Thursday, May 17, 2012

MARINE CORPS LT. DEDICATES FLAG TO HIS YET UNBORN SON


FROM:  AMERICAN FORCES PRESS SERVICE
Face of Defense: Marine Dedicates U.S. Flag to Son
Marine Corps 1st Lt. Phillip M. Downey salutes as the American flag is lowered during sunset at Camp Leatherneck, Afghanistan, April 28, 2012. Downey is sending the flag home for his soon-to-be-born son. U.S. Marine Corps photo.  

By Marine Corps Sgt. Michael Cifuentes
1st Marine Division Public Affairs
CAMP LEATHERNECK, Afghanistan , May 16, 2012 - Marine Corps 1st Lt. Phillip M. Downey has a unique gift for his soon-to-be-born son at home. He is sending his upcoming baby boy the American flag, which flew 50 feet above the Task Force Leatherneck compound here on April 28.

Downey is serving a year-long deployment in Helmand province with the 1st Marine Division. He said he doesn't think he'll be able to make it home in time to see the birth of his son, so he dedicated a flag to him instead.

"One day, I want him to understand that there was a reason why I wasn't there," said Downey, a 25-year-old St. Louis native.

Downey works in the combat operations center at the Task Force Leatherneck compound, the ground combat element command and control cell for Marine Corps operations here.
He deployed to Afghanistan in February, a few weeks after his girlfriend, Megan Black, announced she was pregnant. Although he was excited by the news, Downey said, the days leading up to the deployment "were interesting to say the least." Black moved in with her parents, who live near Downey's home station at Marine Corps Base Camp Pendleton, Calif.

Downey's job involves tracking and coordinating mission orders from the command element of the Marine air-ground task force in Afghanistan. One of the biggest problems he faces in keeping in touch with Black is the time difference with California. On a typical day, when Downey's shift ends at 9 p.m., it's 9:30 a.m. at home. "She only answers my emails late at night or early in the morning," he said.
Downey's son is due in September, the seven-month mark of his scheduled one-year Afghanistan deployment.

Downey said the flag he's sending to his son will become a family heirloom.
"A lot of Marines dedicate their flags to their parents or family members who were former Marines," said Staff Sgt. Anthony B. Triplett, the administration chief for the commanding staff of Task Force Leatherneck and manager of the flag program. "To receive a flag that has flown over a Marine base in Afghanistan for a day means a lot to those people."
Downey's lineage includes two grandfathers who were soldiers during World War II, and two uncles who were soldiers in Vietnam. He said he hopes his wartime souvenir to his son will be passed on for generations.

Downey plans to frame the folded flag in a shadow box and hang it in his son's room after he is born.

He said an American flag that was flown from sunup to sundown in Afghanistan should be a priceless gift at Black's upcoming baby shower.

U.S. AND CHINA COOPERATE ON AFGHANISTAN

Photo Credit:  Wikimedia
FROM:  U.S. DEPARTMENT OF STATE

United States-China Cooperation in Afghanistan

Media Note
Office of the Spokesperson
Washington, DC
May 17, 2012

During the May 3-4 Strategic and Economic Dialogue in Beijing, U.S. and Chinese officials discussed ways to advance shared goals of a stable, secure, and prosperous Afghanistan.

In pursuit of this goal, Ambassador Gary Locke, Chinese MFA Asia Department Director General Luo Zhaohui, and Afghan Ambassador to China Sultan Baheen gathered today at the China Foreign Affairs University to celebrate the beginning of a joint U.S.-China training program for Afghan diplomats. Representatives from the U.S. and Chinese Embassies in Kabul jointly selected this group of promising Afghan junior diplomats, who will first participate in a two week training program sponsored by the Chinese Ministry of Foreign Affairs, and will then attend a Department of State-sponsored training program in the United States.

U.S. PACIFIC COMMANDER WANTS BETTER MILITARY RELATIONS WITH CHINA


Photo:  Chinese Nuclear Bomb.  Credit:  Wikimedia
FROM:  AMERICAN FORCES PRESS SERVICE 
Commander Seeks Better Military-to-Military Relations With China
By Jim Garamone
WASHINGTON, May 17, 2012 - Chinese and American officials recognize the importance of good, uninterrupted military-to-military relations, and the commander of U.S. Pacific Command will do what he can to further that goal.
Navy Adm. Samuel J. Locklear III spoke about his new command and the importance he places in building the U.S. military relationship with China during a recent interview.
"The last thing you want to have is miscalculation between large militaries," the admiral said. "You want diplomacy to work. Militaries should only come into play when diplomacy fails, and then they should work hard to get you back into a diplomatic dialogue where real peace lies."

The U.S.-China military relationship has been rocky. China broke off military-to-military relations with the United States in January 2010, when the United States announced it would sell arms to Taiwan. For months, military relations were frozen, then they slowly warmed. In 2011, the military-to-military relationship resumed. Then-Defense Secretary Robert M. Gates stressed that it was particularly in times of stress between the nations that such ties were important.

Gates visited China in January 2011, and his Chinese counterpart, Gen. Liang Guanglie, just finished a visit to the United States. The visit went forward even as arms sales to Taiwan again hit the news.

Chinese government officials face many decisions as the country moves forward. The nation has had stupendous growth over the past 30 years, and year-to-year growth in gross domestic product remains high. The Chinese army is benefiting from the booming economy, and Chinese officials are modernizing the military.

"They are an emerging power, and we are a mature power," Locklear said. "How they emerge, and how we encourage them will be an important key to both China and the United States."

The Chinese have many choices to make, and better military-to-military communications will allow both nations to understand why officials are making these choices. All this is "for the good of the global security environment," Locklear said.
The on-again, off-again nature of communications between the militaries doesn't help. "I think we may be reaching a turning point in that," he said. "Both nations realize that it's not in the best interests of anyone in the world for the U.S. and China to not have a favorable relationship with each other, and that good military-to-military relations [are] critical to that."

Military-to-military contacts are one way to build trust between the nations, the admiral said. "You learn to operate together, you learn to cooperate, you learn about each other's families -- you get a personal view of each other." So when things happen, he added, commanders can reach out to one another.

Sometimes it's impossible for capitals to talk to each other, the admiral said, and military commanders, with these types of contacts, sometimes can calm things down a bit.
Locklear had just returned from a visit to Beijing, and said he came away encouraged by the progress. "I'm hopeful that we can continue to have a dialogue and just talk together," he said. "It doesn't mean we have to agree on everything."
The United States and its closest allies don't agree on everything, he noted. "But I do believe we should not allow those disagreements prevent us from understanding each other in the places that we can, and allow us to control our appetite for disagreement," he said.

The South China Sea is an area of contention, with China, Vietnam, the Philippines, Indonesia, Taiwan, Brunei, Malaysia and Cambodia asserting jurisdiction in various parts of the waterway, which covers an area from Singapore to Taiwan.
"The United States doesn't take sides on competing territorial claims," Locklear said. "But we have an opinion on how we want those disputes to be resolved. First, we want them resolved by peaceful means and in accordance with customary law and by the things like the U.N. Convention on the Law of the Sea. There are ways to deal with this."
Additionally, the United States calls upon all claimants to clarify their claims.
The South China Sea is crucial to trade in the region and with the United States. Half of the trade for the United States flows through the region. Almost all of the oil for China and Japan flow through the waterway.

There are competing claims to islands and seamounts in the sea, and how this plays out is of concern to the United States. "The way to deal with this is to settle in a forum where there can be as much win-win as possible," the admiral said. "But we want it done in a peaceful environment and we don't want a heavy hand from any side to enforce the process."

While not taking sides, the United States has a national interest in the freedom of the seas -- including the South China Sea -- and has consistently opposed excessive maritime claims. U.S. forces will continue to preserve the rights, freedoms and uses of the sea guaranteed to all nations by conducting freedom of navigation missions in the area.
While China is important to the U.S. strategy in the region, Locklear said, Korea is one area that keeps him awake at night. North Korea has a new leader, and more than half the population survives on fewer than 800 calories a day. The regime spent an inordinate amount of money to try to launch an ICBM, and there are rumblings that North Korea may continue to develop nuclear weapons. With the money that North Korea spent on its failed missile, "you could have fed 20 million people for one year," the admiral said.
Transnational threats also are a growing concern. Locklear said the cyber threat is the greatest transnational threat in the region, followed by terrorism. U.S. Pacific Command has an office dedicated to protecting its own networks and working with allies to combat cyber attacks. Locklear said he wants regional and international organizations to work together to define the rules of the Internet road.

