FROM: U.S. JUSTICE DEPARTMENT
Thursday, July 2, 2015
Statement by Attorney General Loretta E. Lynch on the Agreement in Principle with BP to Settle Civil Claims for the Deepwater Horizon Oil Spill
Total Value of Settlement Would Top $18.7 Billion, the Largest Settlement with a Single Entity in American History
Today, BP disclosed that it has reached agreements in principle with the United States, state, and local governments for a settlement of civil claims arising from the April 20, 2010, Deepwater Horizon oil spill in the Gulf of Mexico. The Attorney General made the following statement:
“Since the Deepwater Horizon oil spill – the largest environmental disaster in our nation’s history – the Justice Department has been fully committed to holding BP accountable, to achieving justice for the American people and to restoring the environment and the economy of the Gulf region at the expense of those responsible and not the American taxpayer. In December 2010, my predecessor, Attorney General Eric Holder, announced a civil lawsuit against BP and its co-defendants. Since that time, the Deepwater trial team has fought aggressively in federal court for an outcome that would achieve this mission, proving along the way that BP’s gross negligence resulted in the Deepwater disaster.
“Today, I am pleased to say that after productive discussions with BP over the previous several weeks, we have reached an agreement in principle that would justly and comprehensively address outstanding federal and state claims, including Clean Water Act civil penalties and natural resource damages. BP is also resolving significant economic claims with the impacted state and local governments. We will work diligently during the next several months to incorporate the agreement in principle into a consent decree, which would then undergo public comment before court approval. If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come.
“I am so very grateful to the Deepwater civil trial team, made up of men and women from the department’s Environment and Natural Resources Division and Civil Division, as well as the incredible response, investigative and supporting efforts of the Departments of Homeland Security, Interior, Commerce and Agriculture and the Environmental Protection Agency, whose efforts have made this important step possible. I also appreciate the extraordinary effort of the many state leaders and environmental professionals who collaborated to advance this agreement in principle.”
Thursday, July 2, 2015
LEADER IN COLOMBIAN PARAMILITARY SENTENCED FOR DRUG TRAFFICKING
FROM: U.S. STATE DEPARTMENT
Tuesday, June 30, 2015
Colombian Paramilitary Leader Sentenced to More Than 15 Years in Prison for International Drug Trafficking
A senior paramilitary leader and one of Colombia’s most notorious drug traffickers was sentenced today to serve 190 months in prison for leading an international drug trafficking conspiracy that imported into the United States ton-quantities of cocaine. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Deputy Administrator Jack Riley of the U.S. Drug Enforcement Administration (DEA) made the announcement.
“Through his leadership position in the AUC, Salvatore Mancuso-Gomez directed the manufacture and shipment of over 100,000 kilograms of cocaine into the United States and elsewhere,” said Assistant Attorney General Caldwell. “In addition to enriching himself, Mancuso-Gomez and the AUC used this drug money to raise and arm a paramilitary force of more than 30,000 fighters and cement his control over regions of Colombia. This case is yet another example of our continued commitment to collaborating with our international partners to prosecute criminals and warlords who traffic in illegal narcotics, violence and intimidation.”
“DEA is committed to relentlessly attacking global criminal networks who use drug trafficking as a means to finance their terrorist activities,” said Acting Deputy Administrator Riley. “The arrest and prosecution of Salvatore Mancuso-Gomez clearly illustrates this dedication. As a senior leader in the AUC, Mancuso-Gomez controlled huge amounts of cocaine production in Colombia, and oversaw its movement to the United States and other parts of the world. Proceeds from his drug trafficking enterprise were used to acquire weapons and further the AUC’s violent criminal agenda. DEA is pleased that this significant narco-terror leader has faced justice in a U.S. court of law.”
Salvatore Mancuso-Gomez, aka El Mono and Santander Lozada, formerly of Monteria, Colombia, pleaded guilty in October 2008 to one count of conspiracy to distribute cocaine knowing and intending that it would be imported into the United States. U.S. District Judge Ellen Segal Huvelle of the District of Columbia imposed the sentence.
According to the statement of facts agreed to as part of his guilty plea, Mancuso-Gomez held one of the highest level leadership positions within the Autodefensas Unidas de Colombia (United Self Defense Forces of Colombia or AUC), a terrorist and paramilitary organization in Colombia. In September 2001, the AUC was designated a Foreign Terrorist Organization by the U.S. Department of State. In May 2003, the AUC was placed on the Significant Foreign Narcotics Traffickers list by order of the President, pursuant to the Foreign Narcotics Kingpin Designation Act. In February 2004, Mancuso-Gomez individually was designated as a Tier II Kingpin by the Department of Treasury’s Office of Foreign Assets Control, subjecting him to severe economic sanctions under the Kingpin Act.
