Tuesday, October 22, 2013

COMPANY SETTLES FTC CHARGES OF DECEIVING CONSUMERS WITH "MADE IN A USA" LABELS

FROM:  U.S. FEDERAL TRADE COMMISSION
Marketer of Outdoor Accessories Agrees to Drop Made-in-the-USA Claims

A marketer of iPhone accessories, bottle holders, lens cleaners, dog collars, leashes, and other outdoor accessories has agreed to settle Federal Trade Commission charges that it falsely claimed certain of its products were “Made in the U.S.A,” or “Truly Made in the USA” even though the products contained substantial foreign content.

The proposed settlement prohibits the company from deceiving consumers about the degree to which its products are made in the United States.
Based in Logan Utah, E.K. Ekcessories, Inc. sells merchandise directly to consumers on its website, ekusa.com, and through online sellers such as Amazon and REI.

The company claimed on its website that “For 28 years E.K. Ekcessories has been producing superior quality made accessories in our 60,000 sq. ft. facility in Logan, Utah;” and “Our source of pride and satisfaction abounds from a true ‘Made in USA’ product.” In fact, the company imports many of its products and components, according to the complaint. The FTC also alleged that the company distributed deceptive promotional materials for its products to third-party retailers such as Amazon and REI.

The FTC alleged that E.K. Ekcessories, Inc. violated the Federal Trade Commission Act by making false and unsupported statements that its products were all or virtually all made in the United States.

Under the proposed order, the company is prohibited from claiming that any product is made in the United States unless that product is all or virtually all made in the United States. The company also is prohibited from making any misleading claims about a product’s country of origin and from providing deceptive promotional material to third-party retailers, or otherwise providing the “means or instrumentalities” for others to make deceptive U.S.-origin claims. The company also is required to contact all distributors who bought or received products between January 1, 2010 and May 1, 2013, and provide them with a notice and a copy of the order.

According to the Commission’s 1997 U.S. Origin Claims Enforcement Policy Statement, for a product to be advertised or labeled as “Made in the U.S.A,” the product must be “all or virtually all” made in the United States – that is, all significant parts and processing must be of U.S. origin, and the product should contain no (or negligible) foreign content.

The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 4-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through November 21, 2013, after which the Commission will decide whether to make the proposed consent order final. Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section. Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC is requesting that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments can also be submitted electronically.

NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

Monday, October 21, 2013

PRESIDENT OBAMA ADDRESSES HEALTHCARE ROLLOUT PROBLEMS

FROM:  U.S. WHITE HOUSE 
Remarks by the President on the Affordable Care Act
Rose Garden
11:33 A.M. EDT

THE PRESIDENT:  Everybody, have a seat.

MS. BAKER:  Hello.  My name is Janice Baker.  I have the privilege to say that I'm the first person in the state of Delaware to enroll for health insurance through the new marketplace.  (Applause.)  Like many consumers out there, it took me a number of frustrating attempts before I could apply for and select my plan.  I kept trying because I needed access to the new health care options.

I had applied to three private insurance companies only to be rejected due to preexisting health conditions.  I am too young for Medicare, but I'm too old not to have some health issues.  I was able to find a policy I am thrilled with, saving $150 a month, and much lower deductibles than my previous policy that I held through my small business.

I'm here today to encourage other people like me who needs access to quality, affordable insurance, and to tell them to have patience with such a new system.  Without this ability to get this insurance, I know that a single hospital stay could have bankrupted me and my business.

Thank you all.  And I am now honored to introduce the President of the United States.  (Applause.)

THE PRESIDENT:  Great job.

MS. BAKER:  Thank you.  Thank you.

THE PRESIDENT:  Thank you.  (Applause.)  Thank you, everybody.  Well, thank you, Janice.  And thanks to everybody here for coming on this beautiful day.  Welcome to the White House.

About three weeks ago, as the federal government shut down, the Affordable Care Act’s health insurance marketplaces opened for business across the country.  Well, we’ve now gotten the government back open for the American people, and today I want to talk about how we’re going to get the marketplaces running at full steam, as well.  And I’m joined today by folks who have either benefited from the Affordable Care Act already, or who are helping their fellow citizens learn about what this law means for them and how they can get covered.

