1/15/15: White House Press Briefing

SECRETARY KERRY'S REMARKS WITH FRENCH PRESIDENT HOLLANDE

FROM:  U.S. STATE DEPARTMENT 
Remarks With French President Hollande Before Their Meeting
Remarks
John Kerry
Secretary of State
Elysee Palace
Paris, France
January 16, 2015

PRESIDENT HOLLANDE: (In progress) (Via interpreter) And (inaudible) victims of terrorism a couple of months ago, this is the reason why (inaudible) the violence together. This is the purpose of (inaudible) our friendship.

SECRETARY KERRY: Well, Mr. President, thank you very, very much. And I think you know that you have the full and heartfelt condolences of the American people, and I know you know that we share the pain and the horror of everything you went through. We appreciate your comments about our common history with respect to terrorism. But the American people watch you and your team, and indeed all of the government lead with great elegance and grace in this week, during this difficult time. And we watched the people of France come together with a great sense of purpose and unity. It was a great lesson to the world, I think. And once again, France, through its commitment to freedom and to the passion of ideas, has made an important statement to the world.

So really, our hearts are with you and it’s a pleasure to be able to be here to share these thoughts with you on a personal basis.

ISS CUPULA MODULE AS SEEN FROM THE INSIDE

FROM:  NASA 

This image of the interior view from the International Space Station's Cupola module was taken on Jan. 4, 2015. The large bay windows allows the Expedition 42 crew to see outside. The Cupola houses one of the space station's two robotic work stations used by astronauts to manipulate the large robotic arm seen through the right window. The robotic arm, or Canadarm2, was used throughout the construction of the station and is still used to grapple visiting cargo vehicles and assist astronauts during spacewalks. The Cupola is attached to the nadir side of the space station and also gives a full panoramic view of the Earth.  Image Credit: NASA.

WHITE HOUSE STATEMENT ON REGULATORY CHANGES REGARDING CUBA

FROM:  THE WHITE HOUSE 
Statement by the Press Secretary on the Publication of Regulatory Changes regarding Cuba

 Last month, President Obama announced historic changes to our Cuba policy, beginning the process of normalization between our countries, and announcing his commitment to ease restrictions on American citizens and businesses.  Today, the U.S. Departments of the Treasury and Commerce took a significant step forward in delivering on the President’s new direction by publishing regulatory amendments to existing Cuba sanctions.  These changes will immediately enable the American people to provide more resources to empower the Cuban population to become less dependent upon the state-driven economy, and help facilitate our growing relationship with the Cuban people.

We firmly believe that allowing increased travel, commerce, and the flow of information to and from Cuba will allow the United States to better advance our interests and improve the lives of ordinary Cubans.  The policy of the past has not worked for over 50 years, and we believe that the best way to support our interests and our values is through openness rather than isolation.  The United States remains committed to our enduring objective of promoting the emergence of a more prosperous Cuba that respects the universal rights of all its citizens.

FORMER ADOPTION AGENCY EXECUTIVE PLEADS GUILTY TO SUBMITTING FALSE INFORMATION TO ACCREDITATION AGENCY

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, January 15, 2015
Former Executive Director of Adoption Agency Pleads Guilty to Submitting False Information to Accreditation Agency

The former Executive Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty yesterday to making false and fraudulent statements to the Council on Accreditation with respect to IAG’s accreditation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.

Mary Mooney, 57, of Belmont, North Carolina, admitted as part of her guilty plea that she made false statements to the Council on Accreditation (COA), which granted IAG accreditation to provide adoption services in certain countries.  IAG marketed itself as a COA-accredited adoption services provider and numerous clients relied on IAG’s accreditation to confirm that IAG’s adoption services were ethical and in compliance with U.S. and foreign law.  Mooney admitted that in support of IAG’s application for accreditation she made several false representations, including: falsely stating that IAG was in substantial compliance with the relevant regulations; intentionally failing to list her co-defendant, Alisa Bivens, as one of IAG’s employees providing adoption services; and intentionally failing to disclose that James Harding, another co-defendant, was the functional director and head of the company.  All of these false and fraudulent statements were material to COA’s decision to accredit IAG to conduct intercountry adoptions for purposes of the Hague Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoptions.  Without that accreditation, IAG would not have been legally permitted to facilitate intercountry adoptions from any country that was a party to that convention and numerous families would have never retained IAG to provide adoption services.

Mooney is the third defendant to plead guilty as a result of this investigation.  Mooney pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina.  A sentencing hearing will be scheduled at a later date.

This ongoing investigation is being conducted by the Bureau of Diplomatic Security.  The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State.  The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.

SECRETARY KERRY'S REMARKS WITH BULGARIAN FOREIGN MINISTER MITOV

FROM:  U.S. STATE DEPARTMENT 
Remarks With Bulgarian Foreign Minister Daniel Mitov After Their Meeting
Remarks
John Kerry
Secretary of State
Ministry of Foreign Affairs
Sofia, Bulgaria
January 15, 2015

FOREIGN MINISTER MITOV: (Via interpreter) Dear Mr. Secretary, dear colleagues, for me it was an honor to host the official visit of the State Secretary of the United States John Kerry in Bulgaria. Today, we reaffirmed our strong strategic partnership between the two countries and we adopted the joint statement for the media, which is at your disposal already.

A few words on the achieved agreements. Strengthening our cooperation in the field of security and defense, energy security and diversification, rule of law, education, people-to-people ties, including by creating joint working groups, is a strong message for the strength and resilience of our relations. Our strategic partnership, our common democratic values, the high-level dialogue, and the excellent cooperation, Bulgaria treasures this highly.

In response to the challenges and changes in the geopolitical environment caused by the conflict in the Ukraine and the growing terrorist threat from the Middle East, we – our efforts in this area will contribute to improving the situation in the region and globally.

We also reaffirmed our efforts for expanding NATO, including the countries from the West Balkans in the NATO alliance, and Bulgaria will be the guarantor. The support of the U.S. in modernizing our military and the implementation of the NATO Readiness Action Plan will increase the security of the eastern borders of (inaudible) and the entire region.

Energy security is also of key importance. Our common goal is to attract investments to guarantee supply and distribution, as well as to build interconnectivity with neighboring countries.

Among the major areas in our collaboration is our effort to expand our trade and economic relations, including goods turnover and attracting new American investments in Bulgaria. Bulgaria’s potential in ICT, machine building, and other sectors will help her to attract more investments from the United States, especially in high-tech productions and in services with high added value. This topic is not only bilateral; it is also within the transatlantic relations. And here I ought to mention the TTIP and our support for the constructive negotiations between the EU and the United States on signing this agreement.

The connection – the ties between Bulgaria and law enforcement and security institutions and bodies are also on the rights, and then cooperation in combating human traffic, drug traffic, cyber crime, et cetera.

Bulgaria and the United States will also work on the people-to-people ties, on removing the visa regime for Bulgarian people. Mr. Secretary, I hope that your visit has shown you that Bulgaria is a good friend of – and a good ally of the United States, and we will continue our work for improving the situation in the region, in Europe, and globally.