"In the area of violent terror organizations, we are seeing ... a transition," the admiral said. "In the terror world, as you squeeze on one side of the balloon, it pops out somewhere else. Terrorists look for areas to exploit."

Terror groups are drawn to areas where people are disenfranchised and poor. "We're seeing more of that in some areas of Asia and we are going to have to adapt our forces to deal with that," Locklear said. "But in the long run, I think the solution is prosperity, and a general sense of security that makes it so these terror networks can't survive."
But the bottom line, the admiral said, is that the American people have to understand that the United States is a Pacific nation, with national interests that must be secured.
"For six decades, the U.S. military presence in the Asia-Pacific has provided the security infrastructure that basically underpins the prosperity in the region," he added. "This will continue."

HHS STATEMENT ON HEPATITIS TESTING DAY

Photo:  Hepatitis B.  Credit:  Wikimedia
FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Statement from HHS Assistant Secretary for Health Dr. Howard Koh
Millions of Americans have chronic viral hepatitis, but up to 75 percent of those infected do not know it.  The U.S. Department of Health and Human Services’ action plan for Combating the Silent Epidemic of Viral Hepatitis designated May 19 as the first-ever National Hepatitis Testing Day.  This day is part of a larger government-wide initiative to educate people about viral hepatitis and to encourage everyone to talk to their health care provider about whether they are at risk.

The prevalence of viral hepatitis in the United States is staggering. Thousands of Americans die every year from hepatitis-related liver disease and liver cancer. There are now lifesaving treatments available that can limit disease progression and prevent cancer deaths.

In order to increase the number of people who get tested for viral hepatitis, the Centers for Disease Control and Prevention has launched a new online Hepatitis Risk Assessment tool, which the Surgeon General and I are promoting through a series of public service announcements.  This online tool will assess an individual’s risk for viral hepatitis and generate a summary of recommendations for testing and vaccination that people can print and take to their doctor to discuss.

Our goal is that this risk assessment tool will raise awareness about this silent epidemic among members of the public, as well as the health care community. We are hoping all of our partners will help us share information about this exciting new tool and encourage people to use it.



SIX STATES WILL RECEIVE $181 MILLION TO IMPLEMENT NEW HEALTH CARE LAW


Photo:  President Obama Signs Heath Care Bill.  Credit:   White House 

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

More states work to implement health care law

Illinois, Nevada, Oregon, South Dakota, Tennessee and Washington receive grants to establish Affordable Insurance Exchanges

Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that Illinois, Nevada, Oregon, South Dakota, Tennessee and Washington will receive more than $181 million in grants to help implement the new health care law. The grants will help states establish Affordable Insurance Exchanges.  Starting in 2014, Affordable Insurance Exchanges will help consumers and small businesses in every state to choose a private health insurance plan. These comprehensive health plans will ensure consumers have the same kinds of insurance choices as members of Congress. Including today’s awards, 34 states and the District of Columbia have received Establishment grants to fund their progress toward building Exchanges.
HHS also issued two guidance documents today to help states build Affordable Insurance Exchanges.
“States across the country are implementing the new health care law,” said Secretary Sebelius. “In 2014, consumers in every state will have access to a new marketplace where they will be able to easily purchase affordable insurance.”
Today, the Department released:
  • New resources for states: The six new Exchange Establishment grant awards to Illinois, Nevada, Oregon, South Dakota, Tennessee and Washington total more than $181 million. This round of awards brings the total of Exchange-related grants provided to states over the last two years to more than $1 billion.  Illinois, Nevada, Oregon, South Dakota and Tennessee today have been awarded Level One Exchange Establishment grants, which provide one year of funding to states that have begun the process of building their Exchange. Washington is the second state to be awarded a Level Two Establishment grant, which is provided to states that are further along in building their Exchange and offers funding over multiple years.
    In 2010, 49 states and the District of Columbia received Exchange Planning grants totaling more than $54 million; in 2011, seven states received more than $249 million in Early Innovator grants; and to date, 34 states and the District of Columbia have received more than $856 million in Establishment grants.
    States can apply for Exchange grants through the end of 2014, and these funds are available for states to use beyond 2014 as they continue to establish Exchange functionality. This ensures that states have the support and time necessary to build the best Exchange for their residents.
    To see a detailed state-by-state breakdown of grant awards and what each state plans to do with its Exchange funding, visit our new map tool on HealthCare.gov -http://www.healthcare.gov/news/factsheets/2011/05/exchanges05232011a.html
  • New guidance for states: Today’s guidance includes an Exchange Blueprint states may use to demonstrate how their Affordable Insurance Exchange will work to offer a wide range of competitively priced private health insurance options. The Blueprint also sets forth the application process for states seeking to enter into a Partnership Exchange. If a state chooses to operate its own Exchange or a Partnership Exchange, HHS will review and potentially approve or conditionally approve the Exchange no later than Jan. 1, 2013, so it can begin offering coverage on Jan. 1, 2014.  To see the state Exchange Blueprint, visit http://cciio.cms.gov/resources/other/index.html#hie
  • Exchanges in every state: Consumers in every state will have access to coverage through an Affordable Insurance Exchange on Jan. 1, 2014. If a state decides not to operate an Exchange for its residents, HHS will operate a Federally-facilitated Exchange (FFE). This guidance describes how HHS will consult with a variety of stakeholders to implement an FFE, where necessary, how states can partner with HHS to implement selected functions in an FFE, and key policies organized by  Exchange function.

EXPORT-IMPORT BANK WILL HELP EXPEDITE SALES OF U.S. BUSINESS AIRCRAFT


Photo:  Wikimedia
FROM:  U.S. EXPORT-IMPORT BANK
Ex-Im Bank to Leverage Industry Expertise to Expedite Export Financing
for Business Aircraft and Helicopters
GENEVA, SWITZERLAND: U.S. manufacturers of business aircraft and helicopters will benefit from a new process to assess credit risks and expedite foreign-buyer financing from the Export-Import Bank of the United States (Ex-Im Bank). Ex-Im Bank will work with qualified industry experts to perform due diligence and credit analysis to facilitate the Bank’s support for U.S. business-aircraft exports.

 The announcement was made today by Ex-Im Bank Chairman and President Fred P. Hochberg at the 12th annual European Business Aviation Convention and Exhibition (EBACE), being held in Geneva, Switzerland, May 14-16.

 “Business aircraft and helicopters are a vital part of the U.S. aerospace industry that is one of the most competitive sectors of the economy and employs thousands of Americans. Ex-Im Bank understands that business-aircraft transactions require specialized knowledge and experience but has limited resources to meet the growing demand for export financing in this industry. By leveraging private-sector expertise to assist and support our evaluation of these credits, we will be able to expand Ex-Im Bank’s support for U.S. business-aircraft exports and the manufacturing jobs that they sustain,” Chairman Hochberg said.
 Ex-Im Bank is implementing the new process to address the increased demand for export credits for business aircraft and helicopters arising from the growing percentage of U.S.-manufactured aircraft that are sold to foreign buyers. The process is intended to result in a more complete and comprehensive transaction package being submitted to Ex-Im Bank. The more complete package will expedite the application, approval and closing process for foreign borrowers of Ex-Im-supported financing in business-aircraft transactions. Using qualified advisors is also expected to provide enhanced credit structures, resulting in additional credit protections for Ex-Im Bank.

The process is designed to benefit manufacturers that do not have a captive financing company but which can now designate one or more advisors to work with their foreign buyers.

The process will be available immediately through any advisor that has demonstrated the requisite knowledge, experience and expertise with business-aircraft financing.
Ex-Im Bank developed the process following upon the successful model of its $500 million loan facility approved in 2009 that provided funds to assist Textron Inc. in financing exports of two of its companies, Cessna Aircraft Company and Bell Helicopter Textron. The facility enabled Textron’s Finance segment to provide competitive terms and interest rates to finance the export of more than 100 Cessna aircraft exports and six Bell helicopters.

