FROM: THE WHITE HOUSE
Statement by NSC Spokesperson Ned Price on Terrorist Attacks in Egypt
The United States strongly condemns the terrorist attacks against Egyptian security forces in North Sinai this morning, which killed dozens of Egyptian personnel and injured many others. We extend our deepest condolences to the families of the deceased and the government and people of Egypt, and wish for a speedy recovery for those who were injured. The United States stands resolutely with Egypt amidst the spate of terrorist attacks that have afflicted the country and, in the context of our long-standing partnership, will continue to assist Egypt in addressing these threats to its security.
Wednesday, July 1, 2015
WHITE HOUSE STATEMENT ON CHINA'S MOVEMENT ON CLIMATE CHANGE AGREEMENT
FROM: THE WHITE HOUSE
Statement by Senior Advisor Brian Deese on China’s Submission of its Intended Nationally Determined Contribution
The United States welcomes China's submission of its Intended Nationally Determined Contribution (INDC) earlier today. The INDC submission follows from the target that China announced in the November 2014 Joint Announcement by President Obama and President Xi and helps to provide continued momentum toward reaching a successful climate agreement in Paris. Countries accounting for nearly 70 percent of current global energy carbon-dioxide emissions have already announced and are taking action on post-2020 climate policies. The United States encourages all major economies to submit their INDCs as soon as possible to lay the groundwork for a successful outcome at the twenty-first session of the Conference of Parties in Paris at the end of this year.
Statement by Senior Advisor Brian Deese on China’s Submission of its Intended Nationally Determined Contribution
The United States welcomes China's submission of its Intended Nationally Determined Contribution (INDC) earlier today. The INDC submission follows from the target that China announced in the November 2014 Joint Announcement by President Obama and President Xi and helps to provide continued momentum toward reaching a successful climate agreement in Paris. Countries accounting for nearly 70 percent of current global energy carbon-dioxide emissions have already announced and are taking action on post-2020 climate policies. The United States encourages all major economies to submit their INDCs as soon as possible to lay the groundwork for a successful outcome at the twenty-first session of the Conference of Parties in Paris at the end of this year.
SECRETARY KERRY'S STATEMENT ON U.S.-CUBA AGREEMENT TO RE-ESTABLISH DIPLOMATIC RELATIONS
FROM: U.S. STATE DEPARTMENT
07/01/2015 01:12 PM EDT
Statement on Cuba
Remarks
John Kerry
Secretary of State
Vienna, Austria
July 1, 2015
SECRETARY KERRY: Good afternoon, everybody. Thank you for your patience. In Washington a few moments ago, President Obama announced that we had reached an agreement to formally re-establish diplomatic relations with the Republic of Cuba and that we will reopen embassies in our respective countries.
Later this summer, as the President announced, I will travel to Cuba to personally take part in the formal reopening of our United States Embassy in Havana. This will mark the resumption of embassy operations after a period of 54 years. It will also be the first visit by a Secretary of State to Cuba since 1945. The reopening of our embassy, I will tell you, is an important step on the road to restoring fully normal relations between the United States and Cuba. Coming a quarter of a century after the end of the Cold War, it recognizes the reality of the changed circumstances, and it will serve to meet a number of practical needs.
The United States and Cuba continue to have sharp differences over democracy, human rights, and related issues, but we also have identified areas for cooperation that include law enforcement, safe transportation, emergency response, environmental protection, telecommunications, and migration. The resumption of full embassy activities will help us engage the Cuban Government more often and at a higher level, and it will also allow our diplomats to interact more frequently, and frankly more broadly and effectively, with the Cuban people. In addition, we will better be able to assist Americans who travel to the island nation in order to visit family members or for other purposes.
This transition, this moment in history, is taking place because President Obama made a personal, fundamental decision to change a policy that didn’t work and that had been in place not working for far too long. I believe that’s leadership, and I appreciate that leadership. And President Castro felt similarly that it was time for a change. Both leaders agree that concentrating on the issues and possibilities of the future is far more productive than remaining mired in the past. And I would say as we look at the world today with conflicts that we see and even these negotiations taking place here in Vienna, it is important for people to understand that things can change, that leadership can be effective and can make a difference.
This step has been long overdue, and the response of the international community has reflected the relief and the welcoming that people all over the world feel for this step. This step will advance the President’s vision – President Obama’s vision – of an Americas where responsibilities are widely shared and where countries combine their strengths to advance common interests and values. And we, frankly, also believe that this opening will help to change relationships in the region as a whole.
I want to thank Assistant Secretary of State Roberta Jacobson and her team, our team at the State Department, together with those at the White House who have worked to lead these discussions with their Cuban counterparts in order to enable the normalization of our diplomatic relations and the reopening of our embassies. I also want to thank the Government of Switzerland for the essential role that they have played in serving as the United States protecting power in Cuba for more than 50 years.
And finally, I want to acknowledge the efforts of many in the United States Congress, the Cuban American community, civil society, faith-based organizations, the private sector, and others throughout our country and beyond who have supported the start of a new chapter of relations between the United States and Cuba. I look forward to meeting again with my Cuban counterpart, Bruno Rodriguez, who I saw most recently in Panama, and I also look forward to greeting our embassy personnel and the Cuban people in Havana later this summer. I look forward to taking part in the reopening of our United States embassy and in the raising of the Stars and Stripes over that embassy, and the beginning of a new era of a new relationship with the people of Cuba. Thank you all very much.
QUESTION: Mr. Secretary, will American diplomats have free access to talk to people --
SECRETARY KERRY: We’ll talk about all those details later. I’m not going to take questions right now, folks, but I appreciate very much your patience and interest.
QUESTION: Just a few words about the negotiations here today, please.
SECRETARY KERRY: Well, I’ve got to take these away for that. (Laughter.) We are working very, very hard. We have some very difficult issues, but we believe we’re making progress and we’re going to continue to work because of that. Thank you all.
QUESTION: Foreign Minister Zarif said there’s no deadline. Is there?
SECRETARY KERRY: Thank you very much.
QUESTION: Is there a deadline, sir?
SECRETARY KERRY: We have our own sense of deadline.
07/01/2015 01:12 PM EDT
Statement on Cuba
Remarks
John Kerry
Secretary of State
Vienna, Austria
July 1, 2015
SECRETARY KERRY: Good afternoon, everybody. Thank you for your patience. In Washington a few moments ago, President Obama announced that we had reached an agreement to formally re-establish diplomatic relations with the Republic of Cuba and that we will reopen embassies in our respective countries.
Later this summer, as the President announced, I will travel to Cuba to personally take part in the formal reopening of our United States Embassy in Havana. This will mark the resumption of embassy operations after a period of 54 years. It will also be the first visit by a Secretary of State to Cuba since 1945. The reopening of our embassy, I will tell you, is an important step on the road to restoring fully normal relations between the United States and Cuba. Coming a quarter of a century after the end of the Cold War, it recognizes the reality of the changed circumstances, and it will serve to meet a number of practical needs.
The United States and Cuba continue to have sharp differences over democracy, human rights, and related issues, but we also have identified areas for cooperation that include law enforcement, safe transportation, emergency response, environmental protection, telecommunications, and migration. The resumption of full embassy activities will help us engage the Cuban Government more often and at a higher level, and it will also allow our diplomats to interact more frequently, and frankly more broadly and effectively, with the Cuban people. In addition, we will better be able to assist Americans who travel to the island nation in order to visit family members or for other purposes.
This transition, this moment in history, is taking place because President Obama made a personal, fundamental decision to change a policy that didn’t work and that had been in place not working for far too long. I believe that’s leadership, and I appreciate that leadership. And President Castro felt similarly that it was time for a change. Both leaders agree that concentrating on the issues and possibilities of the future is far more productive than remaining mired in the past. And I would say as we look at the world today with conflicts that we see and even these negotiations taking place here in Vienna, it is important for people to understand that things can change, that leadership can be effective and can make a difference.
This step has been long overdue, and the response of the international community has reflected the relief and the welcoming that people all over the world feel for this step. This step will advance the President’s vision – President Obama’s vision – of an Americas where responsibilities are widely shared and where countries combine their strengths to advance common interests and values. And we, frankly, also believe that this opening will help to change relationships in the region as a whole.
I want to thank Assistant Secretary of State Roberta Jacobson and her team, our team at the State Department, together with those at the White House who have worked to lead these discussions with their Cuban counterparts in order to enable the normalization of our diplomatic relations and the reopening of our embassies. I also want to thank the Government of Switzerland for the essential role that they have played in serving as the United States protecting power in Cuba for more than 50 years.
And finally, I want to acknowledge the efforts of many in the United States Congress, the Cuban American community, civil society, faith-based organizations, the private sector, and others throughout our country and beyond who have supported the start of a new chapter of relations between the United States and Cuba. I look forward to meeting again with my Cuban counterpart, Bruno Rodriguez, who I saw most recently in Panama, and I also look forward to greeting our embassy personnel and the Cuban people in Havana later this summer. I look forward to taking part in the reopening of our United States embassy and in the raising of the Stars and Stripes over that embassy, and the beginning of a new era of a new relationship with the people of Cuba. Thank you all very much.
