Tuesday, September 24, 2013
HHS RECOMMENDATIONS FOR "AFTER THE STORM"
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
From the U.S. Department of Health and Human Services, I’m Nicholas Garlow with HHS HealthBeat.
We often hear about how to get prepared for natural disasters: Make a plan, have a kit, practice it. But what about after the storm? When you pick up the pieces and start to recover, be ready to face situations you didn’t see coming.
Dr. Nicole Lurie is HHS’ assistant secretary for preparedness and response.
“Have you let your friends and loved ones know that you’re okay? Plan to text or email, or use social media to let everybody know you’re okay. Have you found out if your friends and loved ones themselves are okay?”
How are the kids doing? Talk to them about stress, and limit their TV watching, if it involves images of the storm and devastation.
And recognize that it may take some time for your life to return to normal.
“Do what you can to get you and your family back to a normal routine.”
From the U.S. Department of Health and Human Services, I’m Nicholas Garlow with HHS HealthBeat.
We often hear about how to get prepared for natural disasters: Make a plan, have a kit, practice it. But what about after the storm? When you pick up the pieces and start to recover, be ready to face situations you didn’t see coming.
Dr. Nicole Lurie is HHS’ assistant secretary for preparedness and response.
“Have you let your friends and loved ones know that you’re okay? Plan to text or email, or use social media to let everybody know you’re okay. Have you found out if your friends and loved ones themselves are okay?”
How are the kids doing? Talk to them about stress, and limit their TV watching, if it involves images of the storm and devastation.
And recognize that it may take some time for your life to return to normal.
“Do what you can to get you and your family back to a normal routine.”
SEC CHARGES TD BANK & FORMER EXEC WITH VIOLATION OF SECURITIES LAWS IN FLORIDA-BASED PONZI SCHEME
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged TD Bank and a former executive with violating securities laws in connection with a massive South Florida-based Ponzi scheme conducted by Scott Rothstein, who is now serving a 50-year prison sentence.
The SEC alleges that TD Bank and its then-regional vice president Frank A. Spinosa defrauded investors by producing a series of misleading documents and making false statements about accounts that Rothstein held at the bank and used to perpetuate his scheme. Spinosa falsely represented to several investors that TD Bank had restricted the movement of the funds in these accounts when, in fact, Rothstein could transfer investor money however he desired. Spinosa also orally assured investors that certain accounts held balances totaling millions of dollars, but each account actually held zero to $100.
TD Bank agreed to settle the SEC’s charges in an administrative proceeding and pay $15 million. The SEC filed a complaint against Spinosa in U.S. District Court for the Southern District of Florida.
“Financial institutions are key gatekeepers in the transactions and investments they facilitate and will be held to a high standard of accountability when their officers enable fraud,” said Andrew J. Ceresney, Co-Director of the SEC's Division of Enforcement. “TD Bank through a regional vice president produced false documents on bank letterhead and told outright lies to investors, failing in its gatekeeper role.”
Eric I. Bustillo, Director of the SEC’s Miami Regional Office, added, “Spinosa played a key supporting role in Rothstein’s Ponzi scheme by providing false comfort to investors that their money was safe and secure in the accounts at TD Bank. He enabled Rothstein to con investors into believing he couldn’t move their money when he could, and that the bank was holding money that it wasn’t.”
In previous enforcement actions, the SEC has charged two feeder funds to the Rothstein Ponzi scheme.
According to the SEC’s order and complaint, Rothstein claimed to represent plaintiffs who had reached purported legal settlements that were confidential and payable over time by large corporate defendants. He claimed that the purported plaintiffs were willing to sell their periodic payments to investors at a discount in exchange for one lump-sum payment. The legal settlements were fake and the plaintiffs and defendants were not real. Rothstein told investors that the purported defendants had deposited the entire settlement amounts into attorney trust accounts. Rothstein opened 22 such accounts at Commerce Bank and TD Bank (the two merged in 2008) from November 2007 to October 2009.