SECRETARY KERRY: Well, Daniel, thank you very much. I’m appreciative to the foreign minister, to Minister Mitov, for his very warm welcome here at the foreign ministry. And I’m thankful to him for refueling me with a very good lunch.

I’m appreciative also for the good conversation that we had. I’m not going to repeat everything that I said earlier with the prime minister, and I’m not going to repeat everything that Daniel just said in an excellent summary of our discussion. So he has pretty fully described to all of you the breadth of our relationship and the importance of the United States-Bulgaria partnership and friendship. And it is a friendship, and it is a partnership.

And I want to emphasize that we had a broad discussion at the luncheon. I asked a lot of questions. I particularly was educated about the constitution, the constitutional process, the political process, and of course the judiciary, and the reform initiative, which this government is committed to, which is so important to the ability of Bulgaria to be able to attract capital investment and to be able to make the progress that everybody hopes for.

It’s obviously no secret that the transatlantic community is facing a lot of challenges at this point in time, and the job of creating a Europe that is whole and free and at peace is not a finished job at all. So we are focused on how to make the most progress as fast as possible in this important partnership in order to meet the challenges that we face head on. And it is clear that both the United States and Bulgaria are absolutely committed to investing in the sources of our strength, and that means in a strong, clean, and accountable judiciary, in democratic institutions, but also in our citizens, because in the end it’s the citizens who define a country.

We believe that, on energy security, particularly, there is a very important economic and security priority that we intend to follow up on in the serious ways that I talked about earlier. And we also are very committed to helping to protect Bulgaria’s very rich cultural heritage. The United States is already helping to restore the UNESCO World Heritage Site at Nessebar, and we’ve also increased the size of the Bulgarian Fulbright program for exchanges of students.

But one of the things that we talked about at lunch is the value of tourism and the newly created tourism bureau – or tourism ministry here in Bulgaria, which is an opportunity to really focus on an area that could provide enormous revenue increase, expand the economy, and also strengthen Bulgaria, as well as promote Bulgaria on an international basis.

So there’s a lot of homework to do. We’re particularly going to follow up on the economic front, on the energy front, and we laid out in a communique to everybody a pretty good summary of the new working groups and the new initiatives that we’re going to engage in.

So for me, this has been a very productive visit. I’m glad to have been able to come here, and I look forward to returning sometime in the future, when together we can announce specific progress on some of the plans that we laid today.

So thank you. Thank you, Mr. Foreign Minister, for your welcome. Thank you to the president and the prime minister. Thank you to the people of Bulgaria for their friendship and partnership. And thank you so much for the work that Bulgaria has done to help to deal with international crises from Afghanistan to Iraq to ISIL, and continuing to do in their own neighborhood. We appreciate it very much. It is the mark of a strong and important country when they are as engaged as Bulgaria is today.

Thank you very much.

AMBASSADOR PRESSMAN'S REMARKS ON PEACE-BUILDING AT UN SECURITY COUNCIL BRIEFING

FROM:  U.S. STATE DEPARTMENT 
U.S. Mission to the United Nations: Remarks at a Security Council Briefing on Post-Conflict Peace-building
01/14/2015 01:30 PM EST
Ambassador David Pressman
Alternate Representative to the UN for Special Political Affairs 
New York, NY
January 14, 2015
AS DELIVERED

Thank you, Mr. President. And let me begin by thanking the Deputy Secretary General and Ambassador Patriota for your leadership on this issue and for your briefings this morning, and to you, Foreign Minister Muñoz, for your presence here today, and to Chile for convening this important discussion.

Mr. President, preventing relapse into conflict was the primary objective for the creation of the Peacebuilding Architecture in 2005. And a decade later, it remains an urgent undertaking.

It has been said by others and we know that war is not like the weather – it doesn’t just happen; it is not inevitable. And it can be stopped. But we also know that countries that have experienced conflict once have heightened risk for relapsing into conflict again, and again. And we have seen the devastating consequences of that deadly cycle of conflict, from South Sudan to the Central African Republic.

But while war or conflict should never be deemed inevitable, too often, too many adopt a cynical passivity to emerging signs of tension or indicators of potential conflict – a passivity that assumes the futility of efforts to prevent potential conflict from metastasizing into actual conflict; and a cynicism that assumes, essentially, that certain places are just destined to fight it out.

The Peacebuilding Architecture is a living challenge to that dangerous cynicism and deadly passivity. It is a challenge for us to turn expressions of concern into coordinated actions -- actions to ensure that societies recovering from conflict do not relapse back into it. And it is a commitment to the idea that our past can indeed be put behind us and that our shared future can be built, together and in peace.

We know that when the international community mobilizes in concert with national authorities, together we can change behavior and assumptions and we can stop that which may have been written off by some as “inevitable.” Peace is built through hard work and, as the Secretary-General notes in his report, we have made “significant gains” in places and countries as diverse as Cote d’Ivoire, Guinea, Tunisia in efforts to consolidate peace.

In Sierra Leone, the integrated work of successive UN missions and the country team, as well as the engagement of the Peacebuilding Commission, has been critical to breaking the cycle of violence – providing space for a country and a people hungry for peace to turn their focus from war to prosperity; from conflict to electoral contests; from isolation to sustainable development. Sierra Leone has held three peaceful, credible elections since the end of the civil war in 2002, and new institutions, supported by the international community, are finding their place in society and contributing to the important work of building a government that is responsive to its citizens. Support from the United Nations has been critical to this transition.

For instance, United Nations support for institutions such as the All Political Parties Women’s Association, with a target of 30% female participation in all political parties, has increased women’s participation in Sierra Leone’s elections, building public trust in the elections process. And we know that the full and equal participation of women – whether in forging peace agreements, electing leaders, or leading post-conflict reconstruction – is absolutely critical to sustainable peace and stability. We cannot build peace for half of a society and expect it to be meaningful or lasting.

That is why the work of entities like the United Nations Peace Fund for Nepal, which has designated 30% of their funding for projects addressing the needs of women and girls -- including projects in the domain of land reform, conflict prevention, the rule of law, and the reintegration of child soldiers -- is so important. A project on land issues ensured extensive women’s participation in consultations on land use planning, a domain from which women had traditionally been excluded. Developments in Nepal demonstrate that appreciable progress can be made with targeted funding, leadership, and capacities for gender-responsive programming.

As the Deputy Secretary General noted, in Guinea, the creation of a “Women’s Situation Room” to support a network of local women’s organizations during the 2013 parliamentary elections not only increased women’s participation in the elections, it enabled them to actively participate as elections monitors and helped build confidence in the entire electoral system. The creation of community-led, early childhood development centers in Cote d’Ivoire enhanced social cohesion by bringing together women of diverse backgrounds focused on the well-being of children.

Kyrgyz women, with training from UN Women and United Nations Development Program, have formed women’s peace committees and have become important actors in monitoring tensions and government response within their community -- again, building social cohesion as well as trust between local populations and authorities in regions affected by conflict.

Full and equal inclusion of women and girls is not something that is just “just”; it is essential to build the peace of which we speak. Yet still, the participation of women in peacebuilding receives too little attention, is too often underfunded, and is too often thought of as an “effort to be inclusive” rather than a recognition that the full participation of women is a precondition of lasting peace. We must change this mindset and, in the process, change minds. And we must build our peacebuilding efforts to ensure they are inclusive, and in doing so we will make them more effective.

