U.S. FILES LAWSUIT AGAINST AT&T IN RELAY SERVICES FRAUD CASE

The following excerpt is from the U.S Department of Justice. 
Thursday, March 22, 2012
United States Files Lawsuit Against AT&T in Telecommunications Relay Services Fraud Case Government Alleges AT&T Improperly Billed the FCC for Reimbursement
The United States has filed a complaint against AT&T Corporation under the False Claims Act for conduct related to its provision of Internet Protocol (IP) Relay services, the Justice Department announced today.   AT&T is a global conglomerate that provides a wide variety of telecommunications services, including Telecommunications Relay Services (TRS) for the deaf and hard-of-hearing.

IP Relay is a text-based communications service designed to allow hearing-impaired individuals to place telephone calls to hearing persons by typing messages over the Internet that are relayed by communications assistants (CAs) employed by an IP Relay provider.   IP Relay is funded by fees assessed by telecommunications providers to telephone customers, and is provided at no cost to IP Relay users.   The FCC, through the TRS Fund, reimburses IP Relay providers at a rate of approximately $1.30 per minute.   In an effort to reduce the abuse of IP Relay by foreign scammers using the system to defraud American merchants with stolen credit cards and by other means, the FCC in 2009 required providers to verify the accuracy of each registered user’s name and mailing address.

The United States alleges that AT&T violated the False Claims Act by facilitating and seeking federal payment for IP Relay calls by international callers who were ineligible for the service and sought to use it for fraudulent purposes.   The complaint alleges that, out of fears that fraudulent call volume would drop after the registration deadline, AT&T knowingly adopted a non-compliant registration system that did not verify whether the user was located within the United States.   The complaint further contends that AT&T continued to employ this system even with the knowledge that it facilitated use of IP Relay by fraudulent foreign callers, which accounted for up to 95 percent of AT&T’s call volume.   The government’s complaint alleges that AT&T improperly billed the TRS Fund for reimbursement of these calls and received millions of dollars in federal payments as a result.

“Federal funding for Telecommunications Relay Services is intended to help the hearing- and speech-impaired in the United States,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice.   “We will pursue those who seek to gain by knowingly allowing others to abuse this program.”

“Taxpayers must not bear the cost of abuses of the Telecommunications Relay system,” said David J. Hickton, U.S. Attorney for the Western District of Pennsylvania.  “Those who misuse funds intended to benefit the hearing- and speech-impaired must be held accountable.”

The claims in the United States’ complaint are allegations only; there has been no determination of liability.

The United States’ complaint was filed in a lawsuit originally brought under the qui tam, or whistleblower, provisions of the False Claims Act by Constance Lyttle, a former CA who worked in one of AT&T’s IP Relay call centers.   Under the act’s qui tam provisions, a private citizen, known as a “relator,” can sue for fraud on behalf of the United States, which has the option of taking over the case.   If the lawsuit is successful, the relator is entitled to a share of any recovery.

SECRETARY CLINTON TRIES TO AVERT WATER INSTABILITY ISSUES

The following excerpt is from the U.S. State Department:
Media Note Office of the Spokesperson Washington, DC
March 22, 2012
n a speech commemorating World Water Day, Secretary of State Hillary Rodham Clinton today launched a new partnership to improve water security. The U.S. Water Partnership (USWP) is a public-private partnership that seeks to mobilize U.S.-based knowledge, expertise and resources to improve water security around the world – particularly in those countries most in need.

Secretary Clinton also announced the release today of an Intelligence Community Assessment (ICA) on Global Water Security. The ICA is based on a National Intelligence Estimate requested by Secretary Clinton a year earlier to assess the impact of global water issues on U.S. national security interests. The report concludes that while wars over water are unlikely within the next ten years, water challenges – shortages, poor water quality, floods - will likely increase the risk of instability and state failure, exacerbate regional tensions, and distract countries from working with the United States on important policy objectives.

The ICA also notes that, as a consequence of water problems globally, the demand for U.S. assistance and expertise will increase. The U.S. Water Partnership launched today will help meet this need by creating a platform for fostering new partnerships among the U.S.-based private sector and the non-profit, academic, scientific, and expert communities. The Partnership will mobilize the “Best-of-America” to provide safe drinking water and sanitation and improve water resources management worldwide.

Secretary Clinton was joined by Representative Earl Blumenauer in welcoming representatives of eighteen USWP members today, including Africare, the Coca-Cola Company, Procter & Gamble, the Nature Conservancy, Rockefeller Foundation, Ford Motor Company, Skoll Global Threats Fund, the Water Institute at the University of North Carolina, World Resources Institute, Global Environment & Technology Foundation, Global Water Challenge, and Clean Water America Alliance. Representatives of U.S. Government partners participated from: U.S. International Boundary and Water Commission; National Aeronautics and Space Administration; U.S. Agency for International Development; U.S. Army Corps of Engineers; and U.S. Department of the Interior, in addition to the U.S. Department of State.

In her remarks today, the Secretary stated: “We believe this Water Partnership will help map out our route to a more water secure world: a world where no one dies from water-related diseases; where water does not impede social or economic development; and where no war is ever fought over water.”

VA REPORTS INCREASING NUMBERS OF HOMELESS WOMEN VETERANS

The following excerpt is from the Veterans Affairs website:
Homeless women Veteran on the rise; VA Improving Services
March 21, 2012 by Stacy Vasquez
A’s efforts to provide housing and health care support for women Veterans have never been more critical. The number of homeless women Veterans continues to rise.  As a result, VA is taking steps to improve and expand its services for women Veterans who are homeless or at risk of becoming homeless. While VA’s services are available to all Veterans, there are special programs available to women Veterans, including supportive services for Veteran families, HUD-VASH housing vouchers, Grant and Pier Diem program, and specialized health care and mental health services for women—all designed to better meet the needs of women Veterans.

VA understands that many women Veterans face great challenges when returning to civilian life that are different from those of male Veterans. These challenges, without intervention, can put women Veterans at greater risk of becoming homeless.
“Homelessness is really a symptom and the end step in a long stage of deterioration,” said W. Scott Gould, Assistant Secretary of the Department of Veterans Affairs, at the 25th National Disabled Veterans Winter Sports Clinic in Snowmass Village, Colorado.  “Once they are [at VA], we have the tools and capabilities to be able to help them,” he said.
According the 2010 Annual Homeless Assessment Report to Congress, women comprised 8 percent of the homeless Veteran population in 2010; however, they represented only 7 percent of the Veteran population.

A recent GAO report cites the special conditions or predispositions that make it hard for women to readjust after service. Two-thirds of homeless women Veterans were between 40 and 59 years old, the report said, and more than one-third had disabilities. In addition, many of these women live with young children. In addition to the demands that come with bearing and raising children, women are sometimes victims of traumatic events experienced during their service. The GAO emphasized the need for VA to provide reliable and expansive programs that specifically aim to help women Veterans get the benefits, housing, child care, transportation, and health care support they need.
All homeless Veterans and Veterans at risk of homelessness are encouraged to connect with VA services by calling the National Call Center for Homeless Veterans at 1-877-4AID-VET (1-877-424-3838), or online atwww.veteranscrisisline.net.

VA will continue to evaluate and ramp up its programs to meet the needs of all homeless and at-risk Veterans, men and women alike—a challenge VA embraces.
For more on VA’s initiative to end Veteran homelessness by 2015, and to access information and resources, visit: www.va.gov/homeless.

Stacy Vasquez is a U.S. Army Veteran (1991 – 2003). She currently serves as the Deputy Director for Homeless Veteran Initiatives at the U.S. Department of Veterans Affairs.

SCIENTIST GOES TO PRISON FOR ESPIONAGE AND OTHER CHARGES

The following excerpt is from the Department of Justice website:
Wednesday, March 21, 2012
Noted Scientist Sentenced to 13-Year Prison Term for Attempted Espionage, Fraud and Tax Charges
WASHINGTON – Stewart David Nozette, 54, a scientist who once worked for the Department of Energy, the Department of Defense, the National Aeronautics and Space Administration and the White House’s National Space Council, was sentenced today to 13 years in prison for attempted espionage, conspiracy to defraud the United States and tax evasion.

The sentence covered charges in two cases.   In one, Nozette pleaded guilty in September 2011 to attempted espionage for providing classified information to a person he believed to be an Israeli intelligence officer.   In the other, he pleaded guilty in January 2009 to fraud and tax charges stemming from more than $265,000 in false claims he submitted to the government.

The sentencing, which took place this morning in the U.S. District Court for the District of Columbia, was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Lisa Monaco, Assistant Attorney General for National Security; and Principal Deputy Assistant Attorney General John A. DiCicco of the Tax Division.