QUESTION: Mr. Secretary, will American diplomats have free access to talk to people --
SECRETARY KERRY: We’ll talk about all those details later. I’m not going to take questions right now, folks, but I appreciate very much your patience and interest.
QUESTION: Just a few words about the negotiations here today, please.
SECRETARY KERRY: Well, I’ve got to take these away for that. (Laughter.) We are working very, very hard. We have some very difficult issues, but we believe we’re making progress and we’re going to continue to work because of that. Thank you all.
QUESTION: Foreign Minister Zarif said there’s no deadline. Is there?
SECRETARY KERRY: Thank you very much.
QUESTION: Is there a deadline, sir?
SECRETARY KERRY: We have our own sense of deadline.
U.S.-BRAZIL DEFENSE LEADERS DISCUSS RELATIONSHIP
Right: Defense Secretary Ash Carter, right, hosts an honor cordon to welcome Brazilian Defense Minister Jaques Wagner to the Pentagon, June 29, 2015. The two defense leaders met to discuss matters of mutual importance. DoD photo by Glenn Fawcett.
Carter, Brazilian Counterpart Discuss Defense Relationship
DoD News, Defense Media Activity
WASHINGTON, June 30, 2015 – With Brazilian President Dilma Rousseff scheduled to meet with President Barack Obama at the White House today, Defense Secretary Ash Carter hosted Brazilian Defense Minister Jaques Wagner at the Pentagon yesterday to discuss the U.S.-Brazilian defense relationship.
In a statement summarizing the meeting, Pentagon officials said Carter commended Brazil's contributions to peacekeeping operations in Africa and around the world and discussed ways the United States and Brazil can continue to collaborate in support of international partners.
Deepening Cooperation
“Secretary Carter and Minister Wagner discussed the importance of deepening trade and defense technology cooperation, noting opportunities for future co-development and co-production,” the statement said.
They also discussed the recent ratification of the defense cooperation agreement and general security of military information agreement by the Brazilian legislature as signs of deepening cooperation between the U.S. and Brazilian militaries, officials added.
The defense leaders also discussed security preparations for next year's Summer Olympics in Rio de Janeiro, and Wagner invited Carter to visit Brazil ahead of the games, officials said.
DOJ SEEKING $34 MILLION FORFEITURE IN ALLEGED BRIBE PAYMENTS TO FORMER REPUBLIC OF CHAD AMBASSADOR
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, June 30, 2015
Department of Justice Seeks Forfeiture of $34 Million in Bribe Payments to the Republic of Chad’s Former Ambassador to the U.S. and Canada
The Department filed a complaint today seeking the civil forfeiture of approximately $34 million, which represents the cash value of shares in a Canadian energy company that the company used to bribe Chad’s former Ambassador to the United States and Canada for the purpose of influencing the award of oil development rights.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement.
From 2004 to 2012, Mahamoud Adam Bechir, 50, served as Chad’s Ambassador to the United States and Canada. From approximately 2007 to 2015, Youssouf Hamid Takane, 52, was the Deputy Chief of Mission. As alleged in the complaint, in 2009, Bechir and Takane agreed to use their official positions to influence the award of oil development rights in Chad to Griffiths Energy International Inc., a Canadian oil company, in exchange for shares in the company. Thereafter, in or about October 2009, Griffiths Energy issued four million shares to the wives of Bechir and Takane and to another associate.
The complaint further alleges that Griffiths Energy agreed with Bechir and his wife that the company would pay a $2 million “consulting fee” to Bechir’s wife to influence the award of oil development rights in Chad. After securing the desired oil development rights in February 2011, Griffiths Energy allegedly transferred $2 million to an account held by a shell company created by Bechir’s wife. This bribe payment was commingled and laundered through U.S. bank accounts and real property, and eventually was transferred to Bechir’s bank account in South Africa, where he is now serving as Chad’s Ambassador. In 2013, Griffiths Energy pleaded guilty in Canadian court to bribing Bechir.
The $34 million that the United States seeks in forfeiture represents the cash value of the four million shares in Griffiths Energy that were provided to the wives of Bechir and Takane and to their associate. In a separate action filed in 2014, the United States also is seeking the civil forfeiture of over $100,000 in allegedly laundered funds traceable to the $2 million bribe payment. Takane resides in the United States.
The investigation was conducted by the FBI. The case is being handled by Trial Attorney Nalina Sombuntham and Senior Trial Attorney Steven C. Parker of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.
Tuesday, June 30, 2015
Department of Justice Seeks Forfeiture of $34 Million in Bribe Payments to the Republic of Chad’s Former Ambassador to the U.S. and Canada
The Department filed a complaint today seeking the civil forfeiture of approximately $34 million, which represents the cash value of shares in a Canadian energy company that the company used to bribe Chad’s former Ambassador to the United States and Canada for the purpose of influencing the award of oil development rights.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement.
From 2004 to 2012, Mahamoud Adam Bechir, 50, served as Chad’s Ambassador to the United States and Canada. From approximately 2007 to 2015, Youssouf Hamid Takane, 52, was the Deputy Chief of Mission. As alleged in the complaint, in 2009, Bechir and Takane agreed to use their official positions to influence the award of oil development rights in Chad to Griffiths Energy International Inc., a Canadian oil company, in exchange for shares in the company. Thereafter, in or about October 2009, Griffiths Energy issued four million shares to the wives of Bechir and Takane and to another associate.
The complaint further alleges that Griffiths Energy agreed with Bechir and his wife that the company would pay a $2 million “consulting fee” to Bechir’s wife to influence the award of oil development rights in Chad. After securing the desired oil development rights in February 2011, Griffiths Energy allegedly transferred $2 million to an account held by a shell company created by Bechir’s wife. This bribe payment was commingled and laundered through U.S. bank accounts and real property, and eventually was transferred to Bechir’s bank account in South Africa, where he is now serving as Chad’s Ambassador. In 2013, Griffiths Energy pleaded guilty in Canadian court to bribing Bechir.
The $34 million that the United States seeks in forfeiture represents the cash value of the four million shares in Griffiths Energy that were provided to the wives of Bechir and Takane and to their associate. In a separate action filed in 2014, the United States also is seeking the civil forfeiture of over $100,000 in allegedly laundered funds traceable to the $2 million bribe payment. Takane resides in the United States.
The investigation was conducted by the FBI. The case is being handled by Trial Attorney Nalina Sombuntham and Senior Trial Attorney Steven C. Parker of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.
SEC CHARGES KKR WITH MISALLOCATING OVER $17 MILLION
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
6/29/2015 10:55 AM EDT
The Securities and Exchange Commission today charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more than $17 million in so-called “broken deal” expenses to its flagship private equity funds in breach of its fiduciary duty.
KKR agreed to pay nearly $30 million to settle the charges, including a $10 million penalty.
The SEC Enforcement Division’s Asset Management Unit has been scrutinizing the private equity industry to make sure that fund managers aren’t misallocating or unfairly charging fees and expenses to investors. An SEC investigation found that during a six-year period ending in 2011, KKR incurred $338 million in broken deal or diligence expenses related to unsuccessful buyout opportunities and similar expenses. Even though KKR’s co-investors, including KKR executives, participated in the firm’s private equity transactions and benefited from the firm’s deal sourcing efforts, KKR did not allocate any portion of these broken deal expenses to any of them for years. KKR did not expressly disclose in its fund limited partnership agreements or related offering materials that it did not allocate broken deal expenses to the co-investors.
“This is the first SEC case to charge a private equity adviser with misallocating broken deal expenses,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “Although KKR raised billions of dollars of deal capital from co-investors, it unfairly required the funds to shoulder the cost for nearly all of the expenses incurred to explore potential investment opportunities that were pursued but ultimately not completed.”
The SEC’s order instituting a settled administrative proceeding also finds that KKR failed to implement a written compliance policy governing its fund expense allocation practices until the end of the six-year period in 2011.
“KKR’s failure to adopt policies and procedures governing broken deal expense allocation contributed to its breach of fiduciary duty,” said Marshall S. Sprung, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. “A robust compliance program helps investment advisers ensure that clients are not disadvantaged and receive full disclosure about how fund expenses are allocated.”
KKR consented to the entry of the SEC’s order finding that the firm violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7. KKR agreed to pay more than $14 million in disgorgement ($3.26 million was previously refunded to clients) as well as more than $4.5 million in prejudgment interest and the $10 million penalty. KKR neither admitted nor denied the SEC’s findings.
The SEC’s investigation was conducted by Vincenzo A. DeLeo and Brian E. Fitzpatrick of the Asset Management Unit with the assistance of James E. Addison of the New York Regional Office. The case was supervised by Panayiota K. Bougiamas of the Asset Management Unit. The SEC examination that led to the investigation was conducted by Edward R. Perkins, Francine P. Catapano, Syed Husain, and Tracy O’Sullivan.