The statement of facts also established that the AUC consisted of approximately 30,000 armed soldiers organized into blocs (or regions) with commanders for each bloc. In connection with his guilty plea, Mancuso-Gomez admitted that, from the mid-1990s through 2004, he directed thousands of soldiers in two blocs of the AUC, controlling large areas where cocaine was produced.
Mancuso-Gomez admitted that the AUC produced approximately 2,000 kilograms of cocaine per month during the conspiracy, and that he and members of the organization transported the cocaine to the coastal areas of Colombia where it was loaded onto go-fast boats and other vessels for ultimate transportation to the United States and Europe. Mancuso-Gomez also admitted that he levied taxes on other narcotics traffickers who needed passage through AUC-controlled territories, and that he used proceeds from his drug trafficking activities to purchase weapons and other supplies for AUC activities. Mancuso-Gomez further admitted that he and the AUC maintained tight control of their territories in Colombia through intimidation of corrupt members of the Colombian government, including law enforcement and military personnel and politicians.
Today’s sentence does not account for violations of Colombian human rights-related laws allegedly committed by Mancuso-Gomez, which are being addressed in Colombia through the Justice and Peace process – a legal framework enacted in 2005 to facilitate the demobilization of its paramilitary organizations – and Colombian criminal justice system.
The case was investigated by DEA’s Bogotá and Cartagena, Colombia, Country Offices, and the DEA Special Operations Division. The government of Colombia provided unprecedented assistance through the investigation, prosecution and sentencing phase of this case.
The case was prosecuted by Trial Attorneys Paul W. Laymon and Carmen Colon of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS). NDDS Judicial Attachés in Bogotá, Colombia; the Criminal Division’s Office of International Affairs; and the Prosecutor General’s Office of the Republic of Colombia (Fiscalia), including the Fiscalia’s Transitional Justice program, provided significant assistance.
Tuesday, June 30, 2015
Colombian Paramilitary Leader Sentenced to More Than 15 Years in Prison for International Drug Trafficking
A senior paramilitary leader and one of Colombia’s most notorious drug traffickers was sentenced today to serve 190 months in prison for leading an international drug trafficking conspiracy that imported into the United States ton-quantities of cocaine. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Deputy Administrator Jack Riley of the U.S. Drug Enforcement Administration (DEA) made the announcement.
“Through his leadership position in the AUC, Salvatore Mancuso-Gomez directed the manufacture and shipment of over 100,000 kilograms of cocaine into the United States and elsewhere,” said Assistant Attorney General Caldwell. “In addition to enriching himself, Mancuso-Gomez and the AUC used this drug money to raise and arm a paramilitary force of more than 30,000 fighters and cement his control over regions of Colombia. This case is yet another example of our continued commitment to collaborating with our international partners to prosecute criminals and warlords who traffic in illegal narcotics, violence and intimidation.”
“DEA is committed to relentlessly attacking global criminal networks who use drug trafficking as a means to finance their terrorist activities,” said Acting Deputy Administrator Riley. “The arrest and prosecution of Salvatore Mancuso-Gomez clearly illustrates this dedication. As a senior leader in the AUC, Mancuso-Gomez controlled huge amounts of cocaine production in Colombia, and oversaw its movement to the United States and other parts of the world. Proceeds from his drug trafficking enterprise were used to acquire weapons and further the AUC’s violent criminal agenda. DEA is pleased that this significant narco-terror leader has faced justice in a U.S. court of law.”
Salvatore Mancuso-Gomez, aka El Mono and Santander Lozada, formerly of Monteria, Colombia, pleaded guilty in October 2008 to one count of conspiracy to distribute cocaine knowing and intending that it would be imported into the United States. U.S. District Judge Ellen Segal Huvelle of the District of Columbia imposed the sentence.