Joining in the announcement were James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Paul K. Martin, Inspector General for the National Aeronautics and Space Administration (NASA OIG); Eric Hylton, Acting Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); and John Wagner, Special Agent in Charge of the Washington, D.C., Office of the Naval Criminal Investigative Service (NCIS).

In addition to the prison term, the Honorable Paul L. Friedman ordered that Nozette pay more than $217,000 in restitution to the government agencies he defrauded.

Nozette has been in custody since his arrest for attempted espionage on Oct. 19, 2009.   At the time, he was awaiting sentencing on the fraud and tax evasion charges.  FBI agents arrested Nozette following an undercover operation in which he provided classified materials on three occasions, including one that formed the basis for his guilty plea.   He was subsequently indicted by a federal grand jury.  The indictment does not allege that the government of Israel or anyone acting on its behalf committed any offense under U.S. laws in this case.

“Stewart Nozette's greed exceeded his loyalty to our country” said U.S. Attorney Machen.  “He wasted his talent and ruined his reputation by agreeing to sell national secrets to someone he believed was a foreign agent.  His time in prison will provide him ample opportunity to reflect on his decision to betray the United States.”

“Stewart Nozette betrayed his country and the trust that was placed in him by attempting to sell some of America’s most closely-guarded secrets for profit.   Today, he received the justice he deserves.  As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who compromise them,” said Assistant Attorney General Monaco.  “I thank the many agents, analysts and prosecutors who worked on this important case.”        

“As this case demonstrates, those who attempt to evade their taxes by abusing the tax-exempt status of non-profit entities will be investigated, prosecuted and punished,” said Principal Deputy Assistant Attorney General DiCicco.

“Today’s sentencing demonstrates that espionage remains a serious threat to our national security,” said Assistant Director in Charge McJunkin. “The FBI and our partners in the defense and intelligence communities work every day to prevent sensitive information from getting into the wrong hands, and I commend the hard work of the dedicated agents, analysts and prosecutors who spent a significant amount of time bringing this case to resolution.”

“We are particularly proud that NASA OIG’s fraud investigation of Nozette, which began in 2006, served as the catalyst for further investigation and today's outcome,” said NASA Inspector General Martin.

“IRS-Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners,” said Acting Special Agent in Charge Hylton. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrongdoing.  Mr. Nozette decided to betray his country to line his own pockets rather than play by the rules.  He now is being held accountable for his actions.”

“Federal agents take an oath to protect our nation ‘against all enemies, foreign and domestic.’  That would include ‘insider threats’ like Stewart Nozette,” said Special Agent in Charge Wagner.  “NCIS is committed to working with our law enforcement partners and prosecutors to find and hold accountable those like Nozette who put personal gain above national security.”

Nozette received a Ph.D. in Planetary Sciences from the Massachusetts Institute of Technology. Beginning in at least 1989, he held sensitive and high-profile positions within the U.S. government.  He worked in various capacities on behalf of the government in the development of state-of-the-art programs in defense and space.   During his career, for example, Nozette worked at the White House on the National Space Council, Executive Office of the President.  He also worked as a physicist for the U.S. Department of Energy’s Lawrence Livermore National Laboratory, where he designed highly advanced technology.
         
Nozette was the president, treasurer and director of the Alliance for Competitive Technology (ACT), a non-profit organization that he organized in March 1990.  Between January 2000 and February 2006, Nozette, through his company, ACT, entered into agreements with several government agencies to develop highly advanced technology. Nozette performed some of this research and development at the U.S. Naval Research Laboratory (NRL) in Washington, D.C., the Defense Advanced Research Projects Agency (DARPA) in Arlington, Va., and NASA’s Goddard Space Flight Center in Greenbelt, Md.
           
In connection with the fraud and tax case, Nozette admitted that, from 2000 through 2006, he used ACT to defraud the NRL, DARPA and NASA by making and presenting more than $265,000 in fraudulent reimbursement claims, most of which were paid.  He also admitted that, from 2001 through 2005, he willfully evaded more than $200,000 in federal taxes.  In addition, he admitted using ACT, an entity exempt from taxation because of its non-profit status, to receive income and to pay personal expenses, such as mortgages, automobile loans, sedan services and other items.
           
The investigation concerning ACT led investigators to suspect that Nozette had misused government information.  From 1989 through 2006, Nozette held security clearances as high as TOP SECRET and had regular, frequent access to classified information and documents related to the national defense of the United States.
         
On Sept. 3, 2009, Nozette was contacted via telephone by an individual purporting to be an Israeli intelligence officer from the Mossad, but who was, in fact, an undercover employee of the FBI.   That same day, Nozette informed the undercover employee that he had clearances “all the way to Top Secret SCI” and that anything “that the U.S. has done in space I’ve seen.”   He stated that he would provide classified information for money and a foreign passport to a country without extradition to the United States.
         
A series of contacts followed over the next several weeks, including meetings and exchanges in which Nozette took $10,000 in cash left by the FBI at pre-arranged drop-off sites. Nozette provided information classified as SECRET/SCI and TOP SECRET/SCI that related to the national defense. Some of this information directly concerned satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information and major elements of defense strategy.
         
Nozette and the undercover employee met for the final time on Oct. 19, 2009, at the Mayflower Hotel.  During that meeting, Nozette pushed to receive larger payments for the secrets he was disclosing, declaring that, “I gave you even in this first run, some of the most classified information that there is. . . . I’ve sort of crossed the Rubicon.”
         
Nozette was arrested soon after he made these statements.

The investigation of the fraud and tax evasion case was conducted by NASA-OIG, NCIS, the Defense Criminal Investigative Service (DCIS), IRS-CI, the IRS Tax Exempt & Government Entities Group, the Naval Audit Service, the Defense Contract Audit Agency and the FBI’s Washington Field Office.
         
The prosecution of the fraud and tax evasion case was handled by Assistant U.S. Attorney Michael K. Atkinson from the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Kenneth C. Vert from the Department of Justice’s Tax Division.
         
The investigation of the attempted espionage case was conducted by the FBI’s Washington Field Office, with assistance from NCIS; Naval Audit Service; National Reconnaissance Office; Air Force Office of Special Investigations; Defense Computer Forensics Laboratory; Defense Advanced Research Projects Agency; DCIS; Defense Contract Audit Agency; U.S. Army 902ndMilitary Intelligence Group; NASA Office of Counterintelligence; NASA-OIG; Department of Energy Office of Intelligence and Counterintelligence; IRS-CI; IRS Tax Exempt & Government Entities group; U.S. Customs and Border Protection; and the U.S. Postal Inspection Service, as well as other partners in the U.S. intelligence community.

F-35 LIGHTING II JOINT STRIKE FIGHTER PROGRAM REPORT

The following excerpt is from a Department of Defense American Forces Press Service e-mail:

F-35 Reaches Critical Juncture After Strong Year, Official Says

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, March 20, 2012 - The F-35 Lightning II joint strike fighter program -- the centerpiece of future tactical aviation and a key to implementing new military strategic guidance -- made strong progress in its development last year, a defense official said today.

Frank Kendall, acting undersecretary of defense for acquisition, technology and logistics, told the House Armed Services Committee that the fighter aircraft is essential to the Defense Department, and that it made "strong progress" in 2011.

"Last fall, the department engaged in a strategy and budget review, where everything -- and I do mean everything -- was on the table," Kendall said. "After a careful look at the joint strike fighter program, the department determined that we do need the JSF [and] that we need all three variants of the fighter, and that we need the planned inventory of 2,443 jets."

That said, Kendall added, "you must recognize there is still a long way to go for JSF." The F-35 flight test program is only about 20 percent complete and "many of the more challenging elements of flight test are still ahead of us," he said.

Kendall noted the F-35 development has reached a crucial point in the conversion from being conceptualized to actual production.

"The JSF program is undergoing the critical transition from development to production," he said. "Historically, this is always a difficult phase for any program, but particularly so for a high-performance aircraft."

That transition has been even more difficult for the F-35, Kendall said, because the program began production very early, well before flight testing had begun.

That decision for early production resulted in an unprecedented level of concurrency, which drove the need for significant changes in the program, he said. "With this year's budget, I believe we are now set on a course for program stability," he added.

Navy Vice Adm. David Venlet, program manager for the F-35, also said the program now is on track. "The F-35 has schedule and budget realism now going forward," he said. "It is transparent in the discovery and correction of issues arising in test that are typical in all fighter aircraft development."

Venlet told the Congress members he believes the F-35 "is a critical presence in the combined force battle space. It makes many other systems and capabilities and effects better because of the presence of the F-35's sensors."

Venlet called the F-35 a "critical presence" to many nations, as well as being a bond of joint strength across all U.S. military services.

"It is a bond of capability and a bond economically across many nations that raises the level of technology benefit in our militaries and our industries," he said.

Venlet called the F-35 "the best possible growth platform to incorporate future advances in weapons, sensors and networks."