Of course, you’ve probably heard that HealthCare.gov –- the new website where people can apply for health insurance, and browse and buy affordable plans in most states –- hasn't worked as smoothly as it was supposed to work.  And the number of people who have visited the site has been overwhelming, which has aggravated some of these underlying problems.

Despite all that, thousands of people are signing up and saving money as we speak.  Many Americans with a preexisting condition, like Janice, are discovering that they can finally get health insurance like everybody else.

So today, I want to speak to every American who’s looking to get affordable health insurance.  I want you to know what’s available to you and why it may be a good deal for you.  And for those who’ve had some problems with the website, I want to tell you what we’re doing to make it work better and how you can sign up to get covered in other ways.

But before I do that, let me remind everybody that the Affordable Care Act is not just a website.  It's much more.  For the vast majority of Americans -- for 85 percent of Americans who already have health insurance through your employer or Medicare or Medicaid -– you don’t need to sign up for coverage through a website at all.  You've already got coverage.  What the Affordable Care Act does for you is to provide you with new benefits and protections that have been in place for some time.  You may not know it, but you're already benefiting from these provisions in the law.

For example, because of the Affordable Care Act, young people like Jasmine Jennings, and Jessica Ugalde, and Ezra Salop, all of whom are here today, they’ve been able to stay on their parents’ plans until they’re 26.  Millions of other young people are currently benefiting from that part of the law.  (Applause.)  Another part of the Affordable Care Act is providing seniors with deeper discounts on their prescription medicine.  Billions of dollars have been saved by seniors already.  That’s part of the law.  It’s already in place.  It’s happening right now.

Already, because of the Affordable Care Act, preventive care like mammograms and birth control are free through your employers.  That’s part of this law.  (Applause.)  So there are a wide range of consumer protections and benefits that you already have if you’ve got health insurance.  You may not have noticed them, but you’ve got them, and they’re not going anywhere.  And they’re not dependent on a website.

Here’s another thing that the Affordable Care Act does.  In states where governors and legislatures have wisely allowed it, the Affordable Care Act provides the opportunity for many Americans to get covered under Medicaid for the first time.  So in Oregon, for example, that’s helped cut the number of uninsured people by 10 percent just in the last three weeks.  Think about that.  That’s 56,000 more Americans who now have health care.  (Applause.)  That doesn’t depend on a website.

Now, if you’re one of the 15 percent of Americans who don’t have health insurance -- either because you can’t afford it or because your employer doesn’t offer it, or because you’re a small businessperson and you have to go out on the individual market and buy it on your own and it’s just too expensive -- October 1st was an important date.  That’s when we opened the new marketplaces where people without health insurance, or who can’t afford health insurance, or who aren’t part of a group plan, can finally start getting affordable coverage.

And the idea is simple.  By enrolling in what we’re calling these marketplaces, you become part of a big group plan -- as if you were working for a big employer -- a statewide group plan that spreads risk between sick people and healthy people, between young and old, and then bargains on your behalf for the best deal on health care.  What we’ve done is essentially create a competition where there wasn’t competition before.  We created these big group plans, and now insurers are really interested in getting your business.  And so insurers have created new health care plans with more choices to be made available through these marketplaces.

And as a result of this choice and this competition, prices have come down.  When you add the new tax credits that many people are eligible for through the law, then the prices come down even further.  So one study shows that through new options created by the Affordable Care Act, nearly 6 in 10 uninsured Americans will find that they can get covered for less than $100 a month.  Think about that.  (Applause.)

Through the marketplaces, you can get health insurance for what may be the equivalent of your cell phone bill or your cable bill, and that’s a good deal.

So the fact is the product of the Affordable Care Act for people without health insurance is quality health insurance that’s affordable.  And that product is working.  It’s really good.  And it turns out there’s a massive demand for it.  So far, the national website, HealthCare.gov, has been visited nearly 20 million times.  Twenty million times.  (Applause.)  And there’s great demand at the state level as well, because there are a bunch of states that are running their own marketplaces.