The recent outbreak of Ebola presented a new kind of threat to international peace and security that has indeed demanded an unprecedented response. We commend the United Nations’ critical efforts to mobilize human, financial, and technical resources to deliver an integrated response in the post-conflict countries of Guinea, Liberia, and Sierra Leone. The Peacebuilding Commission can play an important role in bringing together key partners to coordinate assistance efforts and maximize the impact of the international community on the ground.

Unfortunately, international efforts have been less successful in producing results towards ending the enduring and daily threat to international peace and security presented in places like South Sudan. Despite a hard-won independence, South Sudan has erupted into deadly and devastating conflict, exacerbating ethnic tensions, eroding hope, and provoking a dire and man-made humanitarian crisis. Despite one of the most comprehensive UN peacekeeping mandates ever adopted by the Council and despite historic levels of international support, and despite almost infinite goodwill from international partners, political leaders in South Sudan have prioritized political power and conflict over peace and stability. Their actions have exacerbated tensions, have brought about tens of thousands of deaths, have displaced nearly 2 million innocent people, and are bringing this young nation – the United Nations’ newest member state – to the threshold of state failure. We cannot give up and we cannot allow the parties in South Sudan to abandon their people’s aspirations and right to live in peace and prosperity. And in standing with the people of South Sudan, we must be unified in our demand for the violence to end and that those responsible for this carnage be held to account.

Until recently, successive conflicts in the Central African Republic, received too little attention from the international community. A lack of vision for national reform, limited political will from the international community, and successive weak UN presences with little capacity to help develop state institutions further destabilized the country’s weak governance structure and undermined social cohesion. Our action last year in authorizing an integrated peacekeeping mission to protect civilians, facilitate humanitarian access, and support the state as it seeks to re-establish governance was a necessary action to stop the ensuing bloodshed. Bolstered by the contribution of troops from member-states from several regional organizations and humanitarian donations from around the globe, these collective actions represent the most comprehensive level of international engagement in the Central African Republic to date.

Mr. President, we must reflect on these lessons as we undertake the five-year review of the UN Peacebuilding Architecture. We have learned that peacebuilding requires the sustained, not sporadic, and coordinated commitment of national, regional, and international actors. It requires inclusivity – meaning women and girls are at the forefront and at the table, not an afterthought or excluded. It means the international community holds political actors accountable to the agreements they undertake and agreed frameworks to which they subscribe. And it means that addressing human rights abusers, hate, and discrimination head-on is the path to sustainable peace, not a diversion from it or an obstacle to it.

We hope that the Peacebuilding Architecture Review’s Advisory Group of Experts will heed these lessons and develop concrete recommendations to enhance the Peacebuilding Commission’s relevance and real-world impact by focusing on achieving results through its core competencies of coordination, resource mobilization, and advocacy.

2015, as others have noted, will also see the Secretary-General’s High Level Review of UN Peace Operations, as well as the Global Study of Security Council Resolution 1325 on Women, Peace, and Security. We must challenge ourselves not to think about these issues only in silos. Peacekeepers are essential in setting the stable foundation for peace and development and peacekeepers are increasingly and appropriately being called upon to protect civilians in dire need of protection. Protecting civilians is not only an essential element of creating space for peace, it is vital for the credibility of the United Nations in the eyes of local populations and around the world. As such, it is essential for UN peacekeepers to carry out their protection of civilian mandates robustly and in a way that gives people confidence that we mean what we say.

And in this vein, let’s mean what we say when we sit at this table and recommit ourselves to the work of the Peacebuilding Architecture. Let’s translate our commitment to the inclusion of women into the actual inclusion of women. And let’s translate our hope for peace into the hard work required of building it.

Thank you, Mr. President.

SEC FILES CHARGES ALLEGING MISAPPROPRIATION OF $16 MILLION FROM INVESTMENT FUND

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Litigation Release No. 23171 / January 9, 2015

Securities and Exchange Commission v. Daniel Thibeault et al., Civil Action No. 1:15-cv-10050 (D. MA)

SEC Charges Massachusetts-Based Investment Advisers with Misappropriation of Money from an Investment Fund

The Securities and Exchange Commission announced that it has filed charges against Massachusetts-based investment advisers, their principal, and others concerning the alleged misappropriation of at least $16 million belonging to an investment fund managed by some of the defendants.

In a complaint filed today in federal court in Boston, the SEC charged as defendants:

Daniel Thibeault of Framingham, Massachusetts;
Graduate Leverage, LLC, an asset management and financial advisory firm based in Waltham, Massachusetts, of which Thibeault is the principal owner, president and Chief Executive Officer;
GL Capital Partners, LLC, an investment adviser based in Waltham, Massachusetts that is controlled by Thibeault;
GL Investment Services, LLC, an investment adviser based in Waltham, Massachusetts that is indirectly owned by Thibeault; and
Taft Financial Services, LLC, which is based in Texas and is believed to be controlled by Thibeault.

The SEC's complaint alleges that GL Capital Partners, LLC and its principal, Daniel Thibeault, were the investment advisers to a fund called the GL Beyond Income Fund, and that they misappropriated at least $16 million of the money that belonged to this fund. According to the complaint, the GL Beyond Income Fund's assets consisted primarily of individual variable rate consumer loans. According to the complaint, Thibeault and other defendants solicited investments in the GL Beyond Income Fund by representing that investors' money would be pooled and used to make or purchase consumer loans. These consumer loans would then constitute assets of the GL Beyond Income Fund, and would provide a return to the investors when interest and principal payments were made on the loans. The SEC alleges that from at least 2013 to the present, Thibeault and other defendants engaged in a scheme to create fictitious loans to divert investor money from the GL Beyond Income Fund, and to report these fake loans as assets of the GL Beyond Income Fund, thereby concealing the fact that Thibeault and the other defendants had misappropriated millions of dollars from the GL Beyond Income Fund. According to the SEC's complaint, the scheme involved the fabrication of paperwork purporting to reflect numerous six-figure consumer loans using the names and personal information of individuals who were unaware that loans were being originated in their names. The complaint further alleges that money from the GL Beyond Income Fund was disbursed to fund these fictitious loans, but the borrowed money did not go to the purported borrowers whose names appeared on the documentation. Instead, it went to Thibeault and other defendants. The SEC alleges that Thibeault and other defendants misappropriated the money from these fake loans and used it for personal expenses and to run businesses other than the GL Beyond Income Fund, as well as to perpetuate the scheme by making "interest payments" on fake loans.

The SEC alleges that the defendants violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933 and that Thibeault, GL Capital Partners, LLC, and GL Investment Services, LLC, also violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against each of these defendants.

The SEC also charged two other parties as relief defendants based on their receipt of investor funds: GL Advisor Solutions, Inc., a corporation based in the Philippines that is controlled by Graduate Leverage, LLC and Thibeault; and Shawnet Thibeault, who is Daniel Thibeault's wife. The SEC seeks disgorgement plus prejudgment interest from these relief defendants.