Last week, Ex-Im Bank’s board of directors approved a second facility for Textron’s Finance segment, providing a guarantee of a $350 million loan from PNC Bank to a Textron subsidiary to finance the export of additional Cessna aircraft and Bell helicopters.

In FY 2011, Ex-Im Bank authorized more than $12.6 billion in financing to support the export of U.S.-manufactured aircraft of all types, including approximately $90 million for 10 business aircraft and helicopters exports to four countries – Brazil, Mexico, Panama and Switzerland.

USS GEORGE WASHINGTON RETURNS TO HOME PORT


FROM:  U.S. NAVY
Right:  YOKOSUKA, Japan (May 12, 2012) Sailors aboard the Nimitz-class aircraft carrier USS George Washington (CVN 73) lift one of the ship's anchor chains during an anchor drop test. George Washington completed a six-month routine maintenance period and is now underway conduction sea trials. (U.S. Navy photo by Mass Communication Specialist 3rd Class Kaitlyn R. Breitkreutz/Released) 

Left:  YOKOSUKA, Japan (May 12, 2012) Sailors aboard the Nimitz-class aircraft carrier USS George Washington (CVN 73) complete an anchor drop test during sea trials. George Washington completed a six-month routine maintenance period and is now underway conduction sea trials.  (U.S. Navy photo by Mass Communication Specialist 3rd Class Kaitlyn R. Breitkreutz/Released)


George Washington Wraps Up Sea Trials
By Mass Communication Specialist 3rd Class Kaitlyn R. Breitkreutz, USS George Washington Public Affairs
YOKOSUKA, Japan (NNS) -- The Nimitz-class aircraft carrier USS George Washington (CVN 73) returned to its homeport of Commander Fleet Activities Yokosuka May 16, after completing sea trials.

Sea trials is the testing phase of a U.S. Navy warship designed to measure a vessel's performance and general seaworthiness.

During this five-day evolution, George Washington completed drop tests on both anchors; conducted several aqueous film forming foam (AFFF) countermeasures drills and high-speed runs and rudder swing checks; as well as on-loaded both JP-5 jet fuel and various ordnance.

"Sea trials are where we put the past six months of maintenance to the test," said Capt. David Lausman, USS George Washington commanding officer. "The crew worked extremely hard to make this warship the best in the Navy, and I could not be happier to see the way the crew and this ship have responded."

George Washington's Deck department spent the first day of sea trials conducting anchor drop tests that tested the durability and integrity of the ship's two 30-ton anchors.

The anchor drop tests were conducted by 40 deck Sailors and involved lowering both anchors more than 60 feet to the sea below. These tests not only ensured the stability of the anchor and chain, but familiarized the crew with this dangerous evolution.

"This was the first time we released the anchor in quite some time," said Boatswain's Mate 2nd Class John McNeil, from Conway, S.C. "I feel that our Sailors gained a tremendous amount of experience and knowledge. And that will translate into them getting the job done faster and safer when they are called upon."

George Washington was coated with foam from a chemical fire-fighting agent known as AFFF. This was a part of a two-day long test of the ship's counter-measure washdown system conducted by the ship's engineering department.

Over three football fields of AFFF covered the ship, but all hands picked-up brooms to join the ship's air department and scrubbed the aircraft carrier from stem to stern.

George Washington also conducted rudder swing checks and high-speed runs to test not only the ship's seaworthiness, but the crew's ability to perform in extreme high seas conditions. The ship maneuvered approximately 60,000 tons of steel and traveled more than 30 knots while conducting sharp turns. George Washington also conducted a 'raging bull' maneuver that began with the ship moving at top speed and then braking to a complete stop.

The crew worked diligently for a full two days of replenishments-at-sea (RAS) and vertical replenishments (VERTREP) with the USNS Tippacanoe (T-AO-199) and USNS Earhart (T-AKE-6). The ship received more than 1.9 million gallons of JP-5 jet fuel and approximately 3.7 million pounds of ammunition.

Each department contributed to the ship's overall mission readiness by conducting its own set of evolutions and tasks - including the ship's Air department, which is preparing for Carrier Air Wing (CVW) 5's arrival.

"We're using our time wisely," said Aviation Boatswain's Mate (Equipment) 3rd Class Yves Marlo Aguirre, from Manila, Philippines. "When we embark the air wing, we'll be ready to go. "

CVW-5 will combine with George Washington to support U.S. 7th Fleet operations during its upcoming patrol.
The ship is working diligently to complete sea trials and pre-deployment preparations before returning to Yokosuka, Japan.

George Washington was commissioned July 4, 1992, and is the fifth of the Nimitz-class aircraft carriers. Aircraft carriers exercise the Navy core capabilities of power projection, forward presence, humanitarian assistance, deterrence, sea control and maritime security.

LABOR DEPARTMENT ACCUSES MAN OF USING MILLIONS OF WORKERS RETIREMENT MONEY FOR PERSONAL EXPENCES


Photo Credit:  Wikimedia
FROM:  U.S. DEPARTMENT OF LABOR
US Department of Labor alleges Idaho plan administrator misused funds
Matthew D. Hutcheson allegedly took more than $3.2 million from retirement plans
WASHINGTON — The U.S. Department of Labor has filed a complaint in the U.S. District Court for the District of Idaho against Matthew D. Hutcheson alleging that he violated the Employee Retirement Income Security Act. The complaint alleges that, toward the end of 2010, Hutcheson used more than $3.2 million representing the retirement plan savings of workers from multiple employers for his own personal expenses and in an attempt to purchase an interest in the Tamarack Resort — a failed ski and golf resort in Idaho. This prohibited transaction has left affected retirement plans without sufficient funds to pay participants all the benefits owed to them. Hutcheson also faces a separate criminal indictment, which was filed in the same court on April 10, in connection with the same transaction.

"This is a case of a fiduciary violating the trust of retirement plan participants who relied on him to invest and grow their hard-earned savings," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "The Labor Department is taking all actions necessary to recover money for workers who are counting on these savings for a secure retirement."

The department also has filed an application for a temporary restraining order and for an order to show cause why a preliminary injunction should not be granted. The department seeks to remove Hutcheson and other named defendants as fiduciaries of the affected plans, and to appoint an independent fiduciary to administer the plans. In addition to Hutcheson, defendants include Hutcheson Walker Advisors LLC; Green Valley Holdings LLC; and the Retirement Security Plan and Trust, formerly known as the Pension Liquidity Plan and Trust.

The case was investigated by staff from the Labor Department's Employee Benefits Security Administration's Dallas Regional Office. The case is being litigated by the Labor Department's Office of the Solicitor in Washington, D.C. Employers and workers can contact

ARIZONA POLITICIAN CHARGED WITH BRIBER, FRAUD, ATTEMPTED EXTORTION AND FALSE STATEMENTS


Photo:  Lady Justice.  Credit:  Wikimedia
FROM:  U.S. DEPARTMENT OF JUSTICE
Wednesday, May 16, 2012
Arizona State Representative Charged with Bribery, Fraud, Attempted Extortion and Making False Statements
WASHINGTON – A member of the Arizona House of Representatives was charged today by a federal grand jury in the District of Arizona with bribery, fraud, attempted extortion and false statements in connection with receiving more than $6,000 in tickets to sporting and special events while serving as a Tempe, Ariz., City Council councilmember and member-elect of the Arizona House, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Special Agent in Charge James L. Turgal of the FBI’s Phoenix Field Office.

The indictment charges Paul Ben Arredondo, 63, of Tempe, with one count of federal programs bribery, two counts of honest services mail fraud, one count of attempted Hobbs Act extortion and one count of making false statements.  Arredondo will be arraigned on May 30, 2012, in U.S. District Court for the District of Arizona before U.S. Magistrate Judge Lawrence O. Anderson.