6/29/2015 10:55 AM EDT
The Securities and Exchange Commission today charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more than $17 million in so-called “broken deal” expenses to its flagship private equity funds in breach of its fiduciary duty.
KKR agreed to pay nearly $30 million to settle the charges, including a $10 million penalty.
The SEC Enforcement Division’s Asset Management Unit has been scrutinizing the private equity industry to make sure that fund managers aren’t misallocating or unfairly charging fees and expenses to investors. An SEC investigation found that during a six-year period ending in 2011, KKR incurred $338 million in broken deal or diligence expenses related to unsuccessful buyout opportunities and similar expenses. Even though KKR’s co-investors, including KKR executives, participated in the firm’s private equity transactions and benefited from the firm’s deal sourcing efforts, KKR did not allocate any portion of these broken deal expenses to any of them for years. KKR did not expressly disclose in its fund limited partnership agreements or related offering materials that it did not allocate broken deal expenses to the co-investors.
“This is the first SEC case to charge a private equity adviser with misallocating broken deal expenses,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “Although KKR raised billions of dollars of deal capital from co-investors, it unfairly required the funds to shoulder the cost for nearly all of the expenses incurred to explore potential investment opportunities that were pursued but ultimately not completed.”
The SEC’s order instituting a settled administrative proceeding also finds that KKR failed to implement a written compliance policy governing its fund expense allocation practices until the end of the six-year period in 2011.
“KKR’s failure to adopt policies and procedures governing broken deal expense allocation contributed to its breach of fiduciary duty,” said Marshall S. Sprung, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. “A robust compliance program helps investment advisers ensure that clients are not disadvantaged and receive full disclosure about how fund expenses are allocated.”
KKR consented to the entry of the SEC’s order finding that the firm violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7. KKR agreed to pay more than $14 million in disgorgement ($3.26 million was previously refunded to clients) as well as more than $4.5 million in prejudgment interest and the $10 million penalty. KKR neither admitted nor denied the SEC’s findings.
The SEC’s investigation was conducted by Vincenzo A. DeLeo and Brian E. Fitzpatrick of the Asset Management Unit with the assistance of James E. Addison of the New York Regional Office. The case was supervised by Panayiota K. Bougiamas of the Asset Management Unit. The SEC examination that led to the investigation was conducted by Edward R. Perkins, Francine P. Catapano, Syed Husain, and Tracy O’Sullivan.
FTC SAYS NEARLY $4 MILLION RETUNED RELATED TO DEBT COLLECTION SCAM
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Returns Almost $4 Million to Consumers in Debt Collection Scam
The Federal Trade Commission is mailing almost 95,000 checks totaling approximately $4 million to consumers who lost money to a debt collection operation that extorted payments from them using false threats.
In May 2014, the FTC settled charges against Asset Capital and Management Group, which, under various names, illegally extracted payments from consumers for credit card debt the defendants had purchased from creditors. The settlement order banned the defendants from the debt collection industry.
Consumers who receive the checks from the FTC’s refund administrator for this matter, Analytics Consulting LLC, should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.
FTC Returns Almost $4 Million to Consumers in Debt Collection Scam
The Federal Trade Commission is mailing almost 95,000 checks totaling approximately $4 million to consumers who lost money to a debt collection operation that extorted payments from them using false threats.
In May 2014, the FTC settled charges against Asset Capital and Management Group, which, under various names, illegally extracted payments from consumers for credit card debt the defendants had purchased from creditors. The settlement order banned the defendants from the debt collection industry.
Consumers who receive the checks from the FTC’s refund administrator for this matter, Analytics Consulting LLC, should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.
MAN WHO ROBBED FORMER EMPLOYER PLEADS GUILTY TO HOBBS ACT ROBBERY AND USING A HANDGUN
FROM: U.S. JUSTICE DEPARTMENT
Friday, June 26, 2015
Tennessee Man Pleads Guilty to Hobbs Act Robbery of Former Employer
A Tennessee man pleaded guilty to Hobbs Act robbery and use of a handgun in a crime of violence, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
Deonte Graham, 34, of Clarksville Tennessee, pleaded guilty before Chief U.S. District Judge Kevin Sharp of the Middle District of Tennessee.
On Oct. 21, 2011, Singletary Construction in Clarksville, Tennessee, was robbed of $17,000 in cash by two masked men with a gun. Physical evidence recovered in connection with the robbery resulted in the identification of Michael Massey as one of the robbery suspects. In May 2015, Massey pleaded guilty to his role in the robbery.
In connection with today’s guilty plea, Graham admitted that, in October 2011, he had worked for Singletary for more than one year. According to Graham’s admissions, after the owner of the company accused Graham of misrepresenting the hours he worked and docked his pay, Graham and Massey devised a plan to rob Singletary. Graham also admitted that, in December 2012, he bragged to a former Singletary employee about arranging the robbery because Singletary owed him money.
This case was investigated by Clarksville, Tennessee, Police Department and the Drug Enforcement Administration. The case is being prosecuted by Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee.
Friday, June 26, 2015
Tennessee Man Pleads Guilty to Hobbs Act Robbery of Former Employer
A Tennessee man pleaded guilty to Hobbs Act robbery and use of a handgun in a crime of violence, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
Deonte Graham, 34, of Clarksville Tennessee, pleaded guilty before Chief U.S. District Judge Kevin Sharp of the Middle District of Tennessee.
On Oct. 21, 2011, Singletary Construction in Clarksville, Tennessee, was robbed of $17,000 in cash by two masked men with a gun. Physical evidence recovered in connection with the robbery resulted in the identification of Michael Massey as one of the robbery suspects. In May 2015, Massey pleaded guilty to his role in the robbery.
In connection with today’s guilty plea, Graham admitted that, in October 2011, he had worked for Singletary for more than one year. According to Graham’s admissions, after the owner of the company accused Graham of misrepresenting the hours he worked and docked his pay, Graham and Massey devised a plan to rob Singletary. Graham also admitted that, in December 2012, he bragged to a former Singletary employee about arranging the robbery because Singletary owed him money.
This case was investigated by Clarksville, Tennessee, Police Department and the Drug Enforcement Administration. The case is being prosecuted by Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee.
Tuesday, June 30, 2015
UNIVERSITY STUDENT SENTENCED FOR POSSESSION OF RICIN
FROM: U.S. JUSTICE DEPARTMENT
Friday, June 26, 2015
Former UW-Oshkosh Student Sentenced to 40 Months in Prison for Possession of Ricin
Kyle Allen Smith, 21, of Oshkosh, Wisconsin, was sentenced today to 40 months in federal prison for possession of ricin by the Chief District Judge William C. Griesbach of the Eastern District of Wisconsin, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney James L. Santelle of the Eastern District of Wisconsin.
Smith was arrested on October 31, 2014, after two professors at the University of Wisconsin at Oshkosh reported to campus authorities that Smith was making unusual inquiries about chemical processes, including extracting of ribosomal inhibiting protein. According to the plea agreement, Smith admitted growing castor bean plants and extracting ricin from the beans. A substance found in Smith’s residence was sent to the Department of Homeland Security’s National Bioforensics Analysis Center at Fort Detrick, Maryland, and tested positive for the toxin ricin. Ricin is a toxin that infects human cells and blocks their ability to synthesize their own protein. Small doses of ricin may be lethal to human beings if ingested, inhaled or injected. Symptoms of ricin poisoning can include difficulty breathing, nausea, vomiting and diarrhea, with possible death occurring within 36 to 72 hours. According to information posted on the website of the Centers for Disease Control and Prevention (CDC), there are no known antidotes for ricin poisoning.
Smith admitted having homicidal thoughts and that these thoughts might have sparked his curiosity about the production of ricin. He stated he would not use or test the ricin on any human because too many people knew what he was doing and would turn him in.
Assistant Attorney General Carlin joined U.S. Attorney Santelle in praising the actions of the professors and the University administration in bringing Smith to the prompt attention of law enforcement authorities. It is a perfect example of “see something, say something,” which guides the required vigilance of our times. Assistant Attorney General Carlin and U.S. Attorney Santelle also thanked the Wisconsin National Guard, 54th Civil Support Team, for the critical assistance they provided in the safe recovery of the ricin.
The case was investigated by the Oshkosh Police Department, the FBI and the University of Wisconsin – Oshkosh Police Department. The case was prosecuted by Assistant U.S. Attorney Paul L. Kanter of the Eastern District of Wisconsin and the Justice Department’s National Security Division.
Friday, June 26, 2015
Former UW-Oshkosh Student Sentenced to 40 Months in Prison for Possession of Ricin
Kyle Allen Smith, 21, of Oshkosh, Wisconsin, was sentenced today to 40 months in federal prison for possession of ricin by the Chief District Judge William C. Griesbach of the Eastern District of Wisconsin, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney James L. Santelle of the Eastern District of Wisconsin.
