Sunday, October 20, 2013
JUSTICE REPORTS SHUTDOWN OF TAX PREPARATION FIRM FOR IMPROPER REPORTING OF FINANCIAL LOSSES
FROM: U.S. JUSTICE DEPARTMENT
Friday, October 18, 2013
Columbus, Ohio, Tax Return Preparation Firm with Large Portion of Elderly Customers Shut Down
A federal court in Columbus, Ohio, has permanently barred Tobias Elsass and his companies, “Fraud Recovery Group Inc.” and “Sensible Tax Services Inc.,” from preparing federal tax returns, promoting the availability of theft loss deductions, or engaging in any other tax-related business in the future. The Court found that Elsass and Fraud Recovery Group have continually and repeatedly promoted a nationwide scheme falsely informing their customers that they were entitled to claim large theft loss tax deductions, and then preparing the tax returns that improperly claimed such deductions. The civil injunction order was signed yesterday by Judge Peter C. Economus of the U.S. District Court for the Southern District of Ohio.
Elsass serves as president and founder of Fraud Recovery Group and Sensible Tax Services. The district court found that Elsass and his companies promoted a scheme that preyed largely on elderly investors across the United States who had suffered financial losses. Elsass and his companies told the investors that they could deduct their financial losses on their federal income tax returns in an advantaged way and receive large refunds. Under federal tax law, victims of truly fraudulent investment schemes, such as a Ponzi scheme, may properly deduct their financial losses as thefts only if they can substantiate that the losses were, among other things, the product of criminal conduct.
In its opinion, the court concluded that Elsass misled his elderly investor customers into believing that they had valid theft loss deductions, thereby inducing them to pay him and his companies to prepare and file amended tax returns. The opinion notes that hundreds of theft loss deductions claimed on tax returns prepared by Elsass and his companies were improper, because the financial losses they sought to deduct were merely the result of company mismanagement instead of criminal conduct – as Elsass knew. Elsass and his companies were also aware that the Internal Revenue Service (IRS) was disallowing such claims, but filed similar claims for other investor customers in any event, in the hope that the later filings would escape IRS scrutiny. The court found that, as a result of such egregious conduct, Elsass and his companies potentially left their investor customers subject “to audits and scrutiny from the IRS.”
The court also determined that Elsass had intentionally engaged in “incompetent or disreputable” behavior not becoming a tax professional. Based on the record before it, the court found that Elsass seemed “perfectly willing to lie and deceive, even to the extent of possibly committing perjury, in order to advance his own interests.” Accordingly, the “sheer magnitude and variety of the Defendants’ transgressions” made permanent injunctive relief appropriate.
The court directed that FRG be closed and its operations terminated. The court’s injunction order permanently bars Elsass from engaging in any business relating to providing tax advice or the preparation of tax returns. Elsass and his companies are also prohibited from owning any interest in, operating, incorporating, working for or having any other association with any tax-related business in the future, and they must immediately divest any ownership interest they presently have with any such entities. The court’s order also requires Elsass and his companies to advise their existing customers of the injunction’s terms, and to provide the Government with a list of all current customers.
Friday, October 18, 2013
Columbus, Ohio, Tax Return Preparation Firm with Large Portion of Elderly Customers Shut Down
A federal court in Columbus, Ohio, has permanently barred Tobias Elsass and his companies, “Fraud Recovery Group Inc.” and “Sensible Tax Services Inc.,” from preparing federal tax returns, promoting the availability of theft loss deductions, or engaging in any other tax-related business in the future. The Court found that Elsass and Fraud Recovery Group have continually and repeatedly promoted a nationwide scheme falsely informing their customers that they were entitled to claim large theft loss tax deductions, and then preparing the tax returns that improperly claimed such deductions. The civil injunction order was signed yesterday by Judge Peter C. Economus of the U.S. District Court for the Southern District of Ohio.
Elsass serves as president and founder of Fraud Recovery Group and Sensible Tax Services. The district court found that Elsass and his companies promoted a scheme that preyed largely on elderly investors across the United States who had suffered financial losses. Elsass and his companies told the investors that they could deduct their financial losses on their federal income tax returns in an advantaged way and receive large refunds. Under federal tax law, victims of truly fraudulent investment schemes, such as a Ponzi scheme, may properly deduct their financial losses as thefts only if they can substantiate that the losses were, among other things, the product of criminal conduct.
In its opinion, the court concluded that Elsass misled his elderly investor customers into believing that they had valid theft loss deductions, thereby inducing them to pay him and his companies to prepare and file amended tax returns. The opinion notes that hundreds of theft loss deductions claimed on tax returns prepared by Elsass and his companies were improper, because the financial losses they sought to deduct were merely the result of company mismanagement instead of criminal conduct – as Elsass knew. Elsass and his companies were also aware that the Internal Revenue Service (IRS) was disallowing such claims, but filed similar claims for other investor customers in any event, in the hope that the later filings would escape IRS scrutiny. The court found that, as a result of such egregious conduct, Elsass and his companies potentially left their investor customers subject “to audits and scrutiny from the IRS.”
The court also determined that Elsass had intentionally engaged in “incompetent or disreputable” behavior not becoming a tax professional. Based on the record before it, the court found that Elsass seemed “perfectly willing to lie and deceive, even to the extent of possibly committing perjury, in order to advance his own interests.” Accordingly, the “sheer magnitude and variety of the Defendants’ transgressions” made permanent injunctive relief appropriate.
The court directed that FRG be closed and its operations terminated. The court’s injunction order permanently bars Elsass from engaging in any business relating to providing tax advice or the preparation of tax returns. Elsass and his companies are also prohibited from owning any interest in, operating, incorporating, working for or having any other association with any tax-related business in the future, and they must immediately divest any ownership interest they presently have with any such entities. The court’s order also requires Elsass and his companies to advise their existing customers of the injunction’s terms, and to provide the Government with a list of all current customers.