According to the indictment, Arredondo was a councilmember in Tempe for 16 years, until July 2010.  He was elected to the Arizona House of Representatives in November 2010.  The indictment alleges that from February 2009 to November 2010, Arredondo accepted, agreed to accept and solicited things of value from representatives of a company whose purported business objective was to acquire city-owned property in Tempe for real estate development purposes.  The representatives were, in fact, undercover agents with the FBI.  According to the indictment, Arredondo received from the undercover agents more than $6,000 worth of tickets to sporting and other special events.  Those tickets included 18 tickets for Arizona Diamondbacks baseball games valued at a total of approximately $2,400, and four tickets to an American League Championship Series baseball game valued at a total of approximately $1,225.

According to the indictment, in return for those tickets, Arredondo took and agreed to take action in his capacity as a Tempe city councilmember and as a member of the Arizona House of Representatives to facilitate the undercover agents’ purported purchase of city-owned property and development project.  The indictment alleges that Arredondo brokered meetings between the undercover agents and other public officials, divulged information regarding the city of Tempe’s bidding process, and attempted to persuade other city officials to approve the purported development project.
The indictment further alleges that Arredondo lied to the FBI about his conduct during an interview in January 2012.

The federal programs bribery charge carries a maximum penalty of 10 years in prison and a $250,000 fine.  Each count of honest services mail fraud and attempted extortion carries a maximum penalty of 20 years in prison and a $250,000 fine.  The false statement charge carries a maximum penalty of 5 years in prison and a $250,000 fine.  The indictment also contains a notice of forfeiture.

An indictment is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The case is being prosecuted by Trial Attorneys Edward T. Kang and Monique T. Abrishami of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Frederick A. Battista of the District of Arizona.  The case is being investigated by the FBI’s Phoenix Field Office.

ARMY CHIEF OF STAFF GEN. ODIERNO ADDRESSES EXPANDING COMBAT ROLE FOR WOMEN


FROM:  AMERICAN FORCES PRESS SERVICE
Army Chief of Staff Gen. Raymond T. Odierno addresses the press about future changes in the Army's structure and size, including the expansion of women's roles in combat forces, at the Pentagon, May 16, 2012. DOD photo by Glenn Fawcett  

Odierno: Army 'Moving Toward' Opening Combat Arms to Women
By Karen Parrish
WASHINGTON, May 16, 2012 - Army leaders are asking whether -- and how -- to open infantry and armor ranks to women, the service's senior soldier said today.
Officers in charge of training and force development are now gathering data to help answer those questions, Army Chief of Staff Gen. Raymond T. Odierno told reporters during a Pentagon briefing.

In line with Defense Secretary Leon E. Panetta's policy, the service has already opened 13,000 previously all-male positions to female soldiers, the general noted.
"Earlier this week more than 200 women began reporting to the maneuver battalions in nine of our brigade combat teams, selected to participate in the exception to the direct ground combat assignment rule," he said. "Additionally, co-location [with combat units] as an assignment restriction is rescinded."

A Defense Department report to Congress in February outlining the assignment policy changes included a vision statement that said the department "is committed to removing all barriers that would prevent service members from rising to the highest level of responsibility that their talents and capabilities warrant."

Odierno noted the changes open new opportunities to women, who comprise 16 percent of the Army's ranks. "This revision ... allows us to leverage the tremendous talent resident in our ranks," he added.

Women will likely filter in to the new positions for "several months," the Army chief said. Two categories of assignments are now open to women: jobs such as tank mechanic and field artillery radar operator that are necessarily performed close to combat units, and a limited "exception to policy" opening select positions at the battalion level in jobs women already occupy.

"My guess is, based on my experience in Iraq and what I've seen in Afghanistan, we'll then move forward with a more permanent solution [involving those two assignment categories] inside of the Army probably sometime this fall," he said.
Odierno said the next step is "to look at, do we open up infantry and armor [military occupational specialties] to females?"

He emphasized no decisions have yet been made on the question, but noted the answer will have implications for all-male Army formations, including the Rangers.
Army Rangers are rapidly deployable, light infantry troops trained to engage conventional and special operations targets. While there are only three Ranger battalions, with a special troops battalion and a separate Ranger training brigade, Odierno pointed out the "Ranger tab" denoting completion of Ranger training is a key to advancement among infantry officers.

Ranger school consists of three phases -- mountain, desert and swamp – over 61 days, and combines rigorous infantry training with famously sparse amounts of food and sleep.
While Odierno cautioned, "I don't want to get ahead of myself," he noted that some 90 percent of Army senior infantry officers -- all male -- are Ranger-qualified.
"So, if we determine that we're going to allow women to go into infantry, to be successful they are probably, at some time, going to have to go through Ranger school," he said. "We have not made that decision, but it's a factor that I've asked them to take a look at."
If combat arms jobs open to female soldiers, "We want the women to be successful," the general said.

The Army, like DOD, is committed to providing maximum opportunity for its members, Odierno said.

"We're going to move toward it," he said. "It's how we do that, what we have to do, [that we're assessing] as we move forward."

SEC. OF STATE CLINTON'S REMARKS AT STRATEGIC DIALOGUE WITH CIVIL SOCIETY 2012 SUMMIT


FROM:  U.S. STATE DEPARTMENT
Strategic Dialogue with Civil Society 2012 Summit
Remarks Hillary Rodham Clinton
   Secretary of State Tomicah S. Tillemann
   Senior Advisor for Civil Society and Emerging Democracies Tara Sonenshine
   Under Secretary for Public Diplomacy and Public Affairs Ben Franklin Room
Washington, DC
May 16, 2012
MR. TILLEMANN: Good morning. I’m Tomicah Tillemann, and I serve as the State Department’s Senior Advisor for Civil Society in Emerging Democracies. Today, it is my privilege to welcome you to the 2012 Summit of our Strategic Dialogue with Civil Society. This event brings together civil society representatives from more than 40 countries who have gathered here in Washington and thousands more who are participating via the internet and at embassy viewing parties around the world.

This summit is taking place at a moment of profound change. The world is witnessing a fundamental renegotiation of the relationships that have historically defined interactions between citizens and governments. Civil society has been at the forefront of that change, and this dialogue represents our recognition of the rapidly expanding role that you and your organizations play in shaping our world. This dialogue now involves more than 50 bureaus and offices at the State Department and USAID. We’ll hear more about that in a moment, but it is providing a platform for translating your ideas into foreign policy. And our work on this initiative is a concrete manifestation of our commitment to elevating civil society as a full partner in our diplomacy alongside other governments.

Now, we know that the work of civil society is never easy. And in too many places it is truly dangerous. But amid this multitude of challenges and opportunities, we are fortunate to have women and men leading the State Department who understand the value and the potential of civil society as a force for progress in our country and around the world. And we are particularly fortunate that two of those women are with us today for this global town hall.

We are glad to welcome our Secretary of State, Hillary Rodham Clinton, who has been working with and for civil society since her first job out of law school, and our Under Secretary for Public Diplomacy and Public Affairs, Tara Sonenshine, who recently joined our State Department family after serving with great success in many civil society organizations and who will moderate this town hall.

Our sole speaker this morning will be Secretary Clinton, and her vision is the catalyst that brings us together today. Six months before a Tunisian vegetable seller remade the political landscape of an entire region, she spelled out the centrality of civil society in our foreign policy at a keynote address to the community of democracies. During the cold autumn that preceded the Arab Spring, she created an office on her staff that was dedicated to engaging civil society. And long before TIME magazine named the protester as the person of the year, she understood what you could accomplish.

She has been supporting civil society since before it was hip. She has been fearless, focused, and farsighted in her efforts. And frankly, as the most admired woman in the world, she needs no introduction. (Laughter.) Our Secretary of State, Hillary Rodham Clinton. (Applause.)

SECRETARY CLINTON: Thank you very, very much, and thank you, Tomicah. Tomicah has done an absolutely superb job in taking this idea of a strategic dialogue with civil society and putting real flesh on the bones. And this second summit is certainly evidence of that.

So it is a pleasure to welcome you here to the State Department. A lot has happened since we launched this initiative with the summit last year. When we met for the first time in last February, the revolutions that Tomicah referenced had begun to unfold across the Middle East and North Africa. Citizens were demanding their rights and their voices which, for too long, had been denied. And amid the tumult, civil society groups everywhere sprang up to push for democracy and change. Now some emerged from those quiet places where they had been operating for years. Others formed overnight as a great result of social media connections.

