder now than when we started for Daesh to assemble forces in strength, to travel in convoys, and to launch concerted attacks. No large Daesh unit can move forward aggressively without worrying about what will come down on it from the skies.
In coming weeks, the coalition’s train, advise, and assist missions for Iraqi Security Forces will expand. Air strikes will continue as necessary. Step by step, Iraqis are mobilizing to reclaim the land that they have lost, and as the prime minister will attest, to develop the kind of broadly representative government they must have in order to succeed.
We are therefore encouraged by the significant progress this government is making to implement its national program and to unite against Daesh. Just yesterday, the government reached a breakthrough agreement with the Kurdistan region on managing oil exports and revenue that I mentioned earlier. It also issued an order to release detainees being held without formal charges. These initiatives take strong leadership, as exhibited by Prime Minister Abadi, and they will help the work of our coalition.
Meanwhile, there are many ways to contribute to the work of this coalition. The United States is constantly looking for the means to enhance the effectiveness of our actions, and I am confident that each of the coalition members represented here is going to do the same. This matters because the rise of Daesh was rapid, but it, in fact, has left those terrorists very exposed. What was relatively easy for them last summer has become more difficult. Daesh casualties are going up by the day. Muslim leaders across the globe are speaking out against the killers who have sought to hijack a whole faith, and Daesh’s repellent nature is becoming more evident with every ugly execution and every former recruit’s admission of being duped into believing Daesh is something that it most clearly is not.
The leaders of Daesh recently asked their followers to unleash volcanic eruptions of hate in every country. Our own rallying cry is not so dramatic, but it is far more responsive to the needs of people everywhere, and especially in the Middle East where suffering and violence have gone on for far too long. Our coalition does not summon hate, but rather the courage to build a future that is based on shared interests, shared values, and a shared faith in one another. That contrast in goals marks the dividing line between barbarism and civilization, and it explains both why we dare not fail and why we will succeed.
TECH AND NEW IDEAS SOUGHT BY DOD FOR RESEARCH DEVELOPMENT PLAN
FROM: U.S. DEFENSE DEPARTMENT
DoD Seeks Future Technology Via Development Plan
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, Dec. 3, 2014 – The Defense Department seeks technology and innovative ideas as part of its Long Range Research Development Plan within the Defense Innovation Initiative, a broad effort that examines future capabilities, dominance and strategy, a senior DoD official said Nov. 24.
The newly-released LRRDP Request for Information will provide a way for DoD technology scouts to collaborate with industry, academia, and the general public to explore topics and ideas to better identify the “art of the possible,” said Deputy Assistant Secretary of Defense for Systems Engineering Stephen P. Welby.
“We’re interested in getting the broadest set of folks, the brightest minds we can find, to come help us on this effort,” Welby said. “We’re hoping that by casting this wide net, we’ll be able to harness the creativity and innovation going on in the broader ecosystem and help us think about the future department in a new way.”
Domains of Interest
Specific military domains of interest, he said, include space, undersea technologies, affordable protective systems against precision-guided munitions threats, air dominance and strike capability possibilities, ecologically and biologically inspired ideas and human-computer interaction.
“We expect the topics and ideas that come back will inform our science and technology planning and we’re mining that whole space,” Welby said.
He described a “small, agile team” of bright government officials who’ve been charged to engage industry, academia, not-for-profits, small businesses and the general public to help the department explore future possibilities. Inputs will also be accepted from allies and international partners who may have unique perspectives or contributions to the effort.
Officials expect the seven-month study to yield results in time to brief the defense secretary by mid-2015 and influence future budget and offset technology decisions, Welby said.
DoD’s Future
“The key opportunity out of this whole effort is to start a discussion,” he said. “We’re asking questions about people, business practices, but particularly … about technology, what we need to drive the future of the department.”
Deputy Secretary of Defense Robert O. Work will oversee the program as part of the overall effort to explore how technology can be incorporated with future DoD strategy and capabilities.
Pentagon officials noted a justified urgency in reviewing the future systems and architectures to maintain dominance over competing investments around the globe.
“There is no better time to look at the long-range strategy we’re taking to invest in technologies that will make a difference,” Welby said.
Capability Breakthrough in the 1980s
During the 1980s, Welby said, DoD found itself facing the Soviets and recognized there was a better way to confront the issue rather than a “tank-versus-tank” military buildup.
“The big breakthrough in that time period was introduction of precision weapons … and technology that allowed us to replace quantity with very precise technology-driven capabilities,” Welby said.
That, he said, has been the key driver in the way the nation has conducted itself in the national security environment for more than 40 years.
“People have understood our playbook,” Welby said. “Adversaries are now building systems that look to blunt particular United States’ advantages and we’d like to revisit that.”
Efforts in 1973 included the original Long-Range Research and Development Plan, which ushered in nascent digital technologies, early iterations of global positioning systems and the beginnings of the future Internet.
Today, he said, DoD faces challenges posed by globalization and technologies driven by both the military and commercial sectors.
“We’re now asking broader questions like, ‘How does the United States maintain its … lead against the entire path of technology and innovation going on globally?’” Welby said.
Maintaining a compelling U.S. advantage in technology is critical, he said.
DoD’s long-range plan, Welby said, will focus on “near-peer competitors,” state actors and a broader scope of conventional deterrence, namely key technologies that will enable the protection of U.S. interests and freedom of movement, and deter future aggression into the 2025 timeframe.
DoD Seeks Future Technology Via Development Plan
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, Dec. 3, 2014 – The Defense Department seeks technology and innovative ideas as part of its Long Range Research Development Plan within the Defense Innovation Initiative, a broad effort that examines future capabilities, dominance and strategy, a senior DoD official said Nov. 24.
The newly-released LRRDP Request for Information will provide a way for DoD technology scouts to collaborate with industry, academia, and the general public to explore topics and ideas to better identify the “art of the possible,” said Deputy Assistant Secretary of Defense for Systems Engineering Stephen P. Welby.
“We’re interested in getting the broadest set of folks, the brightest minds we can find, to come help us on this effort,” Welby said. “We’re hoping that by casting this wide net, we’ll be able to harness the creativity and innovation going on in the broader ecosystem and help us think about the future department in a new way.”
Domains of Interest
Specific military domains of interest, he said, include space, undersea technologies, affordable protective systems against precision-guided munitions threats, air dominance and strike capability possibilities, ecologically and biologically inspired ideas and human-computer interaction.
“We expect the topics and ideas that come back will inform our science and technology planning and we’re mining that whole space,” Welby said.
He described a “small, agile team” of bright government officials who’ve been charged to engage industry, academia, not-for-profits, small businesses and the general public to help the department explore future possibilities. Inputs will also be accepted from allies and international partners who may have unique perspectives or contributions to the effort.
Officials expect the seven-month study to yield results in time to brief the defense secretary by mid-2015 and influence future budget and offset technology decisions, Welby said.
DoD’s Future
“The key opportunity out of this whole effort is to start a discussion,” he said. “We’re asking questions about people, business practices, but particularly … about technology, what we need to drive the future of the department.”
Deputy Secretary of Defense Robert O. Work will oversee the program as part of the overall effort to explore how technology can be incorporated with future DoD strategy and capabilities.
Pentagon officials noted a justified urgency in reviewing the future systems and architectures to maintain dominance over competing investments around the globe.
“There is no better time to look at the long-range strategy we’re taking to invest in technologies that will make a difference,” Welby said.
Capability Breakthrough in the 1980s
During the 1980s, Welby said, DoD found itself facing the Soviets and recognized there was a better way to confront the issue rather than a “tank-versus-tank” military buildup.
“The big breakthrough in that time period was introduction of precision weapons … and technology that allowed us to replace quantity with very precise technology-driven capabilities,” Welby said.
That, he said, has been the key driver in the way the nation has conducted itself in the national security environment for more than 40 years.
“People have understood our playbook,” Welby said. “Adversaries are now building systems that look to blunt particular United States’ advantages and we’d like to revisit that.”
Efforts in 1973 included the original Long-Range Research and Development Plan, which ushered in nascent digital technologies, early iterations of global positioning systems and the beginnings of the future Internet.
Today, he said, DoD faces challenges posed by globalization and technologies driven by both the military and commercial sectors.
“We’re now asking broader questions like, ‘How does the United States maintain its … lead against the entire path of technology and innovation going on globally?’” Welby said.
Maintaining a compelling U.S. advantage in technology is critical, he said.
DoD’s long-range plan, Welby said, will focus on “near-peer competitors,” state actors and a broader scope of conventional deterrence, namely key technologies that will enable the protection of U.S. interests and freedom of movement, and deter future aggression into the 2025 timeframe.
Thursday, December 4, 2014
U.S. REPRESENTATIVE MAKES REMARKS AT UN SECURITY COUNCIL MEETING ON UNMIK
FROM: U.S. STATE DEPARTMENT
U.S. Mission to the United Nations: Remarks at the UN Security Council Meeting Debate on UNMIK
12/04/2014 05:45 PM EST
Ambassador David Pressman
Alternate Representative to the UN for Special Political Affairs
New York, NY
December 4, 2014
AS DELIVERED
Thank you, Mr. President, and thank you Special Representative Zarif for your briefing. We welcome Prime Minister ThaÒ«i and Prime Minister VuÄiÄ to the Council and thank them for their statements.
Mr. President, the EU-facilitated Kosovo-Serbia Dialogue and implementation of the April 2013 agreement to normalize relations continue to be critical elements for building a strong, inclusive, and integrated democracy in Kosovo. We are eager to see high-level meetings resume and expeditious progress continue toward full implementation of the Brussels agreement, including the full functioning of all of Kosovo’s municipalities in accordance with Kosovo law.
In this regard, the United States welcomes recent progress by Kosovo political leaders to overcome the political impasse that has prevented the formation of a Kosovo government following the June elections. We call on Kosovo’s political party leaders to move lawfully and quickly to constitute the Assembly and form the government in a manner fully in line with Kosovo’s constitution, laws and rulings by its constitutional court. As the Secretary-General observed in his report, there are many pressing issues affecting the future of all people living in Kosovo, and there are opportunities to continue the historic process of normalization with Belgrade and reconcile with the past.
