NASA TESTS NEW SPACE TELESCOPE

FROM:  NASA
Several critical items related to NASA's next-generation James Webb Space Telescope currently are being tested in the thermal vacuum test chamber at NASA's Goddard Space Flight Center, Greenbelt, Md. This image shows the Optical Telescope Element Simulator, or OSIM, wrapped in a silver blanket on a platform, being lowered into the Space Environment Simulator vacuum chamber via crane to be tested to withstand the cold temperatures of space. Image Credit: NASA/Chris Gunn

U.S. BELIEVES AL-QAIDA IS STILL MAJOR THREAT

FROM:  AMERICAN FORCES PRESS SERVICE

Al-Qaida Offshoots Are Biggest Terror Threat, Official Says

By Jim Garamone

WASHINGTON, April 29, 2012 - Core Al-Qaida – the group led by Osama bin Laden – has been surpassed by its affiliates as the biggest terrorist threat to the United States, a senior intelligence official said.

"With bin Laden's death, the global jihadist movement lost its most iconic, most effective and most inspirational leader," Robert T. Cardillo, deputy director for intelligence integration with the Office of the Director of National Intelligence, told reporters in an April 27 conference call.

Bin Laden's death allowed al-Qaida second-in-command Ayman al Zawahiri to move up, but he has not changed the group's strategic direction and does not have the charisma to appeal to new recruits, Cardillo said.

Navy SEALs killed bin Laden in Pakistan during an intelligence-driven operation on May 2, 2011.

The al-Qaida offshoots – al-Qaida in the Arabian Peninsula, al-Shabob in Somalia, al-Qaida in the Mahgreb – "will surpass the core al-Qaida remaining in Pakistan," Cardillo said. "Each group will seek opportunities to strike Western interests in its operating area, but each group will have different intent and opportunity to execute those plans."

The "Arab Spring" uprisings that began last year have influenced the jihadist movement, the deputy director said. "The unrest and reduced security provides terrorists inspired by that movement more operating space as security services focus more on internal security and regime stability," he said.

As new Middle East leaders address public demands for their participation in government, "we assess that core al-Qaida and the jihadist movement will suffer a strategic setback in that the Arab Spring strikes at the very core of their jihadist narrative," he said.

Al-Qaida believes in progress by violence, but the elections in Tunisia, Egypt, Yemen and the up-coming election in Libya rebuke that assertion, Cardillo said.

"However, prolonged instability or unmet promises by these new governments ... would give al-Qaida, its affiliates and its allies more time to establish networks, gain support and potentially engage in operations," he said.

FEDERAL COURT ORDER SETTLES $85 MILLION FOREX FRAUD ACTION

FROM:  COMMODITY FUTURES TRADING COMMISSION
Federal Court Enters Order Settling CFTC $85 Million Forex Fraud Action against California Resident Peter Son and his Companies SNC Asset Management, Inc. and SNC Investments, Inc.

Defendants ordered to pay $5 million civil monetary penalty
Son pleaded guilty to federal charges in related criminal action and was sentenced to 180 months in prison and ordered to pay over $60 million in restitution
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court supplemental consent order requiring defendants Peter Son (Son) of Danville, Calif., and his companies, SNC Asset Management, Inc., and SNC Investments, Inc., to pay a $5 million civil monetary penalty. The court also ordered Son’s wife, relief defendant Ann Lee (Lee), to disgorge $300,000 of ill-gotten gains. The court’s supplemental consent order, entered on April 19, 2012, by Judge Maxine M. Chesney of the U.S. District Court for the Northern District of California, resolves a CFTC complaint that charged the defendants with operating an $85 million fraudulent foreign currency (forex) scam. The CFTC complaint named Lee as a relief defendant because she received monthly funds as purported wages, although she performed no services for SNC.

The supplemental consent order recognizes that an order of restitution in excess of $60 million was imposed on Son in a related criminal action. The supplemental order follows a consent order of permanent injunction entered by the court on May 13, 2011, which established the defendants’ liability, and permanently barred the defendants from engaging in certain commodity-related activities and from future registration with the CFTC, among other things.

According to the May 13, 2011, consent order, the defendants fraudulently solicited at least $85 million from at least 500 customers to trade forex. The defendants in their solicitations falsely claimed to be operating successful forex trading firms and guaranteed monthly returns generated by their trading, the order finds. These representations, and subsequent fictitious account statements depicting profitable returns on individual accounts, created the false impression that the defendants were trading forex profitably, the order finds. At best, however, only a small percentage of the $85 million solicited was traded and the defendants’ limited trading resulted in overall losses, according to the order.

Rather than trade on behalf of customers, the defendants misappropriated customer funds to pay purported profits and principal to customers, to pay money to Son’s wife, and for personal expenses such as mortgage payments, country club dues, and homeowner dues, the order finds.

On April 9, 2010, in a related criminal action, Son pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering (United States v. Peter C. Son, No. CR 09-00755 DLJ (N.D. Cal. filed July 27, 2009)).  On July 30, 2010, Son was sentenced to 180 months in prison.  On October 25, 2011, Son was ordered to pay restitution of $60,302,886.59 as part of the criminal judgment.

The CFTC appreciates the assistance of the National Futures Association, the US Attorney for the Northern District of California, the Securities and Exchange Commission, and the Financial Supervisory Service of Korea.

CFTC Division of Enforcement staff members responsible for this case are Timothy M. Kirby, Brian G. Mulherin, Kevin K. Batteh, Kara Mucha, Gretchen L. Lowe, and Vincent A. McGonagle.

U.S. DEPARTMENT OF JUSTICE WARNING ABOUT BUYING MEDICATIONS ONLINE

FROM:  U.S. DEPARTMENT OF JUSTICE
The Real Cost of Cheap Online Meds
April 26th, 2012 Posted by Tracy Russo
The following post appears courtesy of Stuart Delery, the Acting Assistant Attorney General for the Justice Department’s Civil Division.
If you are like most people, you probably think intellectual property (IP) is an abstract business or legal concept that does not affect you. But if you are one of the estimated 36 million Americans — and growing — who purchase medication through online
pharmacies, IP may be protecting you from unknowingly gambling with your own health.
Online pharmacies are prolific. And appealing. For the many Americans who do not have health insurance or cannot afford certain medications, the Web seems to offer a cheaper alternative. Many of these sites are designed to appear legitimate, often featuring a picture of smiling pharmacist in a white lab coat or claiming to be based in Canada.

But these sites often are not what they seem. Neither are the drugs they sell.
The World Health Organization estimates that more than half of drugs sold online are counterfeit. This means that these drugs are designed and packaged to look exactly like medicine you know and trust — medicine which required years of research and development, went through a stringent approval process, and was manufactured by trained professionals. These counterfeit drugs lack those safeguards; they aren’t made in quality-controlled laboratories, but in hidden rooms with unsanitary conditions. In order to replicate the look of legitimate drugs, they bear shockingly sophisticated labels and packaging, down to the serial numbers on blister packs and holograms. If that seems like a lot of trouble to go through, one need only look at the revenue for counterfeit pharmaceuticals worldwide to understand why — fake drugs raked in an estimated $75 billion last year.