FORMER QUALCOMM EXECUTIVE CHARGED WITH INSIDER TRADING BY SEC
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Former Qualcomm Executive and His Financial Advisor with Insider Trading Through Secret Offshore Accounts
The Securities and Exchange Commission today charged a former executive vice president at Qualcomm Inc. and his former financial advisor with insider trading ahead of major announcements by the San Diego-based wireless technology company for more than a quarter-million dollars in profits.
The SEC alleges that Jing Wang, a former executive vice president and president of global business operations at Qualcomm, used a secret offshore brokerage account to make illegal trades based on confidential information that he learned on the job. Gary Yin, a former registered representative at Merrill Lynch, helped Wang set up the account. Yin also created a secret offshore account of his own and traded on the non-public information gleaned from Wang. When Wang eventually realized that insider trading in the offshore accounts still may be discovered by the SEC or other regulators, he concocted a plan to conceal his trading activity by claiming the trades were made by his brother. Wang even convinced Yin to travel to China and go over the account statements with Wang’s brother so he could explain the trades if asked by investigators.
In a parallel action, the U.S. Attorney’s Office for the Southern District of California today announced criminal charges against Wang and Yin.
According to the SEC’s complaint, Wang and Yin became friends in 2005 as members of the same church. When Wang learned that Yin was a financial advisor at Merrill Lynch, he asked Yin to manage his money and opened a number of brokerage accounts at the firm’s San Diego branch office. Each account was disclosed to Qualcomm because, as a company officer, Wang was restricted in his ability to trade Qualcomm stock and required to pre-clear all Qualcomm trades with the company.
The SEC alleges that in early 2006, Wang approached Yin about hiding cash transactions. Yin suggested that Wang create an entity registered in the British Virgin Islands (BVI) and use the name of a non-U.S. citizen family member as the beneficial owner. Then he could open a brokerage account in the newly created entity’s name. Yin then helped Wang set up a secret account in the name of a BVI company called Unicorn Global Enterprises, and Wang’s older brother was listed as the owner. Yin similarly created his own BVI-registered entity named Pacific Rim and put it in his mother-in-law’s name. Yin opened a Merrill Lynch brokerage account for Pacific Rim and used it to hide funds that he was using for investments.
The SEC alleges that Wang and Yin used their secret offshore accounts to trade on material, non-public information that Wang learned as an executive at Qualcomm. In early 2010, Wang was aware that Qualcomm executives were planning a board proposal to increase Qualcomm’s quarterly dividends and request authority to initiate a stock repurchase program. Qualcomm informed Wang and all executives that they would not be permitted to trade Qualcomm stock. On March 1, Wang attended a Qualcomm board meeting where the quarterly dividend increase and stock repurchase were approved. Wang immediately instructed Yin to use all of the funds in the offshore Unicorn account to purchase Qualcomm stock. Yin knew that Wang did not pre-clear these trades and realized that the purchase was out of character for Wang because he previously never purchased Qualcomm stock on the open market in his Merrill Lynch accounts. Within the hour of executing the trades for Wang, Yin himself bought Qualcomm stock on the basis of the material, non-public information. The stock price increased 6.7 percent after Qualcomm publicly announced the quarterly cash dividend and stock repurchase program. Wang and Yin profited when they sold all of their shares.
According to the SEC’s complaint, Wang used the funds from that sale to conduct insider trading again – this time in the shares of San Jose-based Atheros Communications, which was the highly confidential target of a planned acquisition by Qualcomm. Wang was regularly briefed on the transaction internally tabbed as “Project Tango” to protect its confidentiality. Wang instructed Yin to sell all of his Qualcomm stock in the Unicorn account on Dec. 2, 2010, and prepare to buy as many shares of Atheros stock as possible with the funds in that account. He told Yin that he was leaving on a trip to China and would contact him to execute the Atheros trade. On December 6, Wang attended a Qualcomm board meeting in Hong Kong and a resolution was passed to pursue the acquisition. Wang learned that Qualcomm planned to acquire Atheros at $45 per share. Wang and Yin immediately communicated several times through phone calls and a text message, and Wang then purchased the maximum number of shares he could purchase with the existing funds in the Unicorn account at prices between $34 and $35 per share. At Wang’s encouragement, Yin also purchased Atheros stock for himself in his offshore account. When the news became public in early January, Atheros stock increased more than 20 percent. Yin sold all of his Atheros shares in the Pacific Rim account on January 12, and Wang sold his Atheros shares in the Unicorn account on January 25.
According to the SEC’s complaint, Wang took his next insider trading step merely four minutes after selling the Atheros stock, using the proceeds to purchase Qualcomm shares in advance of a company announcement that it would raise its revenue and earnings guidance for the 2011 fiscal year. Wang had learned the confidential information prior to the board meeting he attended in Hong Kong, where Qualcomm’s better-than-expected first quarter financial performance was further discussed. Wang learned that Qualcomm planned to announce its earnings results on January 26, and thus purchased his Qualcomm shares the day before the announcement. After Qualcomm issued a press release to announcing its positive first quarter results, Qualcomm’s stock increased 5.9 percent.
The SEC alleges that Wang made more than $244,000 in illegal profits through the insider trading scheme, and Yin realized gains of more than $27,000. Wang eventually realized that his illegal trading may be detected by Merrill Lynch or others. Wang first asked Yin to delete records of the trades in the Unicorn account, but because they were permanent records in Merrill Lynch’s systems they could not be erased. Around January 2012, Wang directed Yin to establish a new BVI corporation named Clearview Resources and open a new account at Merrill Lynch to which they transferred the insider trading proceeds in the Unicorn account to further distance Wang from the suspicious trades. A few months later, Wang informed Yin that the trades may have been detected because the SEC had subpoenaed his e-mails. So Wang devised a cover story and convinced Yin if ever questioned to say that the Atheros trades were made by Wang’s brother. Because Yin had never communicated with Wang’s brother, Wang instructed him to travel to China with the Unicorn account statements and review the trades with his brother so he could explain the trading if asked. Yin did so in May 2012. To further hide Wang’s ownership of the Unicorn account and his link to the Atheros trades, Yin removed the Unicorn account from Wang’s “household” in Merrill Lynch’s computer system in July 2012. “Householding” is a function used by Merrill Lynch to link related accounts.