According to the statement of facts agreed to as part of his guilty plea, Mancuso-Gomez held one of the highest level leadership positions within the Autodefensas Unidas de Colombia (United Self Defense Forces of Colombia or AUC), a terrorist and paramilitary organization in Colombia. In September 2001, the AUC was designated a Foreign Terrorist Organization by the U.S. Department of State. In May 2003, the AUC was placed on the Significant Foreign Narcotics Traffickers list by order of the President, pursuant to the Foreign Narcotics Kingpin Designation Act. In February 2004, Mancuso-Gomez individually was designated as a Tier II Kingpin by the Department of Treasury’s Office of Foreign Assets Control, subjecting him to severe economic sanctions under the Kingpin Act.
The statement of facts also established that the AUC consisted of approximately 30,000 armed soldiers organized into blocs (or regions) with commanders for each bloc. In connection with his guilty plea, Mancuso-Gomez admitted that, from the mid-1990s through 2004, he directed thousands of soldiers in two blocs of the AUC, controlling large areas where cocaine was produced.
Mancuso-Gomez admitted that the AUC produced approximately 2,000 kilograms of cocaine per month during the conspiracy, and that he and members of the organization transported the cocaine to the coastal areas of Colombia where it was loaded onto go-fast boats and other vessels for ultimate transportation to the United States and Europe. Mancuso-Gomez also admitted that he levied taxes on other narcotics traffickers who needed passage through AUC-controlled territories, and that he used proceeds from his drug trafficking activities to purchase weapons and other supplies for AUC activities. Mancuso-Gomez further admitted that he and the AUC maintained tight control of their territories in Colombia through intimidation of corrupt members of the Colombian government, including law enforcement and military personnel and politicians.
Today’s sentence does not account for violations of Colombian human rights-related laws allegedly committed by Mancuso-Gomez, which are being addressed in Colombia through the Justice and Peace process – a legal framework enacted in 2005 to facilitate the demobilization of its paramilitary organizations – and Colombian criminal justice system.
The case was investigated by DEA’s Bogotá and Cartagena, Colombia, Country Offices, and the DEA Special Operations Division. The government of Colombia provided unprecedented assistance through the investigation, prosecution and sentencing phase of this case.
The case was prosecuted by Trial Attorneys Paul W. Laymon and Carmen Colon of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS). NDDS Judicial Attachés in Bogotá, Colombia; the Criminal Division’s Office of International Affairs; and the Prosecutor General’s Office of the Republic of Colombia (Fiscalia), including the Fiscalia’s Transitional Justice program, provided significant assistance.
ROBERT BERSCHINSKI MAKES REMARKS ON PREVENTION OF VIOLENT EXTREMISM
FROM: U.S. STATE DEPARTMENT
The Role of Youth, Women, Religious Groups, and Civil Society in Preventing Violent Extremism
Remarks
Robert Berschinski
Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
Remarks as Delivered at Central and South Asia Regional Conference on Countering Violent Extremism
Astana, Kazakhstan
June 30, 2015
Let me begin by thanking the Government of Kazakhstan for hosting this important conference and for your hospitality last night, and also thanking my fellow panelists for sharing your time and insights.
I'd like to take as my point of departure a few of the points raised by the U.S. head of delegation, Customs and Border Patrol Commissioner Gil Kerlikowske, in his opening remarks yesterday.
Given that we've heard a lot of panelists since yesterday morning, I'll offer a brief recap. Commissioner Kerlikowske said five things I think are worth repeating:
First, that as a life-long professional law enforcement officer, his perspective is that "real security is not about arrests and detention," but about "the way governments interact with their societies."
Second, that as we seek to prevent violent extremism, it is in governments' best interest to empower non-governmental organizations and other citizens--youth, women, faith leaders, and victims among them.
Third, that violations of religious freedom are one important driver of radicalization.
Fourth, that respect for human rights is a law enforcement best practice.
And fifth and finally, that corruption undermines society's faith in its government, which produces the kinds of alienation that can drive individuals toward the forms of violent extremism that we collectively seek to end.
One additional theme I've heard running through all the panels thus far is that the drivers of radicalization are complex, and thus we need to be as holistic and inclusive as possible in our response. It's clear that government alone cannot successfully address the issue. Non-governmental, community-based, and religious voices are essential.
I'd like to offer a few thoughts on each of these lessons.
First, as we heard in yesterday's panel on the uses and abuses of new media, we are all grappling with extremists' misuse of the internet to spread their message. And while there are certainly times in which calls for direct imminent violence by terrorist groups and their sympathizers should be taken offline, we should remember that peaceful expression and the free exchange of ideas are an essential part of the antidote to the appeal of violent extremist ideologies.