All of us are looking for quality medicines at a better price. But these counterfeit pharmaceutical websites are run by criminals who trade on your trust of approved medicines and the quality assurances you have come to expect from them.

Take the case of Hazim Gaber, who ran an online pharmacy selling a highly-sought after cancer drug, DCA. Or so his customers thought. The pills these cancer patients received in the mail contained nothing more than starch, dextrin and lactose. For good measure, each shipment included a fraudulent certificate of analysis from a fictitious laboratory.

The medicine Gaber sold was useless. But, more often, counterfeit medications are actually harmful. More typical of a hardware store than a pharmacy, these products often include chemicals you might not even want in your house, let alone your body — toxins like rat poison, highway paint, floor wax, and boric acid. As just one example, customers have received ‘Xanax’ pills containing a substance used to manufacture sheetrock.

IP protections are a critical tool in protecting Americans from this threat. IP is not simply about downloading music or billion dollar fights over microchips. It is about making sure what you buy is actually what it claims to be.

That is why the Department of Justice is working hard to fight these criminal counterfeiters. Established by Attorney General Holder, our department-wide IP Task Force is working to combat the growing number of IP crimes, strengthening IP protections through heightened civil and criminal enforcement, greater coordination with state and local law enforcement and, because we know we cannot fight this within our borders alone, increased focus on international enforcement efforts. As part of that initiative, within the Civil Division, we have formed a team of attorneys dedicated to handling counterfeit pharmaceutical cases, particularly those trafficked over the Internet. Working with U.S. Attorneys’ Offices, the Department of Homeland Security, the FBI, and many other partners, we are succeeding in safeguarding IP rights and protecting consumers’ safety.

And, thanks to the Department’s efforts, criminals like Gaber are off the Internet and behind bars.

Most importantly, we are working to educate consumers about how they can protect themselves. A recent study showed that fewer than 11% of online pharmacy sites ask for a prescription. Before you purchase any medicines online, make sure the site (1) requires a prescription; (2) provides its name and address; and (3) has a licensed pharmacist you can actually speak to. With your help, we can keep patients safe, protect legitimate businesses, and keep products like rat poison and highway paint where they belong – far away from our medicine cabinets.
Stuart F. Delery
Washington, D.C.

U.S. AND JAPAN AGREE ON TROOP RELOCATION TO GUAM

Seabees with U.S. Naval Mobile Construction Battalion (NMCB) 1, Guam Det., and the 30th Naval Construction Regiment examine the Orote Point rock quarry on board Naval Base Guam.
Photos:  U.S. Navy

FROM:  AMERICAN FORCES PRESS SERVICE
U.S., Japan Agree on Okinawa Troop Relocation
By Karen Parrish
WASHINGTON, April 27, 2012 - U.S. and Japanese officials announced yesterday the two nations have agreed on a plan to relocate U.S. Marines from Okinawa to Guam.
The joint statement of the U.S.-Japan Security Consultative Committee spells out unit moves, land and facilities on Okinawa the United States will return to the Japanese government, and the costs each government will pay for the relocation.

The joint statement is the latest result of negotiations between the two countries dating to the 2006 Realignment Roadmap and the 2009 Guam International Agreement. The two nations issued a joint defense posture statement in February that "delinked" the two agreements so parts of the relocation plan could move forward more quickly.
"I am very pleased that, after many years, we have reached this important agreement and plan of action," Defense Secretary Leon E. Panetta said in a statement yesterday. He praised Japanese Defense Minister Naoki Tanaka for "spearheading discussions" leading to the joint statement.

"We will work closely with our partners in the Japanese Self Defense Force to implement these decisions and to further improve this vital alliance of ours," the secretary added.
Panetta said he looks forward to strengthening the two nations' partnership "as, together, we address security challenges in the region."

Sailors assigned to Explosive Ordnance Disposal Mobile Unit Five (EODMU-5), wash off in a creek after a full day of jungle warfare training exercises.  Okinawa, Japan.

During a Pentagon background briefing to reporters yesterday, senior State and Defense Department officials outlined the agreement.

About 9,000 Marines will relocate from Okinawa, with about 5,000 moving to Guam and the rest transferring to other locations in the Pacific such as Hawaii and Australia, the defense official said.

The Marines will be organized in air-ground task forces, which combine command, ground, air and logistics elements that can deploy and operate as a unit.
"This new posture that we've created results in a more operationally effective presence across the region," the defense official said.
"In the end, we are sustaining the same presence in the Western Pacific that we've intended for some time," the official added.

About 10,000 Marines will remain on Okinawa when the relocation is complete, the official said.

The agreement also sets Japan's funding for the move to Guam at $3.1 billion of the overall $8.6 billion estimated cost, the defense official added.
"We're particularly appreciative of this commitment in the context of Japan's fiscal challenges, which we fully recognize," the official added.

One element of the agreement involves possible development of joint training ranges in Guam and the commonwealth of the Northern Mariana Islands as shared-use facilities for U.S. and Japanese forces, the official said.

The State Department official said the plan will result in a stronger, more sustainable and more flexible alliance.

"This is really a key component of our strategic rebalancing toward the Asia-Pacific region," the official said. "As you know, one of the key aspects of that is strengthening partnerships with regional allies, and of course Japan is a very important alliance partner."

The official said the agreement reaffirms both nations' commitment to relocate Marine Corps Air Station Futenma, now in the center of Okinawa's Ginowan City, to a more remote area of the island. Until the Futenma relocation happens, both governments will share the cost of maintaining the existing facility, the official added.

The Japanese government will determine the timeline for the Futenma move, the State Department official said, noting the U.S. focus for Okinawa is sustaining an operationally effective Marine Corps presence there.

The defense official said U.S. representatives are "delighted" at the agreement.
"We think it's a significant achievement that demonstrates that the U.S.-Japan alliance is still capable of big things," the official said.

WARM OCEAN CURRENTS CAUSE MAJORITY OF ICE LOSS FROM ANTARCTICA

FROM:   NASA

WASHINGTON -- Warm ocean currents attacking the underside of ice 
shelves are the dominant cause of recent ice loss from Antarctica, a 
new study using measurements from NASA's Ice, Cloud, and land 
Elevation Satellite (ICESat) revealed. 

An international team of scientists used a combination of satellite 
measurements and models to differentiate between the two known causes 
of melting ice shelves: warm ocean currents thawing the underbelly of 
the floating extensions of ice sheets and warm air melting them from 
above. The finding, published today in the journal Nature, brings 
scientists a step closer to providing reliable projections of future 
sea level rise. 