Smith was arrested on October 31, 2014, after two professors at the University of Wisconsin at Oshkosh reported to campus authorities that Smith was making unusual inquiries about chemical processes, including extracting of ribosomal inhibiting protein. According to the plea agreement, Smith admitted growing castor bean plants and extracting ricin from the beans. A substance found in Smith’s residence was sent to the Department of Homeland Security’s National Bioforensics Analysis Center at Fort Detrick, Maryland, and tested positive for the toxin ricin. Ricin is a toxin that infects human cells and blocks their ability to synthesize their own protein. Small doses of ricin may be lethal to human beings if ingested, inhaled or injected. Symptoms of ricin poisoning can include difficulty breathing, nausea, vomiting and diarrhea, with possible death occurring within 36 to 72 hours. According to information posted on the website of the Centers for Disease Control and Prevention (CDC), there are no known antidotes for ricin poisoning.
Smith admitted having homicidal thoughts and that these thoughts might have sparked his curiosity about the production of ricin. He stated he would not use or test the ricin on any human because too many people knew what he was doing and would turn him in.
Assistant Attorney General Carlin joined U.S. Attorney Santelle in praising the actions of the professors and the University administration in bringing Smith to the prompt attention of law enforcement authorities. It is a perfect example of “see something, say something,” which guides the required vigilance of our times. Assistant Attorney General Carlin and U.S. Attorney Santelle also thanked the Wisconsin National Guard, 54th Civil Support Team, for the critical assistance they provided in the safe recovery of the ricin.
The case was investigated by the Oshkosh Police Department, the FBI and the University of Wisconsin – Oshkosh Police Department. The case was prosecuted by Assistant U.S. Attorney Paul L. Kanter of the Eastern District of Wisconsin and the Justice Department’s National Security Division.
"ALERT FATIGUE" RESEARCHERS SAY MAKES 90% DRUG ALERTS INEFFECTIVE
FROM: NATIONAL SCIENCE FOUNDATION
Rethinking computerized clinical alerts
Researchers at Indiana University-Purdue University Indianapolis redesign drug interaction warnings to avoid 'alert fatigue'
June is National Safety Month, with a call to action to reduce harm and injury through enhanced attention to safety.
Healthcare in the United States is constantly evolving to provide safe and quality care while decreasing the incidence of medical errors. Advances in health information technology can improve patient safety, including in the area of safer prescribing of medications through the smarter design of clinical alerts.
A frequent source of errors in clinical care settings is related to the prescribing of medications. Electronic Health Records have the potential to improve safety by notifying providers of potentially harmful medication interactions. Currently, clinicians using electronic health records encounter numerous alerts as they navigate computerized prescribing for their patients.
While these alerts are critical for patient safety, they are often overridden or ignored due to "alert fatigue"--an unintended consequence of the computerization of health care, where clinicians become desensitized to the large volume of safety alerts.
An estimated 90 percent of drug interaction alerts are ineffective, as they temporarily halt prescribing with generic warning imagery and brief messaging, but do not offer user-friendly interfaces with advice that resonates with the prescriber.
With support from the National Science Foundation's (NSF) Smart and Connected Health Program, Davide Bolchini and Jon Duke from Indiana University-Purdue University Indianapolis (IUPUI) are advancing knowledge in Human Computer Interaction (HCI)--a field that studies the design, development and implementation of information technologies for optimal use by a target audience--through a collaborative project to rethink and redesign computerized clinical alerts.
Identifying disconnects
"Although physicians routinely encounter drug-drug interaction alerts during daily medication prescribing, the effectiveness of such alerts remains extremely low," explained Duke, director of drug safety informatics at Regenstrief Institute.
An additional barrier to the desired effect of alerts is that healthcare providers may be wary of utilizing computerized advice in the same way they would trust advice from medical literature or peer providers.
These challenges necessitate new approaches to design which can leverage health information technology to improve the care team's integration of information into computerized alerts to ensure patient safety. Multiple, complex factors influence the healthcare team's decision-making and the researchers want to integrate this knowledge to optimize the design and impact of computerized drug interaction alerts.
The overarching objective is to re-design the content and visualization of alerts such that they capture the attention of providers while offering advice more likely to be trusted than current alerts.
"We are looking at how to improve the trust between the physician and computer," said Duke.
Visualizing trustworthy alerts
A crucial step in the process of transforming the design of drug-drug interaction alerts involved studying the types and sources of information that providers deemed important and impactful.
The team researched information flow by directly observing hospital team meetings. They then constructed work models to identify the themes that drive trusted advice in clinical settings. The models integrated the roles of evidence in medical literature and advice provided by peer consultants such as pharmacists and subspecialists.
The research team is now actively using this foundational knowledge to transform the computer interface to reflect various models of trust based alerts.
The team is also developing novel interface designs where computer alerts can convey drug safety guidance in various forms, including changes in the alert message tones, such as from danger-based tones to supportive ones. The new alert designs also vary the source of knowledge from the empirical medical research to a peer collaborator.
The design ideas include visualizations for different trust-based alert messages. Examples include warnings whose message stresses empathy, peer-endorsement, conflict-mitigation and collaboration. The team will test and evaluate the different alerts in the lab and in hospital environments to determine the effect on prescriber responses. They will also elicit healthcare provider feedback on the visual aspects and impact of the alerts.
"This innovative Human Computer Interaction project illustrates how studying novel visualizations and design can better integrate information that is meaningful to clinicians and maximize the potential of computerized alerts to improve safety," said Wendy Nilsen, Smart and Connected Health program director at NSF.
The broader impacts of this Smart and Connected Health project are numerous. The team believes that translating these research findings into real-world electronic medical record systems could improve the user experience of prescribers and yield a potential reduction in the millions of adverse drug events that occur each year.
"A key aspect of the work is to generate alerts that are perceived as collaborating with the providers rather than critiquing every micro-decision," said Bolchini. "We have the opportunity to change technologies which are pervasive and create the next generation of systems for human use and patient safety."
-- Nivedita Mohanty, National Science Foundation
-- Aaron Dubrow, NSF
Investigators
Jon Duke
Davide Bolchini
Related Institutions/Organizations
Indiana University-Purdue University Indianapolis
Locations
Indianapolis , Indiana
Rethinking computerized clinical alerts
Researchers at Indiana University-Purdue University Indianapolis redesign drug interaction warnings to avoid 'alert fatigue'
June is National Safety Month, with a call to action to reduce harm and injury through enhanced attention to safety.
Healthcare in the United States is constantly evolving to provide safe and quality care while decreasing the incidence of medical errors. Advances in health information technology can improve patient safety, including in the area of safer prescribing of medications through the smarter design of clinical alerts.
A frequent source of errors in clinical care settings is related to the prescribing of medications. Electronic Health Records have the potential to improve safety by notifying providers of potentially harmful medication interactions. Currently, clinicians using electronic health records encounter numerous alerts as they navigate computerized prescribing for their patients.
While these alerts are critical for patient safety, they are often overridden or ignored due to "alert fatigue"--an unintended consequence of the computerization of health care, where clinicians become desensitized to the large volume of safety alerts.
An estimated 90 percent of drug interaction alerts are ineffective, as they temporarily halt prescribing with generic warning imagery and brief messaging, but do not offer user-friendly interfaces with advice that resonates with the prescriber.
With support from the National Science Foundation's (NSF) Smart and Connected Health Program, Davide Bolchini and Jon Duke from Indiana University-Purdue University Indianapolis (IUPUI) are advancing knowledge in Human Computer Interaction (HCI)--a field that studies the design, development and implementation of information technologies for optimal use by a target audience--through a collaborative project to rethink and redesign computerized clinical alerts.
Identifying disconnects
"Although physicians routinely encounter drug-drug interaction alerts during daily medication prescribing, the effectiveness of such alerts remains extremely low," explained Duke, director of drug safety informatics at Regenstrief Institute.
An additional barrier to the desired effect of alerts is that healthcare providers may be wary of utilizing computerized advice in the same way they would trust advice from medical literature or peer providers.
These challenges necessitate new approaches to design which can leverage health information technology to improve the care team's integration of information into computerized alerts to ensure patient safety. Multiple, complex factors influence the healthcare team's decision-making and the researchers want to integrate this knowledge to optimize the design and impact of computerized drug interaction alerts.
The overarching objective is to re-design the content and visualization of alerts such that they capture the attention of providers while offering advice more likely to be trusted than current alerts.
"We are looking at how to improve the trust between the physician and computer," said Duke.
Visualizing trustworthy alerts
A crucial step in the process of transforming the design of drug-drug interaction alerts involved studying the types and sources of information that providers deemed important and impactful.
The team researched information flow by directly observing hospital team meetings. They then constructed work models to identify the themes that drive trusted advice in clinical settings. The models integrated the roles of evidence in medical literature and advice provided by peer consultants such as pharmacists and subspecialists.
The research team is now actively using this foundational knowledge to transform the computer interface to reflect various models of trust based alerts.