When we suppress peaceful and legitimate expression and ideas, even ones with which we disagree or even find abhorrent, we simply drive extremist voices underground, where they are harder to track and challenge, while in many cases enabling conspiracy theories to thrive. So engagement, rather than censorship, needs to be part of the solution.
Efforts to clamp down on freedom of expression lead me to my next point, which is that notwithstanding the many things that we don't know about the process of radicalization, one thing we do know is that one of the key drivers of political violence is that it is in part rooted in experiences of injustice—such as discrimination, corruption, and abuses by government authorities or security forces that are perpetuated with impunity.
This conference's analogue in Kenya just wrapped up last week, and one of the data points noted during that conference was that 65% of Shabaab members interviewed by a think tank said they joined the group as a reaction to the aggressive and discriminatory actions of local security forces, as well as ethnic profiling, arbitrary detentions, and police corruption.
Now we need to take each instance of radicalization within a local context, but there is a generalizable point to be made that populations that have access to transparent and non-corrupt governance, the rule of law, and the fundamental freedoms of expression, religious belief, association, and assembly tend to have fewer grievances and more outlets for what grievances they do have, and are thus more resistant to the call of violent extremism.
With respect to religious groups, we know that government efforts to control peaceful religious belief or practice, especially for so-called “non-traditional” religious actors, generates grievances and in some cases alienates communities -- the opposite of what we should seek to achieve from the perspective of countering violent extremist narratives of oppression and subjugation.
More broadly, reducing the space for civil society to operate--a trend that is unfortunately spreading across this region and around the world in parallel to the growth of groups like Al Qaeda and Daesh--harms governmental CVE efforts, as civil society actors are often those closest to vulnerable populations.
This is particularly true not only of religious groups, but also of women and youth. That's why, through the Global Counterterrorism Forum and other means, we must continue to develop best practices on incorporating women's views into CVE efforts, and conduct more study on what motivates women and girls toward radicalism.
A range of contextual challenges, including legal and institutional restrictions, safety concerns, and lack of resources and skills, often prevent full and effective participation of women and girls in CVE policy-making and programs. But women and girls are leaders, problem-solvers, inspirers, and teachers, as well as mothers, sisters, wives, and providers -- their input and efforts are imperative to batting back violent extremism.
Let me say in closing that we in government cannot do it alone. More broadly, as UN Secretary General Ban Ki-moon said recently while touring this region, curbing freedoms creates “an illusion of stability in the short-run” but ultimately fosters “a breeding ground for extremist ideologies" in the longer run.
As Ban said, “Around the world, the way to confront threats is not more repression, it is more openness. More human rights. The road to a stable future is by strengthening the rule of law. By fighting corruption. By ensuring an independent judiciary. By guaranteeing free media. By building just societies. By empowering citizens."
The United States fully supports these words from the UN Secretary General. Operating space for youth, women, religious groups, and civil society must be safeguarded—so that these populations can speak their minds, organize among themselves, and bring their experiences to bear on creating more peaceful, tolerant, and democratic societies.
Thank you.
The Role of Youth, Women, Religious Groups, and Civil Society in Preventing Violent Extremism
Remarks
Robert Berschinski
Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
Remarks as Delivered at Central and South Asia Regional Conference on Countering Violent Extremism
Astana, Kazakhstan
June 30, 2015
Let me begin by thanking the Government of Kazakhstan for hosting this important conference and for your hospitality last night, and also thanking my fellow panelists for sharing your time and insights.
I'd like to take as my point of departure a few of the points raised by the U.S. head of delegation, Customs and Border Patrol Commissioner Gil Kerlikowske, in his opening remarks yesterday.
Given that we've heard a lot of panelists since yesterday morning, I'll offer a brief recap. Commissioner Kerlikowske said five things I think are worth repeating:
First, that as a life-long professional law enforcement officer, his perspective is that "real security is not about arrests and detention," but about "the way governments interact with their societies."
Second, that as we seek to prevent violent extremism, it is in governments' best interest to empower non-governmental organizations and other citizens--youth, women, faith leaders, and victims among them.
Third, that violations of religious freedom are one important driver of radicalization.
Fourth, that respect for human rights is a law enforcement best practice.
And fifth and finally, that corruption undermines society's faith in its government, which produces the kinds of alienation that can drive individuals toward the forms of violent extremism that we collectively seek to end.