Sustaining momentum in the Belgrade-Pristina Dialogue and full implementation of all agreements reached to date remain integral to the welfare of the people of Kosovo, to both Kosovo and Serbia’s progress on their respective paths toward European integration, and to a stable, peaceful, and prosperous region. To this end, we will continue to back the intensive engagement of the EU and the EU High Representative in advancing the Dialogue.
While progress at the political level has paused while awaiting Kosovo government formation, progress does continue to be made on the technical level, including important agreements on integrated border management, freedom of movement, energy, and reciprocal recognition of vehicle insurance that will allow citizens of both countries to travel easily across the borders. We welcome the cooperation between the international and local authorities that helped facilitate visits by Serb pilgrims to Kosovo for religious holidays in November.
The United States condemns those that seek to oppose the work of building inclusive democracy in Kosovo by committing acts of violence or intimidation, or sowing tension, mistrust and fear between the communities. Threats against returnees and their property, the deplorable acts of vandalism at DeÄani monastery on October 11th and 12th, and the incendiary rhetoric that surrounded the suspension of the soccer match in Belgrade between Serbia and Albania are all grounds for concern. These incidents demonstrate the need to intensify outreach, redouble efforts to promote dialogue and understanding, and further strengthen security where it is needed.
KFOR and EULEX continue to exercise indispensable roles, in cooperation with Kosovo authorities, in ensuring security and strengthening the rule of law throughout the country. Their work has also been instrumental in ensuring an environment conducive to advancing the implementation of the dialogue agreements between Kosovo and Serbia. KFOR support for security and its presence as a third responder in Mitrovica following the Serbia-Albania soccer game help prevent tensions from escalating into violence. EULEX personnel remain essential in mentoring and training Kosovo’s judicial and police personnel and their work continues to facilitate the identification and repatriation of remains from previous conflicts as we witnessed in September and in October. Colleagues have raised recent allegations against certain EULEX officials. These allegations should be the subject of a full and transparent investigation. Nonetheless, inflammatory language directed against EULEX and the lack of full cooperation in certain law enforcement matters are unacceptable. We continue to support EULEX's important rule of law mission in Kosovo.
Finally, Mr. President, the United States notes and welcomes Kosovo’s growing involvement in the regional cooperation fora, and commends the October 10 decision of the Multinational Advisory Group of RACVIAC Centre for Security Cooperation in South East Europe inviting Kosovo’s full participation in the organization. Increased dialogue among the countries of the region is vital to addressing shared concerns, such as the threat of foreign terrorist fighters. We call upon the countries in the region to work together to ensure effective preventative and response mechanisms are in place to counter extremist individuals and violent extremist ideas. In connection with these efforts, the United States commends the work of Kosovo and Serbia law enforcement agencies in response to the threat of foreign terrorist fighters. These are important lines of effort of the counter-ISIL coalition, of which we thank both Kosovo and Serbia for being members.
Thank you very much.
U.S. Mission to the United Nations: Remarks at the UN Security Council Meeting Debate on UNMIK
12/04/2014 05:45 PM EST
Ambassador David Pressman
Alternate Representative to the UN for Special Political Affairs
New York, NY
December 4, 2014
AS DELIVERED
Thank you, Mr. President, and thank you Special Representative Zarif for your briefing. We welcome Prime Minister ThaÒ«i and Prime Minister VuÄiÄ to the Council and thank them for their statements.
Mr. President, the EU-facilitated Kosovo-Serbia Dialogue and implementation of the April 2013 agreement to normalize relations continue to be critical elements for building a strong, inclusive, and integrated democracy in Kosovo. We are eager to see high-level meetings resume and expeditious progress continue toward full implementation of the Brussels agreement, including the full functioning of all of Kosovo’s municipalities in accordance with Kosovo law.
In this regard, the United States welcomes recent progress by Kosovo political leaders to overcome the political impasse that has prevented the formation of a Kosovo government following the June elections. We call on Kosovo’s political party leaders to move lawfully and quickly to constitute the Assembly and form the government in a manner fully in line with Kosovo’s constitution, laws and rulings by its constitutional court. As the Secretary-General observed in his report, there are many pressing issues affecting the future of all people living in Kosovo, and there are opportunities to continue the historic process of normalization with Belgrade and reconcile with the past.
Sustaining momentum in the Belgrade-Pristina Dialogue and full implementation of all agreements reached to date remain integral to the welfare of the people of Kosovo, to both Kosovo and Serbia’s progress on their respective paths toward European integration, and to a stable, peaceful, and prosperous region. To this end, we will continue to back the intensive engagement of the EU and the EU High Representative in advancing the Dialogue.
While progress at the political level has paused while awaiting Kosovo government formation, progress does continue to be made on the technical level, including important agreements on integrated border management, freedom of movement, energy, and reciprocal recognition of vehicle insurance that will allow citizens of both countries to travel easily across the borders. We welcome the cooperation between the international and local authorities that helped facilitate visits by Serb pilgrims to Kosovo for religious holidays in November.
The United States condemns those that seek to oppose the work of building inclusive democracy in Kosovo by committing acts of violence or intimidation, or sowing tension, mistrust and fear between the communities. Threats against returnees and their property, the deplorable acts of vandalism at DeÄani monastery on October 11th and 12th, and the incendiary rhetoric that surrounded the suspension of the soccer match in Belgrade between Serbia and Albania are all grounds for concern. These incidents demonstrate the need to intensify outreach, redouble efforts to promote dialogue and understanding, and further strengthen security where it is needed.
KFOR and EULEX continue to exercise indispensable roles, in cooperation with Kosovo authorities, in ensuring security and strengthening the rule of law throughout the country. Their work has also been instrumental in ensuring an environment conducive to advancing the implementation of the dialogue agreements between Kosovo and Serbia. KFOR support for security and its presence as a third responder in Mitrovica following the Serbia-Albania soccer game help prevent tensions from escalating into violence. EULEX personnel remain essential in mentoring and training Kosovo’s judicial and police personnel and their work continues to facilitate the identification and repatriation of remains from previous conflicts as we witnessed in September and in October. Colleagues have raised recent allegations against certain EULEX officials. These allegations should be the subject of a full and transparent investigation. Nonetheless, inflammatory language directed against EULEX and the lack of full cooperation in certain law enforcement matters are unacceptable. We continue to support EULEX's important rule of law mission in Kosovo.
Finally, Mr. President, the United States notes and welcomes Kosovo’s growing involvement in the regional cooperation fora, and commends the October 10 decision of the Multinational Advisory Group of RACVIAC Centre for Security Cooperation in South East Europe inviting Kosovo’s full participation in the organization. Increased dialogue among the countries of the region is vital to addressing shared concerns, such as the threat of foreign terrorist fighters. We call upon the countries in the region to work together to ensure effective preventative and response mechanisms are in place to counter extremist individuals and violent extremist ideas. In connection with these efforts, the United States commends the work of Kosovo and Serbia law enforcement agencies in response to the threat of foreign terrorist fighters. These are important lines of effort of the counter-ISIL coalition, of which we thank both Kosovo and Serbia for being members.
Thank you very much.
FORMER EXECUTIVE PLEADS GUILTY IN KICKBACK SCHEME INVOLVING POWER CONTRACTS IN EGYPT
FROM: U.S. JUSTICE DEPARTMENT
Thursday, December 4, 2014
Former Bechtel Executive Pleads Guilty in Connection with a $5.2 Million Kickback Scheme
The former Principal Vice President of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo) pleaded guilty today in connection with a $5.2 million kickback scheme intended to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
“Asem Elgawhary took more than $5 million in kickbacks from companies trying to manipulate a competitive bidding process in their favor,” said Assistant Attorney General Caldwell. “Foreign corruption is an international scourge, and we will pursue those who take bribes, whether they are government officials or high-ranking corporate executives, like Elgawhary. Every corruption conviction is a step towards rooting out and deterring this global problem.”
“Our economy is so global in this day and age that if we allowed corrupt practices overseas such as taking bribes in exchange for special consideration when comparing bids, it would seriously impact our international trade. What Mr. Elgawhary admitted to doing has a dramatic affect on U.S. companies being able to expand and grow their work forces overseas in a fair market place, which in the long run hurts our economy,” said Special Agent in Charge Vogt of the FBI in Maryland and Delaware. “He displayed his blatant disregard for our rule of law when he used a portion of the bribe payment to purchase a house for $1.6 million in cash. This should send a message to others like Mr. Elgawhary, that hiding behind a foreign government won’t protect you from prosecution.”
“Mr. Elgawhary allowed greed to compromise his business practices by taking kickbacks to provide unfair advantages to companies willing pay for power contracts,” stated Special Agent in Charge Kelly of IRS-CI’s Washington D.C. Field Office. “He compounded his criminal activities by failing to report any of the kickback payments as income on his tax returns. It is imperative that honest companies know IRS Criminal Investigation will investigate and bring to prosecution those willing to line their pockets through unethical business practices.”
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty today before U.S. District Judge Deborah K. Chasanow of the District of Maryland to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. Sentencing is scheduled for Mar. 23, 2015.
In his plea agreement, Elgawhary admitted that, from 1996 to 2011, he was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. According to court documents, the power companies and their consultants paid more than $5.2 million in kickback payments into various off-shore bank accounts under the control of Elgawhary, including various Swiss bank accounts.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors in Maryland, falsely certifying that he had no knowledge of any fraud or suspected fraud at PGESCo, and that there were no violations or possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary also admitted to conspiring to launder the proceeds of the scheme and to obstructing and impeding the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account, denying that he received any income from a foreign bank account, and failing to report any of the kickback payments as income for the tax years 2008 through 2011.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case is being investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
Thursday, December 4, 2014
Former Bechtel Executive Pleads Guilty in Connection with a $5.2 Million Kickback Scheme
The former Principal Vice President of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo) pleaded guilty today in connection with a $5.2 million kickback scheme intended to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
“Asem Elgawhary took more than $5 million in kickbacks from companies trying to manipulate a competitive bidding process in their favor,” said Assistant Attorney General Caldwell. “Foreign corruption is an international scourge, and we will pursue those who take bribes, whether they are government officials or high-ranking corporate executives, like Elgawhary. Every corruption conviction is a step towards rooting out and deterring this global problem.”