In addition, the SEC has asked the court to consider certain preliminary relief against the parties, including, variously, temporary restraining orders, preliminary injunctions, asset freezes, an accounting of investor funds and all assets in their possession, a prohibition from soliciting or accepting additional investments, and other preliminary relief.

The 2014 NBA Champion San Antonio Spurs Visit the White House

DOJ ANNOUCES 40 ARRESTED AND INDICTED FOR SOCIAL SECURITY FRAUD

Thursday, January 15, 2015
Forty Individuals Arrested and Indicted for Social Security Fraud

On Jan. 12 and 13, 2015, a federal grand jury in the District of Puerto Rico returned 39 separate indictments charging one doctor, Luis Escabi-Pérez, and 39 other individuals for fraud in the application process for Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced U.S. Attorney Rosa Emilia Rodríguez Vélez for the District of Puerto Rico.

The SSA is responsible for the implementation of the Disability Insurance Benefits Program.  The SSA provides monetary benefits to workers with severe, long-term disabilities who have worked in SSA-covered employment for a required length of time.  Spouses and dependent children of disabled workers may also be eligible to receive benefits.

Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application.  The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.

Escabi-Pérez, a psychiatrist, submitted psychiatric medical reports to the SSA in support of applications for disability insurance benefits submitted by his patients. Escabi-Pérez charged a fee for the medical visits, typically in the amount of $100.  In addition, the defendant typically charged a fee in the amount of $500 for the preparation and submittal of a psychiatric medical report to the SSA.  He would at times also charge additional fees of up to $5,000 to backdate medical records in order to create the appearance of a longer history of medical treatment.

For example, on Jan. 15, 2014, Escabi-Pérez submitted a medical report to the SSA suggesting that a patient, who was generally in good health and was not suffering from any physical or mental disabling conditions, was in fact suffering from disabling psychiatric conditions, and that the first medical visit of this patient to him was in April 2013, when in truth this patient’s first visit was in November 2013.

The patient initially received $11,242 as a retroactive payment calculated from the date of entitlement through the approval date.  Thereafter, the patient received monthly disability insurance benefit payments of approximately $1,536.  The total amount of benefits paid to the patient from the date of entitlement through the date of this indictment is approximately $27,096.  Escabi-Pérez is also facing one charge of wire fraud.  As part of the manner and means of the conspiracy, the doctor faxed the psychiatric report to the SSA supporting the existence of the alleged psychiatric conditions suffered by the patient, in spite of the fact that these psychiatric conditions were contrived.

Five indictments charge five individuals along with Escabi-Pérez of conspiracy to defraud the United States, wire fraud, theft of government property, concealment of failure to disclose an event to SSA and false statement in determining rights for disability.  These defendants, aiding and abetting each other, knowingly and willfully embezzled, stole and converted to their own use the social security disability insurance benefit payments to which the defendants knew that they were not entitled.

Another five defendants filed SSA applications during 2011, which indicated the defendants were unable to work due to “back problems, cervical conditions, pain, carpal tunnel, arms numbed, legs numbed, depression,” among others.  These defendants are charged with theft of government property because they embezzled, stole and converted to their own use, or the use of others, social security disability insurance benefit payments to which they knew they were not entitled.  These defendants are also charged with false statement in determining rights for disability because they lied in the disability report (Form SSA-3368).  The defendants stated that they stopped working because of their conditions, although the defendants knew that they stopped working because of a release agreement signed with pharmaceutical companies.

A third charge is for concealment or failure to disclose an event to SSA.  These defendants intentionally concealed or failed to disclose the fact that their medical conditions had improved.

Twenty-nine defendants are facing two charges: theft of government property and concealment or failure to disclose an event to SSA.

The defendants who illegally received the benefits are Wilma Bolet, Juana Concepción-Santana, Miriam Cosme-García, Yesenia De Jesús, Ramona García, María García-Reyes, Pedro Laureano-Vázquez, Juan López-Rivera, Elizabeth Maldonado-Laureano, Fernando Marrero-Padilla, Ernie Martell-Orta, Ángel Montes-Orria, Lourdes Reyes-Medina, Candi, Rojas-Molina, Ángel Román-Santana, Miguel Santana-Ríos, José Valle-Oliveras, Edna Vargas-Valdés, Agustín Vázquez-Izquierdo, Orlando Pérez-Juarbe, Jorge Fraguada-Romero, Elsie Boneta-Román, Julio César Álamo-Casiano, Manuel Rivera-Santos, Francisco Declet, Luis Reyes-Serrano, Ismael Alicea-Berdecía, Rosa Espinosa-González, Johany Díaz-Oquendo, Ángel Rivera-Adorno, Myrna Ruiz-Rosso, William Feliciano, Edwin Figueroa, Ana Morales-de Jesús, Rosa Pagán-Ramos, Alberto Sostre-Cintrón, Constancia Vega-García, Raúl Domínguez and Ana Ruiz-Rivera.

“This case is the result of the continued efforts of the SSA and the FBI.  Since August 2013, when 75 individuals were indicted for similar charges, including the current charges, we have filed a total of 115 indictments,” said U.S. Attorney Rodríguez-Vélez.  “This is a great example of ongoing efforts by the Government to deter fraud against the social security programs.  The Department of Justice is committed to investigate and prosecute those who engage in fraudulent schemes.  Hopefully this round of arrests will discourage more people from getting involved in these types of schemes, because the investigation continues.”

The SSA in New York and Baltimore conducted a lengthy analysis of medical source documentation in social security’s files, wherein a pattern of fraudulent activity was discovered, initiating a full investigation.  What followed was lengthy, intensive and complex investigative work—interviews, surveillances and other investigative activity.

“This fraud conspiracy scheme involving unscrupulous medical professionals and SSA disability claimants has been exposed and those involved are being brought to justice.  It was only after the analysis of medical source documentation in SSA files that SSA OIG (Office of Inspector General) was able to identify the fraudulent pattern,” said Special Agent-in-Charge Edward J. Ryan of the SSA OIG’sOffice of Investigations.  “This intensive and complex investigative work with the FBI and PRPD (Puerto Rico Police Department) consisted of numerous surveillances and other investigative activities that I cannot detail.  This intelligence was also shared with the Health and Human Services OIG for their files.  The evidence was provided to the U.S. Attorney’s Office which culminated in the additional arrests this morning.  OIG will continue to work with our partners to protect the integrity of the Social Security Trust Fund.”

“This is another social security disability benefits fraud case where shameless individuals illegally obtained the benefits provided by the federal government,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division.  “This is not a victimless crime, but rather an outrageous, despicable and reprehensible act that deprives those who truly need assistance.  Combating social security disability benefits fraud will continue to be a priority for the FBI in Puerto Rico.”

The case was investigated by the SSA-OIG with the collaboration of the FBI and the PRPD.  The case was indicted by First Assistant U.S. Attorney María Domínguez and Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez for the District of Puerto Rico.

SEC CHARGES UBS SUBSIDIARY WITH DISCLOSURE FAILURES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged a subsidiary of UBS with disclosure failures and other securities law violations related to the operation and marketing of its dark pool.

UBS Securities LLC agreed to settle the charges by paying more than $14.4 million, including a $12 million penalty that is the SEC’s largest against an alternative trading system (ATS).