The SEC alleges that as Rothstein’s scheme began to unravel in the fall of 2009, Spinosa made false statements to investors about the safety of their investments that enabled Rothstein to continue raising funds for the scheme. Spinosa executed so-called “lock letters” from TD Bank purporting to irrevocably restrict Rothstein’s trust accounts. Under these conditions, TD Bank could only distribute funds in the accounts to the investor’s bank account designated in the lock letter. However, the representations were purely false as Spinosa did not apply any procedures to block the accounts or implement any system to restrict Rothstein from moving money out of the trust accounts. Spinosa also misrepresented to Rothstein’s investors that the lock letters were commonplace at TD Bank when, in fact, they were never previously used by the bank. In fact, when Spinosa instructed his assistant to prepare the letters on TD Bank letterhead, she questioned whether it was even permissible because she had never seen such a letter before. Spinosa confirmed that she should prepare the letter for his signature anyway. Later, a vice president and branch manager who reported to Spinosa noted to him shortly after the first lock letter went out in August 2009 that the “lock” instructions put onto an account would have no practical effect because Rothstein could still transfer the money without bank officials being alerted. Spinosa dismissed those concerns.
The SEC further alleges that Spinosa provided false assurances to two different groups of investors that certain trust accounts held the multi-million dollar balances claimed by Rothstein. On Aug. 17, 2009, Spinosa participated in a conference call with Rothstein and representatives of an investor group who asked how much money was in a particular account. Spinosa responded that it held $22 million – the amount the investor was expecting to hear. Spinosa had full access to the account information to know the actual account balance was no more than $100. The following month, Spinosa met with the same group after it made additional investments with Rothstein, and falsely assured the investors that their money was safe because the provisions of the lock letter restricted the movement of their money. Also in September 2009, a different investor group bought a purported $20 million settlement from Rothstein, and one of the investor group’s representatives obtained a TD Bank deposit slip that indicated a $0 balance as of that morning for the account that purportedly held the investor’s $20 million. Rothstein falsely stated that the funds were indeed in the account, but the funds would not appear “available” on the deposit slip because they were in TD Bank’s “federal wire queue.” Rothstein and representatives from the investor group met with Spinosa on Sept. 14, 2009, and Spinosa falsely represented that the $20 million did not appear as available funds for the same reason provided by Rothstein. Spinosa falsely represented that the lock letter restricted the movement of their money. In reality, TD Bank was not holding the money in such a queue, and the account didn’t contain the $20 million.
TD Bank consented to the entry of an administrative order finding that it violated Sections 17(a)(2) and (3) of the Securities Act of 1933. Without admitting or denying the SEC’s findings, TD Bank agreed to pay $15 million and cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of the Securities Act.
The SEC’s complaint against Spinosa charges him with violating Sections 17(a)(1), 17(a)(2), and 17(a)(3) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Spinosa also is charged with aiding and abetting Scott Rothstein’s violations of Section 10(b) of the Exchange Act and Rule 10b-5. The complaint seeks disgorgement plus prejudgment interest, financial penalties, and a permanent injunction.
The SEC coordinated the filing of its cases with the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network, which today announced their own actions against TD Bank.
The SEC’s investigation was conducted by Steven J. Meiner, D. Corey Lawson, and Tonya E. Tullis under the supervision of Chad Alan Earnst in the Miami Regional Office. The SEC’s litigation against Spinosa will be led by Amie Riggle Berlin. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of Florida, the Federal Bureau of Investigation, and the Internal Revenue Service.
The Securities and Exchange Commission today charged TD Bank and a former executive with violating securities laws in connection with a massive South Florida-based Ponzi scheme conducted by Scott Rothstein, who is now serving a 50-year prison sentence.
The SEC alleges that TD Bank and its then-regional vice president Frank A. Spinosa defrauded investors by producing a series of misleading documents and making false statements about accounts that Rothstein held at the bank and used to perpetuate his scheme. Spinosa falsely represented to several investors that TD Bank had restricted the movement of the funds in these accounts when, in fact, Rothstein could transfer investor money however he desired. Spinosa also orally assured investors that certain accounts held balances totaling millions of dollars, but each account actually held zero to $100.
TD Bank agreed to settle the SEC’s charges in an administrative proceeding and pay $15 million. The SEC filed a complaint against Spinosa in U.S. District Court for the Southern District of Florida.