We know that nearly one-third of the people applying in Connecticut and Maryland, for example, are under 35 years old.  They understand that they can get a good deal at low costs, have the security of health care, and this is not just for old folks like me -- that everybody needs good quality health insurance.  And all told, more than half a million consumers across the country have successfully submitted applications through federal and state marketplaces.  And many of those applications aren’t just for individuals, it’s for their entire families.  So even more people are already looking to potentially take advantage of the high quality, affordable insurance that is provided through the Affordable Care Act.

So let me just recap here.  The product is good.  The health insurance that’s being provided is good.  It’s high quality and it’s affordable.  People can save money, significant money, by getting insurance that’s being provided through these marketplaces.  And we know that the demand is there.  People are rushing to see what’s available.  And those who have already had a chance to enroll are thrilled with the result.  Every day, people who were stuck with sky-high premiums because of preexisting conditions are getting affordable insurance for the first time, or finding, like Janice did, that they’re saving a lot of money.  Every day, women are finally buying coverage that doesn’t charge them higher premiums than men for the same care.  (Applause.)  Every day, people are discovering that new health insurance plans have to cover maternity care, mental health care, free preventive care.

So you just heard Janice’s story -- she owns her own small business.  She recently became the first woman to enroll in coverage through Delaware’s exchange.  And it’s true, it took her a few tries, but it was worth it after being turned down for insurance three times due to minor preexisting conditions.  So now she’ll be covered, she’ll save 150 bucks a month, and she won’t have to worry that one illness or accident will cost her her business that she’s worked so hard to build.

And Janice is not alone.  I recently received a letter from a woman named Jessica Sanford in Washington State.  And here’s what she wrote:  “I am a single mom, no child support, self-employed, and I haven’t had insurance for 15 years because it’s too expensive.  My son has ADHD and requires regular doctor visits and his meds alone cost $250 per month.  I have had an ongoing tendinitis problem due to my line of work that I haven’t had treated.  Now, finally, we get to have coverage because of the ACA for $169 per month.  I was crying the other day when I signed up.  So much stress lifted.”

Now, that is not untypical for a lot of folks like Jessica who have been struggling without health insurance.  That’s what the Affordable Care Act is all about.  The point is, the essence of the law -- the health insurance that’s available to people -- is working just fine.  In some cases, actually, it’s exceeding expectations -- the prices are lower than we expected, the choice is greater than we expected.

 But the problem has been that the website that’s supposed to make it easy to apply for and purchase the insurance is not working the way it should for everybody.  And there’s no sugarcoating it.  The website has been too slow, people have been getting stuck during the application process.  And I think it’s fair to say that nobody is more frustrated by that than I am -- precisely because the product is good, I want the cash registers to work.  I want the checkout lines to be smooth.  So I want people to be able to get this great product.  And there’s no excuse for the problems, and these problems are getting fixed.

 But while we’re working out the kinks in the system, I want everybody to understand the nature of the problem.  First of all, even with all the problems at HealthCare.gov, the website is still working for a lot of people -- just not as quick or efficient or consistent as we want.  And although many of these folks have found that they had to wait longer than they wanted, once they complete the process they’re very happy with the deal that’s available to them, just like Janice’s.

Second, I want everybody to remember that we’re only three weeks into a six-month open enrollment period, when you can buy these new plans.  (Applause.)  Keep in mind the insurance doesn’t start until January 1st; that’s the earliest that the insurance can kick in.  No one who decides to purchase a plan has to pay their first premium until December 15th.  And unlike the day after Thanksgiving sales for the latest Playstation or flat-screen TVs, the insurance plans don’t run out.  They’re not going to sell out.  They’ll be available through the marketplace -- (applause) -- throughout the open enrollment period.  The prices that insurers have set will not change.  So everybody who wants insurance through the marketplace will get insurance, period.  (Applause.)  Everybody who wants insurance through the marketplace will get insurance.

Third, we are doing everything we can possibly do to get the websites working better, faster, sooner.  We’ve got people working overtime, 24/7, to boost capacity and address the problems.  Experts from some of America’s top private-sector tech companies who, by the way, have seen things like this happen before, they want it to work.  They're reaching out.  They're offering to send help.  We’ve had some of the best IT talent in the entire country join the team.  And we’re well into a “tech surge” to fix the problem.  And we are confident that we will get all the problems fixed.