An SEC examination and investigation of UBS revealed that the firm failed to properly disclose to all subscribers the existence of an order type that it pitched almost exclusively to market makers and high-frequency trading firms.  The order type, called PrimaryPegPlus (PPP), enabled certain subscribers to buy and sell securities by placing orders priced in increments of less than one cent.  However, UBS was prohibited under Regulation NMS from accepting orders at those prices.  By doing so the firm enabled users of the PPP order type to place sub-penny-priced orders that jumped ahead of other orders submitted at legal, whole-penny prices.

Furthermore, the SEC investigation found that UBS similarly failed to disclose to all subscribers a “natural-only crossing restriction” developed to ensure that select orders would not execute against orders placed by market makers and high-frequency trading firms.  This shield was only available to benefit orders placed using UBS algorithms, which are automated trading strategies.  UBS did not disclose the existence of this feature to all subscribers until approximately 30 months after it was launched.

“The UBS dark pool was not a level playing field for all customers and did not operate as advertised,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement.  “Our action shows our continued commitment to policing the equity markets to ensure fairness and compliance with all laws and rules.”

In addition to UBS’s disclosure failures that violated Section 17(a)(2) of the Securities Act of 1933 as well as its acceptance of sub-penny-priced orders that violated Regulation NMS, the SEC outlined several other violations of the federal securities laws by UBS in its order instituting a settled administrative proceeding:

The Form ATS and amendments that UBS filed with the SEC included inconsistent and incomplete statements about the dark pool’s acceptance of sub-penny orders and the natural-only crossing restriction.  The filing also failed to attach certain required documents.
UBS violated requirements under Regulation ATS by unreasonably prohibiting subscribers from using the natural-only crossing restriction and failing to establish written standards for granting access to subscribers.
UBS failed to preserve certain order data for the dark pool from at least August 2008 to March 2009 and August 2010 to November 2010.
UBS violated confidentiality requirements under Regulation ATS by giving full access to subscribers’ confidential trading information to 103 employees who should not have had it (primarily information technology personnel).
UBS consented to the SEC’s order without admitting or denying the findings.  The order censures the firm and requires payment of $2,240,702.50 in disgorgement, $235,686.14 in prejudgment interest, and the $12 million penalty.

The SEC’s investigation, which is continuing, was conducted by Stephen A. Larson, Charles D. Riely, Mandy B. Sturmfelz, and Mathew Wong of the Market Abuse Unit and Nancy A. Brown and Thomas P. Smith Jr. of the New York Regional Office.  The case was supervised by Amelia A. Cottrell of the New York office and Daniel M. Hawke of the Market Abuse Unit.  The SEC’s examination of UBS was conducted by Ilan Felix, Richard Heaphy, Michael McAuliffe, Patrick McCurdy, and Genevieve Skabeikis of the New York office.

The President Speaks on Promoting Community Broadband

DOJ ANNOUNCES OHIO MAN ARRESTED FOR PLOTTING TO ATTACK U.S. CAPITOL

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, January 14, 2015

Cincinnati-Area Man Arrested for Plot to Attack U.S. Government Officers
Assistant Attorney General for National Security John P. Carlin and Acting Special Agent in Charge John A. Barrios of the Cincinnati Division of the FBI announced today that the Joint Terrorism Task Force has arrested a Cincinnati-area man for a plot to attack the U.S. Capitol and kill government officials.  Acting Special Agent in Charge Barrios noted that the public was not in danger during this investigation.

Christopher Lee Cornell, 20, of Green Township, Ohio, was charged in a criminal complaint with attempting to kill officers and employees of the United States and possession of a firearm in furtherance of a crime of violence.

Cornell was taken into custody today by the FBI Joint Terrorism Task Force (JTTF).  The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service, West Chester Police Department and the Xenia Police Department.

The department would also like to acknowledge the Cincinnati Police Department, Colerain Police Department, Green Township Police Department and the U.S. Capitol Police for the cooperation and assistance they provided during this investigation.

The criminal complaint was filed today before a U.S. District Court Magistrate Judge.  The public is reminded that criminal complaints contain only allegations of criminal misconduct and that defendants are presumed to be innocent unless proven guilty in a court of law.

NASA | 'Disk Detectives' Top 1 Million Classifications in Search for Pla...

DOD REPORTS ON AIRSTRIKES IN SYRIA AND IRAQ

FROM:  U.S. DEFENSE DEPARTMENT 
Airstrikes Hit ISIL in Syria, Iraq

From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, Jan. 14, 2015 – U.S. and coalition military forces continued to attack Islamic State of Iraq and the Levant terrorists in Syria, using bomber and fighter aircraft to conduct six airstrikes, Combined Joint Task Force Operation Inherent Resolve officials reported today.

Separately, U.S. and coalition military forces conducted 12 airstrikes in Iraq, using attack, fighter, and remotely piloted aircraft against ISIL terrorists, officials reported.

All strikes took place between 8 a.m., yesterday, and 8 a.m., today, local time.
Airstrikes in Syria

-- Near Kobani, six airstrikes struck an ISIL fighting position and destroyed eight ISIL fighting positions and an ISIL armored vehicle.
Airstrikes in Iraq

-- Near Bayji, an airstrike destroyed an ISIL artillery system.

-- Near Taji, an airstrike struck an ISIL tactical unit.

-- Near Ar Rutbah, two airstrikes struck an ISIL checkpoint and an ISIL tactical unit and destroyed an ISIL vehicle.

-- Near Baqubah, an airstrike struck an ISIL tactical unit and destroyed an ISIL building, an ISIL vehicle, and an ISIL recoilless rifle system.

-- Near Al Asad, an airstrike destroyed an ISIL VBIED.

-- Near Sinjar, an airstrike struck an ISIL tactical unit and destroyed an ISIL excavator.

-- Near Mosul, four airstrikes struck three ISIL tactical units, two ISIL excavators, and an ISIL bunker, and destroyed an ISIL armored vehicle and an ISIL vehicle, and

-- Near Baghdad, an airstrike struck an ISIL tactical unit.
Airstrike assessments are based on initial reports. All aircraft returned to base safely.

Part of Operation Inherent Resolve

The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.

Coalition nations conducting airstrikes in Iraq include the U.S., Australia, Belgium, Canada, Denmark, France, the Netherlands, and the United Kingdom. Coalition nations conducting airstrikes in Syria include the U.S., Bahrain, Jordan, Saudi Arabia, and the United Arab Emirates.

DEFENSE SECRETARY HAGEL SPEAKS ABOUT TRANSITIONS

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Defense Secretary Chuck Hagel speaks to Marines and sailors aboard Marine Corps Air Station Miramar, Calif., Jan. 13, 2015. U.S. Marine Corps photo by Cpl. Melissa Eschenbrenner.  
Hagel Discusses Transitions at Miramar Troop Event

By Jim Garamone
DoD News, Defense Media Activity

WASHINGTON, Jan. 14, 2015 – Defense Secretary Chuck Hagel spoke about transitions with Marines and sailors at the Marine Corps Air Station in Miramar, California, yesterday.