“Financial institutions are key gatekeepers in the transactions and investments they facilitate and will be held to a high standard of accountability when their officers enable fraud,” said Andrew J. Ceresney, Co-Director of the SEC's Division of Enforcement. “TD Bank through a regional vice president produced false documents on bank letterhead and told outright lies to investors, failing in its gatekeeper role.”
Eric I. Bustillo, Director of the SEC’s Miami Regional Office, added, “Spinosa played a key supporting role in Rothstein’s Ponzi scheme by providing false comfort to investors that their money was safe and secure in the accounts at TD Bank. He enabled Rothstein to con investors into believing he couldn’t move their money when he could, and that the bank was holding money that it wasn’t.”
In previous enforcement actions, the SEC has charged two feeder funds to the Rothstein Ponzi scheme.
According to the SEC’s order and complaint, Rothstein claimed to represent plaintiffs who had reached purported legal settlements that were confidential and payable over time by large corporate defendants. He claimed that the purported plaintiffs were willing to sell their periodic payments to investors at a discount in exchange for one lump-sum payment. The legal settlements were fake and the plaintiffs and defendants were not real. Rothstein told investors that the purported defendants had deposited the entire settlement amounts into attorney trust accounts. Rothstein opened 22 such accounts at Commerce Bank and TD Bank (the two merged in 2008) from November 2007 to October 2009.
The SEC alleges that as Rothstein’s scheme began to unravel in the fall of 2009, Spinosa made false statements to investors about the safety of their investments that enabled Rothstein to continue raising funds for the scheme. Spinosa executed so-called “lock letters” from TD Bank purporting to irrevocably restrict Rothstein’s trust accounts. Under these conditions, TD Bank could only distribute funds in the accounts to the investor’s bank account designated in the lock letter. However, the representations were purely false as Spinosa did not apply any procedures to block the accounts or implement any system to restrict Rothstein from moving money out of the trust accounts. Spinosa also misrepresented to Rothstein’s investors that the lock letters were commonplace at TD Bank when, in fact, they were never previously used by the bank. In fact, when Spinosa instructed his assistant to prepare the letters on TD Bank letterhead, she questioned whether it was even permissible because she had never seen such a letter before. Spinosa confirmed that she should prepare the letter for his signature anyway. Later, a vice president and branch manager who reported to Spinosa noted to him shortly after the first lock letter went out in August 2009 that the “lock” instructions put onto an account would have no practical effect because Rothstein could still transfer the money without bank officials being alerted. Spinosa dismissed those concerns.
The SEC further alleges that Spinosa provided false assurances to two different groups of investors that certain trust accounts held the multi-million dollar balances claimed by Rothstein. On Aug. 17, 2009, Spinosa participated in a conference call with Rothstein and representatives of an investor group who asked how much money was in a particular account. Spinosa responded that it held $22 million – the amount the investor was expecting to hear. Spinosa had full access to the account information to know the actual account balance was no more than $100. The following month, Spinosa met with the same group after it made additional investments with Rothstein, and falsely assured the investors that their money was safe because the provisions of the lock letter restricted the movement of their money. Also in September 2009, a different investor group bought a purported $20 million settlement from Rothstein, and one of the investor group’s representatives obtained a TD Bank deposit slip that indicated a $0 balance as of that morning for the account that purportedly held the investor’s $20 million. Rothstein falsely stated that the funds were indeed in the account, but the funds would not appear “available” on the deposit slip because they were in TD Bank’s “federal wire queue.” Rothstein and representatives from the investor group met with Spinosa on Sept. 14, 2009, and Spinosa falsely represented that the $20 million did not appear as available funds for the same reason provided by Rothstein. Spinosa falsely represented that the lock letter restricted the movement of their money. In reality, TD Bank was not holding the money in such a queue, and the account didn’t contain the $20 million.
TD Bank consented to the entry of an administrative order finding that it violated Sections 17(a)(2) and (3) of the Securities Act of 1933. Without admitting or denying the SEC’s findings, TD Bank agreed to pay $15 million and cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of the Securities Act.