The team is also developing novel interface designs where computer alerts can convey drug safety guidance in various forms, including changes in the alert message tones, such as from danger-based tones to supportive ones. The new alert designs also vary the source of knowledge from the empirical medical research to a peer collaborator.
The design ideas include visualizations for different trust-based alert messages. Examples include warnings whose message stresses empathy, peer-endorsement, conflict-mitigation and collaboration. The team will test and evaluate the different alerts in the lab and in hospital environments to determine the effect on prescriber responses. They will also elicit healthcare provider feedback on the visual aspects and impact of the alerts.
"This innovative Human Computer Interaction project illustrates how studying novel visualizations and design can better integrate information that is meaningful to clinicians and maximize the potential of computerized alerts to improve safety," said Wendy Nilsen, Smart and Connected Health program director at NSF.
The broader impacts of this Smart and Connected Health project are numerous. The team believes that translating these research findings into real-world electronic medical record systems could improve the user experience of prescribers and yield a potential reduction in the millions of adverse drug events that occur each year.
"A key aspect of the work is to generate alerts that are perceived as collaborating with the providers rather than critiquing every micro-decision," said Bolchini. "We have the opportunity to change technologies which are pervasive and create the next generation of systems for human use and patient safety."
-- Nivedita Mohanty, National Science Foundation
-- Aaron Dubrow, NSF
Investigators
Jon Duke
Davide Bolchini
Related Institutions/Organizations
Indiana University-Purdue University Indianapolis
Locations
Indianapolis , Indiana
MARYLAND DAY CAMP AGREES TO AFFORD EQUAL RIGHTS FOR CHILDREN WITH EPILEPSY
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, June 24, 2015
Justice Department Reaches Agreement with Maryland Day Camp to Ensure Equal Rights for Children with Epilepsy
The Justice Department signed a settlement agreement today with Camp Bravo, a day camp that operates in Towson, Maryland, just outside Baltimore. The settlement resolves allegations that Camp Bravo violated a child’s civil rights by denying her admission to the camp because she has epilepsy, in violation of the Americans with Disabilities Act (ADA). Because the child would need emergency medication administered if she were to have a prolonged or acute repetitive seizure, Camp Bravo denied her admission. Though the medication, Diastat, is designed to be administered by trained laypersons and could save the child’s life, Camp Bravo would not permit non-medical staff to administer the medication and later refused to permit the camp nurse to accompany the child on field trips or bus rides. As a result, the child was not able to attend Camp Bravo for two consecutive summers.
Title III of the ADA prohibits discrimination on the basis of disability by private camps and child care programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. It generally will be a reasonable modification required by title III of the ADA for certain public accommodations, such as camps and child care programs, to train laypersons to administer Diastat.
“Equal access to camps and child care programs is essential to children and parents across the country,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “These programs allow children with disabilities to learn and play with their peers and develop important social skills. The Civil Rights Division will not allow the exclusion of children with seizure disorders where life-saving medication can be safely administered by trained laypersons.”
“Federal law prohibits businesses from discriminating against children with disabilities,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Under the agreement, Camp Bravo will admit the child for all future camp sessions of the child’s choosing, as long as she is of eligible age, and will pay $8,000 to the family to compensate them for Camp Bravo’s failure to admit the child when she previously applied. In addition, Camp Bravo will train its staff on the ADA and, if a child with epilepsy is enrolled in the camp, on epilepsy and seizures. The camp will also adopt and enforce a nondiscrimination policy, as well as an emergency anti-seizure medication administration policy and procedure. The department will monitor Camp Bravo’s compliance with the agreement for three years.
Wednesday, June 24, 2015
Justice Department Reaches Agreement with Maryland Day Camp to Ensure Equal Rights for Children with Epilepsy
The Justice Department signed a settlement agreement today with Camp Bravo, a day camp that operates in Towson, Maryland, just outside Baltimore. The settlement resolves allegations that Camp Bravo violated a child’s civil rights by denying her admission to the camp because she has epilepsy, in violation of the Americans with Disabilities Act (ADA). Because the child would need emergency medication administered if she were to have a prolonged or acute repetitive seizure, Camp Bravo denied her admission. Though the medication, Diastat, is designed to be administered by trained laypersons and could save the child’s life, Camp Bravo would not permit non-medical staff to administer the medication and later refused to permit the camp nurse to accompany the child on field trips or bus rides. As a result, the child was not able to attend Camp Bravo for two consecutive summers.
Title III of the ADA prohibits discrimination on the basis of disability by private camps and child care programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. It generally will be a reasonable modification required by title III of the ADA for certain public accommodations, such as camps and child care programs, to train laypersons to administer Diastat.
“Equal access to camps and child care programs is essential to children and parents across the country,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “These programs allow children with disabilities to learn and play with their peers and develop important social skills. The Civil Rights Division will not allow the exclusion of children with seizure disorders where life-saving medication can be safely administered by trained laypersons.”
“Federal law prohibits businesses from discriminating against children with disabilities,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Under the agreement, Camp Bravo will admit the child for all future camp sessions of the child’s choosing, as long as she is of eligible age, and will pay $8,000 to the family to compensate them for Camp Bravo’s failure to admit the child when she previously applied. In addition, Camp Bravo will train its staff on the ADA and, if a child with epilepsy is enrolled in the camp, on epilepsy and seizures. The camp will also adopt and enforce a nondiscrimination policy, as well as an emergency anti-seizure medication administration policy and procedure. The department will monitor Camp Bravo’s compliance with the agreement for three years.
Monday, June 29, 2015
AG LYNCH'S STATEMENT ON SUPREME COURT RULING ON GERRYMANDERING
FROM: U.S. JUSTICE DEPARTMENT
Monday, June 29, 2015
Attorney General Loretta E. Lynch Statement on the U.S. Supreme Court Ruling in Arizona State Legislature v. Arizona Independent Redistricting Commission
Attorney General Loretta E. Lynch released the following statement today after the Supreme Court ruling in Arizona State Legislature v. Arizona Independent Redistricting Commission:
“I am pleased that the Supreme Court has vindicated the rights of voters who want their electoral districts drawn fairly, independently and without undue emphasis on partisan affiliation or political creed. Arizona’s approach to redistricting is an innovative and effective advance in the effort to reduce gerrymandering and give all Americans an opportunity to make their voices heard. Today’s decision is a victory for the people of Arizona, for the promise of fair and competitive elections and for the principles of democratic self-governance that make our nation exceptional.”
Monday, June 29, 2015
Attorney General Loretta E. Lynch Statement on the U.S. Supreme Court Ruling in Arizona State Legislature v. Arizona Independent Redistricting Commission
Attorney General Loretta E. Lynch released the following statement today after the Supreme Court ruling in Arizona State Legislature v. Arizona Independent Redistricting Commission:
“I am pleased that the Supreme Court has vindicated the rights of voters who want their electoral districts drawn fairly, independently and without undue emphasis on partisan affiliation or political creed. Arizona’s approach to redistricting is an innovative and effective advance in the effort to reduce gerrymandering and give all Americans an opportunity to make their voices heard. Today’s decision is a victory for the people of Arizona, for the promise of fair and competitive elections and for the principles of democratic self-governance that make our nation exceptional.”
FORMER SENIOR EXEC AT QUALCOMM SENTENCED FOR INSIDER TRADING
FROM: U.S. JUSTICE DEPARTMENT
Friday, June 26, 2015
Former Senior Executive of Qualcomm Sentenced to 18 Months and Fined $500,000 for Insider Trading and Money Laundering
The former Executive Vice President and President of Global Business Operations for Qualcomm Inc., was sentenced today to 18 months in prison and fined $500,000 for his role in a three-year insider trading scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California made the announcement.
“Through his position as a high-ranking executive at Qualcomm, Jing Wang gained unique access to information about the company’s earnings and intended acquisitions and illegally exploited that inside information for personal gain,” said Assistant Attorney General Caldwell. “He then enlisted the services of others – his stock broker and his brother – to cover up the scheme. This prosecution demonstrates the Criminal Division’s commitment to holding accountable corporate executives who would undermine the integrity of the financial marketplace.”
“Jing Wang was a powerful insider at one of the world’s top corporations – but he threw it all away to make a few hundred thousand dollars,” said U.S. Attorney Duffy. “While Wang has lost his power, his position and his freedom, the real losers here are investors who play by the rules, and our nation’s financial system, which is diminished with every one of these schemes.”
Jing Wang, 52, of Del Mar, California, pleaded guilty in July 2014 to insider trading, money laundering and obstruction of justice for orchestrating a multi-year scheme to trade on the confidential information of Qualcomm and cover up his criminal conduct. The sentence was imposed by U.S. District Judge William Q. Hayes of the Southern District of California.