The SEC's complaint charges Wang, who lives in Del Mar, Calif., with violating Sections 10(b) and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5 and 16a-3. Yin, who lives in San Diego, is charged with violating Section 10(b) of the Exchange Act and Rule 10b-5. The SEC’s complaint seeks disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions. The SEC also seeks an officer-and-director bar against Wang.
The SEC’s investigation has been conducted by Ann C. Kim, Wendy E. Pearson, Nina Yamamoto, and Finola H. Manvelian of the Los Angeles Regional Office. The SEC’s litigation will be led by Sam Puathasnanon. The SEC appreciates the assistance of the Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, and the Federal Bureau of Investigation.
SEC Charges Former Qualcomm Executive and His Financial Advisor with Insider Trading Through Secret Offshore Accounts
The Securities and Exchange Commission today charged a former executive vice president at Qualcomm Inc. and his former financial advisor with insider trading ahead of major announcements by the San Diego-based wireless technology company for more than a quarter-million dollars in profits.
The SEC alleges that Jing Wang, a former executive vice president and president of global business operations at Qualcomm, used a secret offshore brokerage account to make illegal trades based on confidential information that he learned on the job. Gary Yin, a former registered representative at Merrill Lynch, helped Wang set up the account. Yin also created a secret offshore account of his own and traded on the non-public information gleaned from Wang. When Wang eventually realized that insider trading in the offshore accounts still may be discovered by the SEC or other regulators, he concocted a plan to conceal his trading activity by claiming the trades were made by his brother. Wang even convinced Yin to travel to China and go over the account statements with Wang’s brother so he could explain the trades if asked by investigators.
In a parallel action, the U.S. Attorney’s Office for the Southern District of California today announced criminal charges against Wang and Yin.
According to the SEC’s complaint, Wang and Yin became friends in 2005 as members of the same church. When Wang learned that Yin was a financial advisor at Merrill Lynch, he asked Yin to manage his money and opened a number of brokerage accounts at the firm’s San Diego branch office. Each account was disclosed to Qualcomm because, as a company officer, Wang was restricted in his ability to trade Qualcomm stock and required to pre-clear all Qualcomm trades with the company.
The SEC alleges that in early 2006, Wang approached Yin about hiding cash transactions. Yin suggested that Wang create an entity registered in the British Virgin Islands (BVI) and use the name of a non-U.S. citizen family member as the beneficial owner. Then he could open a brokerage account in the newly created entity’s name. Yin then helped Wang set up a secret account in the name of a BVI company called Unicorn Global Enterprises, and Wang’s older brother was listed as the owner. Yin similarly created his own BVI-registered entity named Pacific Rim and put it in his mother-in-law’s name. Yin opened a Merrill Lynch brokerage account for Pacific Rim and used it to hide funds that he was using for investments.
The SEC alleges that Wang and Yin used their secret offshore accounts to trade on material, non-public information that Wang learned as an executive at Qualcomm. In early 2010, Wang was aware that Qualcomm executives were planning a board proposal to increase Qualcomm’s quarterly dividends and request authority to initiate a stock repurchase program. Qualcomm informed Wang and all executives that they would not be permitted to trade Qualcomm stock. On March 1, Wang attended a Qualcomm board meeting where the quarterly dividend increase and stock repurchase were approved. Wang immediately instructed Yin to use all of the funds in the offshore Unicorn account to purchase Qualcomm stock. Yin knew that Wang did not pre-clear these trades and realized that the purchase was out of character for Wang because he previously never purchased Qualcomm stock on the open market in his Merrill Lynch accounts. Within the hour of executing the trades for Wang, Yin himself bought Qualcomm stock on the basis of the material, non-public information. The stock price increased 6.7 percent after Qualcomm publicly announced the quarterly cash dividend and stock repurchase program. Wang and Yin profited when they sold all of their shares.
According to the SEC’s complaint, Wang used the funds from that sale to conduct insider trading again – this time in the shares of San Jose-based Atheros Communications, which was the highly confidential target of a planned acquisition by Qualcomm. Wang was regularly briefed on the transaction internally tabbed as “Project Tango” to protect its confidentiality. Wang instructed Yin to sell all of his Qualcomm stock in the Unicorn account on Dec. 2, 2010, and prepare to buy as many shares of Atheros stock as possible with the funds in that account. He told Yin that he was leaving on a trip to China and would contact him to execute the Atheros trade. On December 6, Wang attended a Qualcomm board meeting in Hong Kong and a resolution was passed to pursue the acquisition. Wang learned that Qualcomm planned to acquire Atheros at $45 per share. Wang and Yin immediately communicated several times through phone calls and a text message, and Wang then purchased the maximum number of shares he could purchase with the existing funds in the Unicorn account at prices between $34 and $35 per share. At Wang’s encouragement, Yin also purchased Atheros stock for himself in his offshore account. When the news became public in early January, Atheros stock increased more than 20 percent. Yin sold all of his Atheros shares in the Pacific Rim account on January 12, and Wang sold his Atheros shares in the Unicorn account on January 25.
According to the SEC’s complaint, Wang took his next insider trading step merely four minutes after selling the Atheros stock, using the proceeds to purchase Qualcomm shares in advance of a company announcement that it would raise its revenue and earnings guidance for the 2011 fiscal year. Wang had learned the confidential information prior to the board meeting he attended in Hong Kong, where Qualcomm’s better-than-expected first quarter financial performance was further discussed. Wang learned that Qualcomm planned to announce its earnings results on January 26, and thus purchased his Qualcomm shares the day before the announcement. After Qualcomm issued a press release to announcing its positive first quarter results, Qualcomm’s stock increased 5.9 percent.
