Thursday, November 7, 2013

SECRETARY OF STATE KERRY MAKES REMARKS WITH ISRAELI PRIME MINISTER NETANYAHU BEFORE MEETING

FROM:  U.S. STATE DEPARTMENT 
Remarks With Israeli Prime Minister Benjamin Netanyahu Before Their Meeting
Remarks
John Kerry
Secretary of State
Jerusalem
November 6, 2013

PRIME MINISTER NETANYAHU: Well, good morning. It’s my pleasure to welcome my friend John Kerry to Jerusalem. We have two big items on our agenda every time we meet, and this time again.

The first is Iran. We just marked the event 34 years ago when the American Embassy was seized and we heard the chants, “Death to America.” We heard that two days ago again in Tehran, and this is, I believe, the true face of this regime or the person who controls this regime, the so-called Supreme Leader. I think that this attitude buttressed by a policy of terror worldwide supporting Hezbollah, Hamas, and all the forces that are against peace participating in a mass murder in Syria – I think such a regime must not have the world’s most dangerous weapons.

We’ve spoken about it many times, and I believe that as long as they continue their goal to enrich uranium to get nuclear weapons, the pressure should be maintained and even increased because they’re increasing enrichment. And I believe that it’s possible, with intense pressure because of the sanctions regime led in large part by the United States, to get Iran to fully dismantle its nuclear weapons program. And that’s really what we’re seeking – a full, peaceful, complete dismantling of Iran’s nuclear weapons capability, end of all enrichment, end of all centrifuges, end of the plutonium reactor.

If this is achieved, I’d welcome it. I’d be very worried of any partial deals that enable Iran to maintain those capabilities but begin to reduce sanctions because this could have – I think this could undermine the longevity and durability of the sanctions regime.

We seek peace with the Palestinians. We’ve spoken, John, many, many times about this, and because of your efforts, we launched several months ago an initiative to seek a peaceful agreement between Israel and the Palestinians. I want peace with the Palestinians; Israel wants peace with the Palestinians. We agreed three months ago on certain terms. We stand by those terms. We abide scrupulously by the terms of the agreement and the understanding on which we launched the negotiations.

I’m concerned about their progress because I see the Palestinians continuing with incitement, continuing to create artificial crises, continuing to avoid, run away from the historic decisions that are needed to make a genuine peace. I hope that your visit will help steer them back to a place where we could achieve the historical peace that we seek and that our people deserve.

And I welcome you again. Thank you.

SECRETARY KERRY: Well, Prime Minister, thank you very much. Thank you, Bibi, for again making time and being here to be part of this really critical process.

We are in the Rabin Suite here, and last night I had the privilege of visiting the site where violence took the life of a great prime minister who was moving towards peace. And I’d often heard President Clinton talk about the meaning of that loss and that moment to the loss of an opportunity for peace.

So I’m honored to be in the Rabin Suite meeting with the Prime Minister of Israel at a moment where we are in critical talks with respect to the possibilities of a long, long sought goal here in the Middle East. Israel deserves security, deserves to live in peace. The Palestinians deserve a state and deserve to live in peace, and that is what we are working towards.

This is a moment where there are many issues of great consequence on the table. As I sit here, a team is arriving in Geneva and they will be negotiating tomorrow with the P5+1 on Iran, on the very topic that Bibi just raised. Our goal is an Iran that has only a peaceful nuclear program, and indeed we must make certain – it is incumbent on us, a responsibility of the world to know with certainty that it is a peaceful program and there is no capacity to produce a weapon of mass destruction. That’s our goal. And as I have said many times, no deal is better than a bad deal. We will not make a bad deal if a deal can be made at all. And we will be pursuing that carefully.

Even as we are here, we’re also meeting in Geneva and in other efforts to try to move forward on Syria. The impact of Syria on this region cannot be overstated. Massive numbers of refugees, enormous violence, now the potential of disease – polio – a breakdown of the health system – perhaps even if we don’t succeed, the destruction of the state of Syria with all of those dangerous implications.

And then of course, finally, this issue of peace between Israel and the Palestinians. We are now three months into this negotiation. There are always difficulties, always tensions. I’m very confident of our ability to work through them. That’s why I’m here. We will spend serious time this morning. I will meet with President Abbas this afternoon. Again this evening, the Prime Minister and I and his team will share a working dinner, and we’ll work as late as it takes. And again tomorrow, I will be here in the region and working on this.

So I hope that we will continue in the good faith that brought the parties together in the first place that this can be achieved. With good faith, with a serious effort on both sides to make real compromises and hard decisions, this can be achieved. President Obama sees the road ahead, as do I, and we share a belief in this process or we wouldn’t put this time into it. So I look forward to the conversations we’ll have beginning today, and I respect everybody’s patience with us that we are not talking every day about what we’re doing. We need the space to negotiate privately, secretly, quietly, and we will continue to do that. We have six months ahead of us on the timetable we’ve set for ourselves, and I’m confident that we have the ability to make progress.

PRIME MINISTER NETANYAHU: Thank you, John.