The researchers concluded 20 of the 54 ice shelves studied are being 
melted by warm ocean currents. Most of these are in West Antarctica, 
where inland glaciers flowing down to the coast and feeding into 
these thinning ice shelves have accelerated, draining more ice into 
the sea and contributing to sea-level rise. This ocean-driven 
thinning is responsible for the most widespread and rapid ice losses 
in West Antarctica and the majority of Antarctic ice sheet loss 
during the period studied. 

"We can lose an awful lot of ice to the sea without ever having 
summers warm enough to make the snow on top of the glaciers melt," 
said the study's lead author Hamish Pritchard of the British 
Antarctic Survey in Cambridge, United Kingdom. "The oceans can do all 
the work from below." 

To map the changing thickness of almost all the floating ice shelves 
around Antarctica, the team used a time series of 4.5 million surface 
height measurements taken by a laser instrument mounted on ICESat 
from October 2003 to October 2008. They measured how the ice shelf 
height changed over time and ran computer models to discard changes 
in ice thickness because of natural snow accumulation and compaction. 
The researchers also used a tide model that eliminated height changes 
caused by tides raising and lowering the ice shelves. 

"This study demonstrates the power of space-based, laser altimetry for 
understanding Earth processes," said Tom Wagner, cryosphere program 
scientist at NASA Headquarters in Washington." Coupled with NASA's 
portfolio of other ice sheet research using data from our GRACE 
mission, satellite radars and aircraft, we get a comprehensive view 
of ice sheet change that improves estimates of sea level rise." 

Previous studies used satellite radar data to measure the evolution of 
ice shelves and glaciers, but laser measurements are more precise in 
detecting changes in ice shelf thickness through time. This is 
especially true in coastal areas. Steeper slopes at the grounding 
line, where floating ice shelves connect with the landmass, cause 
problems for lower-resolution radar altimeters. 




ICESat was the first satellite specifically designed to use laser 
altimetry to study the Earth's polar regions. It operated from 2003 
to 2009. Its successor, ICESat-2, is scheduled for launch in 2016. 

"This study demonstrates the urgent need for ICESat-2 to get into 
space," said Jay Zwally, ICESat project scientist at NASA's Goddard 
Space Flight Center in Greenbelt, Md. "We have limited information on 
the changes in polar regions caused by climate change. Nothing can 
look at these changes like satellite measurements do." 

The new research also links the observed increase in melting that 
occurs on the underside of a glacier or ice shelf, called basal melt, 
and glacier acceleration with changes in wind patterns. 

"Studies have shown Antarctic winds have changed because of changes in 
climate," Pritchard said. "This has affected the strength and 
direction of ocean currents. As a result warm water is funnelled 
beneath the floating ice. These studies and our new results suggest 
Antarctica's glaciers are responding rapidly to a changing climate." 

A different picture is seen on the Antarctic Peninsula, the long 
stretch of land pointing towards South America. The study found 
thinning of the largest ice shelf on the peninsula can be explained 
by warm summer winds directly melting the snow on the ice shelf 
surfaces. The patterns of widespread ocean-driven melting and summer 
melting on the Antarctic Peninsula can be attributed to changing wind 
patterns. 

The study was carried out by an international team from the British 
Antarctic Survey, Utrecht University in Utrecht, Netherlands, the 
University of California in San Diego and the non-profit research 
institute Earth and Space Research in Corvallis, Ore. 

SPACE SHUTTLE ENTERPRISE: ITS 36-YEAR MISSION...

FROM:  NASA
The Shuttle Enterprise
In 1976, NASA's space shuttle Enterprise rolled out of the Palmdale manufacturing facilities and was greeted by NASA officials and cast members from the 'Star Trek' television series.
From left to right they are: NASA Administrator Dr. James D. Fletcher; DeForest Kelley, who portrayed Dr. "Bones" McCoy on the series; George Takei (Mr. Sulu); James Doohan (Chief Engineer Montgomery "Scotty" Scott); Nichelle Nichols (Lt. Uhura); Leonard Nimoy (Mr. Spock); series creator Gene Rodenberry; an unnamed NASA official; and, Walter Koenig (Ensign Pavel Chekov).
Image Credit: NASA

WASHINGTON -- Update: NASA's 747 Shuttle Carrier Aircraft (SCA) with space shuttle Enterprise mounted atop have landed in New York City.  

F-16'S ENGAGE MIG'S OVER BULGARIA DURING THRACIAN STAR 2012

FROM:  U.S. AIR FORCE
Col. David Walker, 31st Operations Group and Thracian Star 2012 detachment commander, and Capt. Petar Milkov, Bulgarian air force MiG-29 pilot, prepare to fly in an F-16 Fighting Falcon April 19, 2012, at Graf Ignatievo Air Force Base, Bulgaria. More than 500 people are deployed here from the 31st Fighter Wing in support of the month-long coalition training exercise aimed at increasing interoperability between NATO allies. (U.S. Air Force photo/Senior Airman Katherine Windish)

F-16s, MiGs engage over Bulgarian skies 
by Senior Airman Katherine Windish
31st Fighter Wing Public Affairs

4/26/2012 - GRAF IGNATIEVO AIR BASE, Bulgaria (AFNS) -- U.S. pilots from the 555th and 510th Fighter Squadrons based out of Aviano Air Base, Italy, have been given a rare opportunity to train and share experiences with Bulgarian air force MiG-21 and MiG-29 pilots during their deployment here in support of Thracian Star 2012.

Since the start of the training mission on April 18, Bulgarian and American pilots have been flying together and working toward the goal of the exercise: to strengthen partnerships, increase interoperability between NATO allies and maintain a standard of excellence.

Throughout the month-long bilateral training exercise, Aviano F-16 Fighting Falcon pilots will spend more than 60 hours per week flying close air support, basic fighter and air combat maneuvers, tactical intercepts, defensive counter air and large force missions with Bulgarian MiG-21 and MiG-29 pilots.


"We are performing the same mission sets we do at home station, but we are integrating the Bulgarian pilots into the training," said Capt. Bryan Faughn, 555th FS F-16 pilot. "It gives us an opportunity to see how another country's air force works. They are a professional air force just like we are and they take pride in what they do. We are gaining experience while working with an international partner - it's a unique opportunity."

To gain better insight into both the tactics of the pilots and the capabilities of the different aircraft, pilots have gone on ride-along flights in the other country's jets.

Capt. Kirby Sanford, 555th FS F-16 pilot, was the first American pilot to get the opportunity to ride in a MiG.

"It was truly an awesome, once-in-a-lifetime experience," Sanford said about his flight. "It really highlighted the advantages of both aircraft and showcased the mindset, skills and techniques of the Bulgarians."

"Though the MiG is an older aircraft, it is still a very capable aircraft," he continued. "It just goes to show that even an older aircraft can be a formidable adversary with the right pilot."

Bulgarian air force Capt. Petar Milkov, was the first MiG-29 pilot to fly in an F-16 during Thracian Star 2012. The aircraft was piloted by Col. David Walker, 31st Operations Group and Thracian Star detachment commander.