Number four -- while the website will ultimately be the easiest way to buy insurance through the marketplace, it isn’t the only way.  And I want to emphasize this.  Even as we redouble our efforts to get the site working as well as it’s supposed to, we’re also redoubling our efforts to make sure you can still buy the same quality, affordable insurance plans available on the marketplace the old-fashioned way -- offline, either over the phone or in person.

And, by the way, there are a lot of people who want to take advantage of this who are more comfortable working on the phone anyway or in person.  So let me go through the specifics as to how you can do that if you’re having problems with the website or you just prefer dealing with a person.

Yesterday, we updated the website’s home page to offer more information about the other avenues to enroll in affordable health care until the online option works for everybody.  So you’ll find information about how to talk to a specialist who can help you apply over the phone or to receive a downloadable application you can fill out yourself and mail in.

We’ve also added more staff to the call centers where you can apply for insurance over the phone.  Those are already -- they've been working.  But a lot of people have decided first to go to the website.  But keep in mind, these call centers are already up and running.  And you can get your questions answered by real people, 24 hours a day, in 150 different languages.  The phone number for these call centers is 1-800-318-2596.  I want to repeat that -- 1-800-318-2596.  Wait times have averaged less than one minute so far on the call centers, although I admit that the wait times probably might go up a little bit now that I've read the number out loud on national television.  (Laughter.)

But the point is the call centers are available.  You can talk to somebody directly and they can walk you through the application process.  And I guarantee you, if one thing is worth the wait, it’s the safety and security of health care that you can afford, or the amount of money that you can save by buying health insurance through the marketplaces.  (Applause.)

Once you get on the phone with a trained representative, it usually takes about 25 minutes for an individual to apply for coverage, about 45 minutes for a family.  Once you apply for coverage, you will be contacted by email or postal mail about your coverage status.

But you don't have to just go through the phone.  You can also apply in person with the help of local navigators -– these are people specially trained to help you sign up for health care, and they exist all across the country, or you can go to community health centers and hospitals.  Just visit LocalHelp.HealthCare.gov to find out where in your area you can get help and apply for insurance in person.

And finally, if you’ve already tried to apply through the website and you’ve been stuck somewhere along the way, do not worry.  In the coming weeks, we will contact you directly, personally, with a concrete recommendation for how you can complete your application, shop for coverage, pick a plan that meets your needs, and get covered once and for all.

So here’s the bottom line.  The product, the health insurance is good.  The prices are good.  It is a good deal.  People don’t just want it; they’re showing up to buy it.  Nobody is madder than me about the fact that the website isn’t working as well as it should, which means it’s going to get fixed.  (Laughter and applause.)

And in the meantime, you can bypass the website and apply by phone or in person.  So don’t let problems with the website deter you from signing up, or signing your family up, or showing your friends how to sign up, because it is worth it.  It will save you money.  If you don't have health insurance, if you’ve got a preexisting condition, it will save you money and it will give you the security that your family needs.

In fact, even with the website issues, we’ve actually made the overall process of buying insurance through the marketplace a lot smoother and easier than the old way of buying insurance on your own.  Part of the challenge here is that a lot of people may not remember what it’s like to buy insurance the traditional way.

The way we’ve set it up, there are no more absurdly long application forms.  There’s no medical history questionnaire that goes on for pages and pages.  There’s no more getting denied because you’ve had a preexisting condition.  Instead of contacting a bunch of different insurers one at a time, which is what Janice and a lot of people who are shopping on the individual market for health insurance had to do, there’s one single place you can go shop and compare plans that have to compete for your business.  There’s one single phone number you can call for help.  And once the kinks in the website have been ironed out, it will be an even smoother and even easier.  But in the meantime, we will help you sign up -- because consumers want to buy this product and insurance companies want to sell it to you.

Now, let me close by addressing some of the politics that have swirled around the Affordable Care Act.  I recognize that the Republican Party has made blocking the Affordable Care Act its signature policy idea.  Sometimes it seems to be the one thing that unifies the party these days.  (Laughter.)  In fact, they were willing to shut down the government and potentially harm the global economy to try to get it repealed.  And I’m sure that given the problems with the website so far, they’re going to be looking to go after it even harder.  And let's admit it -- with the website not working as well as it needs to work, that makes a lot of supporters nervous because they know how it's been subject to so much attack, the Affordable Care Act generally.