But in any event, it was brave men and women, including many of you in this room, who came together to plan for a new future, and you spoke eloquently about the need for civil society. Well, your work and the work of millions of others around the world has never been more important. We are seeing people stepping up to fill the space between government and the economy.

In 1998, I gave a speech at Davos about a firm foundation for any society being like a three-legged stool where you had to have a responsive, effective, accountable government, and you had to have a dynamic, job-creating, free market economic sector. And then you had to have a strong civil society. If one of the legs got too long or too short, the balance would be thrown off. And to make the case for civil society, it’s really quite simple, because government cannot and should not control any individual’s life, tell you what to do, what not to do. The economy has to be in the hands of those who are the entrepreneurs and the creative innovators. But it’s in civil society where we live our lives. That’s where our families are formed; that’s where our faith is practiced; that’s where we become who we are, through voluntary activities, through standing up for our common humanity.

And so as we see the explosion of civil society groups around the world, we want to support you. I think that in the United States, civil society does the work that touches on every part of our life. It really reflects what Alexis de Tocqueville called the habits of the heart that America has been forming and practicing from our very founding, because we early on understood that there had to be a role for government and a role for the economy, but everything else was a role for us – individuals charting our own course, making our own contributions.

And we turn to you to help us support civil society around the world. Now this initiative is a striking example of how government and civil society, often supported by the private sector, can work together. And under Tomicah’s leadership, we’ve spent the past year consulting with civil society groups through the Strategic Dialogue and our working groups, asking you for ideas about what we in government can do more effectively, looking for more opportunities to collaborate.

Now I don’t want to give the impression – because it would be a false one – that cooperation between civil society and government is always easy, even if this dialogue sometimes makes it look that way. Most of you will not be shocked to hear that civil society and government, even in my own country, do not always agree. We have found ways to disagree without being disagreeable. But I started my career working in civil society. I did a lot to take on my own government starting in the 1970s. The first issue I worked on was to try to help change the laws about how we treated people with disabilities. And I worked for a group that went door to door in certain parts of America asking families, “Do you have a child who’s not in school, and if so, why?” And we found blind children and deaf children and children in wheelchairs and children who had been kicked out of school with no alternative. And I was a very small part of a really large effort to require that American public schools find a place for every one of our children.

And so I know that you have to sometimes stand up to your own governments. You have to sometimes help your government do things that, in the absence of the pressure you are bringing, they either could not or would not do themselves. So we understand that the space that civil society operates in, in many places around the world, is dangerous; that many of you in this room and those who are following this on the internet really do put yourselves on the line. And we want to be your partners.

Now we know too that in the face of an upsurging civil society, some governments have responded by cracking down harder than ever. Recent headlines from too many countries paint a picture of civil society under threat. But each time a reporter is silenced, or an activist is threatened, it doesn’t strengthen a government, it weakens a nation. A stool cannot balance on one leg or even two. The system will not be sustainable.

So the United States is pushing back against this trend. We’ve provided political and financial support for embattled civil society groups around the world. Just two weeks ago, our Democracy and Human Rights Working Group met with bloggers and reporters from across the region in Tunis to hear about challenges to freedom of expression. And we are trying to lead by example. We hope that by holding meetings like this one, we can demonstrate that civil society should be viewed not a threat, but an asset.
I’m very proud to announce today that the State Department is acting on every one of the eight policy recommendations that have been generated by civil society through this dialogue so far. Now, I won’t go through all of them for you – I hope that you’ll have a briefing on all of those; we’re putting the details online for everyone to see – but let me just make a few highlight comments.

First, we are expanding the reach and deepening our commitment to this dialogue by setting up embassy working groups. Our posts will help us tap the ideas and opinions of local civil society groups, and then we will channel their input back to Washington to inform our policies. We’ve already received commitments from 10 posts stretching from Brazil to Bangladesh, from the Czech Republic to Cameroon. I know many of these posts are watching live via the internet right now, and I want to extend a special word of thanks to them.

Second, our Working Group on Religion and Foreign Policy has focused on how we can strengthen our engagement with the large section of civil society comprised of faith-based organizations. Our posts in every region of the globe work with faith-based organizations and religious communities to bolster democracies, protect human rights, and respond to the humanitarian need of citizens. So these groups are our natural allies on a multitude of issues, including advancing religious freedom, and we want to work with them wherever possible. These recommendations will support our officers in the field who are engaging with religious communities to make sure they have the appropriate training to carry out their efforts.

Third, our Labor Working Group has examined opportunities to facilitate discussions among governments, businesses, and labor groups to make sure all points of view are represented at the international level and in multilateral institutions. Labor groups are another well-organized and important category of civil society, and we want to help them connect with one another and pursue shared approaches as we defend and advance workers’ rights.

And finally, bringing us back to the great changes throughout the Middle East and North Africa, our Women’s Empowerment Working Group is building awareness for women’s rights in countries undergoing political transition. And we will work closely with civil society groups and governments in the region to help make women’s rights part of new constitutions, protected and practiced, and understood as critical to the development of democratic, successful societies.

Now, our new policy recommendations do not end here. Later this afternoon, the dialogue will hear new ideas developed by our Working Groups on Governance and Accountability to improve transparency and combat corruption. And we will continue engaging with you to identify new ideas and opportunities. This summer, we will also be adding a new Global Philanthropy Working Group to our dialogue, chaired by Under Secretary for Public Diplomacy and Public Affairs Tara Sonenshine. This group will expand our cooperation with leading foundations and develop partnerships to support civil society.
Now, conversations and actions like these have ripple effects, and we have had some positive responses from governments over the last year who are reaching out and developing their own mechanisms for engaging with their own civil society. Some of the representatives from those governments are here today, and we greatly appreciate your presence, and we also stand ready to offer any assistance we can.

So thank you for being here. Thank you for what you do. Please know that are enthusiastic about the future of civil society and we want to use this dialogue, as we have for the past year, to be a vehicle for the exchange of ideas, for the promotion of new approaches, and for an accounting, because we want to do what works and quit doing what doesn’t work. So we want to be very clear that we’re going to be holding ourselves accountable and going to be looking to civil society to be held accountable as well.
So I’m looking forward to taking some questions about our dialogue and having this exchange with you and then hearing more about the work that each and every one of you are doing. Thank you very much. (Applause.)

UNDER SECRETARY SONENSHINE: Well, thank you, Madam Secretary, for the opportunity to moderate this very inspiring and loud program. I do want to welcome all of you, and particularly those who are here on ECA-funded civil society programs, the IVLP folks, the Humphrey fellows, if you’re out there somewhere. We particularly welcome you here today.

In just a few moments, we’ll be taking some questions from the audience, so as you do have a question, if you would signal us and we will get a microphone to you. But in the meantime, I’m going to begin, Madam Secretary, by picking up on this very inspired and moving thought: Each time a reporter is silenced or an activist is threatened, it doesn’t strengthen a government, it weakens a nation. So how do we explain this rise of challenges and crackdowns on civil society? And are these isolated events, or is there a trend here that we’re going to see in the years outward?

SECRETARY CLINTON: Well, I think – this is loud. (Laughter.) I hope it can be turned down. I think that the world is going through an extraordinary historic change. More people are living under governments of their own choosing and more people have the opportunity to do so than ever before in human history. But it’s also true that old habits die hard. There are all kinds of cultural, political, economic, even religious, ethnic, racial – all kinds of mindsets that are difficult to change in a short period of time.
I am very optimistic about the future, but I am also very realistic that the pathway to that future of greater democracy, freedom, human rights, human dignity is going to be a hard road for many millions and millions of people around the world. And therefore, we have to continue making the case for respect and tolerance and openness that is at the root of any true sustainable democracy while recognizing that many leaders, both old and new, are going to find such a transition very personally threatening, threatening to their group, threatening to their assumptions about power and order. And we have to continue to make the case.

So I am humbled by the courage of so many people around the world right now – dissidents, activists, political actors – who are contributing to this historic tide that is building. But I also realize that it’s not going to happen overnight, and therefore, we have to be smart about how we help you move forward on this agenda for civil society, democracy, and human rights.

