SOLDIERS TRAIN AT CHEMICAL, BIOLOGICAL, RADIOLOGICAL AND NUCLEAR DEFENSE CHAMBER

FROM:  U.S. DEFENSE DEPARTMENT 

Soldiers train chaplain candidates at the chemical, biological, radiological and nuclear defense chamber on Fort Jackson, S.C., May 27, 2015. The soldiers are chaplain candidates assigned to 104th Training Division. U.S. Army photo by Sgt. 1st Class Brian Hamilton.

A soldier prepares the CS gas, which is similar to tear gas, for the chaplain candidates at the chemical, biological, radiological and nuclear defense chamber on Fort Jackson, S.C., May 27, 2015. U.S. Army photo by Sgt. 1st Class Brian Hamilton. 

LABOR SECRETARY PEREZ LISTS 5 THINGS YOU SHOULD KNOW ABOUT EMPLOYMENT NUMBERS

FROM:  U.S. LABOR DEPARTMENT
Five things US Labor Secretary Thomas E. Perez says
you should know about the May employment numbers

WASHINGTON — With the release of the May 2015 Employment Situation Report today, U.S. Secretary of Labor Thomas E. Perez says there are five things you should know about its numbers:

Record streak continues: This is the best jobs report of 2015 so far. The economy added 280,000 jobs in May, bringing us to 12.6 million private-sector jobs over the last 63 months.

Low unemployment: The unemployment rate was essentially unchanged at 5.5 percent. It's the ninth straight month under 6 percent after 73 straight months above 6 percent. Over the last year, there has been a significant decrease in the unemployment rate for every demographic group except teens.

Meaningful progress on wages: Average hourly earnings for employees on private payrolls rose by 8 cents in May. The 2.3 percent increase from last May is the largest year-over-year increase since August 2013.

Long-term unemployment trending down: 28.6 percent of the unemployed have been out of work for 27 weeks or more — that's the lowest rate in six years. There are 849,000 fewer long-term unemployed people than a year ago.

The unfinished business: The recovery continues apace with strong and steady job growth. But the wind at our back isn't propelling everyone forward. From education and skills development to minimum wage and paid leave, the Obama administration continues to work every day to extend more opportunity to more people. We hope Congress will join us in our efforts to reward hard work and give everyone the chance to punch their ticket to the middle class.

TEXAN ARRESTED FOR ATTEMPTING TO JOIN THE TERRORIST GROUP ISIL

FROM:  U.S. JUSTICE DEPARTMENT
Friday, June 5, 2015
Texas Man Sentenced to 82 Months in Prison for Attempting to Travel to Syria to Join ISIL

Michael Todd Wolfe aka Faruq, 24, of Austin, Texas, was sentenced this afternoon by U.S. District Court Judge Sam Sparks of the Western District of Texas to serve 82 months in federal prison for attempting to provide material support to a designated foreign terrorist organization, announced Assistant Attorney General for National Security John Carlin, Acting U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

In June 2014, Wolfe pleaded guilty to the charge, admitting that from August 2013 to June 17, 2014, he planned to travel to the Middle East to provide material support to the Islamic State of Iraq and the Levant (ISIL).  Wolfe previously acknowledged that he applied for and acquired a U.S. passport, participated in physical fitness training, practiced military maneuvers and made efforts to conceal his communications about his plans to travel overseas to engage in violent jihad.  Wolfe also purchased airline tickets so that he could travel to Europe to meet an FBI undercover employee, whom the defendant then believed would facilitate travel to Syria through Turkey.  In furtherance of his attempt to provide material support to ISIL, Wolfe travelled to Houston and was apprehended on June 17, 2014, on the jet-way, as he attempted to board a flight to Toronto, Canada.  His ticketed itinerary had him traveling through Iceland and arriving in Copenhagen, Denmark, on June 18, 2014.  He then planned to make his way to Syria to join with ISIL and engage in the armed conflict.  Wolfe has remained in federal custody since his arrest.

The case was investigated by the agencies comprising the Central Texas JTTF, which include the FBI; Internal Revenue Service-Criminal Investigation; U.S. Citizenship and Immigration Services; U.S. Army Intelligence; Austin Police Department; Round Rock, Texas, Police Department; Killeen, Texas, Police Department; University of Texas Police Department; Travis County, Texas Sheriff's Office; Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.

The case was prosecuted by Assistant U.S. Attorneys Gregg N. Sofer and Michael Galdo of the Western District of Texas, and Trial Attorneys Josh Parecki and Michael Dittoe of the National Security Division’s Counterterrorism Section.

BUSINESSMAN ACCUSED OF BRIBING BANK OFFICIALS, SENTENCED TO PRISON

FROM:  U.S. JUSTICE DEPARTMENT
Thursday, June 4, 2015

Kentucky Businessman Sentenced in New York Federal Court for $53 Million Tax Scheme and Massive Fraud that Involved Bribery of Bank Officials
Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Preet Bharara of the Southern District of New York announced that a Kentucky businessman was sentenced today to serve 12 years in prison.

Wilbur Anthony Huff, 53, of Caneyville and Louisville, Kentucky, was also ordered to pay more than $108 million in restitution for committing various tax crimes that caused more than $50 million in losses to the Internal Revenue Service (IRS), and a massive fraud that involved the bribery of bank officials, the fraudulent purchase of an insurance company, and the defrauding of insurance regulators and an investment bank.  In December 2014, Huff pleaded guilty before U.S. District Judge Noemi Reice Buchwald of the Southern District of New York, who imposed today’s sentence.

“The department is committed to vigorously pursuing and prosecuting those individuals who violate the employment tax laws of the United States,” said Acting Assistant Attorney General Ciraolo.  “Today’s significant prison sentence sends a loud and clear message to those engaged in such criminal conduct, including owners and operators of professional employer organizations like Mr. Huff, who steal employment taxes collected from their business clients to line their own pockets, instead of paying over those funds to the IRS.”