“Our economy is so global in this day and age that if we allowed corrupt practices overseas such as taking bribes in exchange for special consideration when comparing bids, it would seriously impact our international trade. What Mr. Elgawhary admitted to doing has a dramatic affect on U.S. companies being able to expand and grow their work forces overseas in a fair market place, which in the long run hurts our economy,” said Special Agent in Charge Vogt of the FBI in Maryland and Delaware. “He displayed his blatant disregard for our rule of law when he used a portion of the bribe payment to purchase a house for $1.6 million in cash. This should send a message to others like Mr. Elgawhary, that hiding behind a foreign government won’t protect you from prosecution.”
“Mr. Elgawhary allowed greed to compromise his business practices by taking kickbacks to provide unfair advantages to companies willing pay for power contracts,” stated Special Agent in Charge Kelly of IRS-CI’s Washington D.C. Field Office. “He compounded his criminal activities by failing to report any of the kickback payments as income on his tax returns. It is imperative that honest companies know IRS Criminal Investigation will investigate and bring to prosecution those willing to line their pockets through unethical business practices.”
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty today before U.S. District Judge Deborah K. Chasanow of the District of Maryland to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. Sentencing is scheduled for Mar. 23, 2015.
In his plea agreement, Elgawhary admitted that, from 1996 to 2011, he was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. According to court documents, the power companies and their consultants paid more than $5.2 million in kickback payments into various off-shore bank accounts under the control of Elgawhary, including various Swiss bank accounts.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors in Maryland, falsely certifying that he had no knowledge of any fraud or suspected fraud at PGESCo, and that there were no violations or possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary also admitted to conspiring to launder the proceeds of the scheme and to obstructing and impeding the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account, denying that he received any income from a foreign bank account, and failing to report any of the kickback payments as income for the tax years 2008 through 2011.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case is being investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
"TYPHOON HAGUPIT CONTINUES TO INTENSITY"
Right: NASA's Terra satellite captured this visible image of Tropical Storm Hagupit in the western Pacific Ocean on Dec. 1 at 00:05 UTC (7:05 p.m. EST, Nov. 30). Image Credit: NASA Goddard MODIS Rapid Response
Typhoon Hagupit continues to intensify as it continued moving through Micronesia on Dec. 3 triggering warnings.
NASA's Aqua satellite passed overhead and captured an image of the strengthening storm while the Rapidscat instrument aboard the International Space Station provided information about the storm's winds.
The International Space Station-RapidScat instrument monitors ocean winds to provide essential measurements used in weather predictions, including hurricanes. "RapidScat measures wind speed and direction over the ocean surface and captured an image of Hagupit when it was a tropical storm on Dec 2 at 8:50 a.m. GMT," said Doug Tyler of NASA's Jet Propulsion Laboratory, Pasadena, California. "The growing storm, north of New Guinea and headed for the Philippines, already had 25 meters/second winds (50 knots/57.5 mph/92.6 kph)."
A typhoon and tropical storm warning are in effect in Micronesia, in addition to a typhoon watch as Hagupit marches through Micronesia on a west-northwesterly track. A typhoon warning is in effect for Yap and Ngulu in Yap state, and a typhoon watch and tropical storm warning is in effect for Kayangel in the Republic of Palau. In addition, a tropical storm warning is in effect for Koror in the Republic of Palau.
NASA's Aqua satellite captured a visible image of Typhoon Hagupit on Dec. 3 at 04:30 UTC (Dec. 2 at 11:30 p.m. EST) as it moved through Micronesia in the western Pacific Ocean. The image showed a concentration of strong thunderstorms around the center with bands of thunderstorms spiraling into it.
At 1500 UTC (10 a.m. EST) on Dec. 3, Typhoon Hagupit's maximum sustained winds had increased to 100 knots 115.1 mph/185.2 kph). Typhoon-strength winds extend 30 nautical miles (34.5 miles/55.5 km) out from the center, while tropical storm force winds extend up to 120 nautical miles (138 miles/222 km).
The typhoon was centered near 8.7 north longitude and 138.3 east latitude, just 91 nautical miles (104.7 miles/168.5 km) west-southwest of the island of Yap. The typhoon is kicking up very rough seas with wave heights to 34 feet (10.3 meters). It was moving to the west-northwest at 18 knots (20.7 mph/33.4 kph) and is expected to continue in that general direction.
Forecasters at the Joint Typhoon Warning Center (JTWC) expect that Hagupit will continue to move west-northwest through Micronesia while intensifying to a Category four typhoon on the Saffir-Simpson scale peaking at 130 knots (149.6 mph/240 kph) over the next two days before it starts to weaken. The JTWC forecast calls for the typhoon to turn to the northwest and stay to the east of the Philippines.
Image Credit: NASA Goddard MODIS Rapid Response
Dec. 02, 2014 - NASA Sees Typhoon Hagupit as Micronesia Posts Warnings
NASA's Aqua satellite captured a visible picture of Typhoon Hagupit in the western North Pacific Ocean on December 2, when several warnings were in effect for islands in Micronesia.
Micronesia warnings include a Typhoon Warning for Woleai, Yap and Ngulu in Yap state, a Typhoon Watch posted for Faraulep, Fais and Ulithi in Yap state, and a Tropical Storm Warning for Faraulep in Yap state.
When NASA's Aqua satellite passed over Hagupit on Dec. 2 at 03:45 UTC (Dec. 1 at 10:45 p.m. EST) the MODIS instrument took a visible picture of the storm that showed it had become much better organized over the previous day.
Powerful, high thunderstorms circled the center while bands of thunderstorms spiral in from the west, south and north.
At 1500 UTC (10 a.m. EST) on Dec. 2, Hagupit had become a Category One typhoon on the Saffir-Simpson wind scale with maximum sustained winds near 70 knots (80.5 mph/129.6 kph). Hagupit was centered near 6.2 north longitude and 142.7 east latitude, about 463 nautical miles (532.8 miles/857.5 km) south of Andersen Air Force Base, Guam. It was moving to the west at 17 knots (19.5 mph/31.8 kph) and generating high seas with waves up to 25 feet (7.6 meters).
Forecasters at the Joint Typhoon Warning Center forecast Hagupit to continue moving west-northwest through Micronesia and to intensify to 130 knots before weakening. The forecast track takes the center of Hagupit between Palau and Yap on Dec. 3 and toward the Philippines thereafter.
Weakening is not expected to begin until Dec. 6 so Hagupit is expected to maintain typhoon status through December 7.
Rob Gutro NASA's Goddard Space Flight Center
NASA PLANS MARS MISSION IN 2030'S
FROM: NASA
NASA is developing the capabilities needed to send humans to an asteroid by 2025 and Mars in the 2030s – goals outlined in the bipartisan NASA Authorization Act of 2010 and in the U.S. National Space Policy, also issued in 2010. Mars is a rich destination for scientific discovery and robotic and human exploration as we expand our presence into the solar system. Its formation and evolution are comparable to Earth, helping us learn more about our own planet’s history and future. Mars had conditions suitable for life in its past. Future exploration could uncover evidence of life, answering one of the fundamental mysteries of the cosmos: Does life exist beyond Earth? While robotic explorers have studied Mars for more than 40 years, NASA’s path for the human exploration of Mars begins in low-Earth orbit aboard the International Space Station. Astronauts on the orbiting laboratory are helping us prove many of the technologies and communications systems needed for human missions to deep space, including Mars. The space station also advances our understanding of how the body changes in space and how to protect astronaut health. Our next step is deep space, where NASA will send a robotic mission to capture and redirect an asteroid to orbit the moon. Astronauts aboard the Orion spacecraft will explore the asteroid in the 2020s, returning to Earth with samples. This experience in human spaceflight beyond low-Earth orbit will help NASA test new systems and capabilities, such as Solar Electric Propulsion, which we’ll need to send cargo as part of human missions to Mars. Beginning in FY 2018, NASA’s powerful Space Launch System rocket will enable these “proving ground” missions to test new capabilities. Human missions to Mars will rely on Orion and an evolved version of SLS that will be the most powerful launch vehicle ever flown. A fleet of robotic spacecraft and rovers already are on and around Mars, dramatically increasing our knowledge about the Red Planet and paving the way for future human explorers. The Mars Science Laboratory Curiosity rover measured radiation on the way to Mars and is sending back radiation data from the surface. This data will help us plan how to protect the astronauts who will explore Mars. Future missions like the Mars 2020 rover, seeking signs of past life, also will demonstrate new technologies that could help astronauts survive on Mars. Engineers and scientists around the country are working hard to develop the technologies astronauts will use to one day live and work on Mars, and safely return home from the next giant leap for humanity. NASA also is a leader in a Global Exploration Roadmap, working with international partners and the U.S. commercial space industry on a coordinated expansion of human presence into the solar system, with human missions to the surface of Mars as the driving goal. NASA's Orion Flight Test and the Journey to Mars Image Credit: NASA
REMARKS: SECRETARY KERRY, EU HIGH REPRESENTATIVE FEDERICA MOGHERINI
FROM: U.S. STATE DEPARTMENT
Remarks With EU High Representative Federica Mogherini Following Their Working Lunch
Remarks
John Kerry
Secretary of State
European External Action Service
Brussels, Belgium
December 3, 2014
HIGH REPRESENTATIVE MOGHERINI: John, thank you for your visit here. We had a first bilateral in my new capacity, and I’m particularly happy this takes place in Brussels, so thank you for visiting and thank you for having a bilateral meeting here. I’m looking forward to come and visit you in Washington if we find you in Washington sometime, which might be a challenge.
We’ve had a good discussion as always on all issues open on the agenda, which are many. And we are concentrating more on the area around Europe, Ukraine, although we have discussed the further measures that European Union has decided to take in the last weeks, and also the way forward to push for full implementation of the Minsk agreement.
And we discussed a lot also this morning in a very good session with other states, other nations, our situation in Syria and in Iraq, the fight against Daesh and the common effort against terrorists in the area, and to stabilize the region.
And we also had a discussion on the Middle East peace process, where we are looking forward to work together. All the work that John has done in the last months needs to be resumed, and the European Union is more than ready to support the continuation of this work. We know that your dedication personally we appreciate very much, and we are ready to support your efforts.
We also discussed Libya – extremely worrying situation where we also will cooperate.