Hagel, who himself transitions upon confirmation of his successor, Dr. Ashton B. Carter, spoke about transition in Afghanistan, transition to the Asia-Pacific region and the dynamic nature of the world that requires a U.S. military that can capably perform during peace or war.

The United States is transitioning around the world, the secretary said. In Afghanistan -- where many of the Marines and sailors served -- the United States is working with Afghans as they assume control of their country. And, U.S. Marines are transitioning back to their maritime roots..

Building Capabilities, Capacities in Asia-Pacific

All service members will participate in the U.S. military’s transition to the Asia-Pacific, Hagel said. A cornerstone of that shift will be to build capabilities and capacities of allies in the region, he said. This will become “more and more a critical component of our own strategic interests as we continue to help our allies build their capabilities,” the secretary said.

The United States will support those countries, “but we can't take on all of the challenges by ourselves,” Hagel said. “They must do it as well.”

The world is a dynamic, ever-changing place, and the American military must be ready, the secretary said. A year ago, he said, no one would have forecast the advance of the Islamic State of Iraq and the Levant or the Ebola crisis in West Africa or the Russian actions in Ukraine.

Cybersecurity Concerns

Other actions need to be countered as well, the secretary said. Cyberspace remains vulnerable, Hagel said. The cyberattack on Sony Pictures, and the cyberattack on U.S. Central Command public sites are two of the more recent examples of the vulnerability, he said.

The Defense Department’s people are key to success, Hagel said. The secretary urged Marines and sailors in the audience to take care of each other.

“We don’t take care of each other just on the battlefield,” Hagel said. “We’ve got to take care of each other in dorms, in bars, on bases, at parties. You take care of each other, you trust each other, and you have to rely on each other, again, not just in war, but this is a family, and we let each other down if we don’t do that.”
The secretary thanked the service members for what they do for the United States every day. He also thanked the families.

“Again, I want to thank you for what you do for this country, what you’ve done for our country, what you will do for this country,” Hagel said. “It’s been a privilege to be your secretary of defense.”

CDC REPORT ON PROGRESS IN CONTROLLING INFECTION IN U.S. HOSPITALS

FROM:  U.S. CENTERS FOR DISEASE CONTROL AND PREVENTION 
Progress Being Made in Infection Control in U.S. Hospitals; Continued Improvements Needed

 CDC report provides first snapshot of state efforts to prevent MRSA and deadly diarrheal infections

Progress has been made in the effort to eliminate infections that commonly threaten hospital patients, including a 46 percent decrease in central line-associated bloodstream infections (CLABSI) between 2008 and 2013, according to a report released today by the Centers for Disease Control and Prevention.  However, additional work is needed to continue to improve patient safety. CDC’s Healthcare-Associated Infections (HAI) progress report is a snapshot of how each state and the country are doing in eliminating six infection types that hospitals are required to report to CDC. For the first time, this year’s HAI progress report includes state-specific data about hospital lab-identified methicillin-resistant Staphylococcus aureus (MRSA) bloodstream infections and Clostridium difficile (C. difficile) infections (deadly diarrhea).

The annual National and State Healthcare-associated Infection Progress Report expands upon and provides an update to previous reports detailing progress toward the goal of eliminating HAIs. The report summarizes data submitted to CDC’s National Healthcare Safety Network (NHSN), the nation’s healthcare-associated infection tracking system, which is used by more than 14,500 health care facilities across all 50 states, Washington, D.C., and Puerto Rico. Healthcare-associated infections are a major, yet often preventable, threat to patient safety. On any given day, approximately one in 25 U.S. patients has at least one infection contracted during the course of their hospital care, demonstrating the need for improved infection control in U.S. healthcare facilities.

“Hospitals have made real progress to reduce some types of healthcare-associated infections - it can be done,” said CDC Director Tom Frieden, M.D., M.P.H. “The key is for every hospital to have rigorous infection control programs to protect patients and healthcare workers, and for health care facilities and others to work together to reduce the many types of infections that haven’t decreased enough.”

This report focuses on national and state progress in reducing infections occurring within acute care hospitals. Although not covered by the report released today, the majority of C. difficile infections and MRSA infections develop in the community or are diagnosed in healthcare settings other than hospitals. Other recent reports on infections caused by germs such as MRSA and C. difficile suggest that infections in hospitalized patients only account for about one-third of all the healthcare-associated infections.

Tracking National Progress

On the national level, the report found a:

46 percent decrease in central line-associated bloodstream infections (CLABSI) between 2008 and 2013. A central line-associated bloodstream infection occurs when a tube is placed in a large vein and either not put in correctly or not kept clean, becoming a highway for germs to enter the body and cause deadly infections in the blood.
19 percent decrease in surgical site infections (SSI) related to the 10 select procedures tracked in the report between 2008 and 2013. When germs get into the surgical wound, patients can get a surgical site infection involving the skin, organs, or implanted material.
6 percent increase in catheter-associated urinary tract infections (CAUTI) since 2009; although initial data from 2014 seem to indicate that these infections have started to decrease. When a urinary catheter is either not put in correctly, not kept clean, or left in a patient for too long, germs can travel through the catheter and infect the bladder and kidneys.
8 percent decrease in MRSA bloodstream infections between 2011 and 2013.
10 percent decrease in C. difficile infections between 2011 and 2013.

Research shows that when healthcare facilities, care teams, and individual doctors and nurses, are aware of infection control problems and take specific steps to prevent them, rates of targeted HAIs can decrease dramatically.

Data for Local Action

The report provides data that can be used by hospitals to target improvements in patient safety in their facilities. For example, together with professional partners, CDC, the Centers for Medicare & Medicaid Services (CMS) Quality Improvement Organizations and Partnership for Patients initiative, and the Agency for Healthcare Research and Quality’s (AHRQ) Comprehensive Unit-based Safety Program (CUSP) increased attention to the prevention of catheter-associated urinary tract infections, resulting in a reversal of the recent increase seen in these infections. CAUTI data for early 2014 demonstrating these improvements will be publicly available on the CMS Hospital Compare website in 2015. CDC is also working to use HAI data to help identify specific hospitals and wards that can benefit from additional infection control expertise.

“Healthcare-associated infection data give healthcare facilities and public health agencies knowledge to design, implement and evaluate HAI prevention efforts,” said Patrick Conway, Deputy Administrator for Innovation and Quality and Chief Medical Officer of the Center for Medicare & Medicaid Services. “Medicare’s quality measurement reporting requires hospitals to share this information with the CDC, demonstrating that, together, we can dramatically improve the safety and quality of care for patients.”

“Successful programs such as CUSP demonstrate that combining sound HAI data with effective interventions to prevent these infections can have enormous impact,” said AHRQ Director Richard Kronick, Ph.D.

State Data

Not all states reported or had enough data to calculate valid infection information on every infection in this report. The number of infections reported was compared to a national baseline.

In the report, among 50 states, Washington, D.C., and Puerto Rico, 26 states performed better than the nation on at least two of the six infection types tracked by state (CLABSI, CAUTI, MRSA, C. difficile, and SSI after colon surgery and abdominal hysterectomy). Sixteen states performed better than the nation on three or more infections, including six states performing better on four infections. In addition, 19 states performed worse than the nation on two infections, with eight states performing worse on at least three infections.