One additional theme I've heard running through all the panels thus far is that the drivers of radicalization are complex, and thus we need to be as holistic and inclusive as possible in our response. It's clear that government alone cannot successfully address the issue. Non-governmental, community-based, and religious voices are essential.
I'd like to offer a few thoughts on each of these lessons.
First, as we heard in yesterday's panel on the uses and abuses of new media, we are all grappling with extremists' misuse of the internet to spread their message. And while there are certainly times in which calls for direct imminent violence by terrorist groups and their sympathizers should be taken offline, we should remember that peaceful expression and the free exchange of ideas are an essential part of the antidote to the appeal of violent extremist ideologies.
When we suppress peaceful and legitimate expression and ideas, even ones with which we disagree or even find abhorrent, we simply drive extremist voices underground, where they are harder to track and challenge, while in many cases enabling conspiracy theories to thrive. So engagement, rather than censorship, needs to be part of the solution.
Efforts to clamp down on freedom of expression lead me to my next point, which is that notwithstanding the many things that we don't know about the process of radicalization, one thing we do know is that one of the key drivers of political violence is that it is in part rooted in experiences of injustice—such as discrimination, corruption, and abuses by government authorities or security forces that are perpetuated with impunity.
This conference's analogue in Kenya just wrapped up last week, and one of the data points noted during that conference was that 65% of Shabaab members interviewed by a think tank said they joined the group as a reaction to the aggressive and discriminatory actions of local security forces, as well as ethnic profiling, arbitrary detentions, and police corruption.
Now we need to take each instance of radicalization within a local context, but there is a generalizable point to be made that populations that have access to transparent and non-corrupt governance, the rule of law, and the fundamental freedoms of expression, religious belief, association, and assembly tend to have fewer grievances and more outlets for what grievances they do have, and are thus more resistant to the call of violent extremism.
With respect to religious groups, we know that government efforts to control peaceful religious belief or practice, especially for so-called “non-traditional” religious actors, generates grievances and in some cases alienates communities -- the opposite of what we should seek to achieve from the perspective of countering violent extremist narratives of oppression and subjugation.
More broadly, reducing the space for civil society to operate--a trend that is unfortunately spreading across this region and around the world in parallel to the growth of groups like Al Qaeda and Daesh--harms governmental CVE efforts, as civil society actors are often those closest to vulnerable populations.
This is particularly true not only of religious groups, but also of women and youth. That's why, through the Global Counterterrorism Forum and other means, we must continue to develop best practices on incorporating women's views into CVE efforts, and conduct more study on what motivates women and girls toward radicalism.
A range of contextual challenges, including legal and institutional restrictions, safety concerns, and lack of resources and skills, often prevent full and effective participation of women and girls in CVE policy-making and programs. But women and girls are leaders, problem-solvers, inspirers, and teachers, as well as mothers, sisters, wives, and providers -- their input and efforts are imperative to batting back violent extremism.
Let me say in closing that we in government cannot do it alone. More broadly, as UN Secretary General Ban Ki-moon said recently while touring this region, curbing freedoms creates “an illusion of stability in the short-run” but ultimately fosters “a breeding ground for extremist ideologies" in the longer run.
As Ban said, “Around the world, the way to confront threats is not more repression, it is more openness. More human rights. The road to a stable future is by strengthening the rule of law. By fighting corruption. By ensuring an independent judiciary. By guaranteeing free media. By building just societies. By empowering citizens."
The United States fully supports these words from the UN Secretary General. Operating space for youth, women, religious groups, and civil society must be safeguarded—so that these populations can speak their minds, organize among themselves, and bring their experiences to bear on creating more peaceful, tolerant, and democratic societies.
Thank you.
KKR AGREES TO PAY ALMOST $30 MILLION TO SETTLE CHARGES IT MISALLOCATED OVER $17 MILLION
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
6/29/2015 10:55 AM EDT
The Securities and Exchange Commission 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 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.
FOREIGN NATIONAL INDICTED RELATED TO IDENTITY THEFT OF UNIVERSITY OF PITTSBURGH MEDICAL CENTER EMPLOYEES
FROM: U.S. JUSTICE DEPARTMENT
Friday, June 26, 2015
Indictment In UPMC Stolen Identity Scheme
On Wednesday, a federal grand jury in Pittsburgh returned a multi-count indictment against Yoandy Perez Llanes, a foreign national residing outside of the United States. Llanes was charged in a 21-count indictment with a scheme to defraud the Internal Revenue Service (IRS), and the U.S. Treasury, using the stolen identities of employees of the University of Pittsburgh Medical Center (UPMC) to file false federal income tax returns in order to obtain unlawful tax refunds. Llanes and unnamed conspirators converted the unlawful tax refunds to Amazon.com gift cards, which were used to buy merchandise which was shipped internationally. All of these acts occurred generally between January and April 2014. Llanes is charged with conspiracy to defraud the United States, wire fraud, money laundering and aggravated identity theft.