The SEC alleges that Wang made more than $244,000 in illegal profits through the insider trading scheme, and Yin realized gains of more than $27,000. Wang eventually realized that his illegal trading may be detected by Merrill Lynch or others. Wang first asked Yin to delete records of the trades in the Unicorn account, but because they were permanent records in Merrill Lynch’s systems they could not be erased. Around January 2012, Wang directed Yin to establish a new BVI corporation named Clearview Resources and open a new account at Merrill Lynch to which they transferred the insider trading proceeds in the Unicorn account to further distance Wang from the suspicious trades. A few months later, Wang informed Yin that the trades may have been detected because the SEC had subpoenaed his e-mails. So Wang devised a cover story and convinced Yin if ever questioned to say that the Atheros trades were made by Wang’s brother. Because Yin had never communicated with Wang’s brother, Wang instructed him to travel to China with the Unicorn account statements and review the trades with his brother so he could explain the trading if asked. Yin did so in May 2012. To further hide Wang’s ownership of the Unicorn account and his link to the Atheros trades, Yin removed the Unicorn account from Wang’s “household” in Merrill Lynch’s computer system in July 2012. “Householding” is a function used by Merrill Lynch to link related accounts.
The SEC's complaint charges Wang, who lives in Del Mar, Calif., with violating Sections 10(b) and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5 and 16a-3. Yin, who lives in San Diego, is charged with violating Section 10(b) of the Exchange Act and Rule 10b-5. The SEC’s complaint seeks disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions. The SEC also seeks an officer-and-director bar against Wang.
The SEC’s investigation has been conducted by Ann C. Kim, Wendy E. Pearson, Nina Yamamoto, and Finola H. Manvelian of the Los Angeles Regional Office. The SEC’s litigation will be led by Sam Puathasnanon. The SEC appreciates the assistance of the Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, and the Federal Bureau of Investigation.
CDC OFFICIAL'S STATEMENT ON DEATH OF ANTI-SMOKING ACTIVIST NATHAN MOOSE
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION
Statement from Tim McAfee, Director, CDC’s Office on Smoking and Health on the passing of Nathan Moose, former Tips campaign ad participant.
We are deeply saddened by the passing of Nathan Moose, a valued member of CDC's Tips family. Nathan’s selfless and courageous dedication to ensuring that others would not suffer as he did saved many lives. He was a victim of cigarette smoking, although he never smoked.
Nathan worked for 11 years in a casino that allowed smoking, and the exposure to secondhand smoke permanently damaged his lungs and led to his untimely death. His health problems inspired him to take action to help protect not only his fellow Oglala Sioux, but also all Americans, and he especially wanted his message to impact young people.
In addition to participating in the Tips campaign, Nathan spoke at Pow-Wows, conferences, and schools to make people aware of the dangers of smoking and exposure to secondhand smoke. Nathan was only 54 years old. Our thoughts and prayers go out to Nathan's wife, five children, and three grandchildren.
Tim McAfee, M.D., M.P.H.
Director, CDC’s Office on Smoking and Health
Statement from Tim McAfee, Director, CDC’s Office on Smoking and Health on the passing of Nathan Moose, former Tips campaign ad participant.
We are deeply saddened by the passing of Nathan Moose, a valued member of CDC's Tips family. Nathan’s selfless and courageous dedication to ensuring that others would not suffer as he did saved many lives. He was a victim of cigarette smoking, although he never smoked.
Nathan worked for 11 years in a casino that allowed smoking, and the exposure to secondhand smoke permanently damaged his lungs and led to his untimely death. His health problems inspired him to take action to help protect not only his fellow Oglala Sioux, but also all Americans, and he especially wanted his message to impact young people.
In addition to participating in the Tips campaign, Nathan spoke at Pow-Wows, conferences, and schools to make people aware of the dangers of smoking and exposure to secondhand smoke. Nathan was only 54 years old. Our thoughts and prayers go out to Nathan's wife, five children, and three grandchildren.
Tim McAfee, M.D., M.P.H.
Director, CDC’s Office on Smoking and Health
Saturday, October 19, 2013
PRESIDENT OBAMA'S WEEKLY ADDRESS FOR OCTOBER 19, 2013
FROM: THE WHITE HOUSE
WEEKLY ADDRESS: Working Together on Behalf of the American People
Remarks of President Barack Obama
Weekly Address
The White House
October 19, 2013
Hi everybody. This week, because Democrats and responsible Republicans came together, the government was reopened, and the threat of default was removed from our economy.
There’s been a lot of discussion lately of the politics of this shutdown. But the truth is, there were no winners in this. At a time when our economy needs more growth and more jobs, the manufactured crises of these last few weeks actually harmed jobs and growth. And it’s understandable that your frustration with what goes on in Washington has never been higher.
The way business is done in Washington has to change. Now that these clouds of crisis and uncertainty have lifted, we need to focus on what the majority of Americans sent us here to do – grow the economy, create good jobs, strengthen the middle class, lay the foundation for broad-based prosperity, and get our fiscal house in order for the long haul.
It won’t be easy. But we can make progress. Specifically, there are three places where I believe that Democrats and Republicans can work together right away.
First, we should sit down and pursue a balanced approach to a responsible budget, one that grows our economy faster and shrinks our long-term deficits further. There is no choice between growth and fiscal responsibility – we need both. So we’re making a serious mistake if a budget doesn’t focus on what you’re focused on: creating more good jobs that pay better wages. If we’re going to free up resources for the things that help us grow – education, infrastructure, research – we should cut what we don’t need, and close corporate tax loopholes that don’t help create jobs. This shouldn’t be as difficult as it has been in past years. Remember, our deficits are shrinking – not growing.
Second, we should finish the job of fixing our broken immigration system. There’s already a broad coalition across America that’s behind this effort, from business leaders to faith leaders to law enforcement. It would grow our economy. It would secure our borders. The Senate has already passed a bill with strong bipartisan support. Now the House should, too. The majority of Americans thinks this is the right thing to do. It can and should get done by the end of this year.
Third, we should pass a farm bill – one that America’s farmers and ranchers can depend on, one that protects vulnerable children and adults in times of need, and one that gives rural communities opportunities to grow and the longer-term certainty they deserve.