So I really think, Tara, that we have to, also in the United States, remind ourselves of our own long journey. We’re living in a time of instant communication and 24-hour news, but we did not recognize every American’s human rights, we did not have fully representative one-person, one-vote democracy, when we started out. We had to fight a civil war. We had to amend our Constitution. So we have to be, I think, always advancing what we believe are universal human values, best realized within the context of representative democracy but with enough humility to understand that different peoples, different countries have different histories, different cultures, different mindsets.

So what we want to do is support real change, not just score political points or get on the evening news. At the end of the day, we want our help and support for civil society and political change to actually have advanced the cause of freedom and human dignity and human rights and democracy, and not to be used as an excuse or a rationale for clamping down even more. So navigating through all of that is especially difficult if you’re in such a country, but it’s also difficult for us who are trying to help those of you who are on the frontlines.

UNDER SECRETARY SONENSHINE: Let me go to the audience here first, and then we’ll go overseas. I notice the first hand is in the second row, three seats in. And if you would not mind identifying yourself and also asking folks to keep questions relatively short so that we can work our way around the room. Please.

QUESTION: Hello, I am Shatha Al-Harazi, a political human rights journalist from Yemen. I am so honored to be here today with you and so inspired by your speech. I have only one question. You just spoke about universal human values. When it comes to that, that just reminds me that – of a friend of mine who just told me to tell you face-to-face that Yemenis are not less important than American, and if you want to work hand to hand and counter terrorism, you have to work with the civil society. You have to strengthen the civil society. And we thank you here for the great work that NDI and the USAID are doing, but still the drone strikes are disrupting everything and it’s getting our civilian killed. So I’m just asking you here, is there any consideration or any plans on working with civil society on counterterrorism? Thank you.

SECRETARY CLINTON: Well, we certainly intend to and are working with civil society on counterterrorism, because one of the long-term solutions to terrorism is building up civil society, giving people the feeling of empowerment: their voices are heard; they don’t need to turn to violence because they can participate fully and equally in a political process.

We also are committed to working with civil society to counter violent extremism; to counter the messages of extremists who promote violence; who are not respectful of human rights or even human life, but instead are intent upon undermining the political order and, in effect, capturing it to promote a certain ideological or religious point of view.

So we do have to do more with civil society. There is absolutely total agreement on that. And in a conflict situation, as we see in many places around the country, we do try to do both. We try to support the government or the political system against the threat from violent extremism while trying to work to enhance civil society as a way of diminishing either the attractiveness or the reach of extremism.

So it’s not either/or in our view. It’s primarily on the political-civil society front, but I’m not going to sit here and mislead you. There are also people who are trying to kill Americans, kill Europeans, and kill Yemenis; who are not going to listen to reason; who don’t want to participate in a political process; who have no interest in sitting around a table and hearing your view because, with all due respect, you’re a woman. And so they cannot be given the opportunity to kill their way to power, so we will support governments who are trying to prevent that from happening while we also try to build up civil society, help move a country like Yemen on a path to true democracy with representative government.

UNDER SECRETARY SONENSHINE: We’re going to go from Yemen to Morocco. I believe we have a video –

PARTICIPANT: (Off-mike.) (Laughter.)

UNDER SECRETARY SONENSHINE: Okay, I think we’re first going to go to the real Morocco, which is a video question we have via YouTube. And if we could queue up the first overseas question for the Secretary and play our first video.

QUESTION: My name is Manelle Ilitir and I’m from Morocco. Unemployment is the most pressing issue in our MENA region. Expectations are high, and youth are demanding action now. The complexity of the (inaudible) of this urgency only creates more tension. So my question to you, Secretary Clinton, is: How can civil society drive a social dialogue among the concerned stakeholders where there is public, private, academia, NGO; a social dialogue that is result-oriented, that reinforces their collaboration, amplifies what already exists, and delivers the jobs needed in the immediate future? Thank you.

SECRETARY CLINTON: Well, thank you very much. And I think that young woman’s question is one of the most common I’m asked around the world, because 60 percent of the world’s population is under 30; the highest percentage of the unemployed are under 30. Young people are very worried about what kind of futures they will have across the world. But in particular, when those worries collide with the rising expectations produced by political reform and even revolution, it’s a volatile mix.

So I think there are several things. First of all, governments have to have good policies. That is obvious. And it is more difficult in the 21st century for a lot of reasons which you say are complicated. I agree. But civil society can be a great catalyst and partner with government and with the private sector on job creation. What do I mean by that? Civil society can help with the acquisition of job skills and training for certain kinds of jobs that are available in the marketplace. Now, we have this problem in our own country. We have lots of jobs available in lots of industries without enough people either willing or able to take those jobs. So doing job training, doing outreach, helping prepare young people for the jobs that are there.

Secondly, we have formed a partnership called the Partnership for a New Beginning that is in North Africa and the Middle East. And when I was just in Morocco, I met with the leaders of this effort who are leaders of corporations, small businesses, entrepreneurs, innovators and we are working with them to try to increase their economic reach so that they can offer more jobs. What can they do to improve their exports? What can they do with our help to break down barriers so that they can get into new markets? Now one of the things that would particularly help in the Maghreb, if you look at from Morocco through Egypt, those countries trade less with each other than any contiguous countries in the world. You have the border between Morocco and Algeria closed. You have continuing difficulties with other countries in terms of trade agreements, open borders – the kind of free flow of commerce that does create jobs. And so the more that can be done to integrate the economies of the Maghreb, the more I believe you will have greater opportunities for young people.

Then I think civil society can take a strong stand against corruption, because corruption is a job killer. Corruption is a cancer that eats away at economic opportunity. So civil society needs to be loudly and clearly speaking out against, acting against corruption, and using social media – posting anonymous pictures of people taking bribes, posting anonymous stories of officials who stand in the way of the creation of your small business. So take that stand against corruption. We will work with you. We will help you on that.
And then look at the ways that technology can create more jobs and do an examination of what are the barriers within your government to the creation of businesses and jobs. Because there is a ranking that is done by an independent organization that ranks every country in the world in the ease of doing business. How easy is it if I show up tomorrow in Morocco or Tunisia or Jordan or Yemen and I say, “I want to start a business, and I think if I’m successful I could employ 10, 20, 30 people. How long does it take?” Sometimes it takes more than a year. How discouraging is that to people who want to get started and want to get going with their own energy to create something? Sometimes you have to pay many bribes. Sometimes you have to get all kinds of licenses that have nothing to do with actually starting your business, but it’s just to keep somebody in the government employed. If the government employment takes up too much of the sector of employment in a society, it squeezes out the opportunity for business to flourish to create jobs in the market.

So these are some of the things that civil society can do in cooperation with both government and business, and we’re working on all of those through this Department to be of support to you.

UNDER SECRETARY SONENSHINE: I know there was a gentleman had his hand up first, right on the edge there. And we will, again, try to move as quickly as we can here and overseas.

QUESTION: Secretary Clinton, thank you very much. It’s an honor to be here. I just want to ask you a question. We have teams – my name is Marc Gopin. I’m from CRDC George Mason University, and I have teams that work in some countries that are adversaries of the United States like Syria and others that are allies. And I want to ask your advice about how we can do what we do better in terms of civil society, conflict management, and social transition that will help you balance the challenge of working with allies that you need to keep as allies, but at the same time are hurting our people. So how can we do what we do more effectively in a way that will help American policy provide positive pressure that’s constructive and that what we do is constructive and helpful to what you’re trying to do?

SECRETARY CLINTON: Well, I think you’re putting your finger on a difficult issue because, if I heard you right, you do conflict mediation, resolution, in countries with which we have both good and not so good relations. And even sometimes in the ones we have good relations, very often they don’t have the best track records in how they support civil society and treat their own people, which we are well aware of.
Look, I think there are a couple of things. Why do countries change? Why do leaders change? Why do they decide one day that they are going to go in a different direction? There’s a certain level of mystery to this, but a large part of the answer is because they become convinced they’re on the wrong track. We’re watching with great interest the opening in Burma over the last months. And there’s been a lot written about why did these former generals who had been part of a very oppressive regime for a very long time – the prisons were filled with political prisoners; Aung San Suu Kyi was a prisoner in her own home – why did they decide this is the wrong direction? I don’t know that there’s any specific answer, but I’ll tell you some of the answers that have been suggested, which I think are more general.