The national baseline will be reset at the end of 2015. Starting in 2016, HAI prevention progress from 2016-2020 will be measured in comparison to infection data from 2015.

The federal government considers elimination of healthcare-associated infections a top priority and has a number of ongoing efforts to protect patients and improve healthcare quality. CDC provides expertise and leadership in publishing evidence-based infection prevention guidelines, housing the nation’s healthcare-associated infection laboratories, responding to health care facility outbreaks, and tracking infections in these facilities. Other federal and non-federal partners are actively working to accelerate the ongoing prevention progress across the country. In collaboration with CDC, these agencies use data and expertise to mount effective prevention programs and guide their work, including efforts of CMS Quality Improvement Organizations, the Agency for Healthcare Research and Quality’s Comprehensive Unit-based Safety Program,  and the National Action Plan to Prevent Healthcare-Associated Infections: Road Map to Elimination.

Preventing infections in the first place means that patients will not need antibiotics to treat those infections.  This can help to slow the rise of antibiotic resistance and avoid patient harm from unnecessary side-effects and C. difficile infections, which are associated with antibiotic use. Continued progress and expanded efforts to prevent HAIs will support the response to the threat of antibiotic resistance.

WHITE HOUSE VIDEO: THE PRESIDENT SPEAKS ABOUT CYBERSECURITY

WHITE HOUSE FACT SHEET ON CUTTING METHANE EMISSIONS

FROM:  THE WHITE HOUSE 

FACT SHEET: Administration Takes Steps Forward on Climate Action Plan by Announcing Actions to Cut Methane Emissions

The Obama Administration is committed to taking responsible steps to address climate change and help ensure a cleaner, more stable environment for future generations. As part of that effort, today, the Administration is announcing a new goal to cut methane emissions from the oil and gas sector by 40 – 45 percent from 2012 levels by 2025, and a set of actions to put the U.S. on a path to achieve this ambitious goal.

U.S. oil production is at the highest level in nearly 30 years, providing important energy security and economic benefits. The U.S. is also now the largest natural gas producer in the world, providing an abundant source of clean-burning fuel to power and heat American homes and businesses. Continuing to rely on these domestic energy resources is a critical element of the President’s energy strategy. At the same time, methane – the primary component of natural gas – is a potent greenhouse gas, with 25 times the heat-trapping potential of carbon dioxide over a 100-year period.

Methane emissions accounted for nearly 10 percent of U.S. greenhouse gas emissions in 2012, of which nearly 30 percent came from the production transmission and distribution of oil and natural gas. Emissions from the oil and gas sector are down 16 percent since 1990 and current data show significant reductions from certain parts of the sector, notably well completions. Nevertheless, emissions from the oil and gas sector are projected to rise more than 25 percent by 2025 without additional steps to lower them. For these reasons, a strategy for cutting methane emissions from the oil and gas sector is an important component of efforts to address climate change.

The steps announced today are also a sound economic and public health strategy because reducing methane emissions means capturing valuable fuel that is otherwise wasted and reducing other harmful pollutants – a win for public health and the economy. Achieving the Administration’s goal would save up to 180 billion cubic feet of natural gas in 2025, enough to heat more than 2 million homes for a year and continue to support businesses that manufacture and sell cost-effective technologies to identify, quantify, and reduce methane emissions.

ADMINISTRATION ACTIONS TO REDUCE METHANE EMISSIONS

Building on prior actions by the Administration, and leadership in states and industry, today the Administration is announcing a series of steps encompassing both commonsense standards and cooperative engagement with states, tribes and industry to put us on a path toward the 2025 goal. This coordinated, cross-agency effort will ensure a harmonized approach that also considers the important role of FERC, state utility commissions and environmental agencies, and industry. Administration actions include:

Propose and Set Commonsense Standards for Methane and Ozone-Forming Emissions from New and Modified Sources

In 2012, the Environmental Protection Agency (EPA) laid a foundation for further action when it issued standards for volatile organic compounds (VOC) from the oil and natural gas industry.  These standards, when fully implemented, are expected to reduce 190,000 to 290,000 tons of VOC and decrease methane emissions in an amount equivalent to 33 million tons of carbon pollution per year. The standards not only relied on technologies and practices already in widespread use in the oil and gas sector, but also incorporated innovative regulatory flexibility.  Along with a rule to streamline permitting of oil and gas production on certain tribal lands, this approach ensured that important public health and environmental protections could be achieved while oil and gas production continued to grow and expand.

Building on five technical white papers issued last spring, the peer review and public input received on these documents, and the actions that a number of states are already taking, EPA will initiate a rulemaking effort to set standards for methane and VOC emissions from new and modified oil and gas production sources, and natural gas processing and transmission sources. EPA will issue a proposed rule in the summer of 2015 and a final rule will follow in 2016. In developing these standards, EPA will work with industry, states, tribes, and other stakeholders to consider a range of common-sense approaches that can reduce emissions from the sources discussed in the agency’s Oil and Gas White Papers, including oil well completions, pneumatic pumps, and leaks from well sites, gathering and boosting stations, and compressor stations.  As it did in the 2012 standards, the agency, in developing the proposal and final standards, will focus on in-use technologies, current industry practices, emerging innovations and streamlined and flexible regulatory approaches to ensure that emissions reductions can be achieved as oil and gas production and operations continue to grow.

New Guidelines to Reduce Volatile Organic Compounds

EPA will develop new guidelines to assist states in reducing ozone-forming pollutants from existing oil and gas systems in areas that do not meet the ozone health standard and in states in the Ozone Transport Region. These guidelines will also reduce methane emissions in these areas. The guidelines will help states that are developing clean air ozone plans by providing a ready-to-adopt control measure that they can include in those plans.

Consider Enhancing Leak Detection and Emissions Reporting

EPA will continue to promote transparency and accountability for existing sources by strengthening its Greenhouse Gas Reporting Program to require reporting in all segments of the industry. In addition to finalizing the updates to the program EPA has already proposed by the end of 2015, EPA will explore potential regulatory opportunities for applying remote sensing technologies and other innovations in measurement and monitoring technology to further improve the identification and quantification of emissions and improve the overall accuracy and transparency of reported data cost-effectively.

Lead by Example on Public Lands

The Department of Interior’s Bureau of Land Management (BLM) will update decades-old standards to reduce wasteful venting, flaring, and leaks of natural gas, which is primarily methane, from oil and gas wells.  These standards, to be proposed this spring, will address both new and existing oil and gas wells on public lands. This action will enhance our energy security and economy by boosting America’s natural gas supplies, ensuring that taxpayers receive the royalties due to them from development of public resources, and reducing emissions. BLM will work closely with EPA to ensure an integrated approach.

Reduce Methane Emissions while Improving Pipeline Safety

The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) will propose natural gas pipeline safety standards in 2015.  While the standards will focus on safety, they are expected to lower methane emissions as well.