But I just want to remind everybody, we did not wage this long and contentious battle just around a website.  That’s not what this was about.  (Applause.)  We waged this battle to make sure that millions of Americans in the wealthiest nation on Earth finally have the same chance to get the same security of affordable quality health care as anybody else.  That’s what this is about.  (Applause.)  And the Affordable Care Act has done that.

People can now get good insurance.  People with preexisting conditions can now afford insurance.  And if the launch of this website proves anything, it’s that people across the country don’t just need that security, they want that security.  They want it.  (Applause.)  And in the meantime -- I’ve said many times -- I’m willing to work with anyone on any idea to make this law perform even better.  But it’s time for folks to stop rooting for its failure, because hardworking, middle-class families are rooting for its success.  (Applause.)  And if the product is good, they're willing to be patient.

I got a letter last week from a self-employed man named John Mier in Leetsdale, Pennsylvania.  He used the new marketplace to get himself and his wife covered and save a lot of money.  And here’s what he said, because it pretty much sums up my message today:  “Yes, the website really stank for the first week.”  (Laughter.)  “But instead of paying $1,600 per month for a group insurance plan, we have a plan that will only cost us $692 a month –- a savings of $900 per month.”  (Applause.)  John said that while he saw -- when he saw what they’d be paying, he turned to his wife and told her, “We might just pull through.  We can afford this.”  And John eventually predicted that “the website will work like a champ.”

So John, he was frustrated by the website, but he's feeling a little less frustrated once he found out that he was saving 900 bucks a month on his health insurance.  (Applause.)  And John is right, the website is going to get fixed and the law works.  That's why we fought so hard to pass this law -- to save folks like John money; to give people who don't have health insurance the chance to get it for the first time; to lift from the American people the crushing burden of unaffordable health care; to free families from the pervasive fear that one illness -- (on-stage participant becomes ill) -- there you go, you are ok.  I'm right here.  I got you.  (Laughter.)  No, no -- you're okay.  This happens when I talk too long.  (Laughter.)  You'll be okay.  Here, why don't you go.  (Applause.)

Good catch, by the way, whoever was here.  (Laughter.)

But that's always our goal, to free families from the pervasive fear that one illness or one injury might cost you everything that you dedicated a lifetime to build.  Our goal has always been to declare that in this country the security of health care is not a privilege for a fortunate few.  It's a right for all to enjoy.  (Applause.)  That's what the Affordable Care Act is all about.  That's its promise.  And I intend to deliver on that promise.

Thank you very much, everybody.  God bless you.  (Applause.)

 END              

Week in Images

Week in Images

SECRETARY OF STATE KERRY'S REMARKS WITH PRIME MINISTER OF PAKISTAN SHARIF

FROM:  U.S. STATE DEPARTMENT 
Remarks With Prime Minister of the Islamic Republic of Pakistan Nawaz Sharif
Remarks
John Kerry
Secretary of State
Washington, DC
October 20, 2013

Let me just say that I’m really pleased to welcome Prime Minister Sharif here. He was just telling me that he hasn’t been here since 1999 when he was last in office. He has received me several times very generously in Pakistan. We’re very anxious to have a series of high-level, important discussions over the course of the next few days – the Vice President, the President, tonight’s dinner. We have a lot to talk about and the relationship with Pakistan could not be more important. On its own, a democracy that is working hard to get its economy moving and deal with insurgency and also important to the regional stability. So, we’re very happy to have you here, Mr. Prime Minister. I look forward to the conversations

PORTRAIT OF SATURN LOOKING DOWN ON RINGS

FROM:  NASA 

This portrait looking down on Saturn and its rings was created from images obtained by NASA's Cassini spacecraft on Oct. 10, 2013. It was made by amateur image processor and Cassini fan Gordan Ugarkovic. This image has not been geometrically corrected for shifts in the spacecraft perspective and still has some camera artifacts.The mosaic was created from 12 image footprints with red, blue and green filters from Cassini's imaging science subsystem. Ugarkovic used full color sets for 11 of the footprints and red and blue images for one footprint. The Cassini-Huygens mission is a cooperative project of NASA, the European Space Agency and the Italian Space Agency. The Jet Propulsion Laboratory, a division of the California Institute of Technology in Pasadena, manages the mission for NASA's Science Mission Directorate, Washington, D.C. The Cassini orbiter and its two onboard cameras were designed, developed and assembled at JPL. The imaging operations center is based at the Space Science Institute in Boulder, Colo.