FDA WARNS OF RISKS TO PETS TAKING PAIN MEDICATION

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 
Pain Medicines for Pets: Know the Risks

Your 9-year-old German Shepherd is limping, and you think that arthritis may be setting in. A trip to the veterinarian proves that you’re right—it’s osteoarthritis, a degeneration of the cartilage and bone that affects joints. The veterinarian prescribes a non-steroidal anti-inflammatory drug (NSAID).

NSAIDs are a class of drugs extensively used in both human and veterinary medicine for their anti-fever, anti-inflammatory and pain-relieving properties, and they are the most commonly prescribed pain relievers for animals. Inflammation—the body’s response to irritation or injury—is characterized by redness, warmth, swelling, and pain. NSAIDs work by blocking the production of chemicals produced by the body that play a role in inflammation.

“Scientists consider NSAIDs the cornerstone of osteoarthritis therapy in dogs,” says Melanie McLean, D.V.M., a veterinarian at the Food and Drug Administration (FDA). Some NSAIDS are also used to manage pain after surgery in both dogs and cats. No NSAID has been approved for long-term use in cats.

NSAIDs carry risks as well as benefits, however, and all dogs and cats should undergo a thorough physical examination by a veterinarian—including a discussion of the pet’s medical history— before beginning NSAID therapy. McLean notes that it’s also important that you talk to your veterinarian about possible side effects, including those that could signal danger.

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Risks and Side Effects
NSAIDS are associated with gastrointestinal ulcers/perforations, kidney, and liver toxicity (damage done by exposure to medications or chemicals) and must be used cautiously in animals with pre-existing kidney or liver problems.

Because most liver-associated toxicities occur during the first three weeks, it’s especially important to closely monitor the results of blood tests during the early stages of long-term NSAID treatment in dogs. Also, before starting long-term treatment with NSAIDs in dogs, blood tests should be conducted to establish baseline data and then repeated on a regular basis. McLean recommends that you talk with your veterinarian about how often this blood work should be done.

Some of the most common side effects of NSAIDS in animals reported to FDA are:

vomiting
decreased to no appetite
decreased activity level
diarrhea
While your animal is taking NSAIDs, continuously monitor the pet for these side effects as well as looking for blood in the feces, tar-like stools, yellowing of the whites of the eyes, or yellowing of the gums. If you see these, call your veterinarian immediately, McLean says. Other reported side effects include stomach and intestinal ulcers, intestinal perforation (a hole in the wall of the intestine), kidney failure, liver failure and death.

Giving two NSAIDs at the same time, or giving an NSAID with a steroid, such as prednisone, can significantly increase the risk and severity of side effects, especially gastrointestinal toxicity.

Risks associated with NSAIDs are detailed on the package inserts and the client information sheets that accompany all FDA-approved veterinary oral NSAIDs.

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Are OTC Meds for People Safe for Pets?
McLean says that it’s not unusual for pet owners to want to give their animals NSAIDs or acetaminophen (Tylenol and other brands, which are not NSAIDs) straight from their own medicine cabinets. “Many people don’t realize that a medicine that’s safe for people may not be safe for dogs or cats, or that a dose that is safe for people may not be safe for their pets,” she notes.

In fact, some over-the-counter (OTC) human pain relievers can be toxic, or even deadly, in pets. McLean suggests that you check with your veterinarian first if you want to give your animal OTC human drugs.

“You should always check with your veterinarian first before giving your animal any kind of medication, prescription or over-the-counter,” she notes. Similarly, pet owners should not assume that a medicine that is safe for one animal is necessarily safe for another.

Communication with your veterinarian is essential. Before giving your animal an NSAID:

Make sure you know what the medication is being prescribed for, how much to give and how long to give it.
Discuss possible side effects and symptoms, especially those that require an immediate call to the vet.
Tell your veterinarian if the pet has a history of gastrointestinal problems, such as stomach ulcers, or surgery on the stomach or intestines.
Tell your veterinarian if your pet is on any other medications or supplements.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.

NAVY COMMANDER, DEFENSE CONTRACTOR CHARGED IN CASH AND PROSTITUTES BRIBERY SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, November 6, 2013
Navy Commander Charged with Accepting $100,000 Cash and Prostitutes in Widening International Bribery Scheme

Third Navy Official Charged Along with Owner of Singapore-based Glenn Defense Marine Asia
A third senior U.S. Navy official has been charged in a complaint unsealed today with accepting prostitutes, luxury travel and $100,000 cash from a foreign defense contractor in exchange for classified and internal U.S. Navy information, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.

U.S. Navy Commander Jose Luis Sanchez, 41, was arrested in Tampa, Fla., Tuesday evening and made his initial appearance in federal court in the Middle District of Florida this morning.  Also named in a complaint unsealed today is Leonard Glenn Francis, 49, of Malaysia, the CEO of Glenn Defense Marine Asia (GDMA), who was arrested on Sept. 16, 2013, in San Diego.

 Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II, 44 – have been charged separately in connection with bribery allegations.  GDMA executive Alex Wisidagama, 40, of Singapore, has also been charged with participating in a related scheme to overbill the Navy for services provided in ports throughout Southeast Asia.