"I was very impressed by the cockpit ergonomics, ease of flight and mission complexity," said Milkov. "This bilateral training with my American colleagues is a great chance to extend our partnership in a professional, cultural and personal manner. I also hope to enrich my personal experience and make new contacts."

DENGUE VACCINE ENTERS FIRST CLINICAL TRIAL

FROM:  AMERICAN FORCES PRESS SERVICE  

Navy Dengue Vaccine Enters First Clinical Trial

By Terri Moon Cronk

SILVER SPRING, Md., April 26, 2012 - Navy medical researchers are conducting their first human clinical trial for a vaccine to protect U.S. troops from dengue, a potentially deadly mosquito-transmitted virus found in the tropical and subtropical areas of the world.

No treatment or cure exists for dengue, which is carried by a particular type of mosquito, said Navy Cmdr. Tad Kochel, chief of Viral and Rickettsial Disease research at the Naval Medical Research Center, here. Kochel said the disease is endemic in Southeast Asia, Africa, South America and the Caribbean.

Dengue puts 2 million people at risk worldwide, and adds about 500,000 new cases each year, Kochel said. Dengue also can cause 25,000 deaths annually, mostly among children who aren't hospitalized before severe illness can set in.

"We need a vaccine because the troops are deployed where dengue is actively transmitted," said Kochel, who developed the Navy's dengue vaccine in 1993, which is now in the trial phase to determine whether it is safe and effective. Kochel, who has a doctorate in virology, said a vaccine against the virus will have to cover each of its four strains.

Some dengue strains cause few symptoms, while others can cause high fever, internal bleeding and shock, among other symptoms, said Navy Lt. Cmdr. (Dr.) Janine Danko, department deputy chief.

Dengue is not contagious, she said. It is contracted when bitten by a mosquito carrying the virus. Once a person is bitten, however, subsequent bites from infected mosquitoes have cumulative effects and can result in more severe cases of the disease. 

"People who get it a second or third time in their lives can have more severe disease symptoms," Danko said. "A soldier who is deployed to a tropical area, bitten by a mosquito and infected with dengue may not even know it. He may feel 'punky' and have a fever a day or two. If he's deployed again to other areas with dengue, he's at higher risk of infection, because his body has seen it before."

Because there is no treatment for dengue, prevention is vital.

"We always have campaigns to reduce dengue transmission," Kochel said. "Troops in endemic areas are encouraged to kill the mosquitoes, use pesticides, ensure living areas have no standing water, and use a repellent. But these things are not 100 percent. That's why we need a vaccine."

Research for a dengue vaccine has been under way for more than 20 years, but its availability still is five to 10 years away, Kochel said.

A vaccine that prevents all four strains of dengue must pass stringent Food and Drug Administration requirements before it can be licensed and marketed for human use.

The price tag that comes with vaccine development also is great.

"The dollar amount for these studies is pretty exponential," Kochel said.

The Navy researchers emphasized that they're not working in a vacuum to develop a vaccine.

"The Navy, in collaboration with the Army, has three vaccines," Kochel said. "We are testing products individually and in combination with our counterparts, such as universities and private companies that also are working on vaccines."

Of the various vaccines in different stages of development, Kochel said, not one is ahead of the others.

"Everyone's trying to get over this hurdle of getting good immune responses against all four types of the virus," he said, adding that the "perfect vaccine" does not yet exist to protect U.S. troops from all strains.

And even though dengue's Type 1 strain might go unnoticed in some people, the virus doesn't have to be severe before it can be a hindrance to troop strength, Danko said.

"Even with moderate infection," she explained, "dengue affects our ability on the front lines to protect and carry out the mission of DOD."

CORPORATE ATTORNEY AND WALL STREET TRADER SETTLE $32 MILLION INSIDER TRADING CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Attorney, Wall Street Trader, and Middleman Settle SEC Charges in $32 Million Insider Trading Case
Washington, D.C., April 25, 2012 — The Securities and Exchange Commission today announced a settlement in a $32 million insider trading case filed by the agency last year against a corporate attorney and a Wall Street trader.

The SEC alleged that the insider trading occurred in advance of at least 11 merger and acquisition announcements involving clients of the law firm where the attorney — Matthew H. Kluger — worked. He and the trader — Garrett D. Bauer — were linked through a mutual friend now identified as Kenneth T. Robinson, who acted as a middleman to facilitate the illegal tips and trades. Kluger and Bauer used public telephones and prepaid disposable mobile phones to communicate with Robinson in an effort to avoid detection. Robinson, now also charged, cooperated in the SEC’s investigation.

Bauer, Kluger, and Robinson each agreed to give up their ill-gotten gains plus interest in order to settle the SEC’s charges. Those amounts under the terms of their consent agreements are approximately $31.6 million for Bauer, $516,000 for Kluger, and $845,000 for Robinson.

"Bauer, Kluger and Robinson schemed to outsmart law enforcement by structuring their relationships and communications to avoid detection and frustrate insider trading detection mechanisms," said Robert Khuzami, Director of the SEC's Division of Enforcement. "They were ultimately unsuccessful due to the SEC's sustained efforts to combat hard-to-detect insider trading, particularly among lawyers and other gatekeepers who have solemn duties to maintain the confidentiality of information entrusted to them."
In parallel criminal actions brought by the U.S. Attorney’s Office for the District of New Jersey, Bauer, Kluger, and Robinson have all pled guilty and are scheduled to be sentenced on June 4, 2012.

Acknowledging the facts to which they have admitted as part of their guilty pleas, Bauer, Robinson, and Kluger consented to final judgments in the SEC’s civil actions that are subject to court approval. In the proposed final judgments, Bauer would be ordered to disgorge $30,812,796 plus prejudgment interest of $859,135; Kluger would be ordered to disgorge $502,500 plus prejudgment interest of $14,010; and Robinson would be ordered to disgorge $829,129 plus prejudgment interest of $16,106. They also would be permanently enjoined from future violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Each of the orders of disgorgement will be deemed partially satisfied and offset on a dollar-for-dollar basis by assets seized at the direction of the U.S. Attorney’s Office for the District of New Jersey based upon orders of forfeiture.

Bauer also has agreed to settle a related SEC administrative proceeding by consenting to the entry of an order that would bar him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, and from participating in any offering of a penny stock. Kluger agreed to settle a related administrative proceeding by consenting to the entry of an order which would permanently suspend him from appearing or practicing before the SEC as an attorney pursuant to Commission Rule of Practice 102(e).
The terms of the proposed settlement with Robinson reflect credit given to him by the SEC for his substantial assistance and cooperation in the investigation.

The SEC’s investigation was conducted by Colleen K. Lynch, David W. Snyder and John S. Rymas, members of the Market Abuse Unit in the Philadelphia Regional Office, under the supervision of Daniel M. Hawke, Chief of the Market Abuse Unit and Regional Director, and Elaine C. Greenberg, Associate Regional Director for Enforcement in the Philadelphia Regional Office. G. Jeffrey Boujoukos and Scott A. Thompson have been handling the litigation.

