Wednesday, October 9, 2013

U.S. CYBER COMMAND CONCERNED OVER MORALE OF CYBERSECURITY WORKFORCE

FROM:  U.S. DEFENSE DEPARTMENT
Shutdown Hurts Morale, Top Cyber Commander Says
By Claudette Roulo
American Forces Press Service

WASHINGTON, Oct. 8, 2013 - The morale of the cybersecurity workforce is being damaged by the government shutdown, the nation's top cyber commander said here today.

"What these people take an oath to do is to protect and defend this country and our civil liberties and privacy, and we're telling them to stay at home," said Army Gen. Keith B. Alexander, commander of U.S. Cyber Command and director of the National Security Agency.

"How do you get good talent to come to government when you treat them like that?" he asked an audience of cybersecurity professionals during a conference at the Newseum.

The NSA is still performing its most critical functions: terrorism-related missions and those that protect life and limb, the general said. But, he noted, due to the shutdown the agency risks losing some of its most vulnerable employees -- young people new to government service.

The loss of trust in the NSA caused by recent leaks has further damaged employee morale, Alexander said.

"We need the facts on the table so that we can make informed decisions about our future in defending our nation and protecting our civil liberties and privacy. ... We need to inform the debate," he said.

The general said that if Americans understood the oversight and compliance that governs NSA's collection of data, they would realize that the United States is better than any other country in the world at protecting civil liberties and privacy.

"Ours is a noble cause," he said.

Alexander said he believes it's in the nation's best interests to put phone data into a repository in such a way that Americans can be confident that the data isn't being misused – "that you have confidence that the oversight compliance and the ways that we look at it -- the auditing and the controls -- is exactly right," he said.

This type of bulk data collection is necessary to ensure that there won't be another terrorist attack on U.S. soil, Alexander said.

"We made a commitment that 9/11 would never happen again," he said. "And one of the reasons it happened is because we didn't have a database like this. We didn't have a repository that would allow us to connect the dots."

The intelligence community was found lacking by the 9/11 Commission, the general said, and in response it came up with the tools it needed to prevent it from happening again.

Alexander said he is open to the idea of an examination of the oversight and compliance controls on the NSA's collection and use of data. But, he said, it should be done carefully to prevent the nation from a painful re-learning of the lessons of 9/11.

"If we don't know there's a threat, we can't stop it," he said. "Don't put us back to the beginning."

FISHER HOUSE TO AID IN PAYING DEATH BENEFITS FOR TROOPS

FROM:  U.S. DEFENSE DEPARTMENT 
Fisher House Steps Forward to Aid DOD in Paying Death Benefits
By Jim Garamone
American Forces Press Service

WASHINGTON, Oct. 9, 2013 - The Fisher House Foundation has stepped in to aid the Defense Department so families of fallen service members can receive the full set of benefits they have been promised, Defense Secretary Chuck Hagel said here today.

The Fisher House Foundation and DOD entered an agreement that includes the $100,000 death gratuity payment.

"I am offended, outraged, and embarrassed that the government shutdown had prevented the Department of Defense from fulfilling this most sacred responsibility in a timely manner," Hagel said in a written statement.

In the weeks before the shutdown, defense officials had warned Congress that the ability to pay death benefits to grieving families would run out when the appropriations lapsed.

"The Department of Defense informed Congress that the department would be legally unable to pay death benefits were there to be a lapse in DOD appropriations," White House press secretary Jay Carney said during his daily briefing today.

The issue was not explicitly addressed as part of the Pay Our Military Act. "The president was very disturbed to learn of this problem, and he directed the Department of Defense to work with the Office of Management and Budget and his lawyers to develop a possible solution and he expects this ... to be fixed today," Carney said.

Since the shutdown began Oct. 1, DOD budget officials looked at options to continue these benefits, Hagel said. "Even under the Pay Our Military Act, we found that we lacked the necessary authority to make payments to the families directly," the secretary said.

The Fisher House Foundation offered to make payments to these families from its own funds, and OMB officials determined DOD can enter into a contract with the Fisher House Foundation to provide these benefits.

"The Fisher House Foundation will provide the families of the fallen with the benefits they so richly deserve," Hagel said. "After the shutdown ends, DOD will reimburse the Fisher House for the costs it has incurred."

The Fisher House Foundation is best known for the houses built on the grounds of major military and VA medical centers nationwide and in Europe. Families of wounded or hospitalized service members stay at the houses as their loved ones undergo hospitalization for a combat injury, illness or disease.

A total of 26 service members have died since Oct. 1, including five killed in combat in Afghanistan. The $100,000 death gratuity comes from appropriated funds, and DOD could not obligate funds once the fiscal year 2013 appropriation ran out. The department also cannot pay the benefit that provides 12 months of basic allowance for housing, as that money also comes via appropriated funds.