First, there were leaders in other countries who had gone through the process who reached out and began in a very respectful way to talk about what democracy could mean to the future of Burma. It’s been in the public record, but one was the president of Indonesia, a former general during a very difficult time of dictatorship, who took off his uniform, ran for office. Now Indonesia, the largest Muslim population in the world, is a thriving democracy where women and men are equal participants. And so President Yudhoyono began to reach out the generals in Burma through ASEAN, through other organizations, to say, “Let me tell you about my experience. Not like, ‘you must go do this’ but let me tell you what we did in Indonesia.” The generals began to travel, and they began to see that their country was not as developed. It didn’t have as much prosperity. It didn’t have jobs for young people like other countries nearby. Thailand had been under military rule; now it was booming. It was next door.
So these personal experiences and the outreach of other leaders or people who can relate to those in power in oppressive countries, coming from similar backgrounds, having similar experiences – never underestimate the power of personal relationships and personal experiences. We talk about geopolitical strategy, and sometimes it seems way up in the sky, but I’ve often found it’s the personal connection.

I remember going to Nelson Mandela’s inauguration, and there were many, many very important people there. And after he was inaugurated, we went back to the president’s home for an inaugural lunch, and he stood up and he said, “I want you to meet three – the three most important people to me who are here today.” They were three former jailers of his on Robben Island; three hard-bitten white men who had overseen his imprisonment, but who had treated him with dignity and respect. And I remember asking him in one of the conversations I was privileged to have with him, “How did you come out not embittered, wanting revenge, wanting to do to them what they had done to you?” And he said, “Well, I knew if I walked out embittered, I’d still be in prison.” He said, “But I also knew from those years in prison there were people who saw me as a human being, and I, therefore, had to see them as human beings.”

Now I tell you those stories because a lot of time conflict mediation or resolution is very formalistic. People are engaged in dialogue. But what happens that’s most important is, I think, outside the dialogue, where they talk about their families, their interests, when they decide that that person of another religion, of another race, of another tribe is also a human being. So I think you’ve got to try to engage leaders and countries that are oppressive in those kinds of personal ways. It doesn’t always work. There are some really hard cases in the world. We know that. But it might help in the person who comes after, or it might help in the guy standing on the sidelines who said, “We can do this better.” And – but just persist. You never know what’s going to make an impression.

UNDER SECRETARY SONENSHINE: Let’s go quickly to another part of the world, Brazil, and let’s hear from our Brazilian civil society leader and include them in the conversation here. So we’ll queue up Brazil, we’ll come back here, and keep moving along as quickly as we can.

QUESTION: My name is Marlon Reis. I am a state judge in Brazil. I take part on the Brazilian movement against electoral corruption. My movement was responsible for conquest of the (in Portuguese), the law of clean slate. I would like to ask: How could we improve our relationship, the partnership between U.S. Government and social movements on fighting against corruption? Thank you.

UNDER SECRETARY SONENSHINE: Let me suggest we’re going to run a couple of these, just to give you a chance to wrap them together. If we could go to Afghanistan very quickly, because I know some of these civil society leaders worked very hard to be heard here, and I’d like to have a few of them and we’ll wrap them together.

QUESTION: (In foreign language.)

UNDER SECRETARY SONENSHINE: So I happen to have a translation of the question for those who couldn’t follow it, but it does address the gender issues in Afghanistan, and I think the rule of law questions on the Brazil. So if you want to take on both of those, and then we’ll probably have time for one more here and one more there.

SECRETARY CLINTON: Well, with respect to the Brazilian question on corruption, I just want to reiterate what I said. The more civil society can be a force against corruption, the more likely the reforms you’re seeking, whether it’s in the economy, in the environment, in any area of human rights or dignity, are more likely to have a chance to succeed. And taking on corruption should be the job of governments, but very often governments need civil society to push them and pull them into doing even more.
Regarding the question about women in Afghanistan and the withdrawal of NATO-ISAF troops over the next two years, this is a great concern to the United States. It is to me personally. There has been an enormous amount of great progress made in Afghanistan. This young woman is an example of that, running a radio station, something that would’ve been absolutely unheard of, punishable under the Taliban. And we have made it our priority to do everything we can to help support civil society, the rule of law, women’s empowerment, and the enforcement of the laws and constitution of Afghanistan, which clearly lay out the rights of men and women to be treated equally under the laws. I mean, that is not too much to ask for. And that is what every person, man and woman, is entitled to.

So we will continue working with civil society and the government, making it clear that that has to be a redline, and do all we can to support the brave women of Afghanistan who are out there every single day saying, “I have a right to go to school,” “I have a right to be a practicing doctor,” “I have a right to be a teacher,” “I have a right to open my business.” And we just think that that goes with being a democracy. And women have the same right to make the choices that are right for them and their families, as any man does. So we have to keep making that absolutely clear. (Applause.)

UNDER SECRETARY SONENSHINE: So we’re in the last few moments. The Secretary has to leave. What I’m going to suggest is a very quick question here, a very short question from Kazakhstan, and we will wrap up. The Secretary has to leave. I will stay behind and help answer some of the questions or pass them along to her.
So very quickly here, Kazakhstan, and we will close.

QUESTION: Thank you. I’m Hamid from Morocco, the first country that recognized the United States. And I know that you love it. (Laughter.)
So I’m talking about civil society in Morocco, but I think it’s the same in the Maghreb. There is an increasing role in the last 10 years of the role of civil society, yes, but there is some threats, lack of transparency. We know one number saved by the minister of – in Morocco that 90 percent of public aid for civil – for NGOs in Morocco goes to only 10 percent of NGOs. It means that the states control the funding of civil society.
And also the foreign aid for civil society don’t goes to the real NGOs in the ground, which they work close to people. And they don’t know what are the mechanism that you use to help NGOs in the grounds to work with people. And I think it’s something very interesting. You can give a lot of money, but if it don’t goes to the goal that you want to do, it’s a waste of your money. Thank you.

SECRETARY CLINTON: Thank you for that. Let me quickly say that we need your help – that’s why you’re here – to advise us about how to be more effective with the aid that we give to NGOs. Because you’re right, sometimes we are told by governments that we cannot give aid to any NGOs that they don’t approve of, and that puts us in a very difficult position because we don’t want to accept that, but we also don’t want to fail to support even the NGOs that are approved of.

So we have to make a tough decision. Sometimes, governments make it so difficult for us to help, as you say, grassroots NGOs that it becomes impossible. So we can’t find them; we can’t interact with them; we can’t convey support to them. So we need your feedback. What can we do better? And we’ve got a lot of our top officials from the State Department and USAID here, and we need to hear from you about what will work.

UNDER SECRETARY SONENSHINE: So we’re going to close on a subject we didn’t spend much time on, the internet and technology. We’re going to run a short question on that from Kazakhstan. And then the Secretary, I want to thank in advance for being here, and all of these senior government officials and civil society leaders and promise to stay and collect your questions. So we will do our final video and then we will end the session.

QUESTION: Dear Madam Secretary, my name is Alina Khamatdinova and I am from Kazakhstan. I once participated in your meeting with NGO in 2010 in Astana. With internet development, many possibilities for civic engagement have emerged. Many group of civic activities online are very popular now and their impact is very visible. What do you think about this trend? Is it good or bad? And especially for traditional NGOs who focused on human species, what kind of plans does State Department have for this tendency? Thank you very much.

SECRETARY CLINTON: Thank you very much from Kazakhstan. Well, we think it’s so important to help civil society utilize technology that we have a whole program to do just that. We have been running tech camps around the world where we invite civil society activists to come. In fact, there’ll be one in a few months in Kyrgyzstan, right? So --
PARTICIPANT: Kazakhstan.

SECRETARY CLINTON: When is it?

PARTICIPANT: Kazakhstan.