The SEC’s complaint against Spinosa charges him with violating Sections 17(a)(1), 17(a)(2), and 17(a)(3) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Spinosa also is charged with aiding and abetting Scott Rothstein’s violations of Section 10(b) of the Exchange Act and Rule 10b-5. The complaint seeks disgorgement plus prejudgment interest, financial penalties, and a permanent injunction.
The SEC coordinated the filing of its cases with the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network, which today announced their own actions against TD Bank.
The SEC’s investigation was conducted by Steven J. Meiner, D. Corey Lawson, and Tonya E. Tullis under the supervision of Chad Alan Earnst in the Miami Regional Office. The SEC’s litigation against Spinosa will be led by Amie Riggle Berlin. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of Florida, the Federal Bureau of Investigation, and the Internal Revenue Service.
SEC CHARGES FILMMAKER WITH INSIDER TRADING
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged a Manhattan-based independent filmmaker with insider trading on confidential information about impending takeovers of two biotechnology companies.
The SEC alleges that Lawrence Robbins reaped illicit profits by trading Millennium Pharmaceuticals Inc. and Sepracor Inc. securities based on confidential information that he received from his business partner John Michael Bennett in advance of the acquisition announcements by the two companies. Bennett had received the inside information from his friend Scott Allen. The SEC previously charged Bennett and Allen for their roles in the scheme.
Robbins, who lives in New York City, has agreed to settle the SEC’s charges by paying more than $1 million.
“Robbins plotted with his business partner to perpetrate an insider trading scheme that enabled him to invest a portion of his illegal profits in their film production company,” said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SEC’s New York Regional Office. “Their plot, however, did not account for the real world consequences of being caught by the SEC.”
According to the SEC’s complaint filed in federal court in Manhattan, Allen learned confidential information in advance of the two acquisitions through his job at a global consulting firm that was advising the acquiring company in each deal. Based on the information that Allen leaked, Robbins and Bennett collectively spent tens of thousands of dollars acquiring call options in the companies. They made more than $2.6 million in illicit profits following public announcements of the deals, and Robbins used a portion of his proceeds to fund the independent film production business that he shared with Bennett.
The SEC alleges that Allen communicated with Bennett about the Millennium and Sepracor transactions through phone calls or in-person meetings, some of which were tracked through their simultaneous use of Metrocards at subway stations in New York City as well as large ATM and bank cash withdrawals made by Bennett prior to the meetings. Allen first obtained non-public information about the Millennium transaction in mid-February 2008 when his firm began advising Japan-based Takeda Pharmaceutical Company during its negotiations with Millennium. On February 27, Allen tipped Bennett with inside information about Takeda’s impending cash tender offer, and Bennett then tipped Robbins. Starting on February 29 and continuing up until the week before the public announcement of the acquisition, Robbins and Bennett spent tens of thousands of dollars amassing Millennium call options. Additionally, Robbins purchased Millennium shares and sold Millennium put options. After the deal was publicly announced on April 10, the price of Millennium shares increased more than 48 percent, and that afternoon Robbins began liquidating his holdings of Millennium securities for ill-gotten gains of more than $1.12 million. Bennett liquidated his Millennium holdings for illicit profits of more $602,000.
The SEC further alleges that in May 2009, Allen participated in due diligence work for the Japanese firm Dainippon Sumitomo Pharma Co. Ltd. (DSP) in connection with its impending acquisition of Sepracor. Allen again tipped Bennett with inside information about the upcoming transaction, and Bennett again shared the information with Robbins. In the months leading up to the September 3 public announcement that DSP had agreed to acquire Sepracor, Robbins and Bennett purchased more than $350,000 worth of call options in Sepracor. Additionally, they sold tens of thousands of dollars of Sepracor put options, and Robbins purchased Sepracor shares. Following the public announcement, Sepracor's stock price rose more than 26 percent, and both Robbins and Bennett liquidated their entire positions in Sepracor for ill-gotten profits of more than $388,000 and $516,000 respectively.