“Anthony Huff and his co-conspirators stole millions of dollars from taxpayers and engaged in extensive frauds, all in the pursuit of additional property, luxury cars and the like,” said U.S. Attorney Bharara.  “His crimes have earned him 12 years in prison.  I would like to thank our law enforcement partners for their assistance on this case.”

According to the information, plea agreement, sentencing submissions and statements made during court proceedings:

Huff was a businessman who controlled numerous entities located throughout the United States (Huff-Controlled Entities).  Huff controlled the companies and their finances, using them to orchestrate a $53 million fraud on the IRS and other schemes that spanned four states, involving tax violations, bank bribery, fraud on bank regulators and the fraudulent purchase of an insurance company.  As part of his crimes, Huff concealed his control of the Huff-Controlled Entities by installing other individuals to oversee the companies’ day-to-day functions and to serve as the companies’ titular owners, directors, or officers.  Huff also maintained a corrupt relationship with Park Avenue Bank and Charles J. Antonucci Sr., the bank’s president and chief executive officer, and Matthew L. Morris, the bank’s senior vice president.

Tax Crimes

From 2008 to 2010, HUFF controlled O2HR, a professional employer organization (PEO) located in Tampa, Florida.  Like other PEOs, O2HR was paid to manage the payroll, tax and workers’ compensation insurance obligations of its client companies.  However, instead of paying $53 million in taxes that O2HR’s clients owed the IRS and $5 million to Providence Property and Casualty Insurance Company (Providence P&C) – an insurance company based in Oklahoma – for workers’ compensation coverage expenses for O2HR clients, Huff stole the money that his client companies had paid O2HR for those purposes.  Among other things, Huff diverted millions of dollars from O2HR to fund his investments in unrelated business ventures and pay his family members’ personal expenses.  The expenses included mortgages on Huff’s homes, rent payments for his children’s apartments, staff and equipment for Huff’s farm, designer clothing, jewelry and luxury cars.

Conspiracy to Commit Bank Bribery, Defraud Bank Regulators and Fraudulently Purchase an Oklahoma Insurance Company

From 2007 through 2010, Huff engaged in a massive multi-faceted conspiracy in which he schemed to bribe executives of Park Avenue Bank, defraud bank regulators and the board and shareholders of a publicly-traded company, and fraudulently purchase an Oklahoma insurance company.  As described in more detail below, Huff paid bribes totaling hundreds of thousands of dollars in cash and other items to Morris and Antonucci in exchange for their favorable treatment at Park Avenue Bank.

As part of the corrupt relationship between Huff and the bank executives, Huff, Morris, Antonucci and others conspired to defraud various entities and regulators during the relevant time period.  Specifically, Huff conspired with Morris and Antonucci to falsely bolster Park Avenue Bank’s capital by orchestrating a series of fraudulent transactions to make it appear that Park Avenue Bank had received an outside infusion of $6.5 million, and engaged in a series of further fraudulent actions to conceal from bank regulators the true source of the funds.

Huff further conspired with Morris, Antonucci and others to defraud Oklahoma insurance regulators and others by making material misrepresentations and omissions regarding the source of $37.5 million used to purchase Providence Property and Casualty Insurance Company, an insurance company based in Oklahoma that provided workers’ compensation insurance for O2HR’s clients and to whom O2HR owed a significant debt.

Bribery of Park Avenue Bank Executives

From 2007 to 2009, Huff paid Morris and Antonucci at least $400,000 in exchange for which they: provided Huff with fraudulent letters of credit obligating Park Avenue Bank to pay $1.75 million to an investor in one of Huff’s businesses if Huff failed to pay the investor back himself; allowed the Huff-Controlled Entities to accrue $9 million in overdrafts; facilitated intra-bank transfers in furtherance of Huff’s fraud; and fraudulently caused Park Avenue Bank to issue at least $4.5 million in loans to the Huff-Controlled Entities.

Fraud on Bank Regulators and a Publicly-Traded Company

From 2008 to 2009, Huff, Morris and Antonucci engaged in a scheme to prevent Park Avenue Bank from being designated as “undercapitalized” by regulators – a designation that would prohibit the bank from engaging in certain types of banking transactions and that would subject the bank to a range of potential enforcement actions by regulators.  Specifically, they engaged in a series of deceptive, “round-trip” financial transactions to make it appear that Antonucci had infused the bank with $6.5 million in new capital when, in actuality, the $6.5 million was part of the bank’s pre-existing capital.  Huff, Morris and Antonucci funneled the $6.5 million from the bank through accounts controlled by Huff to Antonucci.  This was done to make it appear as though Antonucci was helping to stabilize the bank’s capitalization problem, so that the bank could continue engaging in certain banking transactions that it would otherwise have been prohibited from doing, and to put the bank in a better posture to receive $11 million from the Troubled Asset Relief Program.  To conceal their unlawful financial maneuvering, Huff created, or directed the creation of, documents falsely suggesting that Antonucci had earned the $6.5 million through a bogus transaction involving another company Antonucci owned.  Huff, Morris and Antonucci further concealed their scheme by stealing $2.3 million from General Employment Enterprises Inc., a publicly-traded temporary staffing company, in order to pay Park Avenue Bank back for monies used in connection with the $6.5 million transaction.