SECRETARY CLINTON: Kazakhstan. It’s going to be in Kazakhstan. So we will have a tech camp where civil society can – representatives can come together to learn everything we can share with you about how to use technology – how to use it to promote the ideas and programs of the NGO you’re part of; how to use it to reach out and enlist more people to support you; how to use it to convey information to the people you serve. We’re doing a lot of work – if you take women’s health, something I’m very interested in, how do you get information to women about how to take better care of their health? If you are interested in small farmers, how do you get more information to them about how to help them be more productive? So we think technology, on balance, is a great gift and opportunity for civil society.

Now, there’s always a downside. That’s human nature. The good often comes with the not-so-good. And so there will be people on the internet who could attack you, who could try to interfere with you, could try to shut you down, both independent, government-sponsored – we’re aware of that. But, on balance, we want you to be as equipped as you can to use technology to promote and protect civil society across the world.
Thank you all very much.

UNDER SECRETARY SONENSHINE: Thank you, Madam Secretary. (Applause.)

Wednesday, May 16, 2012

THE ALLEGED BOILER-ROOM ENTREPRENEUR


FROM:  SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., May 16, 2012 — The Securities and Exchange Commission today charged a Hawaii resident and two firms he used to orchestrate a scheme in which he covertly founded small companies, installed management, and recruited overseas boiler rooms that pressured investors into buying their stock while he pocketed more than $2 million in consulting fees from proceeds of the fraudulent stock sales.

The SEC alleges that Nicholas Louis Geranio worked behind the scenes to create eight U.S.-based companies used to raise money through the sale of Regulation S stock, which is exempt from SEC registration under the securities laws because it is offered solely to investors located outside the United States. Geranio handpicked the management for the companies, primarily Keith Michael Field of Sherman Oaks, Calif., who served as an officer, director, or investor relations representative for each company and also is charged in the SEC’s complaint. Geranio then set up consulting arrangements through his firms — The Good One Inc. and Kaleidoscope Real Estate Inc. — so he could instruct management on how to run the companies and raise money offshore. Geranio extracted consulting fees from the companies, which generally had few or no employees, little or no office space, and no sales or customers.

The SEC alleges that Field drafted misleading business plans, marketing materials, and website information about the companies that were provided to investors as part of fraudulent solicitation efforts by teams of telemarketers operating in boiler rooms that Geranio recruited primarily in Spain. The boiler rooms used high-pressure sales tactics and false statements about the companies to raise more than $35 million from investors. Meanwhile, Geranio instructed Field and others to buy and sell shares in some of the companies to create an illusion of trading activity and manipulate upwards the price of the publicly-traded stock.

“Geranio covertly set up companies and manipulated the market for their stock to profit from aggressive offshore boiler room activity,” said Stephen L. Cohen, Associate Director in the SEC’s Division of Enforcement. “Geranio pulled the strings while Field scripted the show for the boiler rooms to bring a payday to everyone but the investors.”

According to the SEC’s complaint filed in the U.S. District Court for the Central District of California, Geranio was the subject of a previous SEC enforcement action in 2000. In his latest misconduct, he concealed his role from investors and the public at all times by acting through The Good One and Kaleidoscope. The scheme lasted from April 2007 to September 2009. Geranio began by locating and acquiring shell companies to create the issuers used in the scheme: Blu Vu Deep Oil & Gas Exploration Inc., Green Energy Live Inc., Microresearch Corp., Mundus Group Inc., Power Nanotech Inc., Spectrum Acquisition Holdings Inc., United States Oil & Gas Corp., and Wyncrest Group Inc. Geranio then appointed management for these companies, in some cases turning to business associates, friends, or others. For example, the former CEO of Blu Vu was someone Geranio met while kite surfing in Malibu.

According to the SEC’s complaint, Geranio worked behind the scenes to keep the companies’ publicly-traded shares trading at prices conducive to the boiler room sales. He did this by directing Field, personal friends, and others to open accounts and buy or sell shares in at least five of the companies as part of matched orders and manipulative trades that created the false impression of active trading and market value in these stocks. The manipulative trades allowed the boiler rooms to sell the Regulation S shares to overseas investors at higher prices.

The SEC alleges that boiler room representatives recruited by Geranio induced investors by using aggressive techniques consistent with boiler room activity. For instance, they promised immediate and substantial investment returns, convinced investors that they needed to purchase the shares immediately or miss the grand opportunity altogether, and threatened legal action if an investor did not agree to purchase shares that the representatives believed the investor had already agreed to purchase. The boiler rooms also used “advance fee” solicitations, telling investors that only if they purchased shares in one of these companies would the boiler room agree to sell their other shares. Many of the investors were elderly and living in the United Kingdom.

According to the SEC’s complaint, investors were directed to pay for their Regulation S stock by sending money to U.S.-based escrow agents. As arranged by Geranio, the escrow agents paid 60 to 75 percent of the approximately $35 million raised from investors to the boiler rooms as their sales markups, kept 2.5 percent as their own fee, and paid the remaining proceeds back to the companies that Geranio created. The companies (or in some cases the escrow agents) then funneled approximately $2.135 million of the proceeds back to Geranio through The Good One and Kaleidoscope in the form of consulting fees, and paid Field approximately $279,000.

The SEC alleges that Geranio also assisted in diverting $240,000 in investor funds toward an undisclosed down payment on a property to start a Hawaiian wedding planning company.

The SEC’s complaint alleges that Geranio, Field, The Good One and Kaleidoscope violated Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The complaint alleges that Field also violated Section 17(a)(2) of the Securities Act and aided and abetted the companies’ violations of Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder, and Geranio is liable as a control person of The Good One and Kaleidoscope under Exchange Act Section 20(a). The SEC is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, penny stock bars, and permanent injunctions against all of the defendants, as well as officer and director bars against Geranio and Field. The complaint seeks disgorgement and prejudgment interest against relief defendant BWRE Hawaii LLC based on its alleged receipt of investor funds.
The SEC's investigation, which is continuing, has been conducted by Ricky Sachar, Carolyn Kurr, and Wendy Kong under the supervision of Josh Felker with assistance from Jim Daly in the Office of International Affairs. Richard Simpson will lead the litigation. The SEC acknowledges the assistance of the City of London Police, Macedonian Securities and Exchange Commission, Macedonian Public Prosecutor, Lithuanian Securities Commission, Australian Securities and Investments Commission, Comision Nacional del Mercado de Valores (Spain), and Financial Market Supervisory Authority (Switzerland).

BATTLESHIP MOVIE SPECIAL SCREENING FOR SAILORS AND FAMILIES


FROM:  U.S. NAVY
CNIC's MWR Brings Battleship to Bases Nationwide
By Mass Communication Specialist 1st Class (SW/AW) Monique K. Hilley, Commander, Navy Installations Command Public Affairs
WASHINGTON (NNS) -- Navy Morale, Welfare and Recreation (MWR), in coordination with Universal Studios, will be offering special screenings of Battleship to Sailors and their families prior to the nationwide release of the movie May 18.

The film's director, Peter Berg, kicked off the free screenings at Naval Base Coronado and Naval Base San Diego May 11. Special screenings also took place at Camp Lejeune, Naval Air Station Whidbey Island, Naval Submarine Base New London and Joint Base Little Creek-Fort Story.

Berg, director of Battleship, will also attend the Joint Base Little Creek-Fort Story screening. Future screenings will take place in Washington, D.C. May 14, at Naval Air Station Jacksonville May 15 and onboard USS Missouri May 16.

Those interested in attending the special screenings should contact their local MWR offices for show times and locations.

Following Department of Defense (DoD) approval in 2010, the film's production began in early 2010 and principal photography took place during the Pacific Fleet's RIMPAC training exercise later that year. Because filming took place on top of already scheduled training events, it did not impair the exercise and there was no cost to the Navy or American taxpayers.

Additional filming also took place in Hawaii, San Diego, and on a film set in Baton Rouge, La., constructed by Universal Studios.

The end result is a film that provides movie-goers with a realistic look of the Navy and our Sailors operating at sea in an action-packed Hollywood film.

Battleship is a 2012 American science fiction action naval war film. The film was directed by Peter Berg and released by Universal Pictures. The film stars Taylor Kitsch, Alexander Skarsgård, Rihanna, Brooklyn Decker and Liam Neeson.

Commander, Navy Installations Command (CNIC) operates the MWR program worldwide to enhance quality of life for Sailors and their families.

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