Early in 2014, thousands of employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database stealing names, social security numbers, dates of birth and other personal identifying information. This data was then used to file false 2013 federal tax returns. Investigators learned that names and other identifiers were used by Llanes and other conspirators to file 935 false tax returns in which unlawful refunds were requested in the form of Amazon.com gift cards. Quick action by the IRS, UPMC and Amazon.com frustrated the efforts of the fraudsters to file additional false returns and obtain further fraudulent proceeds. While the perpetrators sought approximately $2.2 million in fraudulent refunds, only $1.4 million was actually disbursed as refunds. Stolen Identity Refund Fraud, such as that alleged to have been perpetrated by Llanes, costs United States taxpayers billions of dollars.
This criminal scheme was complex and crossed national borders. Llanes and the conspirators used anonymous and encrypted email to disguise their identities and proxy computers to file returns. Using the fraudulently obtained Amazon.com gift cards, Llanes purchased hundreds of thousands of dollars in electronic merchandise for shipment through reshipping services in Miami, Florida, with instructions for delivery to “drop” locations outside the United States. Llanes and others then retrieved the merchandise and advertised it for sale on online auction websites overseas.
Though Llanes and the conspirators attempted to conceal their whereabouts and their identities through the use of encrypted email and proxy services, investigators were able to uncover the sophisticated plot and identify Llanes.
The law provides for a sentence of imprisonment, a fine of $5.5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The IRS-CI, the U.S. Secret Service and the U.S. Postal Inspection Service, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Friday, June 26, 2015
Indictment In UPMC Stolen Identity Scheme
On Wednesday, a federal grand jury in Pittsburgh returned a multi-count indictment against Yoandy Perez Llanes, a foreign national residing outside of the United States. Llanes was charged in a 21-count indictment with a scheme to defraud the Internal Revenue Service (IRS), and the U.S. Treasury, using the stolen identities of employees of the University of Pittsburgh Medical Center (UPMC) to file false federal income tax returns in order to obtain unlawful tax refunds. Llanes and unnamed conspirators converted the unlawful tax refunds to Amazon.com gift cards, which were used to buy merchandise which was shipped internationally. All of these acts occurred generally between January and April 2014. Llanes is charged with conspiracy to defraud the United States, wire fraud, money laundering and aggravated identity theft.
Early in 2014, thousands of employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database stealing names, social security numbers, dates of birth and other personal identifying information. This data was then used to file false 2013 federal tax returns. Investigators learned that names and other identifiers were used by Llanes and other conspirators to file 935 false tax returns in which unlawful refunds were requested in the form of Amazon.com gift cards. Quick action by the IRS, UPMC and Amazon.com frustrated the efforts of the fraudsters to file additional false returns and obtain further fraudulent proceeds. While the perpetrators sought approximately $2.2 million in fraudulent refunds, only $1.4 million was actually disbursed as refunds. Stolen Identity Refund Fraud, such as that alleged to have been perpetrated by Llanes, costs United States taxpayers billions of dollars.
This criminal scheme was complex and crossed national borders. Llanes and the conspirators used anonymous and encrypted email to disguise their identities and proxy computers to file returns. Using the fraudulently obtained Amazon.com gift cards, Llanes purchased hundreds of thousands of dollars in electronic merchandise for shipment through reshipping services in Miami, Florida, with instructions for delivery to “drop” locations outside the United States. Llanes and others then retrieved the merchandise and advertised it for sale on online auction websites overseas.
Though Llanes and the conspirators attempted to conceal their whereabouts and their identities through the use of encrypted email and proxy services, investigators were able to uncover the sophisticated plot and identify Llanes.
The law provides for a sentence of imprisonment, a fine of $5.5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The IRS-CI, the U.S. Secret Service and the U.S. Postal Inspection Service, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wednesday, July 1, 2015
NSC STATEMENT ON TERRORIST ATTACKS AGAINST EGYPTIAN SECURITY FORCES IN SINAI
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.
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.
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.”
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