Fraud on Insurance Regulators and the Investment Firm

From July 2008 to November 2009, Huff, Morris, Antonucci and Allen Reichman, an executive at an investment bank and financial services company headquartered in New York City (the Investment Firm), conspired to defraud Oklahoma insurance regulators into allowing Antonucci to purchase the assets of Providence P&C and defraud the Investment Firm into providing a $30 million loan to finance the purchase.  Specifically, Huff and Antonucci devised a scheme in which Antonucci would purchase Providence P&C’s assets by obtaining a $30 million loan from the Investment Firm, which used Providence P&C’s own assets as collateral for the loan.  However, because Oklahoma insurance regulators had to approve any sale of Providence P&C, and because Oklahoma law forbade the use of Providence P&C’s assets as collateral for such a loan, Huff, Morris, Antonucci and Reichman made and conspired to make a number of material misstatements and material omissions to the Investment Firm and Oklahoma insurance regulators concerning the true nature of the financing for Antonucci’s purchase of Providence P&C.  Among other things, Reichman directed Antonucci to sign a letter that provided false information regarding the collateral that would be used for the loan, and Huff, Morris and Antonucci conspired to falsely represent to Oklahoma insurance regulators that Park Avenue Bank – not the Investment Firm – was funding the purchase of Providence P&C.

After deceiving Oklahoma regulators into approving the sale of Providence P&C, Huff took $4 million of the company’s assets, which he used to continue the scheme to defraud O2HR’s clients.  Ultimately, in November 2009, the insurance company became insolvent and was placed in receivership after Huff, Morris and Antonucci had pilfered its remaining assets.

*                *                *

In addition to his prison sentence, Huff was sentenced to three years of supervised release, and ordered to forfeit $10.8 million to the United States and pay a total of more than $108 million in restitution to victims of his crimes, including, among others, the Federal Deposit Insurance Corporation (FDIC) and the IRS.

In imposing today’s sentence, Judge Buchwald said Huff’s crimes were “truly staggering” and “eye popping.”  Judge Buchwald described Huff’s conduct, which was preceded by a federal conviction and failure to pay millions in civil judgments, as “a living example” of “chutzpah,” which she defined as “shameless audacity and unmitigated gall.”

Morris and Reichman pleaded guilty for their roles in the above-described offenses on Oct. 17, 2013, and Feb. 20, 2015, respectively.  Reichman is scheduled to be sentenced before Judge Buchwald on July 15, and Morris is scheduled to be sentenced before Judge Buchwald on Aug. 19.

Antonucci pleaded guilty to his role in the crimes described above on Oct. 8, 2010, and is scheduled to be sentenced on Aug. 20, also before Judge Buchwald.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Bharara thanked the Special Inspector General for the Troubled Asset Relief Program, the FBI, IRS-Criminal Investigation, the New York State Department of Financial Services, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Office of Inspector General of the FDIC, for their work in the investigation, and the Tax Division and the U.S. Attorney’s Office of the Southern District of Florida, for their assistance in the prosecution.

Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

The case is being handled by the U.S. Attorney’s Office of the Southern District of New York Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Janis Echenberg and Daniel Tehrani and Special Assistant U.S. Attorney Tino Lisella of the Tax Division are in charge of the criminal case.

GEMINI IV EARTHVIEW

FROM:  NASA 

June 4, 1965, Earth Observations From Gemini IV

This photograph of the Florida Straits and Grand Bahama Bank was taken during the Gemini IV mission during orbit no. 19, on June 4, 1965, with a Hasselblad camera and a 70mm lens. The Gemini IV crew -- astronauts Jim McDivitt and Ed White -- conducted scientific experiments, including photography of Earth's weather and terrain, for the remainder of their four-day mission following White's historic first American spacewalk on June 3.

Astronauts have been photographing Earth from space since the early Mercury missions beginning in 1961. Today, they observe the Earth from their unique point of view aboard the International Space Station, providing researchers with key data and recording changes over time from human-caused changes like urban growth and reservoir construction, to natural dynamic events such as hurricanes, floods and volcanic eruptions.

Image Credit: NASA

U.S. CALLING FOR INVESTIGATION INTO REPORTS OF INTERNATIONAL SOLDIERS ABUSING CHILDREN IN CAR

FROM:  U.S. STATE DEPARTMENT
Samantha Power
U.S. Permanent Representative to the United Nations
New York, NY
June 5, 2015

FOR IMMEDIATE RELEASE

Since horrific allegations came to light that international soldiers may have abused children in the Central African Republic, the United States has been calling for a full and impartial investigation into these disturbing reports as well as into the manner in which they were handled. We thus welcome the Secretary General’s recent announcement of the establishment of an External Independent Review to examine the UN system’s response to the allegations.

The Secretary General’s establishment of this review is an opportunity for the UN to learn how it and member states can best safeguard the dignity and welfare of vulnerable people; ensure swift action to make certain potential abuses are investigated and halted; protect those who expose abuses; and provide appropriate privacy and other protection for witnesses who come forward with allegations of abuse. There are many questions that need to be answered, and we view this as an important opportunity for member states – and the people of the Central African Republic – to learn what went wrong at every point in this process.

Alongside this independent review, it is essential that all countries whose soldiers are alleged to have been involved in such abuses fully, urgently, and transparently investigate all claims to ensure that justice is served. Any individual found to have committed such heinous abuses must be held accountable.

The United States looks forward to reviewing the outcome of the Panel’s findings in a timely manner and working with all parties to prevent sexual exploitation and abuse.

U.S. PRESS STATEMENT ON ANNIVERSARY OF TIANANMEN SQUARE PROTESTS IN CHINA

FROM:  U.S. STATE DEPARTMENT
On the 26th Anniversary of Tiananmen Square
Press Statement
John Kirby
Department Spokesperson
Washington, DC
June 3, 2015

Twenty six years after the Chinese government’s violent suppression of peaceful protests in and around Tiananmen Square on June 4, 1989, the United States continues to call for an official accounting of the victims of these events, the release of those still serving Tiananmen-related sentences, and an end to the harassment and detention of those who wish to peacefully commemorate the anniversary.

While China has achieved social and economic progress since 1989, we remain concerned that human rights abuses continue. We are closely monitoring developments with respect to pending legislation in China relating to national security, counterterrorism, and the regulation of NGOs that appears to call into question China’s commitment to increased openness and could, if enacted in current form, result in rights abuses. On this twenty-sixth anniversary, the United States urges the Chinese government to uphold its international commitments to protect human rights and fundamental freedoms and to end the harassment, detention, and other mistreatment of individuals who peacefully seek justice and fairness, to practice their religion, or to express their views.