In connection with his plea, Wang admitted that he made three, separate insider trades using a brokerage account in the name of his British Virgin Island (BVI) shell company, Unicorn Global Enterprises. First, in early 2010, prior to Qualcomm’s announcement of a dividend increase and stock repurchase, Wang bought company stock valued at approximately $277,000. He also admitted that, in December 2010, while attending Qualcomm’s Board of Directors meeting in Hong Kong, and hours after the Board approved a non-public offer to purchase Atheros, a developer of semiconductors for wireless communications, Wang purchased stock in Atheros. Wang further admitted that, just a few weeks later, he directed his stockbroker, Gary Yin, to sell the Atheros stock, for approximately $481,000, and purchase Qualcomm stock one day before the company announced record earnings.
Wang also pleaded guilty to money laundering for transferring the illegal proceeds from Unicorn’s account to an account of a new BVI shell company he controlled. He further admitted to obstructing justice by creating a false cover story in which he and co-conspirator Yin would blame Wang’s brother Bing Wang, who resides in rural China, for the insider trading and ownership of the Unicorn Account. Among other acts, Wang collected incriminating evidence and provided it to Yin to take to China, and arranged meetings between Yin and Bing Wang during which the two rehearsed the false account.
Yin pleaded guilty to conspiring to obstruct justice and launder money, and currently is scheduled to be sentenced on July 17, 2015. Bing Wang has been charged in connection with the scheme, and is wanted on an international arrest warrant.
This case was investigated by the FBI’s San Diego Field Office and the Internal Revenue Service-Criminal Investigation’s San Diego Field Division. The SEC’s Los Angeles Regional Office provided substantial assistance. The case is being prosecuted by Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric J. Beste of the Southern District of California.
Friday, June 26, 2015
Former Senior Executive of Qualcomm Sentenced to 18 Months and Fined $500,000 for Insider Trading and Money Laundering
The former Executive Vice President and President of Global Business Operations for Qualcomm Inc., was sentenced today to 18 months in prison and fined $500,000 for his role in a three-year insider trading scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California made the announcement.
“Through his position as a high-ranking executive at Qualcomm, Jing Wang gained unique access to information about the company’s earnings and intended acquisitions and illegally exploited that inside information for personal gain,” said Assistant Attorney General Caldwell. “He then enlisted the services of others – his stock broker and his brother – to cover up the scheme. This prosecution demonstrates the Criminal Division’s commitment to holding accountable corporate executives who would undermine the integrity of the financial marketplace.”
“Jing Wang was a powerful insider at one of the world’s top corporations – but he threw it all away to make a few hundred thousand dollars,” said U.S. Attorney Duffy. “While Wang has lost his power, his position and his freedom, the real losers here are investors who play by the rules, and our nation’s financial system, which is diminished with every one of these schemes.”
Jing Wang, 52, of Del Mar, California, pleaded guilty in July 2014 to insider trading, money laundering and obstruction of justice for orchestrating a multi-year scheme to trade on the confidential information of Qualcomm and cover up his criminal conduct. The sentence was imposed by U.S. District Judge William Q. Hayes of the Southern District of California.
In connection with his plea, Wang admitted that he made three, separate insider trades using a brokerage account in the name of his British Virgin Island (BVI) shell company, Unicorn Global Enterprises. First, in early 2010, prior to Qualcomm’s announcement of a dividend increase and stock repurchase, Wang bought company stock valued at approximately $277,000. He also admitted that, in December 2010, while attending Qualcomm’s Board of Directors meeting in Hong Kong, and hours after the Board approved a non-public offer to purchase Atheros, a developer of semiconductors for wireless communications, Wang purchased stock in Atheros. Wang further admitted that, just a few weeks later, he directed his stockbroker, Gary Yin, to sell the Atheros stock, for approximately $481,000, and purchase Qualcomm stock one day before the company announced record earnings.
Wang also pleaded guilty to money laundering for transferring the illegal proceeds from Unicorn’s account to an account of a new BVI shell company he controlled. He further admitted to obstructing justice by creating a false cover story in which he and co-conspirator Yin would blame Wang’s brother Bing Wang, who resides in rural China, for the insider trading and ownership of the Unicorn Account. Among other acts, Wang collected incriminating evidence and provided it to Yin to take to China, and arranged meetings between Yin and Bing Wang during which the two rehearsed the false account.
Yin pleaded guilty to conspiring to obstruct justice and launder money, and currently is scheduled to be sentenced on July 17, 2015. Bing Wang has been charged in connection with the scheme, and is wanted on an international arrest warrant.
This case was investigated by the FBI’s San Diego Field Office and the Internal Revenue Service-Criminal Investigation’s San Diego Field Division. The SEC’s Los Angeles Regional Office provided substantial assistance. The case is being prosecuted by Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric J. Beste of the Southern District of California.
FRANK ROSE MAKES REMARKS ON TRANSATLANTIC MISSILE DEFENSE
FROM: U.S. STATE DEPARTMENT
6/26/2015 12:12 PM EDT
Transatlantic Missile Defense: Defining the Right Threat Set
Remarks
Frank A. Rose
Assistant Secretary, Bureau of Arms Control, Verification and Compliance
The Atlantic Council
Washington, DC
June 24, 2015
As prepared
Thank you Ian for that kind introduction and for having me here today.
I always appreciate the opportunity to speak at the annual Atlantic Council missile defense conference alongside so many experts in this important field. Today, I would like to focus my remarks on how the Obama Administration has defined the ballistic missile threat and how we are cooperating to address this threat. I'll keep my comments brief to maximize our time to more freely engage on these issues.
The 2010 Ballistic Missile Defense Review (or BMDR) makes clear that the United States’ missile defenses are focused on defending against limited missile threats to the U.S. homeland and regional missile threats to our deployed forces, allies and partners throughout the world. The development of ballistic missiles by countries like Iran and North Korea, and the proliferation of these systems around the world is what drives our threat assessment.
Our deployment of missile defenses is focused on strengthening the twin U.S. goals of deterrence and assurance. In so doing, they also contribute to international peace and stability and reinforce our nonproliferation aims.
At the same time, we have made clear both in our policy and in the capabilities we have deployed that our missile defense efforts are not intended to affect the strategic balance with Russia and China.
As a practical matter, the U.S. experience with missile defense suggests that attempting to develop a comprehensive missile defense system to defend against ballistic missile attack from Russia would be extremely challenging – and costly – given the size and sophistication of Russia’s strategic missile force and the relatively limited number of missile defense interceptors that would be available to defend against such a large force.
It is to address the regional threats from the Middle East and North Korea, and to enhance our regional deterrence posture, that leads us to cooperate with our allies and partners in deploying missile defense systems and architectures today.
For example, I just returned from a trip to the Middle East, where the United States and Gulf Cooperation Council (or GCC) member states have committed to develop a region-wide ballistic missile defense capability, including through the development of a Ballistic Missile Early Warning System. At the recent U.S.-GCC Summit, the United States committed to work with the GCC to conduct a study of a GCC-wide missile defense architecture and offered technical assistance in the development of a GCC-wide Ballistic Missile Early Warning System. Finally, we agreed to hold a senior leader missile defense tabletop exercise to examine improved regional ballistic missile defense cooperation.
In Europe, we continue to make excellent progress implementing the European Phased Adaptive Approach (or EPAA), which will serve as the U.S. national contribution to NATO’s missile defense system.
Starting in 2011 with Phase 1, we deployed a missile defense radar in Turkey and began the sustained deployment of Aegis Ballistic Missile Defense (BMD)-capable ships in the Mediterranean. With NATO’s declaration of Interim Capability in 2012, the radar in Turkey transitioned to NATO operational control. Additionally, we have been working with Spain to deploy four U.S. Aegis BMD-capable ships at the naval facility at Rota which will allow us to increase our rotational presence in the region and respond to potential crises.
We are on track to complete the deployment of an Aegis Ashore site in Romania as part of Phase 2 of the EPAA later this year. When operational, this site, combined with BMD-capable ships in the Mediterranean, will enhance coverage of NATO from short- and medium-range ballistic missiles launched from the Middle East.
Finally, Phase 3 will involve the construction of an Aegis Ashore site in Poland equipped with the new SM-3 Block IIA interceptor. President Obama’s Fiscal Year 2016 budget request designates approximately $200 million for the establishment of the site, including construction which will begin next year, allowing us to remain on schedule to complete this site by 2018. The Phase 3 site in Poland, when combined with other EPAA assets, will provide ballistic missile defense coverage of all NATO European territory
In the Asia-Pacific, we are continuing missile defense cooperation through our bilateral alliances and key partnerships. I’d highlight that the next generation of Aegis missile defense interceptor, the Standard Missile-3 Block IIA, which we are co-developing with Japan, just completed a successful flight test earlier this month. We also recently deployed a second AN/TPY-2 radar to Japan, which will enhance the defense of both the United States and Japan.