The F-35 also is an assurance to service members that "they will succeed in every mission and return home safely to their loved ones."
 

SEC COMMISSIONER AGUILAR ON THE FINANCIAL ABUSE OF SENIORS

The following excerpt is from the SEC website:
Speech by Commissioner:
Why Seniors Are More Vulnerable Now As Targets for Financial Abuse
by
Commissioner Luis A. Aguilar
U.S. Securities and Exchange Commission
The American Retirement Summit
Washington, D.C.
March 15, 2012
Delivered by Commissioner Aguilar’s Chief of Staff: Smeeta Ramarathnam
Thank you, Keith. It is my pleasure to be here today, on behalf of Commissioner Aguilar, to discuss serious concerns confronting investors when they are at their most vulnerable. Commissioner Aguilar asked me to convey his regrets that he is unable to be here in person, and he requested that I deliver this statement on his behalf. It is initiatives and dialogues like this one that are critical to highlighting the most vulnerable in need of help.
Commissioner Aguilar also would like to highlight Keith Green’s leadership and stellar efforts with the American Retirement Initiative. Commissioner Aguilar was honored to be the keynote speaker at the inaugural meeting of the Initiative, last November. We were so pleased that Keith served as the host and master of ceremonies at Commissioner Aguilar’s recent swearing-in ceremony, marking the start of his second term as an SEC Commissioner. It is a delight to be here to support this important work.
Before I continue, however, I need to say that the views I express today represent Commissioner Aguilar’s views, and do not necessarily reflect the views of the Securities and Exchange Commission, the other Commissioners, or members of the staff.
Last year, the actor Mickey Rooney testified before the Senate’s Special Committee on Aging regarding the abuse, neglect, and financial exploitation of seniors. He spoke from personal experience, and his words were heartfelt and tragic. He said
Elder abuse comes in many different forms – physical abuse, emotional abuse, or financial abuse. Each one is devastating in its own right. Many times, sadly, as with my situation, the elder abuse involves a family member. When that happens, you feel scared, disappointed, angry, and you can’t believe this is happening to you.1
He went on to say
I know because it happened to me. My money was taken and misused. When I asked for information, I was told I couldn’t have any of my own information. I was told it was “for my own good” and that it was none of my business.” I was literally left powerless.2
We all know that Mickey Rooney’s story of exploitation is one many investors experience. Commissioner Aguilar is growing increasingly concerned about issues arising from financial exploitation of the elderly. It is clearly on the rise. It has been estimated that at least one in five Americans over the age of 65 – that’s 7.3 million seniors – has been victimized by financial fraud.3 It is the responsibility of regulators to represent the vulnerable by writing and enforcing rules that reduce the opportunity for fraud to take place.
I am going to spend my time with you speaking about some current factors arising from the financial crisis that are exacerbating the vulnerability of seniors.
First, I would like to discuss a few factors fueling the vulnerability of seniors that deserve greater attention;

Second, I will talk about the need for greater federal leadership; and

Third, I will discuss mechanisms that could amplify investors’ voices at the SEC.

Factors Fueling the Vulnerability of Seniors
We all know that we are in the throes of an American retirement crisis. The factors fueling the vulnerability of seniors are many, but they include the following:
Continued volatility of the market;

Plummeting values of assets meant for retirement;

High unemployment and job loss making it impossible to meet day-to-day expenses – much less save for retirement;

The shift away from private sector employer-based defined benefit pensions to employee-controlled personal retirement accounts4 – individuals are increasingly being asked to be in control of their own retirement future;

The growth in the percentage of the population who are seniors; and

The cognitive declines that millions of seniors are facing.
Even with the Dow looking a bit more positive these days, a retirement crisis still looms on the horizon. Moreover, this retirement crisis is taking on a new urgency for reasons that are not receiving the attention they require. The reasons include significant wealth inequality between generations and the decimation of resources provided to state and local authorities.
Wealth Inequality
Demographically, seniors will soon be the largest percentage of the American population. Experts have been forecasting this for some time, as the baby boomer generation ages and retires. What has not been emphasized as clearly is the tremendous generational inequality of wealth between some seniors and everyone else. The good news is that in the aggregate, today’s senior population has been successful in accumulating assets. As noted by Andrew Roth, the Director of Fraud Education and Outreach for the California Department of Corporations, aging baby boomers have accumulated substantial assets, either through inheritance, home equity, or a lifetime of saving for retirement, that are ripe for abuse.5 The bad news is that this disparity between seniors and everyone else, including their own children, exponentially increases the vulnerability of seniors to being exploited.
Because, while baby boomers have accumulated significant assets, the generations that follow may fall into a severely lower income bracket. According to a Pew Research Center analysis, entitled “The Rising Age Gap in Economic Well-Being,” households headed by older adults have made dramatic gains relative to those headed by younger adults over the past quarter of a century.6 For example, in 2009, households headed by adults ages 65 and older possessed 42% more median net worth than households headed by their same-aged counterparts had in 1984. During this same period, the wealth of households headed by adults younger than 35 had 68% less wealth than households of their same-aged counterparts. There is no question that this wealth inequality between the old and young widened substantially with the housing collapse of 2006, the Great Recession of 2007-2009, and the ensuing jobless recovery.7

Take housing as just one example – older Americans have generally benefitted in the form of the long run-up in home values. Most of today’s older homeowners entered the housing market long ago – at pre-bubble prices. While, of course, some seniors have been hurt by the housing market collapse, in the aggregate, most have seen their home equity rise. Compare this to young adults, many of whom bought as the bubble was inflating. And, when the bubble burst, many were left with negative equity.
Seniors have always been a vulnerable population that is in need of more protection. However, this vulnerability is being exacerbated by the significant wealth inequality in American society that is leading to greater opportunities for deception and fraud.

Decimation of Resources to Local Authorities
At a time when vulnerabilities are being exacerbated, the law enforcement and government framework to handle elderly exploitation has been severely cut back. Thus, at a time when the need grows greater, there are far fewer to help.
As the General Accounting Office has explained, “[s]tates are primarily responsible for protecting older adults from abuse, neglect and exploitation.” In each state, an Adult Protective Services (APS) program aims to identify, investigate, resolve and prevent such abuse.8

In 2011, as the economic downturn continued to wreak havoc on government budgets, 181,000 local workers and 63,000 of their state peers were let go.9 In the aggregate, state and local workers have seen their numbers dwindle throughout the Great Recession. Some 656,000 employees have been laid off since mid-2008 as governments try to cope with plummeting tax revenues.10

State and local governments have been decimated of people and resources, and state securities regulators and state APS units have been impacted. A recent study by GAO found that state APS programs faced many challenges – including the nationwide growth in elder abuse caseloads and an increase in the complexity of those cases, which make them more difficult to resolve. Of course, resources are not keeping pace with the changes – as we know, quite the opposite. APS program officials are quick to point out that it is difficult to maintain staffing levels and training. The GAO found that 25 of the 38 states surveyed indicated that total APS funding received from all sources has stayed static or decreased over the past five years, and program officials also ranked insufficient funding for program operations as the most significant challenge they faced.11

On top of that, states indicate that they have limited access to information and may struggle to respond to abuse cases appropriately. Many of these programs also face challenges in collecting, maintaining, and reporting statewide case-level administrative data, thereby hampering their ability to track outcomes and assess the effectiveness of services provided.12
Given this landscape of a vulnerable population growing larger and more susceptible to exploitation, and the fewer resources devoted to enforcing the law and punishing those who commit fraud – one can see the serious opportunity for financial exploitation of older Americans. It is almost as if they are wearing targets on their backs.

Examples of Deception
Given that there is an opportunity to exploit this vulnerable population, we know there will be no shortage of those who will seek to do exactly that. Let me list out just a few examples from the SEC’s enforcement cases, in the last year.
In August 2011, the SEC charged two Florida men, one of whom has an extensive criminal history, with operating a Ponzi scheme disguised as a purported private equity fund that fraudulently raised approximately $22 million from more than 100 investors, many of whom were Florida teachers or retirees.13

In May 5, 2011, the SEC obtained emergency relief freezing the assets of a California resident for operating a fraudulent day trading scheme targeting senior citizens that raised approximately $3.3 million.14

In April 18, 2011, the SEC charged a financial services holding company, its CEO, and others for orchestrating a Ponzi scheme that raised at least $7.7 million from approximately 75 investors, many of whom were elderly and unsophisticated.15
I raise these examples as evidence that there will always be those who want to prey on the vulnerable and seek to exploit them. That is why we must have a strong securities law framework in place that limits the opportunities for fraud and deception, and a well-funded enforcement arm to enforce the law against those who attempt to break it.
However, we are now facing a world where the elderly are even more vulnerable, and their protectors have been undercut and underfunded. Thus, there needs to be a different public dialogue than the one occurring now. Currently, there is an acknowledgement that there is a retirement crisis on the horizon; but the vulnerabilities and harm to the elderly investor, and the lack of a clear safety net, have not been acknowledged enough. It is time to take action at the federal level to cope with this problem.