The SEC brought this enforcement action in coordination with the U.S. Attorney’s Office for the District of New Jersey. The SEC also appreciates the assistance of the Federal Bureau of Investigation, Financial Industry Regulatory Authority, and Options Regulatory Surveillance Authority.

NEW U.S. SPACECRAFT WILL BEGIN GROUND TESTS

FROM:  NASA
The Orion Ground Test Vehicle arrived at NASA's Kennedy Space Center Operations & Checkout (O&C) Facility on April 21. The vehicle traveled more than 1,800 miles from Lockheed Martin's Waterton Facility near Denver, Colo., where it successfully completed a series of rigorous acoustic, modal and vibration tests that simulated launch and spaceflight environments. The ground test vehicle will now be used for pathfinding operations at the O&C in preparation for the Orion spaceflight test vehicle's arrival this summer. The spaceflight vehicle is currently being fabricated at NASA's Michoud Assembly Facility in New Orleans, La., and is slated for NASA's Exploration Flight Test, or EFT-1, in 2014. Image Credit: NASA

SAPLINGS PLANTED IN ARLINGTON NATIONAL CEMETERY FOR ARBOR DAY AND SERVICE MEMBERS

FROM:  AMERICAN FORCES PRESS SERVICE
From Left to Right: American Forests Chief Executive Officer Scott Sheen, Katherine Hammack, assistant secretary of the Army for installations, energy and environment, and cemetery arborist Stephen Van Hoven place soil around a ribbon-laden sapling at the end of an Arbor Day ceremony at Arlington National Cemetery in Virginia, April 27, 2012. DOD photo by Terri Moon Cronk

Arlington National Cemetery Plants Saplings to Honor Troops
By Terri Moon Cronk
ARLINGTON, Va., April 27, 2012 - In honor of Arbor Day and to pay respects to U.S. service members, officials planted five oak tree saplings at Arlington National Cemetery here today.

saplings were grown from acorns taken from the renowned "Arlington Oak," a 220-year-old tree that was felled by Hurricane Irene in August 2011. The old oak tree stood in the area of the cemetery's Kennedy family burial site. Several years ago, the nonprofit American Forests organization collected acorns from the old oak and grew the saplings.

Three of the saplings were planted near the Kennedy family gravesite. Of the remaining two saplings, one was planted in section 26, near the old amphitheater and the other in section 36, near Custis Walk.

"On this ground we have the opportunity to re-establish a lost national landmark with its very own offspring," said keynote speaker Katherine Hammack, the assistant secretary of the Army for installations, energy and environment. "We can do this because Arlington National Cemetery and American Forests had foresight. They collected acorns from that landmark tree next to President [John F.] Kennedy's gravesite to prepare for an inevitable future."

Cemetery historian Tom Sherlock said when President Kennedy visited Arlington House in the spring of 1963, the Arlington oak was prominent in his view as he looked down upon Washington, D.C.

Kennedy said he was taken with the "magnificent" view, Sherlock said, noting the president also remarked that he "could stay there forever." That area near the tree was later chosen as Kennedy's burial site.

Today, a single oak sapling where the old tree once stood also represents a tribute to U.S. service members, Hammack said.

"When we were planning today's ceremony, the 1973 song, 'Tie a Yellow Ribbon 'Round the Old Oak Tree' came to mind," she said. "We have lost the old oak tree of a 220-year legacy, but we have an opportunity to tie a yellow ribbon around the young oak tree."
Arlington cemetery's saplings, Hammack said, remind Americans "of those men and women who are serving in harm's way" to protect the nation.
"On behalf of a grateful nation and the U.S. Army, this serves as a welcome home to all service men and women," she said.

Hammack then tied a yellow ribbon around the young tree.

COURT ORDERS SEIZURE OF 36 WEB DOMAINS THAT SELL STOLEN CREDIT CARD NUMBERS

FROM:  U.S. DEPARTMENT OF JUSTICE 
Thursday, April 26, 2012
Federal Courts Order Seizure of 36 Website Domains Involved in Selling Stolen Credit Card Numbers
WASHINGTON – Seizure orders have been executed against 36 domain names of websites engaged in the illegal sale and distribution of stolen credit card numbers, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and Acting Executive Assistant Director Kevin Perkins of the FBI’s Criminal, Cyber, Response and Services Branch, announced today.

The seizures are the result of Operation Wreaking hAVoC, an FBI and Justice Department operation targeting the sale of stolen credit card numbers via the Internet.  The operation was coordinated with international law enforcement, including the United Kingdom’s Serious Organised Crime Agency (SOCA).

The 36 seized domains are in the custody of the federal government.  Visitors to the sites will now find a seizure banner that notifies them that the domain name has been seized by federal authorities.

“The websites we are targeting today were commercial outlets for stolen credit card information,” said Assistant Attorney General Breuer.  “By making this information available on the Internet, these websites facilitated fraud on credit card holders around the world.  The actions announced today are the result of extraordinary coordination with our international law enforcement partners, and reflect our commitment to use every tool at our disposal to shut down fraudulent, criminal enterprises.”

“Countless lives are thrown into financial turmoil because of these websites,” said U.S. Attorney MacBride.  “With a few simple clicks, thousands of stolen credit card numbers can be bought or sold to fraudsters anywhere in the world.  Today’s seizures are part of an ongoing campaign to disrupt this online market regardless of where it operates.”
“By seizing the websites the criminal underground uses to blatantly sell stolen personal information, Operation Wreaking hAVoC shows that we are committed to protecting individuals online and preventing criminals from using the Internet to line their pockets,” said FBI Acting Executive Assistant Director Perkins.  “The FBI and our partners around the world are committed to disabling these criminal networks.  No single law enforcement agency can fight cyber crime on its own, and the FBI is proud to be a part of such an outstanding effort by all of the participating agencies.”

The websites of the seized domain names are commonly referred to as Automated Vending Carts (AVCs).  An AVC is a website that functions as an open-ended invitation to any visitor to purchase stolen credit card numbers.  AVCs allow a user to buy stolen credit card data over the Web, even using an online “shopping cart,” just like a traditional online retailer.  Some AVC sites allow a buyer to select which type of credit card number to purchase, the account’s country of origin, and, in some cases, the state in which the account holder lives.  AVCs allow sellers to traffic stolen credit card data without communicating directly with buyers.

During this operation, law enforcement officials made undercover purchases of credit card numbers, including credit card numbers issued by Bank of America, Sun Trust and Capital One.  The banks confirmed that the sites were not authorized to sell the credit card numbers.  Seizure orders were obtained from a federal magistrate judge in the Eastern District of Virginia.
This U.S. operation was led by FBI’s Washington Field Office, the Computer Crime and Intellectual Property and Asset Forfeiture and Money Laundering Sections of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Eastern District of Virginia.  The FBI’s Pittsburgh Field Office and the U.S. Attorney’s Office for the Western District of Pennsylvania also assisted in the investigation.