DOJ ANNOUNCES 27 CRIMINAL FOREIGN FUGITIVES ARRESTED IN U.S.

FROM:  U.S. JUSTICE DEPARTMENT

WASHINGTON — Twenty-seven criminal foreign fugitives with active Interpol alerts were arrested across the United States this week by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the U.S. Marshals Service (USMS).

Those arrested are from 13 different countries and wanted for crimes abroad. Of the 27, five are wanted for homicide, two for kidnapping, one for raping a child and one for human sex trafficking.

“Criminals who create mayhem here in the United States or abroad should understand that law enforcement is a global partnership,” said ICE Director Sarah R. Saldaña. “We will find them, and we will bring them to justice.”

Arrests occurred nationwide in nine states during the three-day sweep, which took place Tuesday through Thursday. Those arrested fell squarely into the agency’s enforcement priorities, which ICE officers prioritize and enforce every day.

“The arrest of these foreign fugitives should send a strong message to anyone attempting to avoid prosecution for their crimes here in the U.S. or abroad,” said USMS Director Stacia Hylton. “Our men and women were relentless in their effort to locate and apprehend these criminals.  We hope our effort gives victims a sense of comfort in knowing these individuals are no longer on the streets.”

“Information-sharing 24 hours, seven days a week, 365 days a year among U.S. law enforcement agencies like ERO and the USMS, along with the 189 other Interpol member countries and Interpol Washington, ensures transnational criminals have no place to hide,” stated Interpol Washington Director Shawn A. Bray. “By facilitating the sharing of this information with our law enforcement partners, together, we will continue to enhance safety and security for U.S. citizens and the global community.”

Arrests included:

On June 2, ERO arrested Nelson Garcia Orellana, 30, and his brother Jorge Garcia Rivera, 23, both natives of El Salvador, in Trenton, New Jersey, and Alexandria, Virginia, respectively. They are wanted by authorities in their home country for kidnapping [external link] and are the subjects of Interpol Red Notices [external link].


On June 2, ERO arrested Gabriel Collado Gonzalez, 40, a native of Nicaragua, in Miami. Gonzalez is wanted by authorities in his home country for embezzlement and criminal conspiracy and is the subject of an Interpol Red Notice [external link].


On June 2, ERO arrested Raul Ortiz Henriquez, 40, a native of El Salvador, in Santa Fe Springs, California. Henriquez is wanted by authorities in his home country for rape of a minor. In November 2013, Henriquez grabbed his victim by her arms and forced her into a van he was driving while she was leaving school. He drove away, parked, beat her in the chest and raped her. He is the subject of an Interpol Red Notice [external link].
The following individuals are all the subject of Interpol Red Notices and remain at-large:

Juan Chicas Ramos, 56, a native of El Salvador, is wanted by authorities in his home country on an Interpol Red Notice [external link] for homicide


Lisandro Medina Gamez, 33, a native of El Salvador, is wanted by authorities in his home country on an Interpol Red Notice [external link] for fraud
The ICE National Criminal Analysis and Targeting Center (NCATC) provided critical investigative support for this operation, including criminal and intelligence analysis from a variety of sources. The NCATC provides comprehensive analytical support to aid the at-large enforcement efforts of all ICE components.

ICE credits the combined efforts of the U.S. National Central Bureau-Interpol Washington, the U.S. Marshals Service, the U.S. Department of State Diplomatic Security Service, U.S. Citizenship and Immigration Services, and U.S. Customs and Border Protection.

Members of the public who have information about these fugitives are urged to contact ICE by calling the toll-free ICE tip line at 1-866-347-2423 or internationally at 001-1802-872-6199. They can also file a tip online by completing ICE’s online tip form.

Since Oct. 1, 2009, ERO has removed more than 720 foreign fugitives from the United States who were sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with HSI’s Office of International Operations, foreign consular offices in the United States, and Interpol to identify foreign fugitives illegally present in the United States.

REMARKS AT UN ON RECENT DEVELOPMENTS IN EASTERN UKRAINE

FROM:  U.S. STATE DEPARTMENT
Samantha Power
U.S. Permanent Representative to the United Nations
New York, NY
June 5, 2015

AS DELIVERED

Thank you, Mr. President, for organizing today’s meeting to speak to the recent developments in eastern Ukraine. And I join others in thanking our briefers, Under Secretary-General Feltman and OSCE Deputy Chief Monitor Hug, for providing the Security Council and the international community with the facts underlying the escalation in violence, which are critical in a conflict where some continue to try to obscure the truth.

On June 3rd, combined Russian-separatist forces launched multiple, coordinated attacks west of the Minsk line of contact in Donetsk. The attacks were concentrated on the towns of Marinka and Krasnohorivka.

The Russian Federation and its separatist allies have offered multiple – often conflicting – explanations for these attacks.

In some instances, Russia and the separatists have blamed Ukraine for inciting the attacks. For example, a Russian presidential spokesman attributed the violations of the ceasefire to the “provocative actions by the Ukrainian armed forces,” claiming, “the Ukrainian side has repeatedly taken similar efforts to escalate tensions against the backdrop of international operations.” Similarly, the so-called “Defense Minister” of the self-proclaimed Donetsk People’s Republic blamed Ukraine for “provocations” and, what he called, “a breach in the Minsk agreements,” which led to the fighting. Exactly what the so-called provocations are was never explained.

This argument, this set of arguments, have been undermined by some of the separatists themselves, who seem to have forgotten to run their tweets and their blog posts by Moscow. During the attacks, one tweeted, “Marinka is ours!” – posting a photo of armed soldiers atop a tank flying the separatists’ flag. A post on a separatist website said, “As a result of a massive attack by [DPR] armed forces, Marinka has been liberated.”