"The department has no higher priority than taking care of our service members and their families," Hagel said. "Congress has responsibilities as well, and it has abdicated them.

"Along with the rest of the department's leaders," he continued, "I will continue to work every day to address the very real impact that the government shutdown is having on our people, and I once again call on Congress to fulfill its basic responsibilities and restore funding for the federal government."


MAN ADMITS TO CONSPIRING WITH ORGANIZED CRIME FAMILY

FROM:  U.S. JUSTICE DEPARTMENT CONSPIRACY 
Monday, September 30, 2013
Pennsylvania Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud Scheme

A Pennsylvania man today admitted he conspired to defraud FIRSTPLUS Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey made the announcement.

Cory Leshner, 30, pleaded guilty before U.S. District Judge Robert B. Kugler in a federal court in Camden, N.J., to a superseding information charging him with conspiracy to commit wire fraud. He faces a maximum of five years in prison when he is sentenced on Jan. 17, 2014.

According to documents filed in this case and statements made in court, Leshner and 12 others – including Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy that included acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice.  The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators.  A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state.  Cory Leshner admitted that he joined the conspiracy in April 2007.

Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies as part of the scheme to defraud FPFG.  Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme.  The money involved proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme.  The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007.  The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.

According to his court statements, Leshner was a law student during the scheme.  Leshner graduated from law school in 2009 and became an attorney in Pennsylvania in 2011.  As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence.  Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.

Scarfo, Pelullo, and five other defendants charged in November 2011 – including attorneys William Maxwell, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013.  Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.

This case was investigated by the FBI; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the U.S. Securities and Exchange Commission. The case is being prosecuted by Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden.

With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

UPDATE ON GOVERNMENT SHUTDOWN FROM SERVICE LEADERS

FROM:  U.S. DEFENSE DEPARTMENT 
Hagel Receives Update on Shutdown From Service Leaders
American Forces Press Service

WASHINGTON, Oct. 8, 2013 - The Defense Department's top leadership, including the service secretaries and service chiefs, updated Defense Secretary Chuck Hagel yesterday on the impact of the ongoing government shutdown, Pentagon officials reported.

In a statement summarizing the meeting, officials said Hagel is pleased that most DOD civilians are returning to work this week, and that he thanked the service leadership for quickly implementing the guidance issued over the weekend regarding furloughs.

All of the leaders noted that despite the recall of most civilians and the resumption of many activities, critical programs and benefits remain halted, officials said. For example, they noted, the department does not have the authority to pay death gratuities for the survivors of service members killed in action -- typically, a cash payment of $100,000 paid within three days of the service member's death.

In addition, officials said, emergency funding that supports commanders on the ground and intelligence activities remains unavailable, and service leaders reported that they are further curtailing training for later deploying units -- an activity that already had been reduced due to sequestration spending cuts.

Hagel assured the service leaders that he would work closely with them to address these challenges, and support the service members and families affected by these disruptions, officials said. He expressed his continued concern for the morale and welfare of DOD's civilian employees, who have endured unprecedented uncertainty this year and suffered losses in pay, they added.

The secretary will continue to receive regular updates and review authorities to expend funds during this lapse in appropriations, the statement said.

READOUT: SECRETARY OF DEFENCE HAGEL'S MEETING WITH ISRAELI DEFENSE MINISTER MOSHE YA'ALON

FROM:  U.S. DEFENSE DEPARTMENT
Readout of Secretary Hagel's Meeting with Minister of Defense Moshe Ya'alon


Secretary Hagel met with Israeli Minister of Defense Moshe Ya'alon earlier today at the Pentagon for their third face to face meeting in the past six months. Both leaders expressed appreciation for the opportunity to frequently share views on the range of regional security challenges the United States and Israel are facing together.



On Iran, Secretary Hagel noted that while the United States intends to test the prospect for a diplomatic solution with Iran we remain clear eyed about the challenges ahead and will not waver from our firm policy to prevent Iran from obtaining nuclear weapons.



Secretary Hagel applauded the announcement by the Organization for the Prohibition of Chemical Weapons that the destruction of chemical weapons in Syria has started. While much works remains to be done, this recent progress is a step in the right direction to eliminating this threat.



The leaders also discussed progress on the United States effort to increase Israel's qualitative military edge with advanced capabilities that Secretary Hagel announced on his visit to Israel earlier this year.



Both Secretary Hagel and Minister Ya'alon thanked one another for continued unprecedented levels of security cooperation between the United States and Israel and pledged to remain in close touch.