“As described in the corruption charges unsealed today, senior officials with the United States Navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment -- and even classified government information -- for their personal benefit,” said Acting Assistant Attorney General Raman.  “In turn, the GDMA executives who illicitly sought information and favors from those Navy officials boasted about their unlawful access to those officials and then traded on the influence that they illegally bought.  Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us.”

“According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification,” said U.S. Attorney Laura Duffy.  “While the overwhelming majority of the 400,000 active duty Navy personnel conduct themselves in a manner that is beyond reproach, we and our law enforcement partners at Naval Criminal Investigative Service and Defense Criminal Investigative Service continue to investigate the allegations of fraud and corruption that tarnish the stellar reputation of the U.S. Navy.”

 “The arrest and criminal complaint against Commander Sanchez is the result of an ongoing investigation by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said Special Agent In Charge Chris D. Hendrickson of the Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Western Field Office.  “Allegations like these against Commander Sanchez can tarnish the reputation of honest and hardworking government personnel and put military personnel defending our nation around the globe at risk.  The mission of DCIS is to ‘Protect America’s Warfighters’ and we will continue to relentlessly identify and investigate those individuals seeking to enrich themselves at the expense of the U.S. taxpayers.”    

According to the complaint, Sanchez received bribes in return for sending sensitive U.S. Navy information to Francis, and making recommendations within the Navy to benefit Francis’s company, GDMA.  GDMA is a multinational corporation and longtime government contractor based in Singapore, which provides hundreds of millions of dollars of “husbanding” services for the U.S. Navy in at least a dozen countries throughout the Pacific.  Husbanding involves supplying food, water, fuel, tugboats and fenders, security, transportation, trash and liquid waste removal, and other goods and services to ships and submarines in foreign ports.

Like Sanchez, Misiewicz is accused of providing sensitive Navy information to Francis and secretly working on behalf of GDMA in exchange for prostitutes and luxury travel.  GDMA, which has operating locations in Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States, allegedly overcharged the Navy and submitted bogus invoices for millions of dollars in services.  Beliveau, the NCIS agent, is charged in another complaint with illegally supplying Francis with sensitive information, including reports of investigations by NCIS into possible frauds committed by GDMA in billing the U.S. Navy under its contracts.  Wisidagama is charged with conspiracy to defraud the United States related to the overbilling.

According to court records, Sanchez allegedly provided Francis with internal Navy information, such as U.S. Navy ship schedules – some of which were classified – and information about husbanding issues that could affect GDMA, in order to help GDMA win and maintain Navy business.  Court records allege that Sanchez regularly emailed Francis internal Navy discussions about GDMA, including legal opinions, and made recommendations in GDMA’s favor about port visits and Navy personnel assignments.  In return, Francis gave Sanchez over $100,000 in cash, together with travel expenses and prostitutes.  Court records allege that the conspiracy started in January 2009, when Sanchez was the Deputy Logistics Officer for the Commander of the U.S. Navy Seventh Fleet in Yokosuka, Japan, and continued when he was transferred to serve as Director of Operations for Fleet Logistics Command in Singapore, until he transferred to Florida in April 2013.

Sanchez and Francis allegedly communicated regularly via email and Facebook.  Sanchez referred to Francis as “Lion King” and “Boss” in the emails, while Francis called Sanchez “brudda.”

For his part, Francis allegedly hired female escorts for Sanchez and friends on multiple occasions, on one occasion emailing one escort: “Hey Love Jose is in Manila at the DIAMOND Hotel go and see him he needs some love asap.”

According to court records, in an email exchange on Oct. 16, 2009, Sanchez and Francis allegedly discussed a trip Sanchez planned to take to Kuala Lumpur and Singapore with Navy friends he called his “Wolf Pack.”  They discussed the number of rooms the “Wolf Pack” needed, and Sanchez asked Francis for pictures of prostitutes for “motivation.”  Francis replied: “J, got it we will hook up after the FLAG dinner, will arrange a nest for you guys and some birds [women].”  A few days later, on Oct. 19, 2009, Sanchez sent a Facebook message to Francis saying, “Yummy . . . daddy like.”  In an Oct. 23, 2009, Facebook message, Sanchez asked Francis, “Where r we staying in KL [Kuala Lumpur]?  No pictures to get our spirits up?”

Between Aug. 26 and 28, 2011, Francis allegedly communicated through email to the address of an escort whom Francis had previously hired for Sanchez.  Francis wrote: “Hey Love, Jose is in Manila at the Diamond Hotel go and see him he needs some love asap room.”  The escort responded to Francis, “Papi, I'm here jose's fon is not answering. I'm here [h]aving dri[n]ks at the lobby. Call him:: (( maybe his sleeping?”  Later that day, she emailed Francis, “I'm with h[i]m already heehhe.”

Court records alleges that Francis sent an email on Oct. 20, 2011, asking Sanchez to help “swing” business his way regarding a U.S. Navy ship’s need to refuel at a port in Thailand.  The Navy can use “sea cards” to purchase fuel for its ships at a price negotiated by the Defense Logistics Agency for Energy, as opposed to procuring fuel at usually higher prices from the husbanding contractor.  In an email from Sanchez the next day, he told Francis: “Ask and you shall receive...we worked this out this morning…”  According to court records, the USS Mustin did conduct a port visit to Laem Chabang, Thailand, during which it purchased fuel from GDMA, not via “sea cards.”  As a result, the USS Mustin allegedly paid more than $1 million for fuel – more than twice what the fuel would have cost through use of the “sea card.”