We won’t suddenly agree on everything now that the cloud of crisis has passed. But we shouldn’t hold back on places where we do agree, just because we don’t think it’s good politics, or just because the extremes in our parties don’t like compromise. I’ll look for willing partners from either party to get important work done. There’s no good reason why we can’t govern responsibly, without lurching from manufactured crisis to manufactured crisis. Because that isn’t governing – it’s just hurting the people we were sent here to serve.
Those of us who have the privilege to serve this country have an obligation to do our job the best we can. We come from different parties, but we’re Americans first. And our obligations to you must compel all of us, Democrats and Republicans, to cooperate, and compromise, and act in the best interests of this country we love.
Thanks everybody, and have a great weekend.
WEEKLY ADDRESS: Working Together on Behalf of the American People
Remarks of President Barack Obama
Weekly Address
The White House
October 19, 2013
Hi everybody. This week, because Democrats and responsible Republicans came together, the government was reopened, and the threat of default was removed from our economy.
There’s been a lot of discussion lately of the politics of this shutdown. But the truth is, there were no winners in this. At a time when our economy needs more growth and more jobs, the manufactured crises of these last few weeks actually harmed jobs and growth. And it’s understandable that your frustration with what goes on in Washington has never been higher.
The way business is done in Washington has to change. Now that these clouds of crisis and uncertainty have lifted, we need to focus on what the majority of Americans sent us here to do – grow the economy, create good jobs, strengthen the middle class, lay the foundation for broad-based prosperity, and get our fiscal house in order for the long haul.
It won’t be easy. But we can make progress. Specifically, there are three places where I believe that Democrats and Republicans can work together right away.
First, we should sit down and pursue a balanced approach to a responsible budget, one that grows our economy faster and shrinks our long-term deficits further. There is no choice between growth and fiscal responsibility – we need both. So we’re making a serious mistake if a budget doesn’t focus on what you’re focused on: creating more good jobs that pay better wages. If we’re going to free up resources for the things that help us grow – education, infrastructure, research – we should cut what we don’t need, and close corporate tax loopholes that don’t help create jobs. This shouldn’t be as difficult as it has been in past years. Remember, our deficits are shrinking – not growing.
Second, we should finish the job of fixing our broken immigration system. There’s already a broad coalition across America that’s behind this effort, from business leaders to faith leaders to law enforcement. It would grow our economy. It would secure our borders. The Senate has already passed a bill with strong bipartisan support. Now the House should, too. The majority of Americans thinks this is the right thing to do. It can and should get done by the end of this year.
Third, we should pass a farm bill – one that America’s farmers and ranchers can depend on, one that protects vulnerable children and adults in times of need, and one that gives rural communities opportunities to grow and the longer-term certainty they deserve.
We won’t suddenly agree on everything now that the cloud of crisis has passed. But we shouldn’t hold back on places where we do agree, just because we don’t think it’s good politics, or just because the extremes in our parties don’t like compromise. I’ll look for willing partners from either party to get important work done. There’s no good reason why we can’t govern responsibly, without lurching from manufactured crisis to manufactured crisis. Because that isn’t governing – it’s just hurting the people we were sent here to serve.
Those of us who have the privilege to serve this country have an obligation to do our job the best we can. We come from different parties, but we’re Americans first. And our obligations to you must compel all of us, Democrats and Republicans, to cooperate, and compromise, and act in the best interests of this country we love.
Thanks everybody, and have a great weekend.
U.S. AND ROMANIA REACH AGREEMENTS THAT ENHANCE PARTNERSHIP
FROM: U.S. DEFENSE DEPARTMENT
Hagel, Romania's Defense Chief Reach Significant Agreements
American Forces Press Service
WASHINGTON, Oct. 18, 2013 - Defense Secretary Chuck Hagel met with Romania's Minister of Defense Mircea Dusa today at the Pentagon, a meeting that produced a number of significant agreements, which Pentagon Spokesman George Little said will enhance the strong and productive partnership the U.S. enjoys with Romania.
Among the agreements reached Little said, is for Romania to support logistics in and out of Afghanistan, including both personnel and cargo movement. "Secretary Hagel praised this agreement, which is particularly important as the U.S. prepares to wind down transit center operations at Manas, Kyrgystan next year," Little said in a statement issued after the meeting. "Secretary Hagel highlighted this agreement as a further testament to Romania's steadfast commitment to the ISAF mission and its commitment to regional and international security," he added.
In addition, Little said Hagel thanked Romania for its decision to host the Aegis Ashore missile defense system, emphasizing that the agreement reaffirms and strengthens the collective defense upon which NATO was founded. "This system represents an important component of the larger European Phased Adaptive Approach and is expected to be operational in 2015." At Hagel's direction, Undersecretary of Defense for Policy Dr. James N. Miller will attend the groundbreaking ceremony for the Aegis Ashore system at Deveselu later this month.
Little said Hagel further praised Romania's decision to purchase 12 F-16 aircraft from Portugal. He added that this significant investment in air superiority capabilities will open the door for greater regional collaboration and will be valuable to future NATO and coalition operations.
"Secretary Hagel reaffirmed that Romania is one of the United States' staunchest allies. The two leaders also agreed to look for ways to expand our strong military cooperation as well as to support Romania's efforts to become a leader in the region and in NATO."
Hagel, Romania's Defense Chief Reach Significant Agreements
American Forces Press Service
WASHINGTON, Oct. 18, 2013 - Defense Secretary Chuck Hagel met with Romania's Minister of Defense Mircea Dusa today at the Pentagon, a meeting that produced a number of significant agreements, which Pentagon Spokesman George Little said will enhance the strong and productive partnership the U.S. enjoys with Romania.
Among the agreements reached Little said, is for Romania to support logistics in and out of Afghanistan, including both personnel and cargo movement. "Secretary Hagel praised this agreement, which is particularly important as the U.S. prepares to wind down transit center operations at Manas, Kyrgystan next year," Little said in a statement issued after the meeting. "Secretary Hagel highlighted this agreement as a further testament to Romania's steadfast commitment to the ISAF mission and its commitment to regional and international security," he added.