The SEC’s complaint charges Robbins with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 14(e) of the Exchange Act and Rule 14e-3. Robbins has agreed to pay $865,000 in disgorgement and prejudgment interest and a $150,000 penalty. The settlement, which is subject to court approval, takes into account Robbins’s current financial condition. Without admitting or denying the allegations in the complaint, Robbins also agreed to be permanently enjoined from future violations of these provisions of the federal securities laws.
The SEC’s case continues against Allen and Bennett, who have now pled guilty in parallel criminal actions filed by the U.S. Attorney’s Office for the Southern District of New York.
The SEC’s investigation was conducted by Charles D. Riely of the SEC’s Market Abuse Unit in New York and Layla Mayer, Sandra Yanez, and Amelia A. Cottrell in the New York Regional Office. The SEC acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York, Federal Bureau of Investigation, Options Regulatory Surveillance Authority, and Financial Industry Regulatory Authority.
The Securities and Exchange Commission today charged a Manhattan-based independent filmmaker with insider trading on confidential information about impending takeovers of two biotechnology companies.
The SEC alleges that Lawrence Robbins reaped illicit profits by trading Millennium Pharmaceuticals Inc. and Sepracor Inc. securities based on confidential information that he received from his business partner John Michael Bennett in advance of the acquisition announcements by the two companies. Bennett had received the inside information from his friend Scott Allen. The SEC previously charged Bennett and Allen for their roles in the scheme.
Robbins, who lives in New York City, has agreed to settle the SEC’s charges by paying more than $1 million.
“Robbins plotted with his business partner to perpetrate an insider trading scheme that enabled him to invest a portion of his illegal profits in their film production company,” said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SEC’s New York Regional Office. “Their plot, however, did not account for the real world consequences of being caught by the SEC.”
According to the SEC’s complaint filed in federal court in Manhattan, Allen learned confidential information in advance of the two acquisitions through his job at a global consulting firm that was advising the acquiring company in each deal. Based on the information that Allen leaked, Robbins and Bennett collectively spent tens of thousands of dollars acquiring call options in the companies. They made more than $2.6 million in illicit profits following public announcements of the deals, and Robbins used a portion of his proceeds to fund the independent film production business that he shared with Bennett.
The SEC alleges that Allen communicated with Bennett about the Millennium and Sepracor transactions through phone calls or in-person meetings, some of which were tracked through their simultaneous use of Metrocards at subway stations in New York City as well as large ATM and bank cash withdrawals made by Bennett prior to the meetings. Allen first obtained non-public information about the Millennium transaction in mid-February 2008 when his firm began advising Japan-based Takeda Pharmaceutical Company during its negotiations with Millennium. On February 27, Allen tipped Bennett with inside information about Takeda’s impending cash tender offer, and Bennett then tipped Robbins. Starting on February 29 and continuing up until the week before the public announcement of the acquisition, Robbins and Bennett spent tens of thousands of dollars amassing Millennium call options. Additionally, Robbins purchased Millennium shares and sold Millennium put options. After the deal was publicly announced on April 10, the price of Millennium shares increased more than 48 percent, and that afternoon Robbins began liquidating his holdings of Millennium securities for ill-gotten gains of more than $1.12 million. Bennett liquidated his Millennium holdings for illicit profits of more $602,000.
The SEC further alleges that in May 2009, Allen participated in due diligence work for the Japanese firm Dainippon Sumitomo Pharma Co. Ltd. (DSP) in connection with its impending acquisition of Sepracor. Allen again tipped Bennett with inside information about the upcoming transaction, and Bennett again shared the information with Robbins. In the months leading up to the September 3 public announcement that DSP had agreed to acquire Sepracor, Robbins and Bennett purchased more than $350,000 worth of call options in Sepracor. Additionally, they sold tens of thousands of dollars of Sepracor put options, and Robbins purchased Sepracor shares. Following the public announcement, Sepracor's stock price rose more than 26 percent, and both Robbins and Bennett liquidated their entire positions in Sepracor for ill-gotten profits of more than $388,000 and $516,000 respectively.