The criminal complaint alleges that in an alleged Dec. 2, 2011, email discussion in which Sanchez told Francis about the status of an investigation of GDMA, Francis replied: “I have inside Intel from NCIS and read all the reports. I will show you a copy of a Classified Command File on me from NCIS ha ha.”

This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Drug Enforcement Administration.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter, and the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore also provided law enforcement assistance.  This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, and Catherine Votaw, Director of Procurement Fraud, and Brian Young, Trial Attorney, of the Criminal Division’s Fraud Section.

The details contained in the criminal complaints are allegations.  The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

SECRETARY KERRY MAKES REMARKS WITH ISRAELI PRESIDENT SHIMON PERES

FROM:  U.S. STATE DEPARTMENT 
Remarks With Israeli President Shimon Peres Before Their Meeting
Remarks
John Kerry
Secretary of State
Jerusalem
November 6, 2013

SECRETARY KERRY: Well, thank you very much – very, very much – Mr. President, Shimon. You really are both a good friend, but equally importantly for me, you are both a mentor and an inspiration. And I think you know how much I respect your journey, your many initiatives, your incredible patience, yourself, and commitment to this effort. So I’m really honored to be both sitting with you and working in the same cause with you in this effort.

Last night, I had the privilege – when I arrived here, I was taken to that infamous site, which you know too well, where you were the night that Prime Minister Yitzhak Rabin was assassinated. And you were right there. And I know that the two of you had just finished singing a song together, Don’t Whisper a Prayer, Sing a Song of Peace in a Loud Voice.

PRESIDENT PERES: Let the Sun Shine.

SECRETARY KERRY: And it was very moving. Dalia was there, and I was very touched that members of the family came. But most importantly, I was inspired because that was 18 years ago and he dared to fight for peace then; the least we can do – any of us – in following his example and inspiration is to continue and to try to find the goal line here.

I am convinced from my conversations today with Prime Minister Netanyahu as well as with President Abbas that this is not mission impossible; this can happen. It will require both leaders to make big, historic, difficult decisions. But I am also convinced that those are decisions that are absolutely, totally in the interests of their country, Israel and their country-to-be, Palestine, and in the interests of both peoples.

As you said a moment ago, there is no alternative. There will be chaos, violence, turmoil, confrontation, in the absence of peace. You cannot live with perpetual war, particularly in the Middle East, and not find huge complications. So President Obama has asked me to put this time into this effort. He is deeply committed to this cause. We believe that over the next months, with good effort we can hopefully make some progress.

Obviously, on Iran, our eyes are wide open. We appreciate your comments and we certainly appreciate your support for exhausting the possibilities of diplomacy. And our hope is that Iran will understand that this is a simple obligation: Show the world that you are pursuing a peaceful program. It’s not that hard. Lots of other nations do it. So we will remember our friends and their interests, and we will be very thoughtful and careful as we proceed. But I’m very grateful to you, again, for your support for our diplomatic effort.

So as always, Mr. President, it is a great honor and a special moment for me to visit with you, and I look forward to our conversation.

PRESIDENT PERES: Thank you so much.

SECRETARY KERRY: Thank you, sir.

NSF EXPLORES CREATIVITY

FROM:  NATIONAL SCIENCE FOUNDATION 
Hunting the spark of creativity

In his 1937 book, "Think and Grow Rich," author Napoleon Hill identified 13 steps to success, one of which was the power of the mastermind. "No two minds ever come together without thereby creating a third, invisible, intangible force, which may be likened to a third mind," Hill wrote.

He included the step to explain a principle of achievement--the standard idea that two heads, or a group of heads, are better than one at creating innovations. More than 75 years later, new research aims to put Hill's mastermind idea on steroids.

Until recently, decision makers could only effectively harness shared creativity from relatively small mastermind groups such as boards, panels or committees. Data from these could be placed in pre-organized, well-structured and well-categorized "buckets" to extract creative knowledge.

The relatively recent growth and development of the Internet, however, along with social network technology, provides an opportunity to expand the mastermind concept to hundreds, or thousands or even hundreds of thousands of geographically distant people.

University of Cincinnati complex systems scientist Ali Minai and a team of researchers funded by the National Science Foundation (NSF) are attempting to do just that--to develop computer-based tools to mine the Internet and communities of social media for creative insights.

But first, the researchers must clearly define the highly personal subject of creativity by types, kinds and categories to successfully identify it online. In addition, they must find a way to organize large amounts of unstructured, creative data--intermixed collections of text, video, images and other information.

To do that, the researchers are examining creativity in neural networks in the human brain; social networks related to interactions among people and networks of knowledge that develop in groups. And according to some observers, if successful, the project could be a game changer.

"It could be a huge, big deal," said Penn State University's Jack Matson, author of the book "Innovate or Die: A Personal Perspective on the Art of Innovation."

"Basically, cultures are innovation driven," he said noting the market interconnectivity of nations like China and the United States. "Now that we're virtually connected, the ability to innovate is going to make or break countries and societies."