Need Greater Leadership from Federal Government Including SEC
When it comes to the rise of financial exploitation of the elderly, it is clear there is not federal leadership on this issue. The GAO, while not focused specifically on financial exploitation, found that greater federal leadership was needed in this area, and made several specific recommendations to ensure national data collection and response.16 For example, the report recommended, among other things, that:
The Secretary of Health and Human Services (“HHS”) determine the feasibility and cost of establishing a national resource center for APS-dedicated information that is comprehensive and easily accessible;

The Secretary of HHS, in conjunction with the Attorney General, convene a group of state APS representatives to help determine what APS administrative data on elder abuse cases would be most useful for all states and for the federal government to collect;

A pilot study be conducted to collect, compile, and disseminate uniform, reliable APS administrative data on elder abuse cases from each state.
If done properly and in an integrated way, these tools would be very valuable to federal and state securities regulators, and would help to battle financial exploitation.
However, more needs to be done specifically focused on the financial exploitation of the elderly.
As an independent agency, the SEC could play an important role in highlighting the issue and proposing some policy solutions. There are some fundamental building blocks required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”),17 which have yet to be put in place that would help with this.

Implement Dodd-Frank Act Requirements That Would Aid Seniors
First, Section 911 of the Dodd-Frank Act requires that the SEC establish and maintain an Investor Advisory Committee (IAC). The IAC could be one avenue by which seniors could communicate with the Commission. In fact, Congress realized the importance of ensuring that seniors were well-represented on the IAC, and added a requirement in the statute that one seat be held by a representative of senior investors.18 The goal of the IAC is to provide the Commission with the views of a broad spectrum of investors on their priorities concerning the Commission’s regulatory agenda. This Committee is of critical importance to ensuring that the SEC is focused on the needs and the practical realities facing investors.

Investors face an impossible challenge of representing themselves in front of the Commission, particularly retail investors. Investors do not have the money or the resources to write lengthy comments letters, or participate in meetings with SEC Commissioners and the staff. If the Commission is to be an effective advocate for investors, it will need a strong and effective IAC to ensure that reality. The IAC could be used to gather data about the vulnerabilities of senior investors, which would be invaluable to the public dialogue and an important catalyst to spur policy action.
Second, Section 915 of Dodd-Frank requires that the SEC establish an Office of the Investor Advocate.19 The Investor Advocate is tasked with assisting retail investors to resolve significant problems with the SEC or the self-regulatory organizations. In its report, the Senate Banking Committee explained that it was “necessary to create an office of the Investor Advocate within the SEC to strengthen the institution and ensure that the interests of retail investors are better represented.”20 The Committee was quite clear that this Office was intended to “ensure that the interests of retail investors are built into rulemaking proposals from the outset and that agency priorities reflect the issues that confront average investors.”21 Senator Akaka, who authored this provision stated,
The Investor Advocate is precisely the kind of external check, with independent reporting lines and independently determined compensation, that cannot be provided within the current structure of the SEC. It is not that the SEC does not advocate on behalf of investors, it is that it does not have a structure by which any meaningful self-evaluation can be conducted. This would be an entirely new function.22
Unfortunately as with the IAC, the Office of the Investor Advocate has not been established. It is in the interests of both investors and the SEC, to have this Office up and running as soon as possible.

Commissioner Aguilar encourages all of you to engage on these investor initiatives, and that you encourage that these requirements of the Dodd-Frank Act be implemented with all haste. The establishment of the IAC and the Office of the Investor Advocate will benefit investors, our markets, and the SEC. However, these are just the first steps of what would be needed to bring about sufficient attention and focus to this area.
There are, of course, other federal agencies that can play a role. For example, the new Consumer Financial Protection Bureau (CFPB) and its work related to senior-specific designations for brokers.

Financial professionals can earn a host of designations – such as Chartered Advisor for Senior Living and Chartered Senior Financial Planner – that make them seem well qualified to serve older people. It is deeply troubling that senior-specific designations can be obtained with very little effort. In 2008, the North American Securities Administrators Association (NASAA) issued a model rule on use of these designations. Some of the prohibitions in the rule include prohibiting the use of designations that are self-conferred or lack reasonable disciplinary procedures. To date, 27 states have adopted the rule, and it is pending in two others. However, despite the model rule, the Financial Industry Regulatory Authority (FINRA) issued a notice in November 2011 explaining that some widely-used senior designations don’t require “rigorous qualification standards” and some firms are “not particularly discerning regarding the quality of the designations” that their brokers are permitted to use.23 In fact, more than one-third of the firms that FINRA surveyed permit brokers to use senior designations without any verification of credentials.
Given this landscape, the Dodd-Frank Act charged the CFPB with reviewing the certifications of those who advise seniors.24 In fact, the CFPB has launched an Office of Older Americans – it is this office that is taking the lead on this initiative. Commissioner Aguilar is following this issue with a great deal of interest, and is hopeful that this initiative will lead to a better outcome for investors.

Conclusion
As seniors become the largest segment of the American population, and are faced with economic uncertainties and a growing predatory environment, there can be no delay in addressing the issues they face. Commissioner Aguilar and I commend the American Retirement Initiative and those of you here today for your efforts to find a way forward to improve how we treat our seniors.
Thank you for having me here today.

LOS ALAMOS PRODUCED MAGNETIC FIELD 2 MILLION TIMES GREATER THAN THE EARTH'S

The following excerpt is from the Los Alamos National Laboratory website:
Magnetic Field Researchers Target Hundred-Tesla Goal
Previous world record shattered during six-experiment pulse
LOS ALAMOS, NEW MEXICO, March 22, 2012—Researchers at Los Alamos National Laboratory’s biggest magnet facility today met the grand challenge of producing magnetic fields in excess of 100 tesla while conducting six different experiments. The hundred-tesla level is roughly equivalent to 2 million times Earth’s magnetic field.
“This is our moon shot, we’ve worked toward this for a decade and a half,” said Chuck Mielke, director of the Pulsed Field Facility at Los Alamos.

The team used the 100-tesla pulsed, multi-shot magnet, a combination of seven coils sets weighing nearly 18,000 pounds and powered by a massive 1,200-megajoule motor generator. There are higher magnetic fields produced elsewhere, but the magnets that create such fields blow themselves to bits in the process. The system at Los Alamos is instead designed to work nondestructively, in the intense 100-tesla realm, on a regular basis. The Los Alamos facility is one of three campuses forming the National High Magnetic Field Laboratory (NHMFL).

Today’s 100.75-tesla performance produced research results for scientific teams from Rutgers University, École Nationale Supérieure d’Ingénieurs de Caen (ENSICAEN), McMaster University, University of Puerto Rico, University of Minnesota, Cambridge University, University of British Columbia, and Oxford University. The science that we expect to come out varies with the experiment, but can be summarized as:
Quantum Phase transitions and new ultra high field magnetic states
Electronic Structure determination
Topologically protected states of matter
“Congratulations to the Los Alamos team and our collaborators,” said LANL Director Charlie McMillan. “Their innovations and creativity are not only breaking barriers in science, but solving national problems in the process.”

In recent experiments, said Mielke, “the new magnet has allowed our users and staff to pin down the upper critical field of a new form of superconductor, discover two new magnetically ordered states in a material that has eluded scientists for nearly 30 years, observe magneto-quantum oscillations in a high temperature superconductor to unprecedented resolution, determine a topological state of a new material, and discover a new form of magnetic ordering in an advanced magnetic material.”

The LANL team set on August 18 last year a new world record for the strongest magnetic field ever delivered by a nondestructive magnet. The scientists achieved an enormous 97.4 tesla—a magnetic field nearly 100 times more powerful than the giant junkyard car-lifting magnets, and some 30 times stronger than the field delivered during a medical MRI scan. That record was broken this morning as the team ramped up the big magnet again, reaching 98.35 T, with an eye toward the afternoon’s 3-digit event.
Mielke said that since the team’s latest foray into magnetic fields above 90 tesla, they’ve demonstrated that they can measure:
Upper critical fields of superconductors—radio frequency contactless conductivity
Quantum magnetic transitions—magnetic susceptibility
Electrical resistivity—magnetotransport
Optical spectroscopy—visible light transmission
Crystallographic length change—fiber-optic dilatometry
“Now, at 100 tesla, we can focusing our efforts to get multiple user experiments completed in single magnet runs on the big magnets since they are so oversubscribed. More than a dozen people are working together to make this happen here at the Laboratory,” said Mielke.

The ability to create pulses of extremely high magnetic fields nondestructively provides researchers with an unprecedented tool for studying a range of scientific questions: from how materials behave under the influence of very high magnetic fields, to research into the quantum behavior of phase transitions in solids.