The SEC’s complaint charges Robbins with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 14(e) of the Exchange Act and Rule 14e-3. Robbins has agreed to pay $865,000 in disgorgement and prejudgment interest and a $150,000 penalty. The settlement, which is subject to court approval, takes into account Robbins’s current financial condition. Without admitting or denying the allegations in the complaint, Robbins also agreed to be permanently enjoined from future violations of these provisions of the federal securities laws.
The SEC’s case continues against Allen and Bennett, who have now pled guilty in parallel criminal actions filed by the U.S. Attorney’s Office for the Southern District of New York.
The SEC’s investigation was conducted by Charles D. Riely of the SEC’s Market Abuse Unit in New York and Layla Mayer, Sandra Yanez, and Amelia A. Cottrell in the New York Regional Office. The SEC acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York, Federal Bureau of Investigation, Options Regulatory Surveillance Authority, and Financial Industry Regulatory Authority.
GSA SAYS IT IS WORKING TO TRANSFORM THE GOVERNMENT WORKPLACE TO SAVE MILLIONS
FROM: GENERAL SERVICES ADMINISTRATION
GSA Transforming the Government Workplace, Saving Agencies Millions
Initiative to do away with “Mad Men” style offices, modernize the federal government
Full service offerings include design, technology, furnishings to cut office space, reduce costs and increase collaboration
Washington, DC -- Today, the U.S. General Services Administration (GSA) launched a comprehensive service to create a 21st century workplace throughout the federal government. GSA’s Total Workplace initiative provides resources and expertise to help federal agencies reduce their office space, foster collaboration, better manage IT spending, and increase energy efficiency. In a time of shrinking budgets, the initiative is already saving taxpayer dollars and helping customer agencies better serve the American people. The U.S. Departments of Agriculture (USDA), Health and Human Services (HHS), Homeland Security (DHS), and the U.S. Fish and Wildlife Service (FWS) have announced today that they have joined the Total Workplace program and are on their way to realizing significant savings and reducing their real estate footprint. The effort will also help agencies meet Obama Administration goals to cut greenhouse gas emissions and energy costs, including the freeze the federal footprint directive.
GSA has been meeting with agencies throughout the federal government to lay out the benefits of this program. Here's how GSA’s Total Workplace is already delivering savings and cost avoidance for federal agencies and the American people:
- At DHS, a reduction of rented space with subleasing, increased teleworking and the adoption of desk sharing, has allowed the agency to begin reducing its real estate footprint, resulting in a projected savings of $55 million in office real estate costs.
- USDA’s National Agricultural Statistics Service will reduce its footprint from 43 state offices across the country to 12 regional locations which will create significant savings. Through the efforts to-date, the agency is projected to save more than $700,000 in annual real estate costs.
- HHS will improve space efficiencies, reduce the agency’s footprint, and save the federal government more than $15 million in real estate costs over a ten year lease.
GSA’s Total Workplace will also allow FWS to eliminate 72,200 square feet, saving taxpayers more than $3 million in annual real estate costs.
“We are replacing buildings built around hierarchies from an era where people used the telegraph with workspaces more suited to today’s world,” said GSA Administrator Dan Tangherlini. “The kind of open office environment that Total Workplace creates encourages collaboration and cooperation that in turn leads to better services for the American people. By using our space more efficiently, we also save valuable taxpayer dollars.”
“Total Workplace gives federal workers access to the technology they need to accomplish their missions not only effectively, but also efficiently. Today’s workforce demands the tools necessary to work anywhere, anytime. Reducing the federal footprint gives agencies appropriate work spaces to get the job done together, while encouraging mobility,” said Charles Hardy, GSA’s Chief Total Workplace Officer.
GSA is leading workplace transformation with the renovation of its own headquarters in Washington, DC. GSA was able to collapse a number of leases in the region and bring those employees into the renovated headquarters, allowing it to go from 2,200 to 3,300 employees. By consolidating GSA employees into a single facility, the agency is eliminating $24.4 million in annual lease payments. The renovation also includes high-performance green building initiatives, such as photovoltaic rooftop arrays; an underground cistern to recapture and reuse rainwater/grey water; a green roof; solar hot water panels; high efficiency mechanical systems; and daylight harvesting.