Drive Technology to Reduce Natural Gas Losses and Improve Emissions Quantification

The President’s FY16 Budget will propose $15 million in funding for the Department of Energy (DOE) to develop and demonstrate more cost-effective technologies to detect and reduce losses from natural gas transmission and distribution systems.  This will include efforts to repair leaks and develop next generation compressors. The President’s budget will also propose $10 million to launch a program at DOE to enhance the quantification of emissions from natural gas infrastructure for inclusion in the national Greenhouse Gas Inventory in coordination with EPA.

Modernize Natural Gas Transmission and Distribution Infrastructure

DOE will continue to take steps to encourage reduced emissions, particularly from natural gas transmission and distribution, including:

Issuing energy efficiency standards for natural gas and air compressors;
Advancing research and development to bring down the cost of detecting leaks;
Working with FERC to modernize natural gas infrastructure; and
Partnering with NARUC and local distribution companies to accelerate pipeline repair and replacement at the local level.
Release a Quadrennial Energy Review (QER)

The Administration will soon release the first installment of the QER, which focuses specifically on policy actions that are needed to help modernize energy transmission, storage, and distribution infrastructure. This installment of the QER will include additional policy recommendations and analysis on the environmental, safety, and economic benefits of investments that reduce natural gas system leakage.

INDUSTRY ACTIONS TO REDUCE METHANE EMISSIONS.

The Administration’s actions represent important steps to cut methane emissions from the oil and gas sector. Fully attaining the Administration’s goal will require additional action, particularly with respect to existing sources of methane emissions. Several voluntary industry efforts to address these sources are underway, including EPA’s plans to expand on the successful Natural Gas STAR Program by launching a new partnership in collaboration with key stakeholders later in 2015.   EPA will work with DOE, DOT, and leading companies, individually and through broader initiatives such as the One Future Initiative and the Downstream Initiative, to develop and verify robust commitments to reduce methane emissions.  This new effort will encourage innovation, provide accountability and transparency, and track progress toward specific methane emission reduction activities and goals to reduce methane leakage across the natural gas value chain.

Voluntary efforts to reduce emissions in a comprehensive and transparent manner hold the potential to realize significant reductions in a quick, flexible, cost-effective way. Achieving significant methane reductions from these voluntary industry programs and state actions could reduce the need for future regulations. The Administration stands ready to collaborate with these and other voluntary efforts, including in the development of a regime for monitoring, reporting and verification.

BUILDING ON PROGRESS

Today’s announcement builds on the “Strategy to Reduce Methane Emissions” released in March 2014. Since its release, the Administration has taken a number of actions to set us on a course to reduce methane emissions from the oil and gas sector and other sources:

DOE has launched a new initiative that will make up to $30 million available to develop low-cost highly sensitive technologies that can help detect and measure methane emissions from oil and gas systems. Just last month, DOE announced the 11 innovative projects selected.
DOE convened a series of roundtable discussions with leaders from industry, environmental organizations, state regulators, consumer groups, academia, labor unions, and other stakeholders.  The meetings culminated in July 2014, with the creation of an Initiative to Modernize Natural Gas Transmission and Distribution Infrastructure that laid out a series of executive actions, partnerships, and stakeholder commitments to help modernize the nation’s natural gas transmission and distribution systems, increase safety and energy efficiency and reduce methane emissions.
The US Department of Agriculture (USDA), EPA and DOE, in partnership with the dairy industry, released a Biogas Opportunities Roadmap in August 2014 highlighting voluntary actions to reduce methane emissions through the use of biodigesters.
BLM released an Advanced Notice of Proposed Rulemaking (ANPRM) in April 2014 to gather public input on the development of a program for the capture and sale, or disposal, of waste methane from coal mines on public lands.
EPA proposed updates to its 1996 New Source Performance Standards for new municipal solid waste landfills and sought public feedback on whether EPA should update guidelines for existing landfills in June 2014, which they anticipate finalizing this year.

U.S. TRIES TO RECOVER OVER $1.5 MILLION IN BRIBES GIVEN TO HONDURAN OFFICIAL

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, January 13, 2015
Department of Justice Seeks Recovery of Approximately $1,528,000 in Bribes Paid to a Honduran Official

The Department of Justice filed today a civil forfeiture complaint seeking the forfeiture of nine properties worth approximately $1,528,000 that were allegedly purchased with funds traceable to a $2 million bribe paid by a Honduran information-technology company to the former Executive Director of the Honduran Institute of Social Security.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Polite, Jr. of the Eastern District of Louisiana and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) made the announcement.

“Mario Zelaya was the director of Honduras’s social security agency, but instead of building a social safety net for his country’s citizens, he allegedly used his position of public trust to steal public money for himself,” said Assistant Attorney General Caldwell.  “Our action today highlights how the Criminal Division’s Kleptocracy Initiative, with our network of law enforcement partners around the globe, will trace and recover the ill-gotten gains of corrupt officials.  Criminals should make no mistake:  the United States is not a safe haven for the proceeds of your crimes.  If you hide or invest your stolen money here, we will use all the legal tools we have to find it and seize it.”

“The United States Attorney’s Office for the Eastern District of Louisiana is committed to working with our law enforcement partners, both domestically and internationally, to ensure that this district is not used to launder corruptly obtained funds, no matter the source of the corruption,” said U.S. Attorney Polite.

“ICE’s Homeland Security Investigations will continue to work in cooperation with our international law enforcement partners to ensure that our country is not used as a safe haven for corrupt foreign officials to hide their assets,” said HSI Executive Associate Director Edge.

From 2010 to 2014, Dr. Mario Roberto Zelaya Rojas, 46, of Tegucigalpa, Honduras, served as the Executive Director of the Honduran Institute of Social Security (HISS), a Honduran Government agency that provides social security services, including workers’ compensation, retirement, maternity, and death benefits.  According to allegations in the forfeiture complaint, Zelaya solicited and accepted $2.08 million in bribes from Compania De Servicios Multiples, S. de R. L. (COSEM) in exchange for prioritizing and expediting payments owed to COSEM under a $19 million contract with HISS.  Zelaya also allegedly instructed COSEM to make bribe payments to two members of the Board of Directors of HISS charged with overseeing the COSEM contract.  To conceal the illicit payments, COSEM allegedly sent the bribes through its affiliate company, CA Technologies.

As further alleged in the complaint, the bribe proceeds were then laundered into the United States and used by Zelaya and his brother, Carlos Alberto Zelaya Rojas, to acquire real estate in the New Orleans area.  Certain properties were titled in the name of companies nominally controlled by Zelaya’s brother in an effort to conceal the illicit source of the funds as well as the beneficial owner.  The current action seeks forfeiture of nine properties acquired with the proceeds of Zelaya’s alleged bribery scheme.

The investigation was conducted by HSI’s New Orleans and Miami Field Offices.  The case is being handled by Trial Attorneys Stephen A. Gibbons and Marybeth Grunstra of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Daniel P. Friel of the Eastern District of Louisiana.  Substantial assistance was provided by the Public Ministry of the Republic of Honduras and the HSI Attaché Tegucigalpa.

This case was brought under the Kleptocracy Asset Recovery Initiative.  Under that initiative, dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section work in partnership with U.S. Attorneys’ Offices and federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where possible and appropriate, put forfeited corruption proceeds to use for the benefit of the people of the country harmed by the abuse of public office.