Researchers can explore extremes of low temperature and high magnetic field, which will contribute to our understanding of superconductivity, magnetic-field-induced phase transitions, and so-called quantum critical points, in which small changes in materials properties at very low temperature have dramatic effects on physical behavior. The magnet could also be used as a nanoscale microscope.

The Pulsed Field Facility at Los Alamos is one of three campuses of the National High Magnetic Field Laboratory, the other two being at Florida State University, Tallahassee (continuous fields, magnetic resonance, and general headquarters) and the University of Florida Gainesville (ultra-low temperatures at high magnetic fields). The NHMFL is sponsored primarily by the National Science Foundation, Division of Materials Research, with additional support from the State of Florida and the U.S. Department of Energy.

JUSTICE DEPARTMENT ALLEGES GANG STOLE $4.6 MILLION IN JEWELRY

The following excerpt is from the Department of Justice website:
Wednesday, March 21, 2012
Alleged Members of Jewelry Theft Ring Arrested
Atf-Led Investigation Ties Richmond, Va.-Based Ring to Alleged $4.6 Million in Thefts
WASHINGTON – Seven alleged members of a jewelry theft ring were arrested yesterday on charges related to their alleged roles in a highly sophisticated and violent organization that has stolen more than $4.6 million worth of jewelry from traveling jewelry sales representatives throughout Virginia and at least six other states.   Charges against the individuals were unsealed today after the defendants made initial court appearances in Newport News, Va.

The arrests and charges were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; and Daniel Kumor, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division.

“According to the charges unsealed today, members of this organized criminal group stole more than $4.6 million in jewelry from victims in Virginia and at least six other states,” said Assistant Attorney General Breuer.   “The defendants allegedly operated their sophisticated scheme for more than two years, using intimidation and violence to carry it out.   Organized criminal groups pose a serious threat to the safety and security of our communities, and we will continue to do everything in our power to bring them to justice.”

“This tight-knit group is accused of violently attacking traveling salesmen to rob them of more than $4.6 million in jewelry,” said U.S. Attorney MacBride.   “This group did their homework.  We allege they were dangerous, patient, extremely mobile and struck swiftly.   We are grateful that the ATF and our law enforcement partners were just as patient, mobile and able to strike swiftly once we had identified those believed to be involved.”

“These arrests highlight the outstanding work that dedicated ATF agents and our law enforcement partners do to keep our streets safe,” said Acting Special Agent in Charge Kumor. “This investigation required a lot of long hours and excellent coordination among investigators, prosecutors and agencies throughout the region, and epitomizes the fine work law enforcement does every day.”

According to court records, Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, Va., is accused of leading a team of individuals who specialized in conducting surveillance on jewelry stores to identify and then rob jewelry sales representatives and couriers.   The ring is believed to have committed and attempted robberies since March 2010 in Prince William County, Henrico County, Virginia Beach, Williamsburg, McLean, Charlottesville, Harrisonburg and Roanoke in Virginia, as well as locations in New York, New Jersey, North Carolina, Maryland, Tennessee and California.

Court documents allege the ring has ties to South American theft groups, which are transnational criminal groups typically of Colombian nationality that work in teams to steal jewelry, gems and precious metals from individuals carrying hundreds of thousands of dollars in merchandise at one time.

The alleged members of the Richmond-based ring regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.   In most of the alleged robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise.   In addition, the thieves would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension.

After a successful robbery, members of the ring allegedly traveled to New York to sell the merchandise to businessmen, who acted as “fences” and coordinated re-selling the stolen property or melting it down for future use.

In addition to Cuadros-Garcia, those arrested yesterday include the following:
Leonardo Ortiz, 41, aka “Luis Angel Arana-Garcia,” of North Chesterfield, Va., who allegedly participated in most of the robberies, conducted surveillance, structured cash and made numerous trips to New York to meet with the “fences.”
Lucesita Argueta, 32, aka “Lucy,” of Richmond, who allegedly participated in several robberies, conducted surveillance and coordinating with the “fences.”
Francisco Javier Montesrein-Rodriguez, 32, aka “Lois K,” “Lex” and “Luis Rodriguez,” of Henrico, Va., who allegedly participated in several robberies and heavily assisted with the surveillance activities of the theft ring.
Raul Antonio Escobar-Martinez, 37, aka “Tony,” of Richmond, who allegedly assisted with surveillance of theft victims and potential victims.
Jose Alfredo Rivero-Garcia, 51, aka “Alfredo” and “Jose Ribero,” of Richmond, who allegedly participated in the surveillance of prospective robbery victims.
Juanita Diaz, 42, of Henrico, Va., the ex-wife of Cuadros-Garcia, who allegedly assisted in structuring proceeds from the sale of the stolen property, registered cars used by conspirators and provided other assistance to the theft ring.
Cuadros Garcia, Ortiz, Argueta, Montesrein-Rodriguez and Rivero were arrested yesterday in the Fredericksburg, Va.,- area, while Diaz was arrested in Richmond and Escobar-Martinez was arrested in Texas.

Diaz was charged in the criminal complaint with conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison.   The remaining defendants were charged with conspiracy to obstruct, delay and affect commerce by robbery and face a maximum penalty of 20 years in prison, if convicted.      

The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.

Assistant U.S. Attorney Eric M. Hurt, Managing Assistant U.S. Attorney Howard Zlotnick and Trial Attorney Jerome Maiatico of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.

Criminal complaints are only charges and not evidence of guilt.   Defendants are presumed to be innocent until and unless proven guilty.

UNUSUAL SEAFLOOR MIXTURE OF ROCK TYPES

The following excerpt is from the National Science Foundation website:
Atlantis Massif, showing the fault that borders this Atlantic Ocean seamount.
Credit:  NOAA
March 21, 2012
Scientists recently concluded an expedition aboard the research vessel JOIDES Resolution to learn more about Atlantis Massif, an undersea mountain, or seamount, that formed in a very different way than the majority of the seafloor in the oceans.
Unlike volcanic seamounts, which are made of the basalt that's typical of most of the seafloor, Atlantis Massif includes rock types that are usually only found much deeper in the ocean crust, such as gabbro and peridotite.

The expedition, known as Integrated Ocean Drilling Program (IODP) Expedition 340T, marks the first time the geophysical properties of gabbroic rocks have successfully been measured directly in place, rather than via remote techniques such as seismic surveying.

With these measurements in hand, scientists can now infer how these hard-to-reach rocks will "look" on future seismic surveys, making it easier to map out geophysical structures beneath the seafloor.
"This is exciting because it means that we may be able to use seismic survey data to infer the pattern of seawater circulation within the deeper crust," says Donna Blackman of the Scripps Institution of Oceanography in La Jolla, Calif., co-chief scientist for Expedition 340T.
"This would be a key step for quantifying rates and volumes of chemical, possibly biological, exchange between the oceans and the crust."
Atlantis Massif sits on the flank of an oceanic spreading center that runs down the middle of the Atlantic Ocean.
As the tectonic plates separate, new crust is formed at the spreading center and a combination of stretching, faulting and the intrusion of magma from below shape the new seafloor.

Periods of reduced magma supplied from the underlying mantle result in the development of long-lived, large faults. Deep portions of the crust shift upward along these faults and may be exposed at the seafloor.
This process results in the formation of an oceanic core complex, or OCC, and is similar to the processes that formed the Basin and Range province of the Southwest United States.

"Recent discoveries from scientific ocean drilling have underlined that the process of creating new oceanic crust at seafloor spreading centers is complex," says Jamie Allan, IODP program director at the U.S. National Science Foundation (NSF), which co-funds the program.

"This work significantly adds to our ability to infer ocean crust structure and composition, including predicting how ocean crust has 'aged' in an area," says Allan, "thereby giving us new tools for understanding ocean crust creation from Earth's mantle."
Atlantis Massif is a classic example of an oceanic core complex.
Because it's relatively young--formed within the last million years--it's an ideal place, scientists say, to study how the interplay between faulting, magmatism and seawater circulation influences the evolution of an OCC within the crust.
"Vast ocean basins cover most of the Earth, yet their crust is formed in a narrow zone," says Blackman. "We're studying that source zone to understand how rifting and magmatism work together to form a new plate."

The JOIDES Resolution first visited Atlantis Massif about seven years ago; the science team on that expedition measured properties in gabbro.

But they focused on a shallower section, where pervasive seawater circulation had weathered the rock and changed its physical properties.