PENTAGON SAYS U.S. CONTINUES TO CONFRONT TERRORISM

FROM:  U.S. DEFENSE DEPARTMENT 
Press Secretary: U.S. Will Continue Confronting Terrorist Threat
American Forces Press Service

WASHINGTON, Oct. 7, 2013 - The U.S. military can put pressure on the al-Shabaab terrorist organization's leadership whenever it so chooses, Pentagon Press Secretary George Little said today.

In a statement, Little said U.S. military personnel conducted a targeted operation the night of Oct. 4 against Abdikadir Mohamed Abdikadir, known as "Ikrima," a Kenyan of Somali origin.

Ikrima is a top commander in the terrorist group al-Shabaab, an al-Qaida affiliate, the press secretary said. He is closely associated with now-deceased al-Qaida operatives Harun Fazul and Saleh Nabhan, who played roles in the 1998 bombing of the U.S. Embassy in Nairobi, Kenya, he added, and in the 2002 attacks on a hotel and airline in Mombassa, Kenya, that resulted in the deaths of Kenyan and Israeli citizens, including children.

The goal of the operation was to capture Ikrima under legal authorities granted to the Defense Department by the 2001 authorization to use military force against al-Qaida and its associated forces, Little said.

"While the operation did not result in Ikrima's capture," he added, "U.S. military personnel conducted the operation with unparalleled precision and demonstrated that the United States can put direct pressure on al-Shabaab leadership at any time of our choosing."

Working in partnership with Somalia's government, the press secretary said, the U.S. military will continue to confront the threat posed by al-Shabaab.

"The United States military has unmatched capabilities and could rely on any of them to disrupt terrorist networks and plots," he added.

Tuesday, October 8, 2013

SECRETARY OF STATE KERRY'S MEETING WITH MISSION STAFF IN INDONESIA

FROM:  U.S. STATE DEPARTMENT 
Secretary Kerry Meets With Mission Indonesia Staff
Remarks
John Kerry
Secretary of State
Grand Hyatt Bali
Bali, Indonesia
October 8, 2013

SECRETARY KERRY: Hello.

MS. BAUER: Welcome.

SECRETARY KERRY: Hi, Kristen. How are you? Nice to see you.

MS. BAUER: Hi, I’m well. Well, let me welcome everyone.

SECRETARY KERRY: Like an interview here. “How are you?” “I’m fine.” Right. (Laughter.)

MS. BAUER: As many of you know, I’m from Boston, Massachusetts, so it gives me special pleasure to introduce to you the man who represented my state for 28 years in the U.S. Senate. He’s of course our Secretary of State and has led us through this very successful APEC. Please join me in welcoming Secretary Kerry.

SECRETARY KERRY: Thank you, Kristen. Thank you very, very much. (Applause.) I’m too far away here. I don’t want to come – I can’t even see you with these bright lights. Am I screwing up? Is this all right? It’s okay, you can do that? Now I feel closer, and this is like I’m talking to people. How are you?

AUDIENCE: Good.

SECRETARY KERRY: That’s fantastic. Isn’t it great that she’s from Boston, Massachusetts? (Laughter.) Yeah, I know. That’s not loud enough – yes, it’s great! I want to hear. (Cheers.) Anyway, I want you to know – she doesn’t know this, but she had the job that my father had at the Embassy in Oslo, Norway.

MS. BAUER: Oh, no, I didn’t know that.

SECRETARY KERRY: See? She was the political counselor there, political and economic affairs. And years ago, when I was in my teens, my dad was stationed as a Foreign Service Officer in Norway for a while, which we loved, and I’m sure you did too. Wasn’t it great? Yeah, it was fabulous.

Anyway, I am really happy to be here. And this also deserves applause - she just got promoted to Minister-Counselor, so that’s fabulous. (Applause.) Really excellent. And she’s doing a fabulous job as our charge, and shortly, Ambassador Bob Blake will be here as we get Washington doing what Washington is supposed to do, which is send people out to work and pay them, right, when they do it. It’s not a bad idea. By the way, did you all order your turkeys, those of you who – (laughter) – I know this is – you got your order in, didn’t you? I'm sorry, but I know you've been here working really hard. Thank you.

I guess it’s hard coming to Bali. Was it? (Laughter.) Whoa. Who’s laughing about that one? I know what goes into this. It’s really a tremendous amount of work, a conference like this. Thank you for making it really easy. Everything just worked so well. This is really one of the best international meetings I’ve been to, and I heard a lot of the other leaders saying how organized they thought it was and how effective. So we’re really grateful to all of you. Thank you very, very much, Embassy Jakarta, for doing so much for us here.