"The future of societies will depend more than ever on their innovativeness, and this will be enabled by connectivity," said Minai. "I think that Professor Matson's statement is absolutely correct. The issue is how we can exploit the immense amount of knowledge that is latent in the networks that connect us and which is growing every minute."

An interesting desire: Detecting creativity with computers

The project, "The Hunting of the Spark: A Systematic Study of Natural Creativity in Human Networks," is one of 40 projects funded in the first round of an NSF initiative that addresses extremely complicated and pressing scientific problems. Called INSPIRE, the initiative funds potentially transformative research that doesn't fit into any one, scientific field, but crosses disciplinary boundaries.

"There really is not one place in NSF for this type of research," said Betty Tuller, program director for perception, action and cognition in NSF's Social, Behavioral and Economics Sciences Directorate, which contributed to the funding. "This is especially true for research that doesn't focus on a single, specific domain but instead aims at understanding the role of human and organizational networks in creativity per se."

The team, whose research has been ongoing since September 2012, includes researchers from four universities with extensive expertise in social psychology, computational neuroscience, cognitive science, computer science, engineering and network theory.

"One of the interesting things is their desire to automatically detect creativity using a system of human-centered computing," said Kevin Crowston, a program director in NSF's division of information and intelligent systems in its Directorate for Computer and Information Science and Engineering, which also funds the research. "There is a lot of interest in computationally mining the large corpora of text data from social networks for signals of innovation. I'd like to see how this turns out."

Social networks: A better understanding

"Being able to extract ideas from social networks is very much the ultimate goal of our research, but a major issue is which real-world networks we can access for this purpose," said Minai.

In recent years, social media networks have been increasingly difficult to access. Because of structural and privacy concerns, accessing Facebook content for research purposes is extremely challenging. While Twitter is more accessible, only a fraction of the data stream can be collected and even then a lot of the data is just "noise."

These noisy data streams make the goals of the project harder to achieve. But Minai already has a group of University of Cincinnati graduate students, funded by a previous NSF grant, working to mine meaningful information from Twitter and other online sources.

He anticipates the two projects eventually will help open vast possibilities for shared creativity and innovation among the millions that use social media. He also anticipates the research could help many modern institutions, including elections, parliaments, governing boards, free markets and businesses. This is especially true of institutions that innovate using online presences.

ModCloth: An example

"Social has been a part of the 'DNA' of ModCloth since its inception," said Jennifer Grasso, director of Product Management for ModCloth. "We recognized early on that creating a social experience on and off ModCloth enables customers to feel a much closer affinity with our brand."

ModCloth is a wildly successful online retailer that credits the collaborative approach of its social media network for spurring company growth to more than $100 million in revenue in 2012. It specializes in vintage, retro-inspired and indie clothing and decor. Fast Company business magazine ranked its use of social media as 2013's fourth most innovative and ranked ModCloth as one of the top 50 most innovative companies overall.

"ModCloth allows users to post reviews for every product they purchase, and to date, 83 percent of our products have customer reviews on the site," said Grasso providing an example of how Minai and colleagues research into understanding the process of creativity, network interactions and analysis of unstructured data could benefit the company.

"These reviews are full of personal anecdotes about why an item did or didn't work. Comments about fit, quality, construction, personal style and a range of other information may be included in any given review. In customer research, we hear frequently from customers who tell us how useful these reviews are in helping them make a purchase decision.

"As a business, ModCloth could benefit from the ability to 'mine' the very varied, subjective information coming from these reviews. Are there trends we can elevate from this information around style concerns, fit issues or quality problems that can help us create a better shopping experience, sell more relevant products, or better meet our customers' needs?"

Subjective creativity: "How do we mine it?"

Grasso acknowledges, however, that creativity is incredibly subjective. She wonders, "How do we mine this type of data--not linear, not structured--and organize it into actionable insights for our business?"

She puts her finger on the nub of a major concern for the project's researchers. However, based on recent advances in computational linguistics and complex network analysis, the researchers may have a way to solve the problem. One potentially fruitful approach, they believe, is to look at structural elements within human and knowledge networks to uncover components of creativity.

The idea is to identify smaller sub-networks or modules within larger networks that people use to exchange information--that is identify modules that self-organize, carry out discrete functions and are strongly linked within themselves but weakly linked to other sub-networks in the larger group.

For example, among a group of engineering students, some may form a sub-network related to civil engineering, while others may form a module related to bioengineering. Though it may not seem like civil engineers and bioengineers have much in common, all are engineers.

Minai and team are looking for similar modules in neural networks, knowledge networks and social networks. Once these modules are identified, whether online or in person, the researchers believe they can analyze them to determine the network's inherent "meaning," or in this case, study them for constituent creativity. Being able to take raw, unorganized data and analyze it in this way could allow organized mining of large amounts of unstructured creative data.

A core concern: Catching creativity in the act

The researchers say relatively little data is available on how the creative process develops over time in real-world groups, and what the key dynamics are in producing the most innovative ideas or products. They hope the insights gained from their work will provide both a theoretical and practical basis for understanding the process of natural creativity in individuals and networks.