Finally, over the past twenty years, the United States and NATO offered Russia various proposals for missile defense cooperation. Russia declined to accept our proposals. As you’re aware, Russia’s illegal actions in Ukraine led to the suspension of our dialogue on missile defense cooperation. But prior to the suspension, Russia continued to demand that the United States provide “legally binding” guarantees that U.S. missile defenses will not harm or diminish Russia’s strategic nuclear deterrent. These guarantees would have been based on criteria that would have limited our missile defenses and undermined our ability to protect ourselves, our deployed forces, allies and friends against an evolving and growing ballistic missile threat.
The 2010 BMDR is quite clear on our policy: U.S. missile defenses are neither designed nor directed against Russia’s or China’s strategic nuclear forces. However, by the same token, we have also made it clear that we cannot and will not accept legally-binding or other constraints that would limit our ability to defend ourselves, our allies, and our partners. The United States will continue to insist on having the flexibility to respond to evolving ballistic missile threats.
Allow me to conclude by emphasizing that U.S. cooperation on missile defense is not a one size fits all approach. Threats are diverse and so must be our solutions. We tailor our unique sets of capabilities to fit with each regional security environment stretching from Europe to the Asia-Pacific. And as more actors develop sophisticated ballistic missile capabilities, it is incumbent upon us to take the appropriate steps to defend the U.S. homeland, our deployed forces, and our allies and partners. I can personally attest that our diplomatic engagements the last six years have made us, and our allies, better equipped to meet the threats of today, and nimble enough to respond to what threats may lay ahead.
Thank you and I look forward to your questions and our discussion.
6/26/2015 12:12 PM EDT
Transatlantic Missile Defense: Defining the Right Threat Set
Remarks
Frank A. Rose
Assistant Secretary, Bureau of Arms Control, Verification and Compliance
The Atlantic Council
Washington, DC
June 24, 2015
As prepared
Thank you Ian for that kind introduction and for having me here today.
I always appreciate the opportunity to speak at the annual Atlantic Council missile defense conference alongside so many experts in this important field. Today, I would like to focus my remarks on how the Obama Administration has defined the ballistic missile threat and how we are cooperating to address this threat. I'll keep my comments brief to maximize our time to more freely engage on these issues.
The 2010 Ballistic Missile Defense Review (or BMDR) makes clear that the United States’ missile defenses are focused on defending against limited missile threats to the U.S. homeland and regional missile threats to our deployed forces, allies and partners throughout the world. The development of ballistic missiles by countries like Iran and North Korea, and the proliferation of these systems around the world is what drives our threat assessment.
Our deployment of missile defenses is focused on strengthening the twin U.S. goals of deterrence and assurance. In so doing, they also contribute to international peace and stability and reinforce our nonproliferation aims.
At the same time, we have made clear both in our policy and in the capabilities we have deployed that our missile defense efforts are not intended to affect the strategic balance with Russia and China.
As a practical matter, the U.S. experience with missile defense suggests that attempting to develop a comprehensive missile defense system to defend against ballistic missile attack from Russia would be extremely challenging – and costly – given the size and sophistication of Russia’s strategic missile force and the relatively limited number of missile defense interceptors that would be available to defend against such a large force.
It is to address the regional threats from the Middle East and North Korea, and to enhance our regional deterrence posture, that leads us to cooperate with our allies and partners in deploying missile defense systems and architectures today.
For example, I just returned from a trip to the Middle East, where the United States and Gulf Cooperation Council (or GCC) member states have committed to develop a region-wide ballistic missile defense capability, including through the development of a Ballistic Missile Early Warning System. At the recent U.S.-GCC Summit, the United States committed to work with the GCC to conduct a study of a GCC-wide missile defense architecture and offered technical assistance in the development of a GCC-wide Ballistic Missile Early Warning System. Finally, we agreed to hold a senior leader missile defense tabletop exercise to examine improved regional ballistic missile defense cooperation.
In Europe, we continue to make excellent progress implementing the European Phased Adaptive Approach (or EPAA), which will serve as the U.S. national contribution to NATO’s missile defense system.
Starting in 2011 with Phase 1, we deployed a missile defense radar in Turkey and began the sustained deployment of Aegis Ballistic Missile Defense (BMD)-capable ships in the Mediterranean. With NATO’s declaration of Interim Capability in 2012, the radar in Turkey transitioned to NATO operational control. Additionally, we have been working with Spain to deploy four U.S. Aegis BMD-capable ships at the naval facility at Rota which will allow us to increase our rotational presence in the region and respond to potential crises.
We are on track to complete the deployment of an Aegis Ashore site in Romania as part of Phase 2 of the EPAA later this year. When operational, this site, combined with BMD-capable ships in the Mediterranean, will enhance coverage of NATO from short- and medium-range ballistic missiles launched from the Middle East.
Finally, Phase 3 will involve the construction of an Aegis Ashore site in Poland equipped with the new SM-3 Block IIA interceptor. President Obama’s Fiscal Year 2016 budget request designates approximately $200 million for the establishment of the site, including construction which will begin next year, allowing us to remain on schedule to complete this site by 2018. The Phase 3 site in Poland, when combined with other EPAA assets, will provide ballistic missile defense coverage of all NATO European territory
In the Asia-Pacific, we are continuing missile defense cooperation through our bilateral alliances and key partnerships. I’d highlight that the next generation of Aegis missile defense interceptor, the Standard Missile-3 Block IIA, which we are co-developing with Japan, just completed a successful flight test earlier this month. We also recently deployed a second AN/TPY-2 radar to Japan, which will enhance the defense of both the United States and Japan.
Finally, over the past twenty years, the United States and NATO offered Russia various proposals for missile defense cooperation. Russia declined to accept our proposals. As you’re aware, Russia’s illegal actions in Ukraine led to the suspension of our dialogue on missile defense cooperation. But prior to the suspension, Russia continued to demand that the United States provide “legally binding” guarantees that U.S. missile defenses will not harm or diminish Russia’s strategic nuclear deterrent. These guarantees would have been based on criteria that would have limited our missile defenses and undermined our ability to protect ourselves, our deployed forces, allies and friends against an evolving and growing ballistic missile threat.
The 2010 BMDR is quite clear on our policy: U.S. missile defenses are neither designed nor directed against Russia’s or China’s strategic nuclear forces. However, by the same token, we have also made it clear that we cannot and will not accept legally-binding or other constraints that would limit our ability to defend ourselves, our allies, and our partners. The United States will continue to insist on having the flexibility to respond to evolving ballistic missile threats.
Allow me to conclude by emphasizing that U.S. cooperation on missile defense is not a one size fits all approach. Threats are diverse and so must be our solutions. We tailor our unique sets of capabilities to fit with each regional security environment stretching from Europe to the Asia-Pacific. And as more actors develop sophisticated ballistic missile capabilities, it is incumbent upon us to take the appropriate steps to defend the U.S. homeland, our deployed forces, and our allies and partners. I can personally attest that our diplomatic engagements the last six years have made us, and our allies, better equipped to meet the threats of today, and nimble enough to respond to what threats may lay ahead.
Thank you and I look forward to your questions and our discussion.
EX-IM BANK ANNOUNCES GUARANTEE OF FINANCING FOR FORKLIFT EXPORTS TO BRAZIL
FROM: U.S. EXPORT-IMPORT BANK
California Small Business Exports Forklifts to Brazil Supported by EXIM-Guaranteed Buyer Financing from Northstar Trade Finance
Financing will support 30 jobs
Washington, D.C. – Wiggins Lift Co. Inc., a small-business manufacturer in Oxnard, Calif., is exporting its forklifts to marinas in Brazil with the support of medium-term buyer financing being guaranteed by the Export-Import Bank of the United States (EXIM Bank) from Northstar Trade Finance Inc. in Vancouver, British Columbia.
Northstar – which was awarded EXIM’s Lender of the Year award in April – is providing approximately $1.4 million in EXIM-backed medium-term loans to finance the export of Wiggins Lift’s forklifts to three Brazilian borrowers: BR Marina Group S.A., Marina Verolme S.A. and Marina Porto Bracuhy Ltda. The exports sales are helping to sustain an estimated 30 jobs at the company.
“To compete successfully in global markets, exporters need to be able to offer their foreign buyers competitive financing terms in addition to a quality product or service,” said EXIM Bank Chairman and President Fred P. Hochberg. “Through EXIM’s Medium-Term Delegated Authority Program, we work with commercial lenders to empower small businesses such as Wiggins Lift to make sales on longer repayment terms and increase their exports.”
“EXIM’s guarantee is a positive for everyone. It facilitated competitive financing from Northstar for these marinas in Brazil and enabled them to purchase our world-class lifts. In turn, these sales are helping us continue to grow, add employees and contribute to the U.S. economy,” said Wiggins Lift CEO Michele McDowell.
“We at Northstar are pleased to support Wiggins Lift in these exports to Brazil. EXIM’s Medium-Term Delegated Authority Program is a powerful tool that enables American exporters to offer their customers a complete sales solution and to compete more effectively against their foreign competitors who offer financing,” said Northstar’s Craig MacKenzie, managing director, North America.