In other instances, Russia has argued that the attacks were justified because the areas that are actually part of the separatist-controlled territory under the Minsk agreements are these areas. They are not. This was the case Russia made about Marinka and Krasnohorivka yesterday, at a meeting of the OSCE. We’ve seen this tactic before; when combined Russian-separatist forces encircled and attacked Debaltseve immediately after signing the package of measures at Minsk on February 12th, 2015. As a separatist commander Eduard Basurin told Reuters on February 15th, “Of course we can open fire [on Debaltseve]…The territory is internal: ours. And internal is internal. But along the line of confrontation there is no shooting.”

The problem with this line of argument is, quite simply, that it is false. At no point did the Minsk Agreements recognize Marinka and Krasnohorivka as separatist-controlled territory. Nor did they grant the separatists control over Debaltseve or other areas combined Russian-separatist forces have seized, or tried to seize. Yet for Russia and the separatists, it seems the contact line can shift to include the territories that they feel they deserve.

The Kyiv-born surrealist master Mikhail Bulgakov put this problem a different way: “The tongue can conceal the truth, but the eyes, never!” In this case, the objective eyes in eastern Ukraine belong to the OSCE’s Special Monitoring Mission, the SMM. And what they tell us is that, on the evening of June 2nd and early morning of June 3rd, “SMM observed the movement of a large amount of heavy weapons in DPR-controlled areas – generally in a westerly direction toward the contact line – close to Marinka, preceding and during the fighting.” So, to repeat: according to the SMM, heavy weapons from the Russian-backed separatist side moved westward “preceding as well as during the fighting.”

The SMM tried to contact high-ranking DPR personnel over an hour-and-a-half period on the morning of June 3rd, but reported, “Either they were unavailable or did not wish to speak to the SMM.” The eyes do not conceal the truth. And the truth here is that the recent violence was rooted in a combined Russian-separatist assault.

These and other joint attacks by Russian-separatist forces have deadly consequences. At least 5 Ukrainian soldiers were killed, and 38 wounded, in the assault on the towns. The number of casualties is surely higher, but we do not, unfortunately, have reliable reports from the separatists’ side. That is because, as the UN’s Human Rights Monitoring Unit noted in its May 15th report, independent media have been prosecuted, threatened, and otherwise muzzled in separatist-controlled territory.

We also do not know how many Russian soldiers were killed in recent attacks – or in any of their operations in eastern Ukraine, for that matter. Russia continues – despite incidents such as the recent capture of two special operations Russian soldiers in Schastya last month – to deny any military involvement in eastern Ukraine.

And just last week, President Putin signed a decree classifying any death of Russian soldiers in “special operations” in peacetime a state secret, a policy which previously was limited to wartime only. Not content with denying their military service in life, Russia now denies their loved ones the respect and closure – not to mention social services – for their service in death. And it denies the Russian people knowledge to which they are entitled – of a conflict their government has been fueling with weapons, training, and soldiers. No matter what your opinion of the open secret that is Russia’s military involvement in eastern Ukraine and occupied Crimea, the dignified recognition of one’s dead should have primacy.

Of course, suffering is hardly limited to those involved in the fighting. Civilians living near and along the front lines continue to endure profound hardship. Approximately 1.3 million Ukrainians have been displaced by the fighting. Small children on the front lines have gotten used to going to school and sleeping in basements. Families live underground for months at a time. The elderly and disabled are trapped with little access to vital medicine and other forms of assistance. A health professional working in Debaltseve said, “I’ve met elderly people who say that they would just like to die. They don’t have depression; they just don’t want to be 80 years old and living in a basement.”

By now, the international community is quite familiar with Russia’s playbook when it comes to efforts to occupy the territory of its sovereign neighbors – as it did in Crimea, and before that in Transnistria, Abkhazia, and South Ossetia. The consensus here, and in the international community, remains that Minsk’s implementation is the only viable way out of this deadly conflict.

The Ukrainian government has made good faith efforts to honor that consensus – notwithstanding the seemingly endless violations by Russia and the separatists – and deliver on the commitments made at Minsk. Ukraine is holding direct dialogue with the separatists, a bitter pill to swallow, but one they have swallowed for the sake of peace and for the sake of the implementation of the Minsk Agreements. At the same time, Ukraine has undertaken critical efforts, with the participation of Ukrainian civil society, to address pervasive problems it inherited from its predecessors, like widespread corruption, as well as to pursue crucial reforms such as decentralization. Ukraine cooperates with the international monitors and bodies, and has committed to address identified areas of concern. The United States will continue to raise tough issues and these areas of concern, including some raised here today by the briefers, with the Government of Ukraine, and we will support the government and Ukrainian people as they continue their efforts toward meaningful reform.

Yet Russia – and the separatists it trains, arms, fights alongside, and with whom it shares command and control systems in eastern Ukraine – continues to ignore this consensus, flouting the commitments it made at Minsk. It goes right on applying its playbook in new territories – as though this Council and the world are too blind, or too easily deceived to notice.

We must not let ourselves be deceived. The consequences of Russia’s contempt for Minsk and the rules undergirding our international peace and security are too great – both for the integrity of the international system, and for the rights and welfare of the Ukrainian people. We cannot fail to see and fail to act. We must not stop applying pressure until Ukrainians get the stable democracy, the territorial integrity, and sovereignty they yearn for and deserve. Thank you.

VA SUBMITS PLAN TO MOVE FORWARD ON DENVER REPLACEMENT MEDICAL CENTER

FROM:  U.S. DEPARTMENT OF VETERANS AFFAIRS
VA moving Forward on Denver Replacement Facility, Transformational Plan
Plans submitted to Congress

 WASHINGTON – The Department of Veterans Affairs (VA) today submitted a plan to Congress to move forward on the Denver Replacement Medical Center.
"The delays and cost overruns that have plagued the Denver Replacement Medical Center campus are inexcusable," Secretary Robert A. McDonald wrote in his letter to Congress. "I respectfully request that Congress take action to allow us to move forward so that construction on the Denver Replacement Medical Center in Aurora does not shut down later this month."  The full text of the letter is included in the link below.