GSA Transforming the Government Workplace, Saving Agencies Millions
Initiative to do away with “Mad Men” style offices, modernize the federal government
Full service offerings include design, technology, furnishings to cut office space, reduce costs and increase collaboration
Washington, DC -- Today, the U.S. General Services Administration (GSA) launched a comprehensive service to create a 21st century workplace throughout the federal government. GSA’s Total Workplace initiative provides resources and expertise to help federal agencies reduce their office space, foster collaboration, better manage IT spending, and increase energy efficiency. In a time of shrinking budgets, the initiative is already saving taxpayer dollars and helping customer agencies better serve the American people. The U.S. Departments of Agriculture (USDA), Health and Human Services (HHS), Homeland Security (DHS), and the U.S. Fish and Wildlife Service (FWS) have announced today that they have joined the Total Workplace program and are on their way to realizing significant savings and reducing their real estate footprint. The effort will also help agencies meet Obama Administration goals to cut greenhouse gas emissions and energy costs, including the freeze the federal footprint directive.
GSA has been meeting with agencies throughout the federal government to lay out the benefits of this program. Here's how GSA’s Total Workplace is already delivering savings and cost avoidance for federal agencies and the American people:
- At DHS, a reduction of rented space with subleasing, increased teleworking and the adoption of desk sharing, has allowed the agency to begin reducing its real estate footprint, resulting in a projected savings of $55 million in office real estate costs.
- USDA’s National Agricultural Statistics Service will reduce its footprint from 43 state offices across the country to 12 regional locations which will create significant savings. Through the efforts to-date, the agency is projected to save more than $700,000 in annual real estate costs.
- HHS will improve space efficiencies, reduce the agency’s footprint, and save the federal government more than $15 million in real estate costs over a ten year lease.
GSA’s Total Workplace will also allow FWS to eliminate 72,200 square feet, saving taxpayers more than $3 million in annual real estate costs.
“We are replacing buildings built around hierarchies from an era where people used the telegraph with workspaces more suited to today’s world,” said GSA Administrator Dan Tangherlini. “The kind of open office environment that Total Workplace creates encourages collaboration and cooperation that in turn leads to better services for the American people. By using our space more efficiently, we also save valuable taxpayer dollars.”
“Total Workplace gives federal workers access to the technology they need to accomplish their missions not only effectively, but also efficiently. Today’s workforce demands the tools necessary to work anywhere, anytime. Reducing the federal footprint gives agencies appropriate work spaces to get the job done together, while encouraging mobility,” said Charles Hardy, GSA’s Chief Total Workplace Officer.
GSA is leading workplace transformation with the renovation of its own headquarters in Washington, DC. GSA was able to collapse a number of leases in the region and bring those employees into the renovated headquarters, allowing it to go from 2,200 to 3,300 employees. By consolidating GSA employees into a single facility, the agency is eliminating $24.4 million in annual lease payments. The renovation also includes high-performance green building initiatives, such as photovoltaic rooftop arrays; an underground cistern to recapture and reuse rainwater/grey water; a green roof; solar hot water panels; high efficiency mechanical systems; and daylight harvesting.
SEC CHARGES OWNER NY ADVISORY FIRM WITH INSIDER TRADING IN ADVANCE OF MERGERS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged the owner of a New York-based advisory firm with insider trading in his own account and client accounts based on non-public information in advance of a merger announcement by pharmaceutical companies.
The SEC alleges that Tibor Klein, who lives on Long Island and is president of Klein Financial Services, learned confidential information about Pfizer Inc.'s planned acquisition of King Pharmaceuticals. He misappropriated the information and traded in advance of the public announcement for illicit profits of more than $300,000 for himself and his clients.
The SEC also charged Klein's close friend Michael Shechtman, a stockbroker living in South Florida who was tipped by Klein and traded on the non-public information for more than $100,000 in illegal profits.
According to the SEC's complaint filed in U.S. District Court for the Southern District of Florida, Klein learned material, non-public information about the impending merger in August 2010 from one of his clients - an attorney who works on matters for King Pharmaceuticals. On August 16 - the first day that the markets opened after he learned the confidential information - Klein began purchasing large amounts of King Pharmaceuticals' stock. Klein had not purchased so many securities of an individual stock for so many clients in such a short time period in 2010 as he did when he made these purchases.