MacKenzie noted that the delegated authority program enables Northstar to significantly “speed up” the credit decision and approval process to a few days, which enables exporters to offer financing to their customers in a timely way.
Wiggins Lift Co. Inc. designs and manufactures custom heavy-lifting equipment for applications in the marine, mining, military, agriculture and other industries. Wiggins Lift was founded in the 1950s in Oxnard, Calif., where it currently employs over 50 workers. The woman-owned company is led by the founder’s granddaughter.
Northstar’s international trade finance includes a strategic approach to developing effective public-partnerships with key government agencies and departments, particularly successful in the provision of trade-related financing and insurance/guarantee solutions. Northstar’s partners include top financial institutions in North America and leading government agencies and credit insurers in Canada, the United States, Europe and Australia, among other countries.
EXIM Bank’s Medium Term Delegated Authority (MTDA) program enables the lender to make a commitment based on a set of defined parameters if they agree to share risk. The applications are made through EXIM’s online system, and transactions are authorized by the lender. Applications that are determined to be complete are generally made operative within five business days.
California Small Business Exports Forklifts to Brazil Supported by EXIM-Guaranteed Buyer Financing from Northstar Trade Finance
Financing will support 30 jobs
Washington, D.C. – Wiggins Lift Co. Inc., a small-business manufacturer in Oxnard, Calif., is exporting its forklifts to marinas in Brazil with the support of medium-term buyer financing being guaranteed by the Export-Import Bank of the United States (EXIM Bank) from Northstar Trade Finance Inc. in Vancouver, British Columbia.
Northstar – which was awarded EXIM’s Lender of the Year award in April – is providing approximately $1.4 million in EXIM-backed medium-term loans to finance the export of Wiggins Lift’s forklifts to three Brazilian borrowers: BR Marina Group S.A., Marina Verolme S.A. and Marina Porto Bracuhy Ltda. The exports sales are helping to sustain an estimated 30 jobs at the company.
“To compete successfully in global markets, exporters need to be able to offer their foreign buyers competitive financing terms in addition to a quality product or service,” said EXIM Bank Chairman and President Fred P. Hochberg. “Through EXIM’s Medium-Term Delegated Authority Program, we work with commercial lenders to empower small businesses such as Wiggins Lift to make sales on longer repayment terms and increase their exports.”
“EXIM’s guarantee is a positive for everyone. It facilitated competitive financing from Northstar for these marinas in Brazil and enabled them to purchase our world-class lifts. In turn, these sales are helping us continue to grow, add employees and contribute to the U.S. economy,” said Wiggins Lift CEO Michele McDowell.
“We at Northstar are pleased to support Wiggins Lift in these exports to Brazil. EXIM’s Medium-Term Delegated Authority Program is a powerful tool that enables American exporters to offer their customers a complete sales solution and to compete more effectively against their foreign competitors who offer financing,” said Northstar’s Craig MacKenzie, managing director, North America.
MacKenzie noted that the delegated authority program enables Northstar to significantly “speed up” the credit decision and approval process to a few days, which enables exporters to offer financing to their customers in a timely way.
Wiggins Lift Co. Inc. designs and manufactures custom heavy-lifting equipment for applications in the marine, mining, military, agriculture and other industries. Wiggins Lift was founded in the 1950s in Oxnard, Calif., where it currently employs over 50 workers. The woman-owned company is led by the founder’s granddaughter.
Northstar’s international trade finance includes a strategic approach to developing effective public-partnerships with key government agencies and departments, particularly successful in the provision of trade-related financing and insurance/guarantee solutions. Northstar’s partners include top financial institutions in North America and leading government agencies and credit insurers in Canada, the United States, Europe and Australia, among other countries.
EXIM Bank’s Medium Term Delegated Authority (MTDA) program enables the lender to make a commitment based on a set of defined parameters if they agree to share risk. The applications are made through EXIM’s online system, and transactions are authorized by the lender. Applications that are determined to be complete are generally made operative within five business days.
U.S. AND KAZAKHSTAN MAKE INITIAL SCIENCE & TECHNOLOGY CENTER AGREEMENT
FROM: U.S. STATE DEPARTMENT
United States and Kazakhstan Initial New International Science and Technology Center Agreement
Bureau of International Security and Nonproliferation
June 24, 2015
UNITED STATES EMBASSY ASTANA
On June 22, in Astana, Kazakhstan, Deputy Assistant Secretary of State for Nonproliferation Programs Simon Limage initialed on behalf of the United States the Agreement Continuing the International Science and Technology Center (ISTC) along with the European Union, Georgia, Japan, the Kingdom of Norway, Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, and the Republic of Korea.
The ISTC, with its new headquarters at Nazarbayev University in Astana, Kazakhstan, seeks to minimize incentives for scientists and engineers in states with technologies, expertise, and related materials applicable to WMD to engage in activities that could result in the proliferation of WMD or related materials by supporting and cooperating in research and development activities for peaceful purposes. The initialing of the agreement sets the stage for signing the agreement once all parties have completed their internal procedures.
Deputy Assistant Secretary of State Limage, as the US representative to the ISTC Governing Board, led a U.S. interagency delegation, which included technical experts from the Departments of State and Energy. In the course of the two day Governing Board meeting, significant decisions were made to streamline the ISTC, endorse plans to expand the organization to other regions, and enhance opportunities for scientific projects in new fields.
United States and Kazakhstan Initial New International Science and Technology Center Agreement
Bureau of International Security and Nonproliferation
June 24, 2015
UNITED STATES EMBASSY ASTANA
On June 22, in Astana, Kazakhstan, Deputy Assistant Secretary of State for Nonproliferation Programs Simon Limage initialed on behalf of the United States the Agreement Continuing the International Science and Technology Center (ISTC) along with the European Union, Georgia, Japan, the Kingdom of Norway, Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, and the Republic of Korea.
The ISTC, with its new headquarters at Nazarbayev University in Astana, Kazakhstan, seeks to minimize incentives for scientists and engineers in states with technologies, expertise, and related materials applicable to WMD to engage in activities that could result in the proliferation of WMD or related materials by supporting and cooperating in research and development activities for peaceful purposes. The initialing of the agreement sets the stage for signing the agreement once all parties have completed their internal procedures.
Deputy Assistant Secretary of State Limage, as the US representative to the ISTC Governing Board, led a U.S. interagency delegation, which included technical experts from the Departments of State and Energy. In the course of the two day Governing Board meeting, significant decisions were made to streamline the ISTC, endorse plans to expand the organization to other regions, and enhance opportunities for scientific projects in new fields.
Sunday, June 28, 2015
NASA STATEMENT ON SPACEX EXPLOSION
FROM: NASA
NASA Administrator Statement on the Loss of SpaceX CRS-7
The following is a statement from NASA Administrator Charles Bolden on the loss Sunday of the SpaceX Commercial Resupply Services 7 (CRS-7) mission.
“We are disappointed in the loss of the latest SpaceX cargo resupply mission to the International Space Station. However, the astronauts are safe aboard the station and have sufficient supplies for the next several months. We will work closely with SpaceX to understand what happened, fix the problem and return to flight. The commercial cargo program was designed to accommodate loss of cargo vehicles. We will continue operation of the station in a safe and effective way as we continue to use it as our test bed for preparing for longer duration missions farther into the solar system.
“A Progress vehicle is ready to launch July 3, followed in August by a Japanese HTV flight. Orbital ATK, our other commercial cargo partner, is moving ahead with plans for its next launch later this year.
“SpaceX has demonstrated extraordinary capabilities in its first six cargo resupply missions to the station, and we know they can replicate that success. We will work with and support SpaceX to assess what happened, understand the specifics of the failure and correct it to move forward. This is a reminder that spaceflight is an incredible challenge, but we learn from each success and each setback. Today's launch attempt will not deter us from our ambitious human spaceflight program.”
NASA Administrator Statement on the Loss of SpaceX CRS-7
The following is a statement from NASA Administrator Charles Bolden on the loss Sunday of the SpaceX Commercial Resupply Services 7 (CRS-7) mission.
“We are disappointed in the loss of the latest SpaceX cargo resupply mission to the International Space Station. However, the astronauts are safe aboard the station and have sufficient supplies for the next several months. We will work closely with SpaceX to understand what happened, fix the problem and return to flight. The commercial cargo program was designed to accommodate loss of cargo vehicles. We will continue operation of the station in a safe and effective way as we continue to use it as our test bed for preparing for longer duration missions farther into the solar system.
“A Progress vehicle is ready to launch July 3, followed in August by a Japanese HTV flight. Orbital ATK, our other commercial cargo partner, is moving ahead with plans for its next launch later this year.
“SpaceX has demonstrated extraordinary capabilities in its first six cargo resupply missions to the station, and we know they can replicate that success. We will work with and support SpaceX to assess what happened, understand the specifics of the failure and correct it to move forward. This is a reminder that spaceflight is an incredible challenge, but we learn from each success and each setback. Today's launch attempt will not deter us from our ambitious human spaceflight program.”
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