VA is committed to completing the construction of the Denver replacement hospital to serve the 390,000 Veterans and their families of the Colorado area.
In addition to detailed construction and funding plans for the Denver facility, VA also released updates outlining  progress made in areas such as accountability, access, homelessness and other priorities, as well as the MyVA Transformational Plan.

"VA is changing. It will take time to fully implement these changes, but we at VA are committed to work with Congress on this and many other challenges and opportunities as we transform VA into the Veteran-centric, customer service-oriented organization Veterans have earned and deserve," McDonald wrote.

RESEARCHERS SAY OCEAN WARMING WILL LEAD TO MARINE ANIMAL MIGRATION

FROM:  NATIONAL SCIENCE FOUNDATION
Warmer, lower-oxygen oceans will shift marine habitats

Changes will result in marine animals moving away from equator
Modern mountain climbers usually carry tanks of oxygen to help them reach the summit. The combination of physical exertion and lack of oxygen at high altitudes creates a major challenge for mountaineers.

Now, just in time for World Oceans Day on Monday, June 8, researchers have found that the same principle applies to marine species during climate change.

Warmer water temperatures will speed up the animals' metabolic need for oxygen, as also happens during exercise, but the warmer water will hold less of the oxygen needed to fuel their bodies, similar to what happens at high altitudes.

Results of the study are published in this week's issue of the journal Science.

"This work is important because it links metabolic constraints to changes in marine temperatures and oxygen supply," said Irwin Forseth, program director in the National Science Foundation's (NSF) Division of Integrative Organismal Systems, which funded the research along with NSF's Division of Ocean Sciences.

"Understanding connections such as this is essential to allow us to predict the effects of environmental changes on the distribution and diversity of marine life.”

Marine animals pushed away from equator

The scientists found that these changes will act to push marine animals away from the equator. About two thirds of the respiratory stress due to climate change is caused by warmer temperatures, while the rest is because warmer water holds less dissolved gases such as oxygen.

"If your metabolism goes up, you need more food and you need more oxygen," said lead paper author Curtis Deutsch of the University of Washington.

"Aquatic animals could become oxygen-starved in a warmer future, even if oxygen doesn't change. We know that oxygen levels in the ocean are going down now and will decrease more with climate warming."

Four Atlantic Ocean species studied

The study centered on four Atlantic Ocean species whose temperature and oxygen requirements are well known from lab tests: Atlantic cod in the open ocean; Atlantic rock crab in coastal waters; sharp snout seabream in the sub-tropical Atlantic; and common eelpout, a bottom-dwelling fish in shallow waters in high northern latitudes.

Deutsch and colleagues used climate models to see how projected temperature and oxygen levels by 2100 would affect the four species ability to meet their future energy needs.

The near-surface ocean is projected to warm by several degrees Celsius by the end of this century. Seawater at that temperature would hold 5-10 percent less oxygen than it does now.

Results show that future rock crab habitat, for example, would be restricted to shallower water, hugging the more oxygenated surface.

Equatorial part of animals' ranges uninhabitable

For all four species, the equatorial part of their ranges would become uninhabitable because peak oxygen demand would be greater than the supply.

Viable habitats would shift away from the equator, displacing from 14 percent to 26 percent of the current ranges.

The authors believe the results are relevant for all marine species that rely on aquatic oxygen as an energy source.

"The Atlantic Ocean is relatively well-oxygenated," Deutsch said. "If there's oxygen restriction in the Atlantic Ocean marine habitat, then it should be everywhere."

Climate models predict that the northern Pacific Ocean's relatively low oxygen levels will decline even more, making it the most vulnerable part of the seas to habitat loss.

"For aquatic animals that are breathing water, warming temperatures create a problem of limited oxygen supply versus higher demand," said co-author Raymond Huey, a University of Washington biologist who has studied metabolism in land animals and in human mountain climbers.

"This simple metabolic index seems to correlate with the current distributions of marine organisms," he said. "That means that it gives us the power to predict how range limits are going to shift with warming."

A day-to-day "dead zone"

Previously, marine scientists thought about oxygen more in terms of extreme events that could cause regional die-offs of marine animals, also known as dead zones.

"We found that oxygen is also a day-to-day restriction on where species will live," Deutsch said.

"The effect we're describing will be part of what's pushing species around in the future."

Other co-authors are Hans Otto-Portner of the Alfred Wegener Institute in Germany; Aaron Ferrel of the University of California, Los Angeles; and Brad Seibel at the University of Rhode Island.

The Gordon and Betty Moore Foundation and the Alfred Wegener Institute also funded the research.

-NSF-
Media Contacts
Cheryl Dybas, NSF

U.S. FDA PROGRAM TO EXPEDITE REVIEW FOR CERTAIN FOOD IMPORTERS

FROM:  U.S. FOOD AND DRUG ADMINISTRATION
New FDA Program Will Benefit Both Importers and Consumers
June 4, 2015

The U.S. Food and Drug Administration is establishing a voluntary, fee-based program for the expedited review and importation of foods into the United States from importers with a proven food safety track record. The FDA is publishing a draft guidance for industry to explain how this new program will work.

The Voluntary Qualified Importer Program (VQIP) will benefit both industry and consumers.

Importers with a robust system of supply-chain management will receive expedited entry for imported foods that are in the program.
Consumer protections are strengthened by enabling the FDA to focus its resources on food imports that are more likely to present a potential risk to public health.

The FDA Food Safety Modernization Act, signed into law in January 2011, provides the FDA with new authorities to ensure that foods imported into the United States meet the same safety standards as those set for domestically produced foods.