TAX RETURN PREPARERS FACE ADDITIONAL CHARGES IN OFFSHORE ACCOUNT SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, October 18, 2013

Additional Charges Brought Against Tax Return Preparers Previously Charged with Helping Clients Hide Millions in Offshore Israeli Banks

David Kalai and  Nadav Kalai face additional charges after a federal grand jury in the Central District of California returned a second superseding indictment yesterday.  The  superseding indictment charged each with two counts of willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR).  In June 2012, the grand jury charged David Kalai, Nadav Kalai, and David Almog with conspiring to defraud the United States, the Department of Justice and Internal Revenue Service (IRS) announced today.

As alleged in the June 2012 superseding indictment, David Kalai and Nadav Kalai were principals of United Revenue Service Inc. (URS), a tax preparation business with 12 offices located throughout the United States.  David Kalai worked primarily at URS’ former headquarters in Newport Beach, Calif., and later at URS’ location in Costa Mesa, Calif.  Nadav Kalai, who is David Kalai’s son, worked out of URS’ headquarters in Bethesda, Md., as well as URS locations in Newport Beach and Costa Mesa. David Almog was the branch manager of the New York office of URS and supervised tax return preparers for URS East Coast locations.

U.S. citizens, resident aliens and legal permanent residents have an obligation to report to the IRS on Schedule B of the U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. They further have an obligation to report all income earned from the foreign financial account on the tax returns.  Separately, U.S. citizens, resident aliens and permanent legal residents with a foreign financial interest in, or signatory authority over, a foreign financial account worth more than $10,000 in a particular year, must also file a FBAR with the Treasury disclosing such an account by June 30 of the following year.

The superseding indictment further alleged that the co-conspirators prepared false individual income tax returns which did not disclose the clients’ foreign financial accounts nor report the income earned from those accounts.  In order to conceal the clients’ ownership and control of assets and conceal the clients’ income from the IRS, the co-conspirators incorporated offshore companies in Belize and elsewhere and helped clients open secret bank accounts at the Luxembourg locations of two Israeli banks referred to as Bank A and Bank B in court documents.  Bank A is a large financial institution headquartered in Tel-Aviv, Israel, with branches worldwide.  Bank B is a mid-size financial institution headquartered in Tel-Aviv, with a worldwide presence on four continents.
                                                                                                                     
The indictment also alleged, the co-conspirators incorporated offshore companies in Belize and elsewhere to act as named account holders on the secret accounts at the Israeli banks.  The co-conspirators then facilitated the transfer of client funds to the secret accounts and prepared and filed tax returns that falsely reported the money sent offshore as a false investment loss or a false business expense.  The co-conspirators also failed to disclose the existence of, and the clients’ financial interest in, and authority over, the clients’ secret accounts and caused the clients to fail to file FBARs with the Department of the Treasury.
                     
In addition to the earlier charges, yesterday’s superseding indictment alleges that David Kalai and Nadav Kalai each failed to file a FBAR for calendar years 2008 and 2009 concerning a foreign account held at Bank A in Luxembourg.  The second superseding indictment alleges that both David Kalai and Nadav Kalai had a financial interest, signature or other authority over a foreign financial account that had an aggregate value of more than $10,000 during 2008 and 2009.

If convicted, each defendant faces a maximum of five years in prison for each count and a maximum fine of $250,000 for each count. The charges contained in the indictment are only allegations. The defendants are presumed innocent and it is the government’s burden to prove guilt beyond a reasonable doubt.

Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Tax Division Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci, who prosecuted the case, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office for the Central District of California, who assisted with the prosecution.  The case was investigated by special agents of IRS – Criminal Investigation.                                            

LOS ALAMOS CELEBRATES 50 YEARS SINCE LAUNCH OF 'WATCHMEN'

FROM:  LOS ALAMOS NATIONAL LABORATORY
A Golden Anniversary for Space-Based Treaty Verification
Los Alamos celebrates 50-year anniversary of launch of first pair of ‘Watchmen’

LOS ALAMOS, N.M., Oct. 22, 2013—Fifty years ago this month, Los Alamos National Laboratory sensor technology lifted off into space to help verify that world Superpowers were abiding by the newly signed Limited Test Ban Treaty—a pledge by the United States, the former Soviet Union and the United Kingdom to refrain from testing nuclear weapons in the atmosphere, underwater or in space.

“For the past 70 years, Los Alamos National Laboratory has serviced the country and provided technical solutions to the some of biggest national security challenges facing the nation,” said Terry Wallace, Principal Associate Director for Global Security at Los Alamos. “On October 4, 1957, the Soviets launched Sputnik, an event that changed the world. Space became a national-security concern; Los Alamos played the key role in providing a space platform to monitor nuclear weapons testing and treaties, and 50 years later the lab still has this role.

“As we celebrate our golden anniversary of space-based treaty verification, we remember not only our successes in our mission, but also how this mission has enabled scientific discovery,” Wallace said. “Without a focus on national security, we could not continue to produce cutting-edge science; without our commitment to scientific excellence, we could not succeed in our mission. It is this synergy that makes Los Alamos a truly unique national treasure.”

The first pair of Vela satellites launched on Oct. 17, 1963, just one week after the three nations had signed the historic treaty, and barely a year after the U.S. and Soviet Union had faced an extremely tense nuclear standoff during the Cuban Missile Crisis. With the launch of Vela—an abbreviated version of Velador, a colloquial New Mexican word for “night watchman”—a dangerous era of accelerated atmospheric and space-based nuclear weapons testing by the U.S. and Soviet Union subsided, thanks to collaboration between Los Alamos and Sandia national laboratories. One year later, China detonated its first nuclear weapon, underscoring the need for enhanced vigilance in a rapidly changing world.

The success of the Vela program marked the beginning of an enduring space-based treaty verification system that continues to enhance security for America and the rest of the world. Vela’s sensors focused on basic detection of electromagnetic- and energetic-particle emissions associated with open nuclear weapons detonations. But they also enabled serendipitous discoveries of remarkable natural phenomena such as cosmic gamma-ray bursts, X-ray novae and solar wind composition. Modern space-based verification systems rely on sophisticated sensors that have not only helped keep the peace, but also continue to help explain the origins of poorly understood natural events such as terrestrial lightning.

During the past 50 years, some 200 space vehicles have been launched with Los Alamos payloads aboard. Many of these support on-going treaty-monitoring missions, while others are experiments designed to push the boundaries of what is considered state-of-the-art. Notable Los Alamos experimental missions include:

 ALEXIS, the Array of Low-Energy X-ray Imaging Sensors, was Los Alamos’s first homemade satellite. Launched in April 1993, this small craft demonstrated and tested new X-ray and radio sensing technology. The satellite was controlled from inside a small room at the Laboratory and remains aloft today.

 The FORTÉ, Fast On-orbit Rapid Recording of Transient Events, satellite, launched in August 1997, was a satellite test-bed for nuclear-detonation-detection technologies. Weighing less than 100 pounds and built of graphite-reinforced epoxy (the first of its kind to go into space), the small, long craft was essentially an antenna attached to a capsule-shaped array of solar panels, giving the satellite a distinctive fish-skeleton appearance. The satellite was lauded by Discovery magazine as one of most innovative advancements in aerospace technology, and it explored a 30-year problem of discriminating between electro-magnetic pulses (EMPs) caused by nuclear explosions and those caused by other natural or manmade sources.

 The Cibola Flight Experiment, launched in March 2007, tested eight new technologies—among them whether a specially designed supercomputer could survive the rigors of space. Because spacecraft are constantly bombarded by high-energy particles trapped in Earth’s magnetic field, computers and computer equipment can fail in the harsh environment. Moreover, high-powered computing requires a lot of energy, yet space travel requires low weight and small packages. Cibola’s supercomputer is testing new power sources and new strategies for hardening crucial computer components as well as new treaty verification technologies.