"A core concern of our research is the desire to catch creativity 'in the act,'" said Minai.

The researchers are using a combination of field and laboratory studies to improve their understanding. Field studies use intelligent analysis and data mining to discover natural patterns of innovation in diverse communities of test subjects, e.g., research scholars or engineers. Co-principal investigator and Stony Brook University Electrical and Computer Engineering professor Alex Doboli, who is an expert on data mining and innovation in engineering, will help develop a standard framework for such studies.

Minai and Hofstra University Computer Science professor Simona Doboli, also a co-principal investigator and an expert on brainstorming and neural networks, will generate computer models to analyze data from both laboratory groups and online sources. The models generated then will be tested more specifically in laboratory studies conducted by Paul Paulus and Jared Kenworthy, both co-principal investigators and psychology professors at the University of Texas at Arlington.

"What they're trying to do is make a fairly enormous leap in human ability to innovate by taking mass data from all these sites and trying to tweak where the innovations are, what's happening, where the trends are and how the remixing is going from culture to culture," said Matson, who recently headed a Coursera Massively Open Online Course on "Creativity, Innovation, and Change" that had more than 125,000 participants when it began in early September.

"In order for them to figure it out, it's going to take a lot of iterations, a lot of trial and error and I hope they are looking at it that way," he said.

"We would like people to see this research as an attempt to look at something that is the very essence of being human--creativity--but which is very difficult to study quantitatively," said Minai. "They should also understand that we approach this task with equal measures of excitement and humility."

Wednesday, November 6, 2013

SEC CHARGES MUNICIPAL ISSUER WITH MISLEADING INVESTORS IN BOND OFFERING

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged a municipal issuer in the state of Washington’s Wenatchee Valley region with misleading investors in a bond offering that financed the construction of a regional events center and ice hockey arena.  The SEC also charged the underwriter and outside developer of the project and three individuals involved in the offering.

The Greater Wenatchee Regional Events Center Public Facilities District agreed to settle the SEC’s charges by paying a $20,000 penalty and undertaking remedial actions.  It is the first time that the SEC has assessed a financial penalty against a municipal issuer.

The issuer is a municipal corporation formed by nine Washington cities and counties in 2006 to fund the Town Toyota Center, located in the city of Wenatchee.  An SEC investigation found inaccuracies in the primary disclosure document accompanying the issuer’s offering of bond anticipation notes in 2008.  The document, called the “official statement,” stated there had been no independent reviews of the financial projections for the events center.  However, an independent consultant twice examined the projections and raised questions about the center’s economic viability.  The official statement failed to disclose that financial projections had been revised upward based in part upon optimistic assurances by civic leaders that the community would support the project.  The document also omitted key information about the possibility that the City of Wenatchee’s remaining debt capacity of $19.3 million would limit its ability to support any future long-term bonds.

“Financial penalties against municipal issuers are appropriate for sanctioning and deterring misconduct when, as here, they can be paid from operating funds without directly impacting taxpayers,” said Andrew Ceresney, co-director of the SEC’s Division of Enforcement. “This municipal issuer is paying an appropriate price for withholding negative information from its primary offering document and giving investors a false picture of the future performance of the project.”

The Greater Wenatchee Regional Events Center Public Facilities District issued $41.77 million in bond anticipation notes in 2008, and defaulted on its principal payments in December 2011.

The SEC’s settled administrative proceedings also name the developer Global Entertainment and its then-president and CEO Richard Kozuback, the underwriter Piper Jaffray & Co. and its lead investment banker Jane Towery, and Allison Williams, a senior staff member for the Greater Wenatchee Regional Events Center Public Facilities District who certified the accuracy of the official statement.

“An underwriter’s due diligence obligation is critical, particularly when financing a startup revenue project.  Piper Jaffray & Co. failed to develop a reasonable basis for believing the accuracy of key representations made in the official statement,” said Mark Zehner, deputy chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit.

In settling the SEC’s charges, Piper Jaffray & Co. and Towery agreed to be censured and pay penalties of $300,000 and $25,000 respectively.  Global Entertainment and Kozuback each agreed to pay penalties of $10,000.  Williams consented to a cease-and-desist order and the issuer agreed to remedial actions, including training for personnel involved in the offering and disclosure process.  The issuer also agreed to adopt written policies for disclosures in municipal offerings and continuing disclosure obligations, and to designate an individual responsible for ensuring compliance with those obligations.  The respondents neither admit nor deny the SEC’s findings.

The SEC’s order requires Piper Jaffray & Co. to retain an independent consultant to conduct a review of the firm’s municipal underwriting due diligence policies and procedures as well as its supervisory policies and procedures relating to municipal underwriting due diligence.  Towery agreed to limit her activities as an associated person of a broker-dealer or municipal advisor for one year by refraining from any contact with any existing or prospective municipal issuer client for the purpose of conducting, maintaining, or developing business or for the purpose of making decisions on behalf of a broker-dealer in connection with any due diligence activities.

The SEC’s investigation was conducted by Monique C. Winkler in the San Francisco Regional Office, who is a member of the Municipal Securities and Public Pensions Unit.  The case was supervised by Cary Robnett, an assistant director in the San Francisco office.