And we will now unfortunately leave you soon without questions because we are starting a EU-U.S. Energy Council, which is also going to be important for our cooperation not only on the energy policies and security but also on climate. This is also something we owe you a lot. The link between energy and climate and all the efforts that foreign ministers and the foreign policy community can do on energy and climate in view of the Paris conference next year and the Lima conference that is taking place in these days. We know that U.S. leadership on that is something we owe you and your inspiration very much, and we appreciate very much your (inaudible). I think no other moment in history where on this particular issue the EU and U.S. have exactly the same position, and I think we should build on it.
Other point we talked and reviewed, TTIP. We are ready to work closely together and hard to make the negotiations proceed. It’s going to be a strategic goal, not only an economic one but also political, and so we are ready to work together for that.
John.
SECRETARY KERRY: Thank you, thank you. Well, let me say that for me it’s a great pleasure to be here and to meet bilaterally with the new EU High Representative, and I’m delighted to be working with Federica. We began to build a strong foreign minister-to-foreign minister relationship when she represented Italy, and now we have a chance to work with her as the EU High Rep taking on a much larger role representing all 28 countries that are part of the EU.
It is safe to say that the U.S.-EU transatlantic partnership is as important a relationship as there is. We work so closely on all of the issues of concern that we face today. Federica just ran through a list of them. But obviously, at the top of the list right now is the challenge of dealing with Ukraine and the question of upholding the sovereignty and territorial integrity of Ukraine. The EU has played a critical role in that. My original meetings in Geneva really were U.S., EU, Russia, and Ukraine, and now we have to try to see the Minsk agreement enforced and we have very, very strong energy-related, trade-related, security-related interests with respect to the outcome of that conflict.
We did have a very serious discussion this morning about Libya. We agree that Libya is at a particular moment of challenge for all of us, and we are very much seized by the issue and focused on it. We are supportive of Bernadino Leon’s initiative, but beyond that we are looking at other alternatives so that there’s not just one plan on the table. And I think we agreed today on a number of things that we can do and will do in order to try to minimize the violence, to end the violence, and find a constitutional process that will produce a government that has an ability to represent the people and can be sustainable.
In addition to that, we talked about ISIL/Daesh. Obviously, that was a large part of our conversation this morning in the session that we had, and we have significant interests there.
We also talked about the Mideast peace process, which may at this particular moment be a misnomer but nevertheless something that we are deeply committed to, and we will work on it. The United States believes that any solution that is ultimately going to be achieved, if there can be one, is going to achieved on a multilateral basis; it needs the support of the EU, it needs the support of the Arab community, it needs the support of the global community in order to take effect. And we will continue to work, and I will continue to consult with and work closely with Federica with respect to that.
There are many other issues, obviously. Federica mentioned the Transatlantic Trade Investment Partnership, and I just want to say a quick word about that. There is a misunderstanding to some degree which we need to address, and we will address in the coming months, that this somehow is a challenge to European standards or Europeans’ regulatory structure. And it is anything but. This is an agreement which seeks to raise practices in trade to the highest common denominator, not the lowest. And we have great respect for the integrity of the European regulatory system. We are confident of the ability of this agreement to be done in a way which doesn’t pull down any standard or any expectation that Europeans have, but rather raises everybody to a common standard but opens up new opportunities for trade, investment, and for job creation. And we’re convinced that over the course of time we will be able to show people that the positive benefits are enormous.
So let me just summarize by saying that I am absolutely confident that given the nature of the challenges we face with Bosnia to Serbia to Ukraine to Egypt, throughout the Horn of Africa, the Maghreb, the Sahel, the Levant, the Arabian Peninsula, we all have interests that are shared. And the EU-U.S. relationship began strong and it’s going to get stronger in the days ahead as we work together. And I’m delighted that Federica has been willing to take on this important responsibility. We wish her well.
Thank you. Thank you very much.
Remarks With EU High Representative Federica Mogherini Following Their Working Lunch
Remarks
John Kerry
Secretary of State
European External Action Service
Brussels, Belgium
December 3, 2014
HIGH REPRESENTATIVE MOGHERINI: John, thank you for your visit here. We had a first bilateral in my new capacity, and I’m particularly happy this takes place in Brussels, so thank you for visiting and thank you for having a bilateral meeting here. I’m looking forward to come and visit you in Washington if we find you in Washington sometime, which might be a challenge.
We’ve had a good discussion as always on all issues open on the agenda, which are many. And we are concentrating more on the area around Europe, Ukraine, although we have discussed the further measures that European Union has decided to take in the last weeks, and also the way forward to push for full implementation of the Minsk agreement.
And we discussed a lot also this morning in a very good session with other states, other nations, our situation in Syria and in Iraq, the fight against Daesh and the common effort against terrorists in the area, and to stabilize the region.
And we also had a discussion on the Middle East peace process, where we are looking forward to work together. All the work that John has done in the last months needs to be resumed, and the European Union is more than ready to support the continuation of this work. We know that your dedication personally we appreciate very much, and we are ready to support your efforts.
We also discussed Libya – extremely worrying situation where we also will cooperate.
And we will now unfortunately leave you soon without questions because we are starting a EU-U.S. Energy Council, which is also going to be important for our cooperation not only on the energy policies and security but also on climate. This is also something we owe you a lot. The link between energy and climate and all the efforts that foreign ministers and the foreign policy community can do on energy and climate in view of the Paris conference next year and the Lima conference that is taking place in these days. We know that U.S. leadership on that is something we owe you and your inspiration very much, and we appreciate very much your (inaudible). I think no other moment in history where on this particular issue the EU and U.S. have exactly the same position, and I think we should build on it.
Other point we talked and reviewed, TTIP. We are ready to work closely together and hard to make the negotiations proceed. It’s going to be a strategic goal, not only an economic one but also political, and so we are ready to work together for that.
John.
SECRETARY KERRY: Thank you, thank you. Well, let me say that for me it’s a great pleasure to be here and to meet bilaterally with the new EU High Representative, and I’m delighted to be working with Federica. We began to build a strong foreign minister-to-foreign minister relationship when she represented Italy, and now we have a chance to work with her as the EU High Rep taking on a much larger role representing all 28 countries that are part of the EU.
It is safe to say that the U.S.-EU transatlantic partnership is as important a relationship as there is. We work so closely on all of the issues of concern that we face today. Federica just ran through a list of them. But obviously, at the top of the list right now is the challenge of dealing with Ukraine and the question of upholding the sovereignty and territorial integrity of Ukraine. The EU has played a critical role in that. My original meetings in Geneva really were U.S., EU, Russia, and Ukraine, and now we have to try to see the Minsk agreement enforced and we have very, very strong energy-related, trade-related, security-related interests with respect to the outcome of that conflict.
We did have a very serious discussion this morning about Libya. We agree that Libya is at a particular moment of challenge for all of us, and we are very much seized by the issue and focused on it. We are supportive of Bernadino Leon’s initiative, but beyond that we are looking at other alternatives so that there’s not just one plan on the table. And I think we agreed today on a number of things that we can do and will do in order to try to minimize the violence, to end the violence, and find a constitutional process that will produce a government that has an ability to represent the people and can be sustainable.
In addition to that, we talked about ISIL/Daesh. Obviously, that was a large part of our conversation this morning in the session that we had, and we have significant interests there.
We also talked about the Mideast peace process, which may at this particular moment be a misnomer but nevertheless something that we are deeply committed to, and we will work on it. The United States believes that any solution that is ultimately going to be achieved, if there can be one, is going to achieved on a multilateral basis; it needs the support of the EU, it needs the support of the Arab community, it needs the support of the global community in order to take effect. And we will continue to work, and I will continue to consult with and work closely with Federica with respect to that.
There are many other issues, obviously. Federica mentioned the Transatlantic Trade Investment Partnership, and I just want to say a quick word about that. There is a misunderstanding to some degree which we need to address, and we will address in the coming months, that this somehow is a challenge to European standards or Europeans’ regulatory structure. And it is anything but. This is an agreement which seeks to raise practices in trade to the highest common denominator, not the lowest. And we have great respect for the integrity of the European regulatory system. We are confident of the ability of this agreement to be done in a way which doesn’t pull down any standard or any expectation that Europeans have, but rather raises everybody to a common standard but opens up new opportunities for trade, investment, and for job creation. And we’re convinced that over the course of time we will be able to show people that the positive benefits are enormous.
So let me just summarize by saying that I am absolutely confident that given the nature of the challenges we face with Bosnia to Serbia to Ukraine to Egypt, throughout the Horn of Africa, the Maghreb, the Sahel, the Levant, the Arabian Peninsula, we all have interests that are shared. And the EU-U.S. relationship began strong and it’s going to get stronger in the days ahead as we work together. And I’m delighted that Federica has been willing to take on this important responsibility. We wish her well.
Thank you. Thank you very much.
OWNER MULTIPLE PHYSICAL THERAPY REHAB FACILITIES SENTENCED TO 11 YEAR PRISON TERM FOR MEDICARE FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, December 2, 2014
Principal in $28.3 Million Medicare Fraud Scheme Sentenced to 11 Years in Prison
A Florida owner and operator of multiple physical therapy rehabilitation facilities was sentenced in federal court in Tampa today to serve 11 years in prison for his role in organizing a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Luis Duluc, 54, of Tampa, pleaded guilty on Feb. 3, 2014, to conspiracy to commit health care fraud as well as making a false statement relating to health care matters. In addition to the prison term, U.S. District Judge Susan C. Bucklew of the Middle District of Florida ordered Duluc to pay $14,424,856 in restitution.
According to Duluc’s admissions in connection with his guilty plea, he and his co-conspirators used various physical therapy clinics and other businesses throughout Florida to submit approximately $28,347,065 in fraudulent reimbursement claims to Medicare between 2005 and 2009. Medicare paid approximately $14,424,865 on those claims.
Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc., which was used to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Florida; Rehab Dynamics Inc. in Venice, Florida; Polk Rehabilitation Inc. in Lake Wales, Florida; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Florida. This gave Duluc and his co-conspirators control of those clinics’ Medicare provider numbers, which allowed them to bill Medicare for services.
Duluc admitted that he and his co-conspirators paid kickbacks to obtain, and stole, the personal identifying information of Medicare beneficiaries, and that he and his co-conspirators also obtained unique identifying information of physicians. They then used this information to create and submit false claims to Medicare through the clinics owned by Ulysses Acquisitions. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided. Duluc admitted that he and his co-conspirators created and used false and forged patient records in an effort to conceal the fact that services had not actually been provided.