And thank you for – I know it was really hard when you were chosen to come to Bali for a few days, and you groaned and said, “I don’t want to,” right? No. You’re all happy, and I know it’s great. Did you get any time off? Anybody get to the beach? None at all? (Laughter.) We worked – all right.

PARTICIPANT: (Off-mike.)

SECRETARY KERRY: I beg your pardon.

PARTICIPANT: To breathe for a little bit.

SECRETARY KERRY: To breathe only a little bit. Well, thank you very, very much. I mean that. This is a special place. It’s pretty incredible to come out here. As I said the other day when I gave a speech that I worked very hard in 2004 to replace a president of the United States, but this is not what I had in mind coming here. (Laughter.) And I know President Obama very, very much regrets not being able to be here, but for all the obvious reasons, he’s back home and focused on the debt crisis and on the question of the government shutdown as he ought to be.

And I apologize to all of you. I am sorry for all the disruption, I’m sorry for the questions that it raises and that you have to answer about what’s going on in our government and at home, and I am particularly sorry that many of you are facing difficulties in terms of pay and what is going to happen over these next months and big question marks. So my apologies to you for what is not being decided and what is not happening that should be.

Obviously it was on the minds of many of the leaders that I met with and talked to, but I am convinced and I do believe that when we get beyond this, the presence of the United States in this region will be as strong as ever, that we will continue to do the rebalance to Asia. We are focused on this; we worked at length today on the TPP. We had a very strong meeting with very good results, and I promise all of you that your hard work and your devotion and commitment to this effort will pay off in the long run. So thank you very, very much for what you’re doing.

On another level, it is amazing to be in a country where so many young kids run around wearing a t-shirt with the President of the United States on it. It’s pretty amazing, and to have a president who can speak some local dialect and who has the kind of connection that he has here, you can just feel it in my conversations with the President that there’s a pride, and there’s a real sense of connection to the United States of America. And our relationship with Indonesia today because of the work that all of you do, because of the relationship with the President, because of the work that Indonesia has done with the United States in terms of environment, economy, our relationship, our security interests, military-to-military, all of these things are working really, frankly, better than they ever have. I’d say the relationship with Indonesia is as strong as it’s ever been and growing stronger.

So I thank every single one of you for being here. I think we have about 276 Americans assigned to the Embassy in Jakarta and about 1,400 or so local staff. All the local staff, raise your hands, please, those of you who are local. Thank you profoundly from all of us. (Applause.) We’re very, very grateful to you. Thank you very, very much.

So I want you to continue to be the optimists that brought you to this kind of mission in the first place. You’re all people who believe in making a difference. You believe in helping countries to come together, people to come together, bridge the gaps, create stability, build a future for all of us not just as Americans, but as global citizens, and I thank you very, very much for caring about that and being part of this great adventure. I look forward to saying hello to all of you now personally. Thank you very, very much. Look forward to it. (Applause.)

TRANS-PACIFIC PARTNERSHIP AGREEMENT

FROM:  THE WHITE HOUSE  
Trans-Pacific Partnership Leaders Statement

We, the Leaders of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam, are pleased to announce today that our countries are on track to complete the Trans-Pacific Partnership negotiations.  Ministers and negotiators have made significant progress in recent months on all the legal texts and annexes on access to our respective goods, services, investment, financial services, government procurement, and temporary entry markets.  We have agreed that negotiators should now proceed to resolve all outstanding issues with the objective of completing this year a comprehensive and balanced, regional agreement that achieves the goals we established in Honolulu in 2011, ensures the benefits of the agreement are fully shared, and takes into account the diversity of our levels of development.

A final Trans-Pacific Partnership agreement must reflect our common vision to establish a comprehensive, next-generation model for addressing both new and traditional trade and investment issues, supporting the creation and retention of jobs and promoting economic development in our countries.  The deepest and broadest possible liberalization of trade and investment will ensure the greatest benefits for countries’ large and small manufacturers, service providers, farmers, and ranchers, as well as workers, innovators, investors, and consumers.

We see the Trans-Pacific Partnership, with its high ambition and pioneering standards for new trade disciplines, as a model for future trade agreements and a promising pathway to our APEC goal of building a Free Trade Area of the Asia Pacific.  We are encouraged by the growing interest in this important negotiation and are engaging with other Asia-Pacific countries that express interest in the TPP regarding their possible future participation.

Stakeholders across the region have provided valuable input to TPP negotiating teams both on-site at rounds and in our respective countries.  As we work to conclude these negotiations, we will further intensify consultations with stakeholders to craft a final agreement that appropriately addresses the interests of our citizens. We look forward to review and consideration of the outcome of our work, consistent with each of our domestic processes.

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