In addition to establishing mandatory standards for importers of food under the Foreign Supplier Verification Program (FSVP), FSMA also requires the FDA to establish VQIP for importers who achieve and maintain a high level of control over the safety and security of their supply chains.  This control includes importation of food from facilities that have been certified as following appropriate food safety practices under FDA’s Accredited Third-Party Certification regulations, also required by FSMA.

FDA is issuing a notice in the Federal Register announcing the availability of a draft guidance entitled “Draft Guidance for Industry on the Voluntary Qualified Importer Program for Food Importers and Guidelines in Consideration of the Burden of the VQIP Fee Amounts on Small Business.”

The draft guidance document outlines VQIP provisions and provides information on:

the benefits VQIP  importers can expect to receive;
eligibility criteria;
instructions for completing a VQIP application;
conditions that could result in revocation of VQIP participation; and
criteria for VQIP reinstatement following revocation.
In addition, the Notice of Availability provides a preliminary estimate of the fee for the program and requests comment on whether and how this amount would be a burden for small businesses.

There will be a public comment period of 75 days on the draft guidance and the guidelines related to the burden of fees on small businesses. After comments are considered and the guidance finalized, the program is expected to be open for applications in January 2018 to allow enough time for a facility to be certified under FDA’s Accredited Third Party Certification program.

WHITE HOUSE VIDEO: Weekly Address: Celebrating Immigrant Heritage Month

WHITE HOUSE VIDEO: 6/5/15: White House Press Briefing

READOUT: PRESIDENT OBAMA'S CALL WITH UKRAINIAN PRESIDENT POROSHENKO

FROM:  THE WHITE HOUSE
Readout of the President's Call with President Poroshenko of Ukraine

President Obama spoke today with Ukrainian President Petro Poroshenko about the conflict in eastern Ukraine and the upcoming discussions about Ukraine at the G-7 Summit.  The President and President Poroshenko expressed their deep concern about the recent assault by combined Russian-separatist forces across the current line of contact near Donetsk, Ukraine, and once more called on Russia and the separatists it backs to abide strictly by the terms of the February Minsk Implementation Plan.  The President reaffirmed the strong support of the United States for Ukraine’s sovereignty and territorial integrity, and reiterated his determination to continue working with international partners to provide the support Ukraine needs as it undertakes transformational reforms.  The President also underscored the commitment of the United States to supporting a diplomatic resolution to the conflict in eastern Ukraine and the need to maintain costs on  Russia and the separatists until they fulfill all provisions of the Minsk agreements.

NSF VIDEO: Interstellar, meet Large Hadron Collider (SPOILER ALERT!)

SEC FREEZES ASSETS OF BROKERAGES FOR ALLEGED SCHEMES TO MANIPULATE AVON STOCK

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
06/04/2015 05:30 PM EDT

The Securities and Exchange Commission today announced an emergency asset freeze of two U.S. brokerage accounts connected to schemes to manipulate Avon and other stocks, thwarting any ability to cash in on ill-gotten proceeds.

According to an SEC complaint filed in federal court in Manhattan, the agency has tracked a filing on its EDGAR system last month about a false Avon tender offer to a foreign entity using an IP address located in Sofia, Bulgaria.  A Bulgarian trader named Nedko Nedev controlled at least one of the two now-frozen brokerage accounts, and his account held a substantial position in Avon contracts-for-difference (CFDs) that were losing value in recent months.  The SEC alleges that Nedev generated approximately $5,000 in excess profits by selling almost half of the account’s Avon CFDs at inflated prices after the EDGAR filing led to a 20-percent increase in the value of Avon stock on May 14.

The court issued an order at the SEC’s request freezing the two accounts, which contain approximately $2 million in assets.

“Only three weeks after the manipulation of Avon stock occurred, this emergency court order keeps not only the alleged illicit profits from being transferred offshore, but preserves the SEC’s ability to recover substantial penalties,” said Andrew Ceresney, Director of the SEC Enforcement Division.

In addition to Nedev, the SEC’s complaint charges Strategic Capital Partners Muster Ltd. and Strategic Wealth Investments Inc., which each own one of the brokerage accounts, and PTG Capital Partners LTD, which made the EDGAR filing containing the purported Avon tender offer.  Also charged is similarly named PST Capital Group LTD, which allegedly made a false EDGAR filing in a 2012 scheme involving the stock of Rocky Mountain Chocolate Factory.  The defendants also are charged with a similar scheme in 2014 involving Tower Group International Ltd., which involved a false press release instead of an EDGAR filing.  The schemes followed similar patterns where the accounts had substantial holdings in a company that had been losing value and the companies’ stock values substantially increased after a false filing or press release originating from Bulgaria.  The two accounts profited by more than $20,000 combined from the Tower Group alleged manipulation.

“We used parallel trading analysis to connect the dots and track down these defendants,” said Daniel M. Hawke, Chief of the SEC Enforcement Division’s Market Abuse Unit.  “Even when traders attempt to hide behind proxy servers, false filings, and phony foreign entities, we are able to quickly identify patterns and relationships to focus our investigation and identify who is behind the manipulative trading.”

The SEC’s complaint charges the defendants with violating antifraud provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-8.  The complaint also charges Nedev with control person and other secondary liability under Sections 20(a) and 20(b) of the Exchange Act.  The complaint seeks disgorgement, penalties, and other related relief.

The SEC’s investigation, which is continuing, is being conducted by David Snyder, Kelly Gibson, John Rymas, Patrick McCluskey, and Assunta Vivolo in the Market Abuse Unit.  The case is being supervised by Mr. Hawke and the unit’s co-deputy chiefs Robert Cohen and Joseph Sansone.  The litigation will be led by David Axelrod and John Donnelly of the SEC’s Philadelphia Regional Office.