Duluc also admitted that he developed and marketed the “80/20 deal.” In these deals, Duluc and his co-conspirators submitted false reimbursement claims to Medicare on behalf of Miami-based therapy clinics, such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc. and West Regional Center Inc. Duluc and co-conspirators retained approximately 20 percent of the money Medicare paid on these claims and paid the other 80 percent to the co-conspirator clinic owners.
When Duluc and his co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales to nominee or straw owners, all of whom were recent immigrants to the United States with no background or experience in the health care industry. Duluc admitted that he did this in an effort to disassociate from the fraudulent operations of the rehabilitation facilities.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon A. Gaugush of the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, December 2, 2014
Principal in $28.3 Million Medicare Fraud Scheme Sentenced to 11 Years in Prison
A Florida owner and operator of multiple physical therapy rehabilitation facilities was sentenced in federal court in Tampa today to serve 11 years in prison for his role in organizing a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Luis Duluc, 54, of Tampa, pleaded guilty on Feb. 3, 2014, to conspiracy to commit health care fraud as well as making a false statement relating to health care matters. In addition to the prison term, U.S. District Judge Susan C. Bucklew of the Middle District of Florida ordered Duluc to pay $14,424,856 in restitution.
According to Duluc’s admissions in connection with his guilty plea, he and his co-conspirators used various physical therapy clinics and other businesses throughout Florida to submit approximately $28,347,065 in fraudulent reimbursement claims to Medicare between 2005 and 2009. Medicare paid approximately $14,424,865 on those claims.
Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc., which was used to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Florida; Rehab Dynamics Inc. in Venice, Florida; Polk Rehabilitation Inc. in Lake Wales, Florida; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Florida. This gave Duluc and his co-conspirators control of those clinics’ Medicare provider numbers, which allowed them to bill Medicare for services.
Duluc admitted that he and his co-conspirators paid kickbacks to obtain, and stole, the personal identifying information of Medicare beneficiaries, and that he and his co-conspirators also obtained unique identifying information of physicians. They then used this information to create and submit false claims to Medicare through the clinics owned by Ulysses Acquisitions. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided. Duluc admitted that he and his co-conspirators created and used false and forged patient records in an effort to conceal the fact that services had not actually been provided.
Duluc also admitted that he developed and marketed the “80/20 deal.” In these deals, Duluc and his co-conspirators submitted false reimbursement claims to Medicare on behalf of Miami-based therapy clinics, such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc. and West Regional Center Inc. Duluc and co-conspirators retained approximately 20 percent of the money Medicare paid on these claims and paid the other 80 percent to the co-conspirator clinic owners.
When Duluc and his co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales to nominee or straw owners, all of whom were recent immigrants to the United States with no background or experience in the health care industry. Duluc admitted that he did this in an effort to disassociate from the fraudulent operations of the rehabilitation facilities.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon A. Gaugush of the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
FORMER MITSUBA EXECUTIVE TO SERVE 13 MONTHS IN U.S. PRISON FOR ROLE IN PRICE FIXING SCHEME
FROM: U.S. JUSTICE DEPARTMENT
FORMER MITSUBA EXECUTIVE AGREES TO PLEAD GUILTY TO BID RIGGING
AND PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS
Executive Agrees to Serve 13 Months in U.S. Prison
WASHINGTON — A former executive of Japan-based Mitsuba Corporation has agreed to plead guilty and serve 13 months in a U.S. prison for conspiring to fix the prices of products installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kazumi Umahashi, a Japanese national and former General Manager of Mitsuba. Umahashi conspired from in or about June 2005 to in or about December 2009 by agreeing upon bids and prices for, and allocating the supply of, windshield wiper systems and starter motors sold to Honda Motor Co. Ltd. and its subsidiaries and affiliates in the United States and elsewhere, according to the charge. Umahashi also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“The Antitrust Division has uncovered dozens of conspiracies to fix prices in the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The impact of these schemes has affected nearly every American. We will continue our efforts to hold culpable companies and individuals accountable for their illegal actions.”
Mitsuba manufactures and sells a variety of automotive parts, including starter motors, which are small electric motors used in internal combustion engines, and windshield wiper systems. On Nov. 6, 2013, Mitsuba pleaded guilty for its involvement in the conspiracy and agreed to pay $135 million in criminal fines.
Umahashi is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years and a fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 48 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
This prosecution arose from 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 with the assistance of the FBI’s Detroit Field Office and the FBI headquarters’ International Corruption Unit.
FORMER MITSUBA EXECUTIVE AGREES TO PLEAD GUILTY TO BID RIGGING
AND PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS
Executive Agrees to Serve 13 Months in U.S. Prison
WASHINGTON — A former executive of Japan-based Mitsuba Corporation has agreed to plead guilty and serve 13 months in a U.S. prison for conspiring to fix the prices of products installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kazumi Umahashi, a Japanese national and former General Manager of Mitsuba. Umahashi conspired from in or about June 2005 to in or about December 2009 by agreeing upon bids and prices for, and allocating the supply of, windshield wiper systems and starter motors sold to Honda Motor Co. Ltd. and its subsidiaries and affiliates in the United States and elsewhere, according to the charge. Umahashi also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“The Antitrust Division has uncovered dozens of conspiracies to fix prices in the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The impact of these schemes has affected nearly every American. We will continue our efforts to hold culpable companies and individuals accountable for their illegal actions.”
Mitsuba manufactures and sells a variety of automotive parts, including starter motors, which are small electric motors used in internal combustion engines, and windshield wiper systems. On Nov. 6, 2013, Mitsuba pleaded guilty for its involvement in the conspiracy and agreed to pay $135 million in criminal fines.
Umahashi is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years and a fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 48 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
This prosecution arose from 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 with the assistance of the FBI’s Detroit Field Office and the FBI headquarters’ International Corruption Unit.
JAPANESE AUTO PARTS EXECUTIVE TO SERVE A PRISON SENTENCE FOR BID RIGGING AND PRICE FIXING
FROM: U.S. JUSTICE DEPARTMENT
T.RAD EXECUTIVE AGREES TO PLEAD GUILTY TO BID RIGGING AND PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS
Executive Agrees to Serve One Year and One Day in U.S. Prison
WASHINGTON — An executive of Japan-based T.RAD Co. Ltd. has agreed to plead guilty and to serve one year and one day in a U.S. prison for participating in a conspiracy to fix prices of radiators installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kosei Tamura, a general manager for T.RAD. According to the charge, Tamura, a Japanese national, conspired from as early as November 2002 until at least February 2010, by agreeing to allocate bids for, and prices of, radiators sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the prison sentence, Tamura has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Companies and their executives should do their part to ensure American consumers are guaranteed a fair marketplace within the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division will continue to hold accountable the companies and executives who ignore these laws in order to make this a reality.”
T.RAD is a manufacturer of radiators and was engaged in the sale of radiators in the United States and elsewhere. Radiators are devices located in the engine compartment of a vehicle that cool the engine.
In November 2013, T.RAD pleaded guilty and was sentenced to pay a $13.75 million criminal fine for its role in a conspiracy to fix the prices of radiators and automatic transmission fluid warmers.
Including today’s charges, 48 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Tamura is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal sections and the FBI. This case was brought by the Washington Criminal I Section of the Antitrust Division with the assistance of the Detroit Field Office of the FBI.
T.RAD EXECUTIVE AGREES TO PLEAD GUILTY TO BID RIGGING AND PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS
Executive Agrees to Serve One Year and One Day in U.S. Prison
WASHINGTON — An executive of Japan-based T.RAD Co. Ltd. has agreed to plead guilty and to serve one year and one day in a U.S. prison for participating in a conspiracy to fix prices of radiators installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kosei Tamura, a general manager for T.RAD. According to the charge, Tamura, a Japanese national, conspired from as early as November 2002 until at least February 2010, by agreeing to allocate bids for, and prices of, radiators sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the prison sentence, Tamura has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Companies and their executives should do their part to ensure American consumers are guaranteed a fair marketplace within the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division will continue to hold accountable the companies and executives who ignore these laws in order to make this a reality.”
T.RAD is a manufacturer of radiators and was engaged in the sale of radiators in the United States and elsewhere. Radiators are devices located in the engine compartment of a vehicle that cool the engine.
In November 2013, T.RAD pleaded guilty and was sentenced to pay a $13.75 million criminal fine for its role in a conspiracy to fix the prices of radiators and automatic transmission fluid warmers.
Including today’s charges, 48 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Tamura is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal sections and the FBI. This case was brought by the Washington Criminal I Section of the Antitrust Division with the assistance of the Detroit Field Office of the FBI.
Wednesday, December 3, 2014
SECRETARY KERRY'S PRESS AVAILABILITY IN BRUSSELS, BELGIUM
FROM: U.S. STATE DEPARTMENT
Press Availability in Brussels, Belgium
Press Availability
John Kerry
Secretary of State
NATO Headquarters
Brussels, Belgium
December 3, 2014
SECRETARY KERRY: Good afternoon and thanks, everybody, for being here. And thanks for your patience.
In less than three months, the international community has come together to form a coalition that is already taking important steps to degrade and defeat ISIL, or Daesh. And today was an opportunity for representatives from about 60 members of the anti-ISIL coalition to come together, share their views, receive updates on coalition efforts, make suggestions about the roadmap ahead, and discuss as carefully as possible the pluses and minuses of the strategy engaged and what needs to be done to accomplish our goals going forward.
It was absolutely clear in the comments of everybody, particularly the prime minister of Iraq and his team, that we have made already significant progress in two and a half months. But we also acknowledge there is a lot more work yet to be done. Daesh is still perpetrating terrible crimes, but there was a consensus that the momentum which it had exhibited two and a half months ago has been halted, that it has been forced to modify its tactics – and some of those modifications severely hampering their ability to operate in the way that they were, certainly – that their hold on territory has been challenged already, and their finances have been strained, and in almost every media market that exists, and certainly within the region, their message is being denounced. Their message of hate is being challenged in public meeting places, in mosques across the globe. This clearly represents a multifaceted effort, which is precisely what we defined in the earliest days of suggesting that we would build a coalition and the coalition would take on Daesh.