For the current expedition, the team did not drill new holes.
Rather, they lowered instruments into a deep existing hole drilled on a previous expedition, and made measurements from inside the hole.
The new measurements, at depths between 800 and 1,400 meters (about 2,600-4,600 feet) below the seafloor, include only a few narrow zones that had been altered by seawater circulation and/or by fault slip deformation.
The rest of the measurements focused on gabbroic rocks that have remained unaltered thus far.
The properties measured in the narrow zones of altered rock differ from the background properties measured in the unaltered gabbroic rocks.
The team found small differences in temperature next to two sub-seafloor faults, which suggests a slow percolation of seawater within those zones.
There were also significant differences in the speed at which seismic waves travel through the altered vs. unaltered zones.

"The expedition was a great opportunity to ground-truth our recent seismic analysis," says Alistair Harding, also from the Scripps Institution of Oceanography and a co-chief scientist for Expedition 340T.
"It also provides vital baseline data for further seismic work aimed at understanding the formation and alteration of the massif."

The Integrated Ocean Drilling Program (IODP) is an international research program dedicated to advancing scientific understanding of the Earth through drilling, coring and monitoring the subseafloor.
The JOIDES Resolution is a scientific research vessel managed by the U.S. Implementing Organization of IODP (USIO). Texas A&M University, Lamont-Doherty Earth Observatory of Columbia University and the Consortium for Ocean Leadership comprise the USIO.

Two lead agencies support the IODP: the U.S. National Science Foundation and Japan's Ministry of Education, Culture, Sports, Science and Technology.

Additional program support comes from the European Consortium for Ocean Research Drilling, the Australia-New Zealand IODP Consortium, India's Ministry of Earth Sciences, the People's Republic of China's Ministry of Science and Technology, and the Korea Institute of Geoscience and Mineral Resources.

THE PROMISED QUICK WAR IN IRAQ

The photo and following excerpt are from the Veterans Health Website:
Iraq’s Far-Reaching Anniversary
March 19, 2012 by Alex Horton
The news said it was supposed to be quick. A matter of weeks, according to some within the government.

It seemed right from where I was sitting on March 19, 2003. I was two months from high school graduation when the bombs fell over Baghdad. I snuck downstairs at night to watch bombs explode in hazy night-vision green on CNN.

My father left the Navy when I was young, but I can remember the stretches of time that he left for duty across the country. The military was practically a family tradition, and I wanted to take part in my generation’s fight. I remember feeling a sense of urgency, that the war might be over by the time I had a chance to fight it. My urge to enlist was outmatched by my years.

No one could tell at the time, but the war wasn’t going to end soon. It managed to stretch into the fall of 2003 and lead to stability operations, then counterinsurgency, and finally a transition to the Iraqi government late last year.

I joined the Army in 2004, and for a good chunk of that time, the war operated in the background, a far flung destination that I trained for every day. It was strange to know exactly when and where I’d be deploying. It wasn’t quite like the way it happened in movies, or for that matter, those who took part in the invasion. Their experience was a confusing roar into Baghdad and the uneasy feeling of insurgency rushing to fill the void of a standing army.

My experience was in the middle of a deployment cycle, like a particular release of Madden video game.

Iraq had my name on it since I was five years old and watched the first Gulf War unfold with my parents. I don’t believe in destiny, but events from that war had consequences more than a decade later, on a collision course with my desire to serve. But I couldn’t be more oblivious as I watched Baghdad light up twice in twelve years, never knowing that one day I’d sleep in buildings long destroyed by American missiles.