 In December 2010 Los Alamos scientists launched four satellites known as “cubeSats,” each of which is tiny enough to be held in a human hand. These unique craft, part of the Perseus Program, demonstrated the ability to quickly build and launch a useful, low-cost satellite. They also helped validate a Los Alamos design methodology of using simple, off-the-shelf components to accomplish a specific mission. The tiny spacecraft showcased communication- and data-collection capabilities, as well as a major new space capability for the Laboratory.
In addition to these missions, Los Alamos space technology deployed on scientific satellites has helped scientists worldwide determine the elemental composition of the surface of the moon, including the presence of water; understand the structure and dynamics of the Van Allen radiation belts; characterize the moons of Saturn; study the origin of gamma ray bursts and supernovae; and, most recently, with key instruments aboard the Curiosity Rover, help characterize the Martian landscape.

“The capabilities and technologies we have developed and demonstrated in support of our treaty verification mission have also found wide application in basic space research, enabled our participation in multiple NASA projects and led to a number of important discoveries,” said Kevin Saeger, leader of Los Alamos’s Intelligence and Space Research Division. “It’s a source of great pride to ISR Division employees to be able to support national security and at the same time participate in the human quest for greater knowledge and understanding of the universe.”

An exhibit that includes highlights of Los Alamos National Laboratory’s 50 years of space-based treaty verification, starting with Vela, is on display at U.S. Department of Energy Headquarters in Washington, D.C. The exhibit will next go to the U.S. Air Force’s Space and Missile Systems Center in Los Angeles, and later to Patrick Air Force Base in Florida, key partners in the national program for space-based nuclear detonation detection.


DEFENSE BUILDING 'IRON MAN SUIT'

Right:  An artist's rendering of what the Tactical Assault Light Operator Suit might look like with its desired capabilities. Defense Advanced Research Projects Agency courtesy graphic.

FROM:  U.S. DEFENSE DEPARTMENT 
Special Ops Command Seeks Prototypes for 'Iron Man Suit'
By David Vergun
Army News Service

WASHINGTON, Oct. 18, 2013 - U.S. Special Operations Command wants its operators to be protected with what it informally calls an "Iron Man suit," named after the fictional superhero.

In September, Socom announced it is seeking proposal
As for prototypes of the Tactical Assault Light Operator Suit, or TALOS.
The goal of TALOS is to provide ballistic protection to Special Operations Forces, along with fire-retardant capability, said Michel Fieldson, TALOS lead for Socom.

"We sometimes refer to it as the 'Iron Man' suit, frankly, to attract the attention, imagination and excitement of industry and academia," Fieldson said. "We're hoping to take products we're developing in several technology areas and integrating them into a consolidated suit to provide more protection for the [special operations forces]."

Other technologies include sensors, communications, energy and material that can store and release energy to prevent injuries and increase performance.

Materials that can store and release energy might be similar to the Intrepid Dynamic Exoskeletal Orthosis, now used by some wounded warriors for lower-leg injuries. So TALOS could benefit wounded warriors too, Fieldson said.

The Homeland Security Department and firefighters have expressed an interest in this technology as well, he said, and it eventually might become available for other service members.

"Our goal right now is to try to get the word out and bring industry partners together," Fieldson said. The technologies that will go into the suit's development are varied, he said, so it is unlikely one contractor would be able to specialize in the entire ensemble.

The traditional approach, Fieldson said, was to pick a prime contractor, usually a traditional defense partner, give them the design requirements and let them come up with the solution. That would take a long time, he noted.

"In this case, the government will be the lead integrator, and we'll look to work with traditional or nontraditional partners in industry and academia who are innovative," he said. "We'll leave no stone unturned."

The goal, he said, is to begin integrating capabilities over the next 12 months and have the first suit ready for full field testing in four to five years.

Fieldson thinks TALOS will become a reality because it protects the warfighters and has the backing of Socom's commander, Navy Adm. William H. McRaven.

"I'm very committed to this," McRaven said to industry representatives at a July 8 TALOS demonstration in Tampa, Fla. "I'd like that last operator that we lost to be the last one we ever lose in this fight or the fight of the future, and I think we can get there.

"I'm committed to this," he continued. "At the end of the day, I need you and industry to figure out how you are going to partner with each other to do something that's right for America."

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