SECRETARY KERRY'S REMARKS AFTER MEETING WITH PALESTINIAN PRESIDENT ABBAS

FROM:  U.S. STATE DEPARTMENT 
Remarks After a Meeting With President Mahmoud Abbas
Remarks
John Kerry
Secretary of State
Bethlehem
November 6, 2013

Well, good afternoon, everybody. Thank you very much for your patience. We just had a very, very good meeting with President Abbas and an excellent lunch and a great conversation about the process. Let me state unequivocally that President Abbas is 100 percent committed to these talks. He has committed that the Palestinians will not go to the United Nations during the period of time of these talks in exchange for the prisoners that are being released by Israel. That was the agreement.

Let me emphasize at this point the position of the United States of America on the settlements is that we consider now and have always considered the settlements to be illegitimate. And I want to make it extremely clear that at no time did the Palestinians in any way agree, as a matter of going back to the talks, that they somehow condone or accept the settlements. The Palestinians believe that the settlements are illegal. The United States has said that they believe the settlements are not helpful and are illegitimate. And there should be no connection. That is not to say that they weren’t aware or we weren’t aware that there would be construction. But that construction, importantly, in our judgment, would be much better off limited as much as possible in an effort to help create a climate for these talks to be able to proceed effectively.

I am convinced that President Abbas is serious about these talks. I’m convinced that he wants to find peace and that he understands that we require compromise by all the parties. And he has restated to me today his own willingness to compromise in an effort to find a fair and just peace.

So I thank him for his hospitality today. I’m particularly excited that today we were able, in Bethlehem, to make the announcement of $75 million that will be added to an already committed 25 million for $100 million of high-impact infrastructure investment by the United States to immediately have an impact on the day-to-day life of Palestinians. In addition to that, we have significant contributions that will be made by other countries, all of whom are interested in trying to support the peace process here.

So I look forward tonight to continuing my conversations with Prime Minister Netanyahu, and again tomorrow in Amman, I will have a chance to meet His Majesty King Abdullah, as well as again with President Abbas. So hopefully in the course of all this, we can find the goodwill and a good purpose and a good faith to make progress on behalf of two proud peoples who deserve, each of them, to live in their states in peace. That’s our objective and that’s what we will continue to work for. Thank you very much.


U.S. DEFENSE DEPARTMENT CONTRACTS FOR NOVEMBER 6, 2013

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

AIR FORCE

DRS-Sustainment Systems, Inc., St. Louis, Mo., has been awarded a $391,100,000 (estimated) hybrid firm-fixed-price, fixed-price-incentive-firm-target, cost-reimbursable-no fee (travel only), requirements-type “D” contract for the Tunner 60K Aircraft Cargo Loader Performance-Based-Logistics (PBL) program.  This requirement is for Level 3 PBL support for 318 Tunner aircraft cargo loaders at over 80 worldwide locations.  The Level 3 PBL availability metric ensures maximum cargo velocity support is provided to Air Mobility Command.  There are six elements of support that comprise this requirement:  material management (MM) parts, MM infrastructure, program engineering support, overhaul, unscheduled depot level maintenance and modifications.  Work will be performed at West Plains, Mo., and is expected to be completed by July 31, 2024.  This award is the result of a competitive acquisition.  Unlimited offers were solicited, and two offers were received.  Fiscal 2014 working capital funds, centralized asset management, Air Force Reserve Command and Air National Guard funds will be obligated being obligated upon availability.  This is not a multiyear contract.  Air Force Life Cycle Management Center/WNKBBA, Robins Air Force Base, Ga., is the contracting activity (FA8519-14-D-0001).

General Electric Co., GE Global Research, Niskayuna N.Y., has been awarded a not-to-exceed $19,970,000, cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract to provide research and development pertaining to the development and implementation of condition-based maintenance plus structural integrity.  The contractor will develop and demonstrate a probabilistic, risk-based, flight-by-flight individual aircraft tracking (IAT) framework to replace the baseline deterministic IAT framework currently used for legacy aircraft.  The program will identify key uncertainty drivers and promising areas for future research and will assess the feasibility of the approach for application to legacy fleets.  Deliverables will include technical reports and may include hardware and software.  Work will be performed at Niskayuna, N.Y., and Wright-Patterson Air Force Base, Ohio, and is expected to be complete by Feb. 1, 2020.  The award is a result of a competitive acquisition.  Unlimited offers were solicited and four offers were received.  Fiscal 2013 research and development funds in the amount of $654,932 are being obligated at time of award.  This is not a multiyear contract.  Air Force Research Laboratory/RQKPD, Wright-Patterson Air Force Base, Ohio, is the contracting activity  (FA8650-14-D-2443).

ARMY

Oshkosh Corp., Oshkosh, Wis., was awarded a $74,086,915 modification (000717) to firm-fixed-price contract W56HZV-09-D-0159.  The contract adds 246 medium tactical vehicles (FMTV), and applicable federal retail excise tax to the contract.  Work location is Oshkosh, Wis., with an estimated completion date of Dec. 31, 2014.  Fiscal 2013 procurement funds in the amount of $19,851,017 are being obligated at the time of the award.  Bids were solicited via the Internet with three received.  Army Contracting Command (Tank and Automotive), Warren, Mich., is the contracting agency.