In addition, Little said Hagel thanked Romania for its decision to host the Aegis Ashore missile defense system, emphasizing that the agreement reaffirms and strengthens the collective defense upon which NATO was founded. "This system represents an important component of the larger European Phased Adaptive Approach and is expected to be operational in 2015." At Hagel's direction, Undersecretary of Defense for Policy Dr. James N. Miller will attend the groundbreaking ceremony for the Aegis Ashore system at Deveselu later this month.
Little said Hagel further praised Romania's decision to purchase 12 F-16 aircraft from Portugal. He added that this significant investment in air superiority capabilities will open the door for greater regional collaboration and will be valuable to future NATO and coalition operations.
"Secretary Hagel reaffirmed that Romania is one of the United States' staunchest allies. The two leaders also agreed to look for ways to expand our strong military cooperation as well as to support Romania's efforts to become a leader in the region and in NATO."
FDA ANNOUNCES RARE EROSION EVENTS ASSOCIATED WITH CARDIAC IMPLANT DEVICE
FROM: U.S. FOOD AND DRUG ADMINISTRATION
Rare Serious Erosion Events Associated with St. Jude Amplatzer Atrial Septal Occluder (ASO)
Date Issued: October 17, 2013
Audience: Pediatric and Adult Interventional Cardiologists; Cardiothoracic Surgeons; Non-Invasive Cardiologists; Referring and follow-up physicians including Pediatricians; and Patients implanted with the device
Medical Specialty: Pediatric and Adult Interventional Cardiology and Cardiothoracic Surgery; and Non-Invasive Cardiology
Device:
The St. Jude Amplatzer Atrial Septal Occluder (ASO) (Figure 1) is a cardiac implant device used in children and adults to treat an abnormal hole between the upper left and right chambers (atria) of the heart, known as an atrial septal defect (ASD). The metal device is put into place through a thin tube (catheter) inserted into a vein. This is considered a minimally invasive method for ASD closure, and is an alternative to open heart surgery.
Purpose: The Food and Drug Administration (FDA) is alerting health care providers and patients that in very rare instances, tissue surrounding the Amplatzer ASO can break down (erode) and result in life-threatening emergencies that require immediate surgery. According to published estimates, these events occur in approximately 1 to 3 of every 1,000 patients implanted with the Amplatzer ASO. As of March 31, 2013, there have been 234,103 Amplatzer ASO devices sold worldwide.
Summary of Problem and Scope:
Tissue erosion caused by the Amplatzer ASO is rare, but can be life-threatening. Between 2002 and 2011, the FDA received more than 100 reports of erosions associated with the St. Jude Amplatzer ASO. During the same period, several medical journals contained articles reporting tissue erosion among patients implanted with this device.
The device rubbing against the wall of the heart can erode the tissue and create a hole. It can also lead to further scraping or erosion through tissue in the upper chambers (atria) of the heart, primarily in the top of the atria near the aorta. This scraping may also cause separate or simultaneous holes in the aortic root, potentially leading to blood building up in the sac surrounding the heart (cardiac tamponade). If too much blood builds up in this sac, the heart will not be able to work properly.
Immediate open heart surgery may then be necessary to remove the device, close the holes or other defects caused by erosion, and close the original defect the device was meant to treat less invasively. Tissue erosion can also cause fistulas - abnormal scar tissue that connects parts of the heart that were not previously connected. Fistulas are not life-threatening, but do require surgery for treatment and could result in congestive heart failure.
The FDA has not yet identified risk factors related to the occurrence of erosion. Articles in professional medical journals have discussed the possibility that patients with a lack of tissue in the retro-aortic rim might be at higher risk of erosion events; however, this relationship has not been determined. This type of device failure has not been seen in similar devices used to treat this condition.
Recommendations for Physicians:
Review the updated Instructions For Use disclaimer icon (IFU) for the Amplatzer ASO before implanting the device.
Consider the potential for erosion when talking to patients about long- and short-term benefits and risks of treatment options, including implantation with the Amplatzer ASO.
Inform patients that most people implanted with the Amplatzer ASO experience good outcomes and that erosion is a very rare event.
Educate patients implanted with the Amplatzer ASO to seek immediate medical attention if they develop symptoms such as chest pain, numbness, sudden weakness, dizziness, fainting, shortness of breath, or rapid heartbeat.
The FDA does NOT recommend device removal for patients who have the Amplatzer ASO unless physicians determine it is appropriate for their particular patient(s). The risks associated with device removal surgery may be equal to or greater than the risk of erosion.
If erosion is suspected in one of your patients, immediately report this event to St. Jude Medical and the FDA via the established adverse event reporting process in your facilities. Please provide all necessary records, including implant and event images, surgical records, and catheterization reports, so that the FDA has the most complete assessment of the event.
Recommendations for Patients:
Talk to your doctor about the long- and short-term benefits and risks of treatment options, including implantation with the Amplatzer ASO, to determine which treatment option is best for you.
If you have an ASD occluder implant and experience ANY symptoms of erosion you should immediately contact your doctor and go to the emergency room for an echocardiogram (ultrasound of the heart). Symptoms of erosion may include chest pain, numbness, sudden weakness, dizziness, fainting, shortness of breath, or rapid heartbeat.
Current recommendations for follow-up with a cardiologist after Amplatzer ASO implantation include the following:
You should have an ultrasound of your heart (echocardiogram) at the following timeframes:
implantation,
one day after implantation,
before hospital discharge, and
one week after implantation.
You should follow-up with your cardiologist at the following timeframes after implantation:
one month,
six months, and
one year.
After the first 12 months, you should follow up with your cardiologist once each year (unless your have symptoms or concerns).