Now, while airstrikes may capture the headlines – and there have been more than 1,000 of them thus far – this is far more than simply a military coalition. And it will not be successful, we all agree, if it were to rely on military alone, which it does not. Destroying Daesh is going to require defeating the ideology – the funding, the recruitment, and the devastation that they’ve been able to inflict on people in the region. And these are the areas that were really the primary focus of today’s discussion.
During this morning’s meeting, we reviewed the progress in each of our five lines of effort and came together in issuing a joint statement, all countries signing on, that underscores our unity and our firm support for our partners and our absolute determination to succeed. Participants noted the gains that we have made across all of the lines of effort – defeating ISIL on the battlefield, restricting its finances, enacting laws to restrict the flow of foreign fighters, and countering its toxic ideology.
The long-term success of the effort in Iraq is key to the success of the coalition. And today we heard directly from Iraqi Prime Minister Abadi, whose government yesterday revealed and reached a long-sought agreement, a landmark oil deal with the Kurdistan Regional Government. The prime minister also provided an update on the fight against Daesh in Iraq and on his broader reform agenda, including an executive order that he just issued to begin important changes in the criminal justice system of Iraq. Nothing will do more to defeat Daesh than an Iraq that is united and has more representative and effective security forces.
Now, obviously there’s a lot more work ahead. But the prime minister has taken steps to unite the country, including outreach to Sunni tribes. He has taken steps to root out corruption and to reform the Iraqi Security Forces and to take on the threat that Daesh represents. I think it’s fair to say that all of the foreign ministers, ambassadors, representatives who were there today came away impressed by Prime Minister Abadi and by what he has accomplished today, which is the down payment on the roadmap that he laid out for the future.
Earlier today, I participated in a meeting on the complex situation in Libya. And later we – I had a bilateral wide-ranging discussion at lunch with EU High Representative Federica Mogherini. And we talked about all of the key issues in the transatlantic agenda – trade, the Transatlantic Trade and Investment Partnership; the energy security challenges; the opportunities presented by these energy challenges, which really represent game-changing set of possibilities with respect to the movement of liquefied natural gas, also alternative and renewable energy possibilities. We also talked about support for Ukraine, the Middle East, Libya, Syria, Iraq, and the challenge of Ebola.
And I ended the day just now by attending a meeting of the EU-U.S. Energy Council, where we talked about the major possibilities for realignment with respect to energy security, environment issues, climate change, all of the possibilities that the energy agenda provide us in terms of a new marketplace with new job opportunities, new technologies, an enormous kick to the economy, as well as increases in security – environment security, energy security, health security, and the economy itself.
We reviewed progress in facilitating the reverse gas flows and the EU effort to reach an accord on natural gas supplies with Ukraine and Russia, which was a very important step which we congratulate the EU on taking. And second, we talked about the overall challenge of European energy security, which requires regulatory cooperation, investments in infrastructure, and an intensive commitment to sustainable technology.
And finally, we talked about the urgency of further breakthroughs on climate change itself. The EU took the important step earlier in the fall of putting out publicly its targets for 2015 at the Paris conference. We recently came back, President Obama and myself and our team, from a bilateral series of meetings in China where we were able to agree with China on setting certain kinds of goals. We’re continuing that work not only with China, but with other countries with the hopes of having an impact on the meeting in Peru, which I will attend later next week, and which will be the lead-in to a year of important focus on climate change and high hopes for success in Paris next December.
With the ongoing meetings in Peru and what will follow over the course of the next year and the U.S. President, President Obama’s, pledge of a contribution of $3 billion to the Green Climate Fund and the EU’s early commitments, we believe that we are making clear that the Obama Administration and the United States are all in on this issue and committed to try to take steps that are long overdue. We intend to continue to try to build momentum moving into next year, and we believe that not only is there obviously the practical advantage of responding to the events, to the transformation taking place in the climate that is contributing to very severe weather events, to major flooding, major fires, major drought, to shifts in agriculture and other impacts that have huge cost, but we believe it is becoming more and more evident that it is cheaper to invest in the new technologies and move to the clean energy economy. And we are going to continue to work for that.
So with that, I’d be pleased to respond to your questions with respect to any of the topics that I touched on.
MS. PSAKI: The first question will be from Lara Jakes of the Associated Press.
QUESTION: Actually, I’m not asking a question today.
MS. PSAKI: Oh, I’m sorry. Oh, I’m sorry. Michael Gordon of The New York Times. All right.
QUESTION: On behalf of Lara Jakes. (Laughter.)
MS. PSAKI: Okay.
QUESTION: He’s prettier than I am.
QUESTION: If – sir, if Iraqi forces are successful with U.S. and allied air support in retaking Mosul, Fallujah, and other populated areas in what could be block-to-block fighting, Iraq will likely confront the need for a major reconstruction effort, and Iraq may also face pressing humanitarian needs as civilians will need to get through the winter in newly reclaimed areas.
What assistance did Prime Minister Abadi seek during his meetings with you and other partners in terms of help with reconstruction, humanitarian assistance, and also additional military training and equipment? What is this likely to cost? Hundreds of millions of dollars, billions? And is the United States and the international community prepared to meet those needs? Will there be another donor conference or another international meeting? How do you plan to proceed?
SECRETARY KERRY: Well, Michael, it’s a really good question, and very important to the road ahead. The subject absolutely came up. Prime Minister Abadi himself put the topic of reconstruction on the table. And I’m happy to say that a number of Gulf states which have capacity on their own have engaged in this discussion with Prime Minister Abadi and the Iraqis. I think it’s up to them to identify themselves, but we are particularly excited about the prospect of having the region engage in a significant way across sectarian lines, I might add, in order to be able to address this reconstruction notion.
So I don’t think this is something where Americans or Europeans or others have to recoil and say, “Oh my God, we’re going to be facing this monumental task of rebuilding yet another place when we have our own challenges.” Might we have to contribute to it? Sure, we ought to. It’s part of our foreign policy and it’s part of our engagement. But I’m excited by the prospect that already, for instance, Saudi Arabia has made half a billion dollars available before we even fully engaged in this effort as a sign of good faith in an effort to try to say to the people of Iraq that they could cross the sectarian divide and offer humanitarian assistance.
Now there were a number of countries in the region that are talking about a further reconstruction fund that would specifically help to rebuild as the country is taken back from the clasp – the unwanted clasp of the terrorists who are controlling a significant portion of Anbar and other parts of Iraq at this moment. So I’m very, very hopeful that that will take place and it will be a natural outgrowth of this coalition as it meets in the days ahead, and as we plan for the roadmap.
It won’t do any good, obviously, if you simply reclaim a town and the folks in that town have worse or less opportunities than they may have had before and life is even harder. So part of winning this back – and this is what we’ve been saying from day one – is not just the task of the military campaign; it’s the campaign that goes on every day thereafter in providing a government that is responsive, that is inclusive, that is pluralistic, that is freeing itself from any clutches of corruption that may or may not exist. That’s what we want to see, and that effort is very much part of the planning stage at this early moment.
MS. PSAKI: The next question will be from Sangwon Yoon of Bloomberg News.
QUESTION: U.S. – the Pentagon said that it believes that Iran carried out several airstrikes in Iraq’s Diyala province in the past couple of days. Are you aware of these strikes? Do you welcome such Iranian air missions in Iraq? Do you think they’re helpful to the fight against ISIL or do you think that it’d be better if Iran avoids these actions?
And also, in your opening remarks today in the meeting, you talked about the importance of having a dialogue to share best thoughts, about ways to do things better and plan carefully. Now, notwithstanding these Iranian airstrikes in Diyala, Iran’s role in fighting ISIS in Iraq has been growing. Has the time come now for the U.S. and the coalition to start directly coordinating efforts in order to maximize the global campaign to defeat and degrade ISIL?
SECRETARY KERRY: Let me answer that – both parts of that question. First of all, I’m not going to make any announcements or confirm or deny the reported military action of another country in Iraq. It’s up to them or up to the Iraqis to do that, if it indeed took place. We are obviously flying our missions over Iraq and we coordinate those missions with the Iraqi Government. And we rely on the Iraqi Government to deconflict whatever control of their airspace may in fact need that deconfliction.
So nothing has changed in our fundamental policy of not coordinating our military activity or other activities at this moment with Iranians. We’re not doing that. And we are not – not only not coordinating militarily right now, but there are no plans at this time to coordinate militarily. I think it’s self-evident that if Iran is taking on ISIL in some particular place and it’s confined to taking on ISIL and it has an impact, it’s going to be – the net effect is positive. But that’s not something that we’re coordinating. The Iraqis have the overall responsibility for their own ground and air operations, and what they choose to do is up to them.
MS. PSAKI: The next question will be from Noureddine Fridhi of Al-Arabiya.
QUESTION: Mr. Secretary, I have a couple of questions, if you don’t mind. In these meetings, there – are they new commitments regarding the moderate opposition, Syrian moderate opposition, in terms of supporting them by equipment, training, on political level?
And my second question is about the issue of there is no-fly zone until now, as the Turkish are asking. But do you see yourself alternatives for the Turkish side to protect its border of the country from these borders, thousand foreign fighters entered into Syria, sir?
SECRETARY KERRY: Yeah. Well, regarding the issue of new commitments with respect to the Syrian opposition, the answer is simply that this meeting was about ISIL/ISIS/Daesh. This meeting was not about the Syrian opposition and the other parts of that struggle. Did it come up? Was it discussed? Yes. Did some countries talk about their concerns about the regime? Absolutely, but it was not with any sense of division. This was a united group here to deal with the challenge of Daesh. And while people expressed an opinion regarding the regime, as you saw, there was a completely unified communique, which understood clearly what the mission was that brought people here today.
Now in the course of – even the communique mentions the opposition and talks about the continued support for the opposition – moderate opposition, that is – and that will continue, and everybody understands who’s committed to that and who’s engaged in that direct effort. But there was no specific plus-up with respect to that.
On the issue of no-fly zone and so forth, the United States remains extremely engaged in its discussions with Turkey. Turkey, as everybody knows, is a NATO ally. It is a very important coalition partner. It is an absolute – it has a border with Syria, it has critical impacts because of what is happening in Syria, and a deep stake in the outcome of what is going on there. And therefore, we are having a very serious discussion with Turkey.