Fidelity Technologies Corp., Reading, Pa., was awarded a $23,562,700 modification (P00008) to firm-fixed-price contract W56HZV-13-C-0052.  The contract awards options for armor kits for the Heavy Mobility Tactical Truck A4, Palletized Load System A1, Heavy Mobility Tactical Truck A4 Tanker Armor Module Kit and the M915A5.  Work location is Reading, Pa., with an  estimated completion date of May 25, 2014.  Fiscal 2013 procurement funds in the amount of $8,763,071 are being obligated at the time of the award.  Bids were solicited via the internet with nine received.  Army Contracting Command (Tank and Automotive), Warren, Mich., is the contracting agency.

ISO Group, West Melbourne, Fla., was awarded a $7,635,520 firm-fixed-price, foreign military sales contract for providing M60 spare parts to the Sultanate of Oman.  Work location is West Melbourne, Fla., with an estimated completion date of June 30, 2014.  Fiscal 2013 procurement funds in the amount of $7,635,520 are being obligated at the time of the award.  Bids were solicited via the internet with one received.  Army Contracting Command (Tank and Automotive), Warren, Mich., is the contracting agency (W56HZV-14-C-0028).

NAVY

Heil Trailer International, Gatesville, Texas, is being awarded $9,721,600 for firm-fixed-price delivery order 0014 under a previously awarded indefinite-delivery/indefinite-quantity contract (M67854-10-D-5069).  This delivery order is for the purchase of 70 Flatrack Refueling Capability (FRC) Full Rate Production units.  The FRC is a self-contained and transportable fueling system.  The FRC fuels tactical vehicles, stationary equipment, and dispense and remove fuel from fixed and rotary wing aircraft.  The primary mission for the FRC will be to distribute fuel in the Marine Air-Ground Task Force Expeditionary and combat environment.  Work and production will be performed in Gatesville, Texas, and work is expected to be completed by March 31, 2015.  The contract was competitively procured via the Federal Business Opportunities website.  Fiscal 2013 procurement, Marine Corps contract funds in the amount of $9,721,600 will be obligated at the time of award, and will not expire at the end of the current fiscal year.  The Marine Corps Systems Command, Quantico, Va., is the contracting activity.

Northrop Grumman Systems Corp., Charlottesville, Va., is being awarded an $8,917,999 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, performance based contract with provisions for firm-fixed-price orders,  The contract is for the procurement of engineering and technical services consisting of parts procurement, repair, field, and marine repair services, software, and engineering support for the AN/WSN-7/7A Ring Laser Gyro Navigation (RLGN) systems, AN/WSN-7B Ring Laser Gyrocompass (RLGN), Integrated Bridge System (IBS)/Voice Management System and Navigation and Search Radar Systems.  This contract includes options which, if exercised, would bring the cumulative value (ceiling) of the contract to an estimated $27,526,385.  This contract action merely establishes a potential ceiling value and does not obligate the Navy to fund to the ceiling.  Work will be performed in Charlottesville, Va., (85 percent); Charleston, S.C., (10 percent); and other locations outside the continental United States (5 percent).  Work is expected to be completed by October 2014.  If all options are exercised, work could continue until October 2016.  Fiscal 2012 shipbuilding and conversion, Navy contract funds in the amount of $240,359 will be obligated at the time of award, and will not expire at the end of the current fiscal year.  The contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1).  Space and Naval Warfare Systems Center Atlantic, Charleston, S.C., is the contracting activity (N65236-14-D-2813).

General Electric Co., Lynn, Mass., is being awarded an $8,048,888 modification to a previously awarded firm-fixed-price contract (N00019-11-C-0045) to procure long lead material for the F414-GE-400 engines in support of the F/A-18E/F/G aircraft.  Work will be performed in Lynn, Mass. (59 percent); Hooksett, N.H. (18 percent); Rutland, Vt. (12 percent); and Madisonville, Ky. (11 percent), and is expected to be completed in October 2015.  Fiscal 2013 aircraft procurement, Navy, advanced procurement funding in the amount of $8,048,888 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Huntington Ingalls Inc., Newport News, Va., is being awarded a $7,319,933 cost-plus-fixed-fee modification to previously awarded contract (N00024-12-C-2101) for planning and design yard functions for standard Navy valves in support of nuclear-powered submarines.  Work will be performed in Newport News, Va., and is expected to be completed by September 2014.  Fiscal 2014 operations and maintenance, Navy funds in the amount of $7,319,933 are being obligated at time of award and will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

DEFENSE LOGISTICS AGENCY

API, LLC, Comerio, Puerto Rico, has been awarded a maximum $32,859,542 modification (P00011) exercising the second one-year option period on a one-year base contract (SPM1C1-12-D-1006) with three one-year option periods for duffel bags.  This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract.  Location of performance is Puerto Rico with a Nov. 8, 2014, performance completion date.  Using military services are Army, Navy, Air Force, and Marine Corps.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

CORRECTION:  The contract (SPM300-14-D-3735) to Pacific Unlimited Inc., originally announced on Nov. 4, 2013, was not awarded.

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