CDC REPORTS ON HEPATITIS B SCREENING AMONG RESETTLED REFUGEES

FROM:  U.S. CENTERS FOR DISEASE CONTROL AND PREVENTION
Hepatitis B Screening and Prevalence Among Resettled Refugees — United States, 2006‒2011

Refugees are a heterogeneous population and hepatitis B prevalence is associated with country of origin and individual lived experience. Ongoing health surveillance activities focused on refugees are essential to ensuring appropriate assessment and treatment following resettlement. Hepatitis B is a viral disease that can be acute or chronic and is a significant public health concern both globally and in the United States. Refugees frequently emigrate from countries with high prevalence of active hepatitis B infection (≥2 percent), and/or are at higher risk of hepatitis B infection due to their lived experiences as refugees. However, refugees are a heterogeneous group and recent data are not available regarding prevalence of hepatitis B in recently resettled refugee communities. States, local health departments, healthcare providers, resettlement agencies, refugees, and other stakeholders may better target education and screening programs based on the prevalence of hepatitis B among the three refugee groups to have resettled in the greatest numbers over the last several years: Iraqis, Bhutanese, and Burmese.

SECRETARY KERRY'S STATEMENT ON NUCLEAR SECURITY TREATIES LEGISLATION

FROM:  U.S. STATE DEPARTMENT
Passage of Implementing Legislation for Nuclear Security Treaties
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015

This week, President Obama signed into law implementing legislation for treaties that represent legal cornerstones of the global nuclear security architecture, the strengthening of which is a key goal of the Nuclear Security Summits. This legislation will also enhance protections against threats from nuclear, biological, and chemical weapons.

The legislation amends the Convention on the Physical Protection of Nuclear Material (CPPNM), the International Convention for the Suppression of Acts of Nuclear Terrorism (ICSANT), and two Protocols to the Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation (SUA). The Department of State is now preparing the instruments of ratification of these important treaties for the President’s signature.

I want to personally thank the U.S. Congress, particularly the House and Senate Judiciary Committees, for their efforts on this critically important legislation. It is a laudable example of the good we can accomplish when two branches of government and two parties come together to strengthen our nation’s security. It is also yet another indication that the United States is committed on a bipartisan basis to eliminating the greatest threat to global security: nuclear terrorism.

The CPPNM amendment establishes new international norms for the physical protection of nuclear materials and facilities, including protection from sabotage. It also provides for expanded cooperation among state parties and defines new criminal offenses that must be made punishable by state parties under their domestic law. Once our national ratification actions are completed, the United States will work with other countries to secure the 16 additional ratifications that are needed in order for the amendment to enter into force with the goal of achieving this by the end of the year.

The ICSANT provides a specific legal basis for international cooperation in the investigation, prosecution, and extradition of those who commit terrorist acts involving radioactive material or a nuclear device, or any device that may emit radiation or disperse radioactive material.

The SUA Protocols establish the first international treaty framework for criminalizing certain terrorist acts, including using a ship or fixed platform in a terrorist activity, transporting weapons of mass destruction or their delivery systems and related materials, and transporting terrorist fugitives.

U.S. ratification of these treaties will honor U.S. pledges made at the 2010 Nuclear Security Summit and at the Proliferation Security Initiative 10th Anniversary Meeting in 2013. We call on all countries who share our commitment to preventing nuclear terrorism to join and fully implement these treaties.

FORMER FBI AGENT INDICTED FOR ALLEGEDLY STEALING DRUG PROCEEDS AND OBSTRUCTING JUSTICE

FROM:  U.S. JUSTICE DEPARTMENT
Thursday, June 4, 2015
Former FBI Special Agent Indicted for Theft of Drug Proceeds and Obstruction of Justice

A former special agent of the FBI was indicted yesterday for allegedly stealing over $100,000 of drug proceeds seized during the execution of search warrants and obstructing justice by taking steps to hide his alleged theft.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Justice Department’s Office of the Inspector General’s Los Angeles Field Office made the announcement.

“As alleged, former Agent Bowman put his own greed above the trust placed in him by the FBI and the American public,” said Assistant Attorney General Caldwell.  “Corrupt law enforcement agents not only compromise those investigations in which they are involved, but also damage the reputations of fellow law enforcement officers who are dedicated to public service and the protection of all Americans.”

Scott M. Bowman, 44, of Moreno Valley, California, was charged in the Central District of California with three counts of conversion of property by a federal employee, three counts of obstruction of justice, two counts of money laundering, one count of falsification of records and one count of witness tampering.

According to allegations in the indictment, which was unsealed today, Bowman misappropriated over $100,000 of drug proceeds seized in June and August 2014 during the execution of three search warrants.  The defendant allegedly misappropriated these funds after they were transferred to his custody in his official capacity as a federal law enforcement officer.

The indictment alleges that Bowman used the stolen money for his own purposes, including spending $43,850 in cash to purchase a 2012 Dodge Challenger coupe, $27,500 in cash to purchase a 2013 Toyota Scion FR-S coupe and approximately $26,612 in cash to outfit these vehicles with new equipment including speakers, rims and tires.  According to the allegations in the indictment, the defendant also used approximately $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse, and opened a checking account into which he deposited approximately $10,665 of the stolen funds, a portion of which he used to pay for a weekend stay at a luxury hotel, casino and resort in Las Vegas, Nevada.

According to the indictment, to conceal his misappropriation of the drug proceeds, Bowman allegedly falsified official FBI reports and other records.  Specifically, in connection with one of the seizures, Bowman allegedly endorsed an evidence receipt knowing that it did not accurately reflect the amount of cash seized and altered the same receipt by forging the signature of a police detective next to his own.

The indictment further alleges that Bowman made false representations to his colleagues regarding the disposition of certain seized drug proceeds.  In addition, Bowman allegedly sent an email to the detective whose signature Bowman had forged setting forth a detailed cover story that the detective should offer if asked about Bowman’s activities with respect to the seized drug proceeds.  According to the indictment, Bowman also allegedly provided the detective with a copy of the forged receipt so that the detective falsely could claim the forged signature as his own, if asked.

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

This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Robert J. Heberle and Lauren Bell of the Criminal Division’s Public Integrity Section.