FDA Activities:
To better understand how erosion impacts the performance of the Amplatzer ASO and assess potential risk factors related to the occurrence of erosion, the FDA is requiring St. Jude to conduct a study of patients who have been recently implanted with the device. The study is designed to estimate the incidence of erosion events within seven days, one month, six months, and 12 months after the implantation of the Amplatzer ASO. The study will also compare patients who experience an erosion event to those who do not, and will identify differences in demographic, clinical, and device characteristics.
The FDA, medical device industry and echocardiography societies are collaborating to develop standardized echocardiographic imaging techniques and guidelines for ASD procedures. These techniques and guidelines will provide needed information toward understanding pre-, peri-, and post-procedural anatomical characteristics of patients with atrial septal defects and the operation of the device in use.
Reporting Problems to the FDA:
Prompt reporting of adverse events can help the FDA identify and better understand the risks associated with medical devices. If you suspect a problem with an atrial septal defect occluder, we encourage you to file a voluntary report through MedWatch, the FDA Safety Information and Adverse Event Reporting Program. Health care personnel employed by facilities that are subject to FDA's user facility reporting requirements should follow the reporting procedures established by their facilities.
To help the FDA learn as much as possible about the adverse events associated with atrial septal occluders, please include the following information in your reports, if available:
Manufacturer’s Name
Device Name (Brand Name)
Date Device was Manufactured
Implant Duration by providing Date of Implant, Date of Event and/or Date of Explant
Distributor’s Name
Details of Adverse Event and Medical and/or Surgical Interventions (if required)
Contact Information:
If you have questions about this communication, please contact the Division of Small Manufacturers, International and Consumer Assistance (DSMICA) at, industry.devices@fda.hhs.gov, 1-800-638-2041, or 301-796-7100.
Rare Serious Erosion Events Associated with St. Jude Amplatzer Atrial Septal Occluder (ASO)
Date Issued: October 17, 2013
Audience: Pediatric and Adult Interventional Cardiologists; Cardiothoracic Surgeons; Non-Invasive Cardiologists; Referring and follow-up physicians including Pediatricians; and Patients implanted with the device
Medical Specialty: Pediatric and Adult Interventional Cardiology and Cardiothoracic Surgery; and Non-Invasive Cardiology
Device:
The St. Jude Amplatzer Atrial Septal Occluder (ASO) (Figure 1) is a cardiac implant device used in children and adults to treat an abnormal hole between the upper left and right chambers (atria) of the heart, known as an atrial septal defect (ASD). The metal device is put into place through a thin tube (catheter) inserted into a vein. This is considered a minimally invasive method for ASD closure, and is an alternative to open heart surgery.
Purpose: The Food and Drug Administration (FDA) is alerting health care providers and patients that in very rare instances, tissue surrounding the Amplatzer ASO can break down (erode) and result in life-threatening emergencies that require immediate surgery. According to published estimates, these events occur in approximately 1 to 3 of every 1,000 patients implanted with the Amplatzer ASO. As of March 31, 2013, there have been 234,103 Amplatzer ASO devices sold worldwide.
Summary of Problem and Scope:
Tissue erosion caused by the Amplatzer ASO is rare, but can be life-threatening. Between 2002 and 2011, the FDA received more than 100 reports of erosions associated with the St. Jude Amplatzer ASO. During the same period, several medical journals contained articles reporting tissue erosion among patients implanted with this device.
The device rubbing against the wall of the heart can erode the tissue and create a hole. It can also lead to further scraping or erosion through tissue in the upper chambers (atria) of the heart, primarily in the top of the atria near the aorta. This scraping may also cause separate or simultaneous holes in the aortic root, potentially leading to blood building up in the sac surrounding the heart (cardiac tamponade). If too much blood builds up in this sac, the heart will not be able to work properly.
Immediate open heart surgery may then be necessary to remove the device, close the holes or other defects caused by erosion, and close the original defect the device was meant to treat less invasively. Tissue erosion can also cause fistulas - abnormal scar tissue that connects parts of the heart that were not previously connected. Fistulas are not life-threatening, but do require surgery for treatment and could result in congestive heart failure.
The FDA has not yet identified risk factors related to the occurrence of erosion. Articles in professional medical journals have discussed the possibility that patients with a lack of tissue in the retro-aortic rim might be at higher risk of erosion events; however, this relationship has not been determined. This type of device failure has not been seen in similar devices used to treat this condition.
Recommendations for Physicians:
Review the updated Instructions For Use disclaimer icon (IFU) for the Amplatzer ASO before implanting the device.
Consider the potential for erosion when talking to patients about long- and short-term benefits and risks of treatment options, including implantation with the Amplatzer ASO.
Inform patients that most people implanted with the Amplatzer ASO experience good outcomes and that erosion is a very rare event.
Educate patients implanted with the Amplatzer ASO to seek immediate medical attention if they develop symptoms such as chest pain, numbness, sudden weakness, dizziness, fainting, shortness of breath, or rapid heartbeat.
The FDA does NOT recommend device removal for patients who have the Amplatzer ASO unless physicians determine it is appropriate for their particular patient(s). The risks associated with device removal surgery may be equal to or greater than the risk of erosion.
If erosion is suspected in one of your patients, immediately report this event to St. Jude Medical and the FDA via the established adverse event reporting process in your facilities. Please provide all necessary records, including implant and event images, surgical records, and catheterization reports, so that the FDA has the most complete assessment of the event.
Recommendations for Patients:
Talk to your doctor about the long- and short-term benefits and risks of treatment options, including implantation with the Amplatzer ASO, to determine which treatment option is best for you.
If you have an ASD occluder implant and experience ANY symptoms of erosion you should immediately contact your doctor and go to the emergency room for an echocardiogram (ultrasound of the heart). Symptoms of erosion may include chest pain, numbness, sudden weakness, dizziness, fainting, shortness of breath, or rapid heartbeat.
Current recommendations for follow-up with a cardiologist after Amplatzer ASO implantation include the following:
You should have an ultrasound of your heart (echocardiogram) at the following timeframes:
implantation,
one day after implantation,
before hospital discharge, and
one week after implantation.