The international operation was led by the United Kingdom’s SOCA.  The Australian Federal Police (AFP); German Bundeskriminalamt (BKA); United Kingdom’s Dedicated Cheque and Plastic Crime Unit (DCPCU); Macedonian Ministry of Interior Cyber Crime Unit (MOI); Ukraine Ministry of Internal Affairs; Romanian Ministry of Interior; and the Dutch High-Tech Crimes Unit (KLPD) provided assistance.  Activities conducted by these international law enforcement agencies included arrests of AVC operators and purchasers, additional domain seizures and data seizures.

McKESSON CORP PAYS OVER $190 MILLION TO SETTLE ALLEGATIONS OF INFLATING PRESCRIPTION DRUG PRICES

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, April 26, 2012
McKesson Corp. Pays U.S. More Than $190 Million to Resolve False Claims Act Allegations
McKesson Corporation has agreed to pay the United States more than $190 million to resolve claims that it violated the False Claims Act by reporting inflated pricing information for a large number of prescription drugs, causing Medicaid to overpay for those drugs.

Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division; New Jersey U.S. Attorney Paul J. Fishman; and Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services announced the settlement today.

The government alleges that McKesson, a large drug wholesaler, reported the inflated pricing data to First DataBank (FDB), a publisher of drug prices that are used by most state Medicaid programs to set payment rates for pharmaceuticals.

The Medicaid program is funded jointly by the federal and state governments.   This settlement resolves claims based on the federal share of Medicaid overpayments caused by McKesson’s conduct.   In addition to the $190 million – which represents the $187 million settlement and interest – state governments can separately negotiate with McKesson to resolve claims based on the states’ shares of the Medicaid overpayments.

The drug pricing data at issue here relates to the “Average Wholesale Price” (AWP) benchmark used by Medicaid and other programs to set payment rates for pharmaceuticals.   The settlement announced today is based on the United States’ allegations that McKesson reported inflated mark-up percentages to FDB for a wide variety of brand name drugs, causing FDB to publish inflated AWPs for those drugs.

To date, federal and state governments have recovered more than $2 billion from drug manufacturers that were alleged to have reported inflated AWP information to FDB and other publishers of drug prices.

“This case demonstrates the Department of Justice’s commitment to ensuring that Medicaid funds are expended appropriately,” said Acting Assistant Attorney General Delery.   “Companies that report pricing data that affect government payment rates, whether those companies are manufacturers, wholesalers, or otherwise, are required to report that data accurately.”

“This is the latest example of a corporation’s intentionally manipulating the complicated system by which drug purchases are reimbursed,” said U.S. Attorney Fishman.  “We have no tolerance for those who take advantage of that system to bring in more business by falsely increasing reimbursements to retailers.”

“This settlement with McKesson highlights the Office of Inspector General’s commitment to protecting against artificially inflated drug prices,” said Inspector General Levinson.   “Our analyses of drug price reporting practices – including the use of ‘Average Wholesale Price’ – have consistently identified excessive Medicare and Medicaid payments resulting from these practices.”

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell of the New York Regional Office, for the investigation leading to today’s settlement.

The government is represented by Assistant U.S. Attorney Alex Kriegsman of the U.S. Attorney’s Office Civil Division in Newark and Jeffrey A. Toll and Justin Draycott of the U.S. Department of Justice’s Civil Division.

McKesson does not admit to any liability regarding the claims settled by this agreement.

STUDENT VETERANS OF AMERICA REVOKE CHARTERS AT SEVERAL FOR-PROFIT SCHOOL

FROM:  VETERANS AFFAIRS VANTAGE POINT
Student Vets Group Outs Schools with Revoked Charters
April 26, 2012
 by Alex Horton 
A few weeks ago, we reported that Student Veterans of America revoked charter membership at a number of for-profit schools. The schools were charged with violating the terms of their agreement with SVA, which includes a clause stipulating the chapters would be run by student Veterans.

Today, SVA produced a list of the 26 schools whose charters the group pulled. Half are owned by a single company: Education Management Corporation.

SVA’s executive director weighed in on why the violations are significant:
A few weeks ago, we reported that Student Veterans of America revoked charter membership at a number of for-profit schools. The schools were charged with violating the terms of their agreement with SVA, which includes a clause stipulating the chapters would be run by student Veterans.

Today, SVA produced a list of the 26 schools whose charters the group pulled. Half are owned by a single company: Education Management Corporation.
SVA’s executive director weighed in on why the violations are significant:

1) It defrauds veterans seeking advice from SVA’s student leaders;
2) It deters veterans who would otherwise form chapters at these campuses;
3) It misrepresents these chapters as being a point of contact for veterans seeking out their peers who can help them with transition issues and introduce them to a community of individuals that share similar experiences;
4) It undermines the legitimacy and reputation of SVA.
Many military and veteran-friendly school lists cite having a SVA chapter as a criterion for becoming ‘veteran-friendly’. The term ‘military-friendly’, or ‘veteran-friendly’, as it relates to academic institutions is ill-defined.

The last point is considerably relevant and concerning. Out of the 26 schools that saw their SVA chapters pulled, 14 appeared on a major “military friendly” school list, which is then used by for-profits to attract active duty troops and Veterans. One school with three revoked SVA chapters took the number one spot in the online and nontraditional category for the Military Times Edge “Best for Vets: Colleges 2011”.
Universities and colleges are increasingly the place where Veterans choose to go for their first foray into the post-military world. Their choices and experiences will impact the rest of their lives, so it’s important that student Vets make the most of their time and benefits. Be sure to do your own research (along with our handy pointers) so you can make the best informed decision possible.

AIR FORCE RESERVE HELP TO RESCUE CLIMBER WHO FELL 150 FEET IN DANALI NATIONAL PARK

FROM:  U.S. AIR FORCE
Photo: Denali National Park - Mt. McKinley.  U.S. Park Service 
PJ's rescue fallen ice climber in Denali National Park
by 2nd Lt. Leslie Forshaw
920th Rescue Wing Public Affairs

4/25/2012 - CAMP DENALI, Alaska -- Two Air Force Reserve pararescuemen from the 920th Rescue Wing, Patrick Air Force Base, Fla., assisted in the rescue of a climber who fell more than 150 feet while climbing Moose's Tooth in Denali National Park April 21.

The 11th Air Force Rescue Coordination Center received  the rescue call at 2:20 a.m.

The National Park Service was not able to launch a rescue aircraft until 6 a.m. the next morning - so the RCC coordinator notified the Alaska Air National Guard's 210th, 211th and 212th Rescue Squadrons.

"The climber needed immediate assistance," said Capt. Gregg Laird, RCC senior controller, Alaska ANG.

The Guardian Angel Weapon system launched with an HH-60G Pave Hawk helicopter and an HC-130P/N King aircraft from Joint Base Elmendorf-Richardson, to make the 120-mile flight northwest of Anchorage.