DEPARTMENT OF DEFENSE BRIEFING ON VARIED TOPICS

The following excerpt is from the Department of Defense website:
March 21, 2012
Presenter: Pentagon Press Secretary George Little and Deputy Assistant
Secretary of Defense for Media Operations Capt. John Kirby
DOD News Briefing with George Little and Capt. Kirby from the Pentagon
            GEORGE LITTLE:  Good afternoon.
            I have one brief scheduling announcement to make before taking your questions.  On Monday, March 26th, Secretary Panetta will travel to Ottawa, Ontario, to meet with Canada's Minister of National Defense Peter MacKay and Mexico's Secretary of National Defense General Galvan and Secretary of the Navy Admiral Saynaz.  This is an historic meeting, the first time that secretaries of defense from the United States, Canada and Mexico will meet together to discuss continental defense issues such as counternarcotics cooperation, support to humanitarian assistance and disaster response operations and trilateral support for North and South America's defense institutions.
            Following these meetings, the leaders will answer questions from the media, which I'm sure will exclusively be focused on hemispheric defense progress.
            Our host nation, Canada, will provide further logistical information later this week.
            And with that, unless John has something to add, we'll go ahead and take your questions.
            Q:  (Inaudible) -- a couple of questions on the Robert Bales matter.  Can you give us any indication of when charges will be filed? And secondly, Secretary McHugh on the Hill today said that he has directed the Army to review all the Army's mental health programs in light of the concern about wartime stress.  Is Secretary Panetta considering any kind of a military-wide review of those programs?
            DR. LITTLE:  On the issue of charges, I don't have a specific date or time when they may be filed.  On the broader issue, though, of whether -- of how this department is viewing mental health and stress on the force, this is something that, separate and apart from any specific instance, is a priority for us to look at.
            And the secretary is fully aware of concerns that have been expressed about stress on the force.  He talked a bit about this last week in Afghanistan.  And it's something that he's kept his finger on the pulse on for some time.  So I -- I'm unaware of any review that has been launched at this time.  But it's something that we're bearing in mind.
            CAPT. KIRBY:  And he's fully supportive of what Secretary McHugh is doing.
            DR. LITTLE:  Sure.
            Q:  As far as the review by the Pakistani parliament is concerned, did you receive officially any copy of the number of controversial demands they are asking?  One is that -- (inaudible) -- drone attacks must end immediately, and also, second, that U.S. must apologize to the Pakistanis for killing those 24, among other things, before they even talk to the U.S. and open up the doors of the supplies -- routes.
            DR. LITTLE:  I'm unaware that the Pakistani parliamentary review has been completed.  And it's probably -- it's an ongoing process.
            CAPT. KIRBY:  It hasn't been completed.  So there's -- it's an ongoing process, as far as we understand.
            Q:  Today's Washington Post has already reported, and Pakistani media has already been reporting.  And the review has already been finalized, and the U.S. ambassador in Pakistan was already handed over with a copy of the review.
            DR. LITTLE:  We always, as a matter of course, welcome dialogue with our Pakistani partners.  As we've discussed on many occasions, we realize that there have been bumps in the road over the past year or so.  This is something we want to get beyond.  And we believe that we can enhance cooperation.
            Look, we're cooperating every day with the Pakistanis on a number of fronts.
            We share common goals and common interests, particularly when it comes to the counterterrorism efforts.
            So this is a critical issue for us.  We are obviously willing to discuss with our Pakistani partners the outcome of the parliamentary review at the end of the day, and we'll see where that goes.  But it would be premature for me to speculate on what the Pakistani parliament may share with us.
            Q:  But I think, just quickly -- follow quickly -- let's say whatever review and whatever official statement you get from them, or a copy, what they are saying is -- or I'll ask you -- as far as drone attacks are concerned now inside Pakistan, it's because there are still -- you believe there is still terrorism or al-Qaedas are still there?
            And second, since Pakistan has not apologized to the U.S. for keeping Osama bin Laden and helping and keeping those terrorists and al-Qaedas inside Pakistan -- now they're asking you to apologize for these soldiers' killing -- are you willing to -- any kind of adjustment there?  Or are you still asking the Pakistanis -- they should apologize for keeping Osama bin Laden?
            DR. LITTLE:  Let me try to unpack that a little bit.  The United States and Pakistan have a common interest in thwarting terrorists. It's important that we work together to fight al-Qaeda and its militant allies.  We believe that American counterterrorism operations in the region are important to taking al-Qaeda and other terrorists off the street.
            There has been great success, and we've had great success working with the Pakistanis in going after terrorists.  It's important to remember that the terrorist threat is not -- that emanates from that part of the world does not involve solely threats against the United States.  Pakistanis have borne the brunt of terrorism.  Pakistani blood has been spilled.  And we recognize that this is a common fight and we have to work together.
            And we're going to continue to pursue that cooperation, especially in the counterterrorism realm.
            Q:  Could we go back to Bales, please?  There's been some reporting out of the region, out of Kandahar, that some residents of one of the small towns there -- they're alleging that after some sort of an attack on U.S. forces in early March, some American soldiers, and maybe some Afghan soldiers as well, lined up a bunch of the men in the village and threatened them.  And said, you know, we're going to retaliate because of what happened.
            Is there any -- is there -- does the U.S. military, or ISAF, anyone have any evidence that there was, number one, an attack in that area of Panjwaii against U.S. military vehicles, convoy, anything in early March that would have prompted that?  And is there any reason to believe that they did this to these villagers?
            CAPT. KIRBY:  We're aware of the reporting that's come out of Kandahar, these press reports.  And I know ISAF is looking into that and of course investigators are certainly looking into a whole realm of issues regarding this case.  What I can tell you now is that we don't have any indication that either the attack that's being described occurred, and certainly no evidence that there were any threats of retaliation by U.S. soldiers.  But investigators are looking at everything right now.
            Q:  Can I follow that?  There were reports as well, coming from his -- Bales' attorney that Bales may have witnessed a fellow soldier badly injured the day or days before the murders happened.  Have you guys been able to establish whether or not any other soldiers from that base were injured in the days prior?
            CAPT. KIRBY:  Certainly can't -- certainly can't rule out that something like that might have happened.  But again, investigators are working through the whole realm of facts surrounding this case.
            And we're just not going to get out ahead of that work in terms of trying to investigate here in a public forum what may or may not have been motivations.
            Q:  But we're not asking specifically, in this instance, about -- take it separate and apart from the investigation.  Can you report that there was any attack or anything like Larry was talking -- (audio break) -- U.S. military was injured?  There was one report that someone had lost their leg in an attack in the days -- I mean, just separate and apart from that, is there any operational reporting that proves there was an attack like that in the days leading up?
            CAPT. KIRBY:  Well, I'll just say it the same way.  I can't rule out -- I can't rule it out right now for you that this individual IED incident occurred or didn't occur.  I can't rule that out.  We're taking a look at the whole realm of issues and incidents in the days leading up to the murders.  And so I just -- I can't rule it out for you.
            I can also tell you, on your other -- on your other question about the vehicle IED attack that's alleged and then the follow-on claims of retaliation by soldiers, we don't have any indication that there was that sort of a vehicle IED incident and certainly no evidence to support that soldiers were involved in threats of retaliation.  But again, we got to let the investigators do their job. That's what they're trying to get answers to.
            Q:  So can I -- could I just follow up on that?  I mean, so are you saying that you've checked with ISAF; they've gone through the SIGACTS reports and are saying that in the days before the incident, there were no vehicle IED attacks in that vicinity?  I mean, just so I understand.
            CAPT. KIRBY:  I've been as clear as I can be, David.  I'm not going to -- you know, I'm not going to go through chain of custody here.  We just -- we've -- we're certainly interested in these reports too, these press reports.  It's not like we ignore them.  And we're just -- we just don't have any indication right now that those -- that what's being claimed happened, happened.
            Q:  But you can't say the same thing about the other events, that you have any indications -- that there's no indication of that?
            CAPT. KIRBY:  I can't -- as I said, I can't just -- the one that Larry was asking about -- you can't rule that out, but --
            Q:  You're sort of ruling out the other one by saying there's no evidence it happened, so I'm wondering why they can't make a similar judgment on the other one.
            CAPT. KIRBY:  I can't -- I'm not going to go any further than I just did.
            DR. LITTLE:  Dan.
            Q:  Do you have anything further about these reports that this shooter in France was arrested or detained in Kandahar previously, several months ago, and do you have anything on that?
            DR. LITTLE:  We don't have any information at this point that there's any link such as that.  Given, though, the media reports, however, we are looking into it, and if we have an update to provide on that, we'll let you know.
            Q:  And then separately on Afghanistan, what is the latest on the -- on the future of private security contractors?  And there's a lot of people expressing concern that this will affect NGOs and a lot of nonmilitary operations that are crucial to the whole mission.  Do you have any more clarity on what's happening at this point?
            CAPT. KIRBY:  No.
            Q:  Are you concerned about the effect it has on all of the work, the development work that gets done, that it may not get done if there isn't security for those NGOs?
            CAPT. KIRBY:  I think we're working -- we're working closely with the Karzai government here on moving ahead.  And we -- this isn't -- this isn't -- you know, the original forces were couched as an ‘extension’ of some sort.  It's really less that than an indication that the -- that the process of transition to Afghan lead for security for these companies is at work.  And we're confident that we're going to get there over time.
            I mean, obviously, you -- individual companies or groups have got to make decisions for themselves, but we are -- we're very confident that it's moving in the right direction and that -- and that the Afghans will be capable of providing adequate security for these folks.
            DR. LITTLE:  Let me just make a broader point on Afghanistan.  I mean, the fact that we're having these discussions with the Afghans about detention facilities; we entered into a detention facility MOU with them recently.  We're discussing night operations.  
            As the secretary said last week in Kabul, he's confident that we're going to reach a strategic partnership agreement.  This reflects a strong partnership with Afghanistan, strong dialogue with our Afghan partners and is part and parcel of the strategy that we've been implementing for some time.  The whole goal of what we've been doing with the Afghans and our coalition partners is to transition over a period of time so that the Afghans can assert responsibility throughout their country for their own security and to govern themselves.
            So I think that the discussions, whether it's over private security contractors or night operations or detention facilities, this is a sign of progress.  
            CAPT. KIRBY:  (Inaudible.)
            Q:  Quick question on the budget:  House Republicans have mentioned that in the FY '13 cycle they plan on making requests for certain weapons and programs that could potentially be used in an action against Iran.  They've been pushing for it pretty hard on the Hill.  
            What I wanted to ask you is as the department sort of starts putting together these new program requests, starts moving them to Congress, can you give me an idea of what kind of programs are going to be included that could fall into that category?  We've heard some Air Force folks talking about something like the massive ordnance penetrator, the MOP, as a weapon that could be used in those operations.  Can you kind of put a little more meat on the bones with that?
            DR. LITTLE:  I'm not going to comment specifically on the classified reprogramming requests and media reports that are attached to them.  We regularly engage with Congress to look at the reprogramming across a wide variety of needs throughout the Department of Defense, and I will leave it there.
            CAPT. KIRBY:  (Not enough meat?).
            Q:  What --
            DR. LITTLE:  Kevin?
            Q:  What about -- (off mic) -- topic?
            DR. LITTLE:  All right, OK, sure.