You should follow-up with your cardiologist at the following timeframes after implantation:
one month,
six months, and
one year.
After the first 12 months, you should follow up with your cardiologist once each year (unless your have symptoms or concerns).
FDA Activities:
To better understand how erosion impacts the performance of the Amplatzer ASO and assess potential risk factors related to the occurrence of erosion, the FDA is requiring St. Jude to conduct a study of patients who have been recently implanted with the device. The study is designed to estimate the incidence of erosion events within seven days, one month, six months, and 12 months after the implantation of the Amplatzer ASO. The study will also compare patients who experience an erosion event to those who do not, and will identify differences in demographic, clinical, and device characteristics.
The FDA, medical device industry and echocardiography societies are collaborating to develop standardized echocardiographic imaging techniques and guidelines for ASD procedures. These techniques and guidelines will provide needed information toward understanding pre-, peri-, and post-procedural anatomical characteristics of patients with atrial septal defects and the operation of the device in use.
Reporting Problems to the FDA:
Prompt reporting of adverse events can help the FDA identify and better understand the risks associated with medical devices. If you suspect a problem with an atrial septal defect occluder, we encourage you to file a voluntary report through MedWatch, the FDA Safety Information and Adverse Event Reporting Program. Health care personnel employed by facilities that are subject to FDA's user facility reporting requirements should follow the reporting procedures established by their facilities.
To help the FDA learn as much as possible about the adverse events associated with atrial septal occluders, please include the following information in your reports, if available:
Manufacturer’s Name
Device Name (Brand Name)
Date Device was Manufactured
Implant Duration by providing Date of Implant, Date of Event and/or Date of Explant
Distributor’s Name
Details of Adverse Event and Medical and/or Surgical Interventions (if required)
Contact Information:
If you have questions about this communication, please contact the Division of Small Manufacturers, International and Consumer Assistance (DSMICA) at, industry.devices@fda.hhs.gov, 1-800-638-2041, or 301-796-7100.
PENTAGON SAYS SHUTDOWN OST $600 MILLION IN LOST PRODUCTIVITY
FROM: U.S. DEFENSE DEPARTMENT
Comptroller: Shutdown Cost DOD $600 Million in Productivity
By Claudette Roulo
American Forces Press Service
WASHINGTON, Oct. 17, 2013 - Furloughs of civilian employees as a result of the government shutdown cost the Defense Department at least $600 million in productivity, the Pentagon's top financial officer said today.
During a Pentagon news conference, DOD Comptroller Robert F. Hale said that in addition to the lost productivity, the shutdown generated a number of other costs that have yet to be calculated.
"We built up interest payments, because we were forced to pay vendors late," Hale said. "We had to cancel training classes, so we had to bring the people home on orders and then send them right back again."
The short-term deal signed by President Barack Obama late yesterday doesn't put the department on firm budgetary ground, Hale noted. With no flexibility to move funds between accounts, and accounts frozen at 2012 levels, he said, the department will have to be as fiscally watchful as it can.
"If that's a vague answer, it's because things are kind of vague," he said. "It's not a good way to run a railroad."
The temporary funding measure that allowed the government to reopen prevents DOD from starting new projects, Hale said. And one of the biggest problems, he added, is that it requires the department to buy the same ships it bought last year, because Congress appropriates by ship.
"It's a 'Groundhog Day' approach to budgeting," the comptroller said.
The budget uncertainty will have an impact on staffing levels and morale, he added. If the budget stays at the level authorized under the Budget Control Act of 2011, he said, "we're going to have to get smaller." Hale added that the department will try to meet the staffing goals through attrition, but that either way, it will mean fewer civilian employees.
"I'm a lot more worried about the morale effects," Hale said. "We need some stability, and we need to keep telling [employees] they're important, and then we need to show it through things like pay raises and no more furloughs, etc."
Without a change to the budget, there will also be military force reductions, Hale said.
"I think all of us are aware that it will be a somewhat different, smaller military if we have to go through with those cuts," he added. "We will be as prepared as we can, within the limits of time that we have, to be ready for a wide range of contingencies, because we know that's what we face."
Comptroller: Shutdown Cost DOD $600 Million in Productivity
By Claudette Roulo
American Forces Press Service
WASHINGTON, Oct. 17, 2013 - Furloughs of civilian employees as a result of the government shutdown cost the Defense Department at least $600 million in productivity, the Pentagon's top financial officer said today.
During a Pentagon news conference, DOD Comptroller Robert F. Hale said that in addition to the lost productivity, the shutdown generated a number of other costs that have yet to be calculated.
"We built up interest payments, because we were forced to pay vendors late," Hale said. "We had to cancel training classes, so we had to bring the people home on orders and then send them right back again."
The short-term deal signed by President Barack Obama late yesterday doesn't put the department on firm budgetary ground, Hale noted. With no flexibility to move funds between accounts, and accounts frozen at 2012 levels, he said, the department will have to be as fiscally watchful as it can.
"If that's a vague answer, it's because things are kind of vague," he said. "It's not a good way to run a railroad."
The temporary funding measure that allowed the government to reopen prevents DOD from starting new projects, Hale said. And one of the biggest problems, he added, is that it requires the department to buy the same ships it bought last year, because Congress appropriates by ship.
"It's a 'Groundhog Day' approach to budgeting," the comptroller said.
The budget uncertainty will have an impact on staffing levels and morale, he added. If the budget stays at the level authorized under the Budget Control Act of 2011, he said, "we're going to have to get smaller." Hale added that the department will try to meet the staffing goals through attrition, but that either way, it will mean fewer civilian employees.
"I'm a lot more worried about the morale effects," Hale said. "We need some stability, and we need to keep telling [employees] they're important, and then we need to show it through things like pay raises and no more furloughs, etc."
Without a change to the budget, there will also be military force reductions, Hale said.
"I think all of us are aware that it will be a somewhat different, smaller military if we have to go through with those cuts," he added. "We will be as prepared as we can, within the limits of time that we have, to be ready for a wide range of contingencies, because we know that's what we face."
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