"The patient was described as going in and out of conscientiousness and we didn't know if he was still on the rock or down at the base," said Staff Sgt. Nate Greene, pararescuemen, ANG.

After flying low, slow patterns over the area - the crew spotted a group of people by a tent in an area up the hill from the landing strip used to access the 10,300-foot peak.

The rescue helicopter pilots found a safe place to land. Greene, along with Senior Master Sgt. Jonathon Davis, ANG, and Tech Sgt.'s Daniel Warren and William Posch, Air Force Reserve PJs from Patrick AFB, made their way to the patient.

"Getting off the helicopter we had a stokes litter and medical bag, "said Warren. "Every step in that deep snow at high altitude and carrying gear was a challenge."

At the tent, the PJ team went to work examining the patient and assessing the situation.

PJs are considered special operators skilled in trauma medicine and conditioned athletes trained in extreme sports, such as mountain climbing and skydiving, to quickly get to combatants wounded on the battlefield and administer life-saving medical treatment. The battlefield, however, is only one of the many places on earth PJs are able to save lives. Any terrain where someone needs rescued, PJs are able to get there.

"Upon initial assessment, the patient was amazingly coherent for falling 150 feet," said Warren.

We took spinal injury precautions and focused on packaging the patient and getting him ready for transport, said Warren.

According to the state of Alaska public affairs office, the climber made it to the top of the climb and was on his way back down when one of his anchors came out of the rock.

"The patient was climbing at night, when the ice is the hardest. His last anchor failed which caused the fall," said Warren. "He hit his head or helmet at least once on the way down and was still suspended in the air after the fall."

The patient's fellow climbers were able to get him to the ground and then place him in a sleeping bag while awaiting rescue, said Warren.

The PJs moved the injured climber onto a spinal board and into a hypothermic bag-equipped litter to keep him warm and secure.

It took three PJs and four members of the climbing party to carry the small patient on a stokes litter through the deep snow to the helicopter, said Warren.

"That's just an example of how extreme the altitude and snow affects a person," said Warren.

The patient was onboard the helicopter by 6:55 a.m. and transported to Providence Hospital by 7:55 a.m.

"Here is an example of more good actions by Guardian Angel Airmen supporting the Alaska ANG," said Col. Mark Blalock, 920th RQW Operations Group commander. "The Alaska alert augmentation has been yielding some great missions and super training and experience we don't normally get."

The Florida reservists have been supplementing the ANG rescue forces for the experience and training only the Alaska mountains can provide.

"Training with the Alaska Air National Guard PJs and working with them on alert is a welcome challenge," said Warren. "It gives us exposure to their unique alert requirement. It's an honor, if only for a short time, to be a part of helping them do what they do best." Warren also took part in another Alaska rescue earlier this year.

The three-week rotations for the Florida Reserve GA Airmen started in January and will continue through September.

Since the start of the Alaska rotations, the 920th RQW GAs have parachuted into a remote village during a snow storm to provide medical help to a villager, been drug through snow by a helicopter while saving an avalanche victim.

"It's a lot like any injured Soldier, Sailor or Marine we see [on the battlefield]. They are just normal people doing amazing things...just having a really bad day. It's our job to make the worst days of their lives just a little better," said Warren.

The motto, "These things we do, that others may live," continues to be a way of life for the GA.

JOINT CHIEFS CHAIRMAN ORDERS REVIEW OF ISLAMIC EDUCATION MATERIAL USED IN TRAINING

FROM:  AMERICAN FORCES PRESS SERVICE  

Dempsey Orders Review of Courses Dealing With Islam

By Jim Garamone

WASHINGTON, April 25, 2012 - The chairman of the Joint Chiefs of Staff has ordered the directors of joint military education institutions and combatant commanders to examine the scope and content of training and education courses dealing with Islamic extremism to ensure they are appropriate and in keeping with U.S. values and principles.

Pentagon spokesman Navy Capt. John Kirby said Army Gen. Martin E. Dempsey sent the letter after students at the Armed Forces Staff College in Norfolk, Va., raised concerns about the content of a class entitled "Perspectives on Islam and Islamic Radicalism." Dempsey ordered the course closed until the study is complete.

"Our concern is there are some unprofessional things being taught to students in professional military education curriculum," Kirby said during a press availability today.

Defense Secretary Leon E. Panetta is aware of Dempsey's order and he shares the general's concern, the captain said. "He also completely endorses the chairman's intention to look at joint professional military education across the board to make sure we have done an adequate scrub on the content of this type of curriculum," Kirby said.

Some of the material in the course was not simply objectionable but inflammable, Kirby said. A student who finished the course last month brought it to the chairman's attention.

One example of the objectionable material was a Power Point slide highlighting inflammatory statements. On the slide was the assertion "that the United States is at war with Islam and we ought to just recognize that we are at war," Kirby said. "That's not at all what we believe to be the case: We're at war with terrorism, specifically al-Qaida, who has a warped view of the Islamic faith. That's just one example.

"These assertions are not in keeping with our principles or ideas," he continued. "We believe the right thing to do was to suspend the course due to some of the things that were presented in the course."

Dempsey has also ordered an inquiry into this particular course to determine how this material got into the course, and what is needed to improve it moving forward. The course has been taught at the staff college since 2004.

PRESIDENT OBAMA CRACKS DOWN ON SCHOOLS TARGETING SERVICE MEMBERS WITH MISLEADING INFORMATION

FROM:  AMERICAN FORCES PRESS SERVICE
President Barack Obama tapes the Weekly Address in the Grand Foyer of the White House, April 27, 2012. (Official White House Photo by Chuck Kennedy)
Obama: Executive Order Protects Military, Vet Students
By Donna Miles
WASHINGTON, April 28, 2012 – President Barack Obama dedicated his weekly radio and video address today to describing the advantages of a new executive order designed to crack down on bad actors who prey on service members and veterans considering higher education.

Obama, who traveled yesterday to Fort Stewart, Ga., to unveil the new order, called it vital protection to brave men and women who are often bombarded by schools that provide false or misleading information about things like interest rates on loans, credit transfers, and job placement programs.

The order, he explained, will make it easier for military members and veterans to make informed decisions about financial aid and paying for college and also takes a number of steps to fight deceptive practices by some institutions.

“These men and women have fought with bravery and honor in some of the most dangerous places on the planet,” the president said today, noting that some never returned. “But those who did are now fighting a different kind of battle here at home,” he said. “They’re looking for new jobs, new opportunities, and new ways to serve.”
For many, Obama said, that means returning to school with help from the 9/11 GI Bill and tuition assistance program to help defray costs. Last year, these measures supported more than a half-million veterans and more than 300,000 service members who are pursuing a higher education, he noted.

“That’s progress,” he said. “But it’s not enough to just help our veterans and service members afford school -– we need to make sure they have all the tools they need to make an informed decision when it comes to picking the right program.”