            Q:  On BRAC, we've already got now members in both houses, both parties, strong opposition to the BRAC idea and, just this morning, the authorizing subcommittee chair and ranking member all came out in saying they're -- they will not support it for 2013.  So -- and one of the reasons they give is because of the European and Asia basing hasn't been settled yet.  
            So, two questions:  One, what is the status of the Pacific realignment, which has to come first, the -- with getting -- (inaudible) -- plan?  And secondly, how much does the Pentagon have to fight for BRAC in 2013 as to -- part of the budget plan that you submitted or is there already -- or, is it already time for Plan B?
            DR. LITTLE:  Well, again, BRAC was not part of the $487 billion proposal that we made to the Congress, but we thought it was a responsible thing to do, given the budgetary pressures that we're all under.  We were really trying to exercise good fiscal discipline, and we thought it would be important to at least put BRAC on the table.  
            And we maintain that view.  We believe that it's important for us to look at our military infrastructure, to see if additional -- call it, savings, can be achieved.  So, I think that's where we are on BRAC at this -- at this stage.  Kevin?
            Q:  Can I follow up on that?  
            Q:  (Off mic) --
            Q:  You know, there's been -- some of the DOD officials testifying on the Hill have said that they can go ahead and shut down or downsize bases, but what -- they don't get BRAC authorization. Well, the 1977 law that, you know --  
            Q:  Right.
            Q:  -- that basically set up the need for a BRAC limits to your ability to do anything that affects more than 300 civilian personnel. So how much can you really do without -- you know, without a congressional authorization?  
            DR. LITTLE:  Well, as we've seen through previous BRAC processes, this is a conversation that needs to take place not just inside the Department of Defense but with the Congress and with local communities.  We're aware of the concerns raised by BRAC.  But again, as a -- as a fiscal matter, we think it's important to at least look at additional cost savings through this process.  
            Kevin, did you have a follow-up?  I'm sorry.
            Q:  Yeah.  I mean, it sounds like this is just a suggestion by the Pentagon, an offering, versus, you know -- you know, the -- all the DOD officials here today, we're saying that bringing down 72,000 in the Army and all the other -- and all the rest of it not only is -- you know, not only would it be nice to have a BRAC but would require pulling down, you know, all these facilities and billions in savings.  
            So is there any type of -- you know, is there -- do you guys have any kind of timeline of when this needs to happen or what -- you'd want to happen?  Or is it really just that you're saying, as you seem to be saying --
            DR. LITTLE:  I'm not suggesting that this is just a notion or an idea.  This is an actual proposal that we're making that the Congress consider a BRAC process, because, as you rightly point out, it's not just about reducing the strength of the -- or the size of the force. There is a great deal of infrastructure that supports the force, and if we're drawing down the force, it makes sense to look at that infrastructure to see where cost savings can be achieved.  
            So I don't have a particular time frame for you at this stage, but certainly we think it's important to look at BRAC in the coming years.    
            Q:  George, I apologize if this came up during his trip, but did Secretary Panetta support the public release of the joint ISAF-Afghan investigation into the Quran burning?
            DR. LITTLE:  The decisions on release of investigations connected to the Quran burning -- those decisions have been -- not been made yet.  At some point in the future we do expect that the findings will be released.
            And he supports release of the findings.  And we'll have to work with our Afghan partners on that particular investigation.  Of course, we have our own U.S. investigation into what happened.
            This is a very serious incident.  You heard the secretary's words and saw them as well when it occurred.  And it's important that we get to the bottom of it.
            Q:  So what's the status of the U.S.' own investigation?
            CAPT. KIRBY:  It's ongoing.
            DR. LITTLE:  It's ongoing.
            CAPT. KIRBY:  Investigator's still -- he's still doing his work. It's not been submitted up the chain to General Allen yet.
            MR. LITTLE:  John?
            Q:  Yesterday the president of South Korea said that his government is in talks with the U.S. about significantly extending the range of South Korea's surface-to-surface missiles so that they could cover all of North Korea.  Can you confirm that those talks are taking place?  And if so, would you be inclined to support that, or do you think that that action could be destabilizing?
            DR. LITTLE:  I'm not going to get into reports of private discussions with our Republic of Korea counterparts.  But it is always a goal with our Korean partners to ensure that we do everything we can to maintain the defense of South Korea and to promote stability on the Korean Peninsula.  And anything that harms that prospect is troublesome for both of us.  We have an unwavering commitment to the security of the Republic of Korea, and we're not going to back down from it.
            Q:  But these aren't reports.  I mean, the president of South Korea said that these talks are happening.  So why can't DOD --
            DR. LITTLE:  We're always in dialogue with our South Korean partners on a wide range of issues.  We have a large military presence, as you know, in the Republic of Korea.  And we're always looking for ways to enhance defense cooperation and ways of promoting enhanced stability of South Korea and stability in the region.
            John, anything? Jennifer?
            Q:  Does the Defense Department wish that the Haqqani group be listed as a terror group?  And -- on the website of the State Department. And if not, why not?
            CAPT. KIRBY:  I don't -- I don't think that we have a position to state on that today.  And so I wouldn't -- I'm not going to -- I don't have any comment for that on -- today.  
            What I will tell you is that military commanders in the field and certainly leaders here in the Pentagon view the Haqqani network as a significant threat to our efforts in Afghanistan and to the region writ large, but specifically to the coalition and to Afghan forces. And we continue to hit them hard every single day, particularly in RC East.  But I'm not going to -- I don't have any comment on the designation.
            DR. LITTLE:  Courtney --
            Q:  I have another Bales question.  His defense attorney has said that either he or some members of his staff may try to go to Kandahar themselves to investigate the scene.  Would the U.S. military provide security for them on a trip like that?  Is there any responsibility -- (off mic) -- or --  
            CAPT. KIRBY:  No idea.  We'll have to get back to you on that.
            DR. LITTLE:  Yes.
            Q:  Thanks.  It is reported that the United States has a -- has a plan to send an inspection team to cover -- recover the remains of U.S. soldiers in North Korea.  Can you confirm that?
            DR. LITTLE:  That we have a team in --  
            Q:  Yeah.
            DR. LITTLE:  -- in North Korea?
            Q:  Inspection team.  
            DR. LITTLE:  To --  
            Q:  (Inaudible) --  
            DR. LITTLE:  -- to recover remains of our -- of our fallen in North Korea?  We have suspended that effort for the moment.
            Remains recovery is obviously a top priority for this department.  
            We have thousands of service members who are unaccounted for.  This includes service members from the Korean War.
            We have suspended that effort because we believe that North Korea has not acted appropriately in recent days and weeks and that it's important for them to return to the standards of behavior that the international community has called for.  We do hope at some point to be able to re-engage the effort.  As I said, this is a top priority, but it's suspended for now.
            Q:  Do you have any time frame for the -- (inaudible)?
            DR. LITTLE:  I do not have a time frame for you.
            Q:  Is this inappropriate behavior related to the discovery of remains, or are you talking about --
            DR. LITTLE:  More broadly.  More broadly, David.
            Q:  Talking about the rocket launch, (maybe ?)?
            DR. LITTLE:  Yeah, I mean, I think, you know, for instance, there, you know, are suggestions that the North Koreans might launch ballistic missiles.  That would be in contravention of U.N. Security Council resolutions, and that is unacceptable behavior.
            Q:  George, can I follow up on that?  I mean, you had meetings in Thailand specifically to reopen this operation in North Korea.  And it was very involved.  I mean, are you saying that there is linkage between all of this in the past, that -- because in the past this was seen as being separate.  Now you're linking them.  Is that what you're saying?
            DR. LITTLE:  Well, North Korea -- as I said, we hope to engage with them on remains recovery efforts.  That's important.  But when there are suggestions that they might launch ballistic missiles, when they make bellicose statements about South Korea and engage in actions that could be construed as provocative, we think that it's not the right time to undertake this effort.  So we're hopeful that we will get past this period and that we can continue the remains recovery effort.
            But it is on hold for the moment.
            Q:  Have they been informed of that?
            DR. LITTLE:  They're aware.  
            Q:  George, does that also mean that the delivery of food aid, which was promised just less than a month or so ago, is also on hold?
            CAPT. KIRBY:  Look, fundamentally, this is about them meeting international obligations, which if they conduct this launch they said they're going to conduct, violates those obligations.  And we have to hold them account -- to account for that, and we are.  And I believe there will be other repercussions as a result of their continued pursuit of this particular launch, which could include that.
            Q:  (Off mic.)
            DR. LITTLE:  Oh, I don't have any specific date.  We can get back to you on that, Courtney.
            Q:  This team was supposed to be in the North Korea in March. Can you confirm that they were never actually physically in North Korea, or were they -- and were they told to come back to the U.S. when they were physically on the ground?
            CAPT. KIRBY:  I don't think we know the exact disposition of the team, where and when they are exactly.  I mean, we can find out for you.  The bigger point is the one George made, which is that it's an important priority for us as a department to account for those mission service members and that North Korea now has an opportunity to meet its obligations and its commitments.  It's -- you know, you this is -- this is their choice.  And we call on them to do that.
            Q:  It'll be sometime next month, something?
            DR. LITTLE:  We don't have a time frame for you.  Joe?
            Q:  Yes.  On Syria?
            MR. LITTLE:  Yeah.
            Q:  Do you have any information about the latest suicide attacks in Syria?  I mean, lately we heard DNI James Clapper accusing al-Qaeda of being behind those attacks.
            Do you -- do you -- do you think al-Qaeda still is responsible for conducting these attacks?
            DR. LITTLE:  I wouldn't contradict what the director of national intelligence has said.  We are concerned that al-Qaeda has had a hand in at least some violence in Syria, and that's deplorable.
            Again, with respect to Syria, we think that it's important that the regime stop its violence and brutality against the Syrian people. We believe that the Syrian people deserve much better than what they're getting from their own government.  And we continue to, with international partners, put significant diplomatic and economic pressure on the Syrian regime, and, you know, we believe that that can have an impact.  But the Syrian regime must stop what it's doing.
            CAPT. KIRBY:  I think we have time for just one more.
            DR. LITTLE:  Yeah.
            Q:  (Off mic) -- topic?
            Q:  Can I ask -- (off mic) --
            Q:  (Off mic.)
            Q:  OK.  Thank you very much.  
            DR. LITTLE:  Sir?
            Q:  The defense minister from the Republic of Armenia is in the United States right now, and he's in Kansas today, and he'll be back to Washington on Friday, I believe, and he'll -- met Secretary -- will meet Secretary Panetta.  My question is, can you comment on this?  How also would you describe the Armenian -- U.S.-Armenian military cooperation?  The Republic of Armenia tripled its peacekeepers in Afghanistan last year.  So if you have any status update on this. Thank you.
            DR. LITTLE:  Sure.  I don't want to get -- out ahead of what the discussions between the minister and Secretary Panetta might be, but they look forward to a good discussion on regional security matters and on the prospects for a greater cooperation between Armenia and the United States.
            Q:  And in Afghanistan, do you see our cooperation as solid on -- (inaudible)?
            CAPT. KIRBY:  We’re grateful, very grateful.
            DR. LITTLE:  Really very grateful for what Armenia has contributed to the mission in Afghanistan, and that's a message of gratitude that I'm certain will come from the secretary himself.
            Thank you.  
            Q:  So first of all, the president is paying a visit to South Korea.  This weekend he's going there, the 24th and 25th.  
            (Cross talk.)
            CAPT. KIRBY:  (Inaudible) -- talk to the White House about the presidential schedule.
            DR. LITTLE:  Yeah -- the White House about the presidential trip.
            Q:  What I'm asking -- do you think things will change as the North's behavior is concerned?  
            DR. LITTLE:  I think we really need to leave that to the White House.  
            Thank you very much.
            Q:  Thank you, sir.