The SEC alleges that Klein then went one step further and tipped his best friend, Shechtman, with the non-public information about King Pharmaceuticals. Klein and Shechtman speak often but rarely more than once a day. But Klein called Shechtman six times on August 16, when Shechtman submitted an application to open an options trading account and handwrote "Please expedite ASAP" at the top of the form. Shechtman had never before traded in options. On August 18, Klein called Shechtman 11 more times as Shechtman purchased 2,500 shares of King Pharmaceuticals stock and 300 call options in his personal account, and 2,400 shares in his wife's Roth IRA account.
According to the SEC's complaint, the public announcement was made on Oct. 12, 2010. King Pharmaceuticals stock subsequently rose 39 percent and trading volume increased by more than 12,000 percent from the previous day. Following the announcement, Klein sold his King Pharmaceuticals stock and generated profits of $328,375.02 for himself and his clients. Shechtman sold his shares and his wife's share in King Pharmaceuticals stock and options for profits of $109,040.53.
The SEC's complaint charges Klein and Shechtman with violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3. The SEC seeks disgorgement of ill-gotten gains, financial penalties, and permanent injunctive relief against Klein and Shechtman to enjoin them from future violations of the federal securities laws.
The SEC's investigation was conducted by Rachel K. Paulose and supervised by Elisha L. Frank in the Miami Regional Office. The SEC's litigation will be led by Robert K. Levenson. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Chicago Board Options Exchange.
The Securities and Exchange Commission today charged the owner of a New York-based advisory firm with insider trading in his own account and client accounts based on non-public information in advance of a merger announcement by pharmaceutical companies.
The SEC alleges that Tibor Klein, who lives on Long Island and is president of Klein Financial Services, learned confidential information about Pfizer Inc.'s planned acquisition of King Pharmaceuticals. He misappropriated the information and traded in advance of the public announcement for illicit profits of more than $300,000 for himself and his clients.
The SEC also charged Klein's close friend Michael Shechtman, a stockbroker living in South Florida who was tipped by Klein and traded on the non-public information for more than $100,000 in illegal profits.
According to the SEC's complaint filed in U.S. District Court for the Southern District of Florida, Klein learned material, non-public information about the impending merger in August 2010 from one of his clients - an attorney who works on matters for King Pharmaceuticals. On August 16 - the first day that the markets opened after he learned the confidential information - Klein began purchasing large amounts of King Pharmaceuticals' stock. Klein had not purchased so many securities of an individual stock for so many clients in such a short time period in 2010 as he did when he made these purchases.
The SEC alleges that Klein then went one step further and tipped his best friend, Shechtman, with the non-public information about King Pharmaceuticals. Klein and Shechtman speak often but rarely more than once a day. But Klein called Shechtman six times on August 16, when Shechtman submitted an application to open an options trading account and handwrote "Please expedite ASAP" at the top of the form. Shechtman had never before traded in options. On August 18, Klein called Shechtman 11 more times as Shechtman purchased 2,500 shares of King Pharmaceuticals stock and 300 call options in his personal account, and 2,400 shares in his wife's Roth IRA account.
According to the SEC's complaint, the public announcement was made on Oct. 12, 2010. King Pharmaceuticals stock subsequently rose 39 percent and trading volume increased by more than 12,000 percent from the previous day. Following the announcement, Klein sold his King Pharmaceuticals stock and generated profits of $328,375.02 for himself and his clients. Shechtman sold his shares and his wife's share in King Pharmaceuticals stock and options for profits of $109,040.53.
The SEC's complaint charges Klein and Shechtman with violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3. The SEC seeks disgorgement of ill-gotten gains, financial penalties, and permanent injunctive relief against Klein and Shechtman to enjoin them from future violations of the federal securities laws.
The SEC's investigation was conducted by Rachel K. Paulose and supervised by Elisha L. Frank in the Miami Regional Office. The SEC's litigation will be led by Robert K. Levenson. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Chicago Board Options Exchange.
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