Obama recognized the sad truth that some unscrupulous people are “less interested in helping our men and women in uniform get ahead and more interested in making a buck.” They game the system, he said, bombarding potential students with high-pressure tactics and steering them toward high-interest loans and misleading credit transfers and job placement programs.

“That’s appalling. It’s disgraceful,” he said. “And even though the vast majority of schools do the right thing, we need to guard against the bad actors who don’t.”
The new executive order will make it tougher for those who try to prey on service members and veterans. It will ensure they get the straight facts and make it easier to file complaints, he said.
The result, the president said, will be more security for service members, veterans and their families.

“When our men and women in uniform succeed, our country succeeds,” Obama said. “ They have our back; now it’s our turn to have theirs. And as long as I’m president, I’m going to make sure that anyone who serves this country gets every opportunity they deserve.”

MILITARY PERSONNEL LEADERS GIVE TESTIMONY ON BUDGET REQUEST BEFORE SENATE COMMITTEE

FROM:  AMERICAN FORCES PRESS SERVICE

Service Personnel Leaders Testify on Budget Request

By Army Sgt. 1st Class Tyrone C. Marshall Jr.

WASHINGTON, April 27, 2012 - Army, Navy and Air Force leaders detailed plans for force readiness and service member support when they briefed a Senate committee this week on budget requests for next year.

"Wartime experiences over the past decade have taught us that we must have a total Army," Thomas R. Lamont, assistant secretary of the Army for manpower and reserve affairs, told the Senate Armed Services Committee on military and civilian personnel programs April 25. The Army National Guard and Army Reserve provide 51 percent of the Army's military end strength for around 16 percent of the base budget, he said.

Lamont said he looks forward to working with Congress to ensure the Guard and Reserve maintain a readily trained force of one million soldiers. "We are increasingly aware of the physical and emotional toll a decade of war has taken on our force," Lamont said. "And we are committed to providing quality assistance" to soldiers and family members who are struggling with issues such as substance abuse, depression, post-traumatic stress."

All affect readiness and weaken the force, Lamont said. The Army continues to take aggressive action to promote health, identify and reduce risky behaviors and prevent suicides, he said. He also said the service is working hard to establish a climate where sexual harassment, sexual assault and hazing are not tolerated.

At the same hearing, Juan M. Garcia III, assistant secretary of the Navy for manpower and reserve affairs, highlighted new ROTC units and opportunities including those for women that have opened in the force.

"We have 23 female officers assigned to submarines, with more being assigned in the very near future," Garcia said. "Last year, I spoke of new Navy ROTC units at Arizona State University and Rutgers. This year, I'm pleased to report that we're expanding our ROTC presence at Harvard, Yale and Columbia as part of our goal to make Naval service a viable option for young men and women from all regions and all segments of society."

The Navy and Marine Corps will strive to meet operational requirements as efficiently as possible, Garcia added. "For the Navy, this means continuing to move sailors from shore-support functions to sea duty to enhance operational readiness," he explained. "For the Marines, the reduction of nearly 20,000 in end strength coincides with the planned withdrawal from Afghanistan."

Garcia said the Navy's highest priority remains the care and recovery of wounded, ill and injured service members, adding, "the Navy is leading the way in innovative, therapeutic treatments of our wounded warriors."

Daniel B. Ginsberg, assistant secretary of the Air Force for manpower and reserve affairs testified about "very hard choices" the Air Force made for this year's budget submission.

"We had to reconcile top-line reductions with our requirement to fulfill our global commitments, and maintain acceptable levels of readiness while still sustaining key quality-of-life and core services for our people," Ginsberg said.

"Despite a difficult budget situation, the Air Force is committed to providing cost-effective medical care, services and programs to maintain a healthy and resilient force," he said. "We must support our people to meet the demands of a high-operation tempo and persistent conflict."

Ginsberg also told the committee how the services worked together to form a cohesive budget plan through the Defense Management Action Group.

"There's lots of communications back and forth where we highlight some of the big issues that are going to be coming forward in the year ahead," he added.

DENSCO CORPORATION EXECUTIVE PLEADS GUILTY TO PRICE FIXING BID-RIGGING CONSPIRACY OF U.S. AUTO PARTS

FROM:  DEPARTMENT OF JUSTICE
Thursday, April 26, 2012
DENSO Corporation Executive Agrees to Plead Guilty to Automobile Parts Price-Fixing and Bid-Rigging Conspiracy Executive Agrees to Serve 14 Months in U.S. Prison
WASHINGTON – An executive of Japanese-based DENSO Corporation has agreed to plead guilty and to serve 14 months in a U.S. prison for his role in a conspiracy to fix prices and rig bids for heater control panels (HCPs) installed in U.S. cars, the Department of Justice announced today.

According to the one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Makoto Hattori, along with co-conspirators, engaged in a conspiracy to rig bids for and to fix, stabilize and maintain the prices of HCPs sold to a customer in the United States and elsewhere. HCPs are located in the center console of an automobile and control the temperature of the interior environment of a vehicle.

According to the charge, Hattori participated in the conspiracy from at least as early as July 2005, until at least July 2008. During the conspiracy, Hattori was an assistant manager in the Toyota Sales Division at DENSO from July 2005 until December 2006, and a manager in the Toyota Sales Division from December 2006 until at least July 2008.  According to the plea agreement, which is subject to court approval, Hattori has agreed to serve 14 months in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation.

“The Antitrust Division remains committed to holding executives accountable for engaging in illegal conduct that directly impacts the pocketbooks of American consumers and businesses,” said Acting Assistant Attorney General Sharis A. Pozen in charge of the Department of Justice’s Antitrust Division. “Criminal antitrust enforcement remains a top priority and the division will continue to work with the FBI and our law enforcement counterparts to root out this kind of cartel conduct that results in higher, non-competitive prices.”

According to court documents, Hattori and co-conspirators carried out the conspiracy by agreeing, during meetings and conversations, to allocate the supply of HCPs on a model-by-model basis and to coordinate price adjustments requested by an automobile manufacturer in the United States and elsewhere. The department said that Hattori and the co-conspirators sold HCPs at non-competitive prices and engaged in meetings and conversations for the purpose of monitoring and enforcing adherence to the agreed-upon bid-rigging and price-fixing scheme.

Including Hattori, nine individuals and five companies have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Furukawa Electric Co. Ltd, DENSO Corporation and Yazaki Corporation have pleaded guilty and been sentenced to pay a total of more than $748 million in criminal fines.  G.S. Electech Inc. and Fujikura Ltd have agreed to plead guilty and await sentencing.  Additionally, seven of the individuals - Junichi Funo, Hirotsugu Nagata, Tetsuya Ukai, Tsuneaki Hanamura, Ryoji Kawai, Shigeru Ogawa and Hisamitsu Takada – have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each.  The remaining two individuals, Hattori and Norihiro Imai, have agreed to plead guilty and await sentencing.

Hattori is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.