Vice President Biden was just there. He had a long discussion with President Erdogan; long discussion with Prime Minister Davutoglu. Prime Minister Davutoglu just visited Iraq. There’s a lot of discussion going on about the way we will go forward. But it is premature to suggest at this moment of time that we are close to making a decision or moving forward with any form of a safe zone or a buffer zone at this moment in time. But we are continuing our discussions with our Turkish allies in order to have conversations about how we best bolster security in the region and deal with the problem of Syria.
And it is no secret that the United States continues to believe that President Assad has lost all legitimacy, that the regime will not be able to find peace in Iraq as long as – in Syria as long as Assad remains in power. There needs to be some kind of transition. We know it’s not going to happen through a military, direct process, so there has to be a political solution. And we’re looking still for the way to engage all of the countries in the region in an effort to achieve what was originally laid out in Geneva. That remains the operative objective.
MS. PSAKI: Thank you, everyone.
SECRETARY KERRY: That’s it. Thank you all. Appreciate it. Thank you.
Press Availability in Brussels, Belgium
Press Availability
John Kerry
Secretary of State
NATO Headquarters
Brussels, Belgium
December 3, 2014
SECRETARY KERRY: Good afternoon and thanks, everybody, for being here. And thanks for your patience.
In less than three months, the international community has come together to form a coalition that is already taking important steps to degrade and defeat ISIL, or Daesh. And today was an opportunity for representatives from about 60 members of the anti-ISIL coalition to come together, share their views, receive updates on coalition efforts, make suggestions about the roadmap ahead, and discuss as carefully as possible the pluses and minuses of the strategy engaged and what needs to be done to accomplish our goals going forward.
It was absolutely clear in the comments of everybody, particularly the prime minister of Iraq and his team, that we have made already significant progress in two and a half months. But we also acknowledge there is a lot more work yet to be done. Daesh is still perpetrating terrible crimes, but there was a consensus that the momentum which it had exhibited two and a half months ago has been halted, that it has been forced to modify its tactics – and some of those modifications severely hampering their ability to operate in the way that they were, certainly – that their hold on territory has been challenged already, and their finances have been strained, and in almost every media market that exists, and certainly within the region, their message is being denounced. Their message of hate is being challenged in public meeting places, in mosques across the globe. This clearly represents a multifaceted effort, which is precisely what we defined in the earliest days of suggesting that we would build a coalition and the coalition would take on Daesh.
Now, while airstrikes may capture the headlines – and there have been more than 1,000 of them thus far – this is far more than simply a military coalition. And it will not be successful, we all agree, if it were to rely on military alone, which it does not. Destroying Daesh is going to require defeating the ideology – the funding, the recruitment, and the devastation that they’ve been able to inflict on people in the region. And these are the areas that were really the primary focus of today’s discussion.
During this morning’s meeting, we reviewed the progress in each of our five lines of effort and came together in issuing a joint statement, all countries signing on, that underscores our unity and our firm support for our partners and our absolute determination to succeed. Participants noted the gains that we have made across all of the lines of effort – defeating ISIL on the battlefield, restricting its finances, enacting laws to restrict the flow of foreign fighters, and countering its toxic ideology.
The long-term success of the effort in Iraq is key to the success of the coalition. And today we heard directly from Iraqi Prime Minister Abadi, whose government yesterday revealed and reached a long-sought agreement, a landmark oil deal with the Kurdistan Regional Government. The prime minister also provided an update on the fight against Daesh in Iraq and on his broader reform agenda, including an executive order that he just issued to begin important changes in the criminal justice system of Iraq. Nothing will do more to defeat Daesh than an Iraq that is united and has more representative and effective security forces.
Now, obviously there’s a lot more work ahead. But the prime minister has taken steps to unite the country, including outreach to Sunni tribes. He has taken steps to root out corruption and to reform the Iraqi Security Forces and to take on the threat that Daesh represents. I think it’s fair to say that all of the foreign ministers, ambassadors, representatives who were there today came away impressed by Prime Minister Abadi and by what he has accomplished today, which is the down payment on the roadmap that he laid out for the future.
Earlier today, I participated in a meeting on the complex situation in Libya. And later we – I had a bilateral wide-ranging discussion at lunch with EU High Representative Federica Mogherini. And we talked about all of the key issues in the transatlantic agenda – trade, the Transatlantic Trade and Investment Partnership; the energy security challenges; the opportunities presented by these energy challenges, which really represent game-changing set of possibilities with respect to the movement of liquefied natural gas, also alternative and renewable energy possibilities. We also talked about support for Ukraine, the Middle East, Libya, Syria, Iraq, and the challenge of Ebola.
And I ended the day just now by attending a meeting of the EU-U.S. Energy Council, where we talked about the major possibilities for realignment with respect to energy security, environment issues, climate change, all of the possibilities that the energy agenda provide us in terms of a new marketplace with new job opportunities, new technologies, an enormous kick to the economy, as well as increases in security – environment security, energy security, health security, and the economy itself.
We reviewed progress in facilitating the reverse gas flows and the EU effort to reach an accord on natural gas supplies with Ukraine and Russia, which was a very important step which we congratulate the EU on taking. And second, we talked about the overall challenge of European energy security, which requires regulatory cooperation, investments in infrastructure, and an intensive commitment to sustainable technology.
And finally, we talked about the urgency of further breakthroughs on climate change itself. The EU took the important step earlier in the fall of putting out publicly its targets for 2015 at the Paris conference. We recently came back, President Obama and myself and our team, from a bilateral series of meetings in China where we were able to agree with China on setting certain kinds of goals. We’re continuing that work not only with China, but with other countries with the hopes of having an impact on the meeting in Peru, which I will attend later next week, and which will be the lead-in to a year of important focus on climate change and high hopes for success in Paris next December.
With the ongoing meetings in Peru and what will follow over the course of the next year and the U.S. President, President Obama’s, pledge of a contribution of $3 billion to the Green Climate Fund and the EU’s early commitments, we believe that we are making clear that the Obama Administration and the United States are all in on this issue and committed to try to take steps that are long overdue. We intend to continue to try to build momentum moving into next year, and we believe that not only is there obviously the practical advantage of responding to the events, to the transformation taking place in the climate that is contributing to very severe weather events, to major flooding, major fires, major drought, to shifts in agriculture and other impacts that have huge cost, but we believe it is becoming more and more evident that it is cheaper to invest in the new technologies and move to the clean energy economy. And we are going to continue to work for that.
So with that, I’d be pleased to respond to your questions with respect to any of the topics that I touched on.
MS. PSAKI: The first question will be from Lara Jakes of the Associated Press.
QUESTION: Actually, I’m not asking a question today.
MS. PSAKI: Oh, I’m sorry. Oh, I’m sorry. Michael Gordon of The New York Times. All right.
QUESTION: On behalf of Lara Jakes. (Laughter.)
MS. PSAKI: Okay.
QUESTION: He’s prettier than I am.
QUESTION: If – sir, if Iraqi forces are successful with U.S. and allied air support in retaking Mosul, Fallujah, and other populated areas in what could be block-to-block fighting, Iraq will likely confront the need for a major reconstruction effort, and Iraq may also face pressing humanitarian needs as civilians will need to get through the winter in newly reclaimed areas.
What assistance did Prime Minister Abadi seek during his meetings with you and other partners in terms of help with reconstruction, humanitarian assistance, and also additional military training and equipment? What is this likely to cost? Hundreds of millions of dollars, billions? And is the United States and the international community prepared to meet those needs? Will there be another donor conference or another international meeting? How do you plan to proceed?
SECRETARY KERRY: Well, Michael, it’s a really good question, and very important to the road ahead. The subject absolutely came up. Prime Minister Abadi himself put the topic of reconstruction on the table. And I’m happy to say that a number of Gulf states which have capacity on their own have engaged in this discussion with Prime Minister Abadi and the Iraqis. I think it’s up to them to identify themselves, but we are particularly excited about the prospect of having the region engage in a significant way across sectarian lines, I might add, in order to be able to address this reconstruction notion.
So I don’t think this is something where Americans or Europeans or others have to recoil and say, “Oh my God, we’re going to be facing this monumental task of rebuilding yet another place when we have our own challenges.” Might we have to contribute to it? Sure, we ought to. It’s part of our foreign policy and it’s part of our engagement. But I’m excited by the prospect that already, for instance, Saudi Arabia has made half a billion dollars available before we even fully engaged in this effort as a sign of good faith in an effort to try to say to the people of Iraq that they could cross the sectarian divide and offer humanitarian assistance.
Now there were a number of countries in the region that are talking about a further reconstruction fund that would specifically help to rebuild as the country is taken back from the clasp – the unwanted clasp of the terrorists who are controlling a significant portion of Anbar and other parts of Iraq at this moment. So I’m very, very hopeful that that will take place and it will be a natural outgrowth of this coalition as it meets in the days ahead, and as we plan for the roadmap.
It won’t do any good, obviously, if you simply reclaim a town and the folks in that town have worse or less opportunities than they may have had before and life is even harder. So part of winning this back – and this is what we’ve been saying from day one – is not just the task of the military campaign; it’s the campaign that goes on every day thereafter in providing a government that is responsive, that is inclusive, that is pluralistic, that is freeing itself from any clutches of corruption that may or may not exist. That’s what we want to see, and that effort is very much part of the planning stage at this early moment.
MS. PSAKI: The next question will be from Sangwon Yoon of Bloomberg News.
QUESTION: U.S. – the Pentagon said that it believes that Iran carried out several airstrikes in Iraq’s Diyala province in the past couple of days. Are you aware of these strikes? Do you welcome such Iranian air missions in Iraq? Do you think they’re helpful to the fight against ISIL or do you think that it’d be better if Iran avoids these actions?
And also, in your opening remarks today in the meeting, you talked about the importance of having a dialogue to share best thoughts, about ways to do things better and plan carefully. Now, notwithstanding these Iranian airstrikes in Diyala, Iran’s role in fighting ISIS in Iraq has been growing. Has the time come now for the U.S. and the coalition to start directly coordinating efforts in order to maximize the global campaign to defeat and degrade ISIL?
SECRETARY KERRY: Let me answer that – both parts of that question. First of all, I’m not going to make any announcements or confirm or deny the reported military action of another country in Iraq. It’s up to them or up to the Iraqis to do that, if it indeed took place. We are obviously flying our missions over Iraq and we coordinate those missions with the Iraqi Government. And we rely on the Iraqi Government to deconflict whatever control of their airspace may in fact need that deconfliction.
So nothing has changed in our fundamental policy of not coordinating our military activity or other activities at this moment with Iranians. We’re not doing that. And we are not – not only not coordinating militarily right now, but there are no plans at this time to coordinate militarily. I think it’s self-evident that if Iran is taking on ISIL in some particular place and it’s confined to taking on ISIL and it has an impact, it’s going to be – the net effect is positive. But that’s not something that we’re coordinating. The Iraqis have the overall responsibility for their own ground and air operations, and what they choose to do is up to them.
MS. PSAKI: The next question will be from Noureddine Fridhi of Al-Arabiya.
QUESTION: Mr. Secretary, I have a couple of questions, if you don’t mind. In these meetings, there – are they new commitments regarding the moderate opposition, Syrian moderate opposition, in terms of supporting them by equipment, training, on political level?
And my second question is about the issue of there is no-fly zone until now, as the Turkish are asking. But do you see yourself alternatives for the Turkish side to protect its border of the country from these borders, thousand foreign fighters entered into Syria, sir?
SECRETARY KERRY: Yeah. Well, regarding the issue of new commitments with respect to the Syrian opposition, the answer is simply that this meeting was about ISIL/ISIS/Daesh. This meeting was not about the Syrian opposition and the other parts of that struggle. Did it come up? Was it discussed? Yes. Did some countries talk about their concerns about the regime? Absolutely, but it was not with any sense of division. This was a united group here to deal with the challenge of Daesh. And while people expressed an opinion regarding the regime, as you saw, there was a completely unified communique, which understood clearly what the mission was that brought people here today.
Now in the course of – even the communique mentions the opposition and talks about the continued support for the opposition – moderate opposition, that is – and that will continue, and everybody understands who’s committed to that and who’s engaged in that direct effort. But there was no specific plus-up with respect to that.
On the issue of no-fly zone and so forth, the United States remains extremely engaged in its discussions with Turkey. Turkey, as everybody knows, is a NATO ally. It is a very important coalition partner. It is an absolute – it has a border with Syria, it has critical impacts because of what is happening in Syria, and a deep stake in the outcome of what is going on there. And therefore, we are having a very serious discussion with Turkey.
Vice President Biden was just there. He had a long discussion with President Erdogan; long discussion with Prime Minister Davutoglu. Prime Minister Davutoglu just visited Iraq. There’s a lot of discussion going on about the way we will go forward. But it is premature to suggest at this moment of time that we are close to making a decision or moving forward with any form of a safe zone or a buffer zone at this moment in time. But we are continuing our discussions with our Turkish allies in order to have conversations about how we best bolster security in the region and deal with the problem of Syria.
And it is no secret that the United States continues to believe that President Assad has lost all legitimacy, that the regime will not be able to find peace in Iraq as long as – in Syria as long as Assad remains in power. There needs to be some kind of transition. We know it’s not going to happen through a military, direct process, so there has to be a political solution. And we’re looking still for the way to engage all of the countries in the region in an effort to achieve what was originally laid out in Geneva. That remains the operative objective.
MS. PSAKI: Thank you, everyone.
SECRETARY KERRY: That’s it. Thank you all. Appreciate it. Thank you.
SECRETARY KERRY'S STATEMENT REGARDING INTERNATIONAL DAY OF PERSONS WITH DISABILITIES 2014
FROM: U.S. STATE DEPARTMENT
International Day of Persons With Disabilities 2014
Press Statement
John Kerry
Secretary of State
Washington, DC
December 3, 2014
In too many countries, what we take for granted here in the United States has never been granted at all.
Just a couple years ago, I met Dan Berschinski, a retired U.S. Army captain, Afghanistan War veteran, and double amputee. Dan shared that when he travels overseas, he has to worry about questions most of us never think to ask: Will my wheelchair fit through the hotel doorway? Will the bathrooms be accessible? Will the buildings have ramps?
In too many countries, what we did here at home through the Americans with Disabilities Act (ADA) – whose 25th anniversary we celebrate next year – still hasn’t been remotely realized. We need to change that – and we can. But it requires American leadership at home to make that difference in the world.
It wasn’t easy to get where we are today in the United States. I remember the early days of the fight to make our country more accessible, whether it was in Massachusetts where it took great effort to help open the path for the Wheelchair Division of the Boston Marathon, or nationally to open up Little League opportunities for kids with disabilities. I will never forget the impact it had when President Bush signed the ADA into law.
That historic, bipartisan legislation has played a huge role in making our country more accessible. It raised the expectations of people with disabilities about what they can hope to achieve at work and in life. It inspired the world to view disability issues through the lens of equality and opportunity. And thanks to the ADA and other laws, nearly one in five Americans are now protected from disability-based discrimination.
Having traveled to a great number of countries as Secretary of State, I’ve seen firsthand that disability rights are not abstract concepts. They are about things you can see and touch that make a difference. They are about sidewalks with curb cuts; public buildings with accessible bathrooms; restaurants, stores, hotels, and universities with ramps and elevator access; buses with lifts; and train platforms with tactile strips.
The way we treat people of all backgrounds demonstrates our values and defines who we are. That’s our greatest export, and on this International Day of Persons with Disabilities, we renew our determination to make sure that we leave no one behind -- anywhere.
International Day of Persons With Disabilities 2014
Press Statement
John Kerry
Secretary of State
Washington, DC
December 3, 2014
In too many countries, what we take for granted here in the United States has never been granted at all.
Just a couple years ago, I met Dan Berschinski, a retired U.S. Army captain, Afghanistan War veteran, and double amputee. Dan shared that when he travels overseas, he has to worry about questions most of us never think to ask: Will my wheelchair fit through the hotel doorway? Will the bathrooms be accessible? Will the buildings have ramps?
In too many countries, what we did here at home through the Americans with Disabilities Act (ADA) – whose 25th anniversary we celebrate next year – still hasn’t been remotely realized. We need to change that – and we can. But it requires American leadership at home to make that difference in the world.
It wasn’t easy to get where we are today in the United States. I remember the early days of the fight to make our country more accessible, whether it was in Massachusetts where it took great effort to help open the path for the Wheelchair Division of the Boston Marathon, or nationally to open up Little League opportunities for kids with disabilities. I will never forget the impact it had when President Bush signed the ADA into law.
That historic, bipartisan legislation has played a huge role in making our country more accessible. It raised the expectations of people with disabilities about what they can hope to achieve at work and in life. It inspired the world to view disability issues through the lens of equality and opportunity. And thanks to the ADA and other laws, nearly one in five Americans are now protected from disability-based discrimination.
Having traveled to a great number of countries as Secretary of State, I’ve seen firsthand that disability rights are not abstract concepts. They are about things you can see and touch that make a difference. They are about sidewalks with curb cuts; public buildings with accessible bathrooms; restaurants, stores, hotels, and universities with ramps and elevator access; buses with lifts; and train platforms with tactile strips.
The way we treat people of all backgrounds demonstrates our values and defines who we are. That’s our greatest export, and on this International Day of Persons with Disabilities, we renew our determination to make sure that we leave no one behind -- anywhere.
SECRETARY KERRY'S REMARKS WITH IRAQI PRIME MINISTER AL-ABADI
FROM: U.S. STATE DEPARTMENT
Remarks With Iraqi Prime Minister Haider al-Abadi Before Their Meeting
Remarks
John Kerry
Secretary of State
NATO Headquarter
Brussels, Belgium
December 3, 2014
QUESTION: Mr. Secretary, were you notified of the Iranian airstrikes in Iraq?
SECRETARY KERRY: We’re not really having Q&A right now, but we’ll have a chance a little later.
QUESTION: Okay.
MODERATOR: Thanks, everyone.
QUESTION: Thank you.
SECRETARY KERRY: Let just say very quickly how significant the efforts of the prime minister have been in the last days particularly, and the oil agreement which they have reached is something that has been sought for years now. And in a matter of months, the prime minister has spearheaded and moved forward. It’s a terrific sign of a change in Iraq and a sign of strong leadership, and we’re very excited by the news.
PRIME MINISTER AL-ABADI: Well, thank you very much. I think that beside that, of course, we are achieving a lot of progress on the ground in fighting of Daesh. We have moved to the north and we are very much closing reaching (inaudible) which is in the north. I hope developments on the ground will succeed very, very quickly.
I know there are a lot of challenges, but yesterday I have signed another decree about human rights and abuse against prisoners which will not – we have zero tolerance with this in Iraq. We are working very hard on this. We don’t want any excuses. Of course, Daesh is number one in atrocities and they’re committing huge atrocities against the Iraqi people. We expect some probably backlash on this, but we are very eager to stop all abuses from all sides.
SECRETARY KERRY: Thank you.
MODERATOR: Great. Thanks, everyone.
Remarks With Iraqi Prime Minister Haider al-Abadi Before Their Meeting
Remarks
John Kerry
Secretary of State
NATO Headquarter
Brussels, Belgium
December 3, 2014
QUESTION: Mr. Secretary, were you notified of the Iranian airstrikes in Iraq?
SECRETARY KERRY: We’re not really having Q&A right now, but we’ll have a chance a little later.
QUESTION: Okay.
MODERATOR: Thanks, everyone.
QUESTION: Thank you.
SECRETARY KERRY: Let just say very quickly how significant the efforts of the prime minister have been in the last days particularly, and the oil agreement which they have reached is something that has been sought for years now. And in a matter of months, the prime minister has spearheaded and moved forward. It’s a terrific sign of a change in Iraq and a sign of strong leadership, and we’re very excited by the news.
PRIME MINISTER AL-ABADI: Well, thank you very much. I think that beside that, of course, we are achieving a lot of progress on the ground in fighting of Daesh. We have moved to the north and we are very much closing reaching (inaudible) which is in the north. I hope developments on the ground will succeed very, very quickly.
I know there are a lot of challenges, but yesterday I have signed another decree about human rights and abuse against prisoners which will not – we have zero tolerance with this in Iraq. We are working very hard on this. We don’t want any excuses. Of course, Daesh is number one in atrocities and they’re committing huge atrocities against the Iraqi people. We expect some probably backlash on this, but we are very eager to stop all abuses from all sides.
SECRETARY KERRY: Thank you.
MODERATOR: Great. Thanks, everyone.
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