SEC CHARGES GOLDMAN, SACHS & COMPANY WITH "PAY TO PLAY" POLITICAL CONTRIBUTIONS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Sept. 27, 2012 – The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its former investment bankers with "pay-to-play" violations involving undisclosed campaign contributions to then-Massachusetts state treasurer Timothy P. Cahill while he was a candidate for governor.

Pay-to-play schemes involve campaign contributions or other payments made in an attempt to influence the awarding of lucrative public contracts for securities underwriting business. This marks the first SEC enforcement action for pay-to-play violations involving "in-kind" non-cash contributions to a political campaign.

According to the SEC’s order against Goldman Sachs, Neil M.M. Morrison was a vice president in the firm’s Boston office and solicited underwriting business from the Massachusetts treasurer’s office beginning in July 2008. Morrison also was substantially engaged in working on Cahill’s political campaigns from November 2008 to October 2010. Morrison at times conducted campaign activities from the Goldman Sachs office during work hours and using the firm’s phones and e-mail. Morrison’s use of Goldman Sachs work time and resources for campaign activities constituted valuable in-kind campaign contributions to Cahill that were attributable to Goldman Sachs and disqualified the firm from engaging in municipal underwriting business with certain Massachusetts municipal issuers for two years after the contributions. Nevertheless, Goldman Sachs subsequently participated in 30 prohibited underwritings with Massachusetts issuers and earned more than $7.5 million in underwriting fees.

While the SEC’s case against Morrison continues, Goldman Sachs agreed to settle the charges by paying $7,558,942 in disgorgement, $670,033 in prejudgment interest, and a $3.75 million penalty, which is the largest ever imposed by the SEC for Municipal Securities Rulemaking Board (MSRB) pay-to-play violations. The SEC coordinated this enforcement action with a related action filed by the Massachusetts Attorney General against Goldman Sachs.

"The pay-to-play rules are clear: municipal finance professionals that use their firm’s resources to campaign on behalf of political candidates compromise themselves and the firms that employ them," said Robert Khuzami, Director of the SEC’s Division of Enforcement.

Elaine C. Greenberg, Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit, added, "Fighting efforts to improperly influence the underwriting selection process is one of the unit’s top priorities. These practices result in undisclosed conflicts of interest and undermine public confidence in the integrity of the municipal securities market."

According to the SEC’s orders against Morrison and Goldman Sachs, among the campaign activities that Morrison engaged in for Cahill were fundraising, drafting speeches, communicating with reporters, approving personnel decisions, and interviewing at least one possible running mate. Morrison at times referenced his campaign work while soliciting underwriting business in an apparent attempt to curry favor during the selection process. Morrison sent e-mails to a deputy treasurer in Cahill’s office making the following statements while discussing the selection of underwriters:
"The boss [Cahill] mentioned to me this morning that he spoke to [the Assistant Treasurer] and that it is looking good for us [Goldman Sachs] on the build America bond deal."
"From my standpoint as an advisor/consultant/friend I am saying, PLEASE don’t give these [underwriter] slots away willy-nilly. You are in the fight of your lives and need to reward loyalty and encourage friendship. If people aren’t willing to be creative with their support then they shouldn’t expect business. This has to be a political decision."
"We have discussed the Build American Bond transaction and how important it is to me. You have been great keeping me up to speed. This is my number 1 priority and most important ask. Having Goldman as the lead and getting 50% of the economics would be such a home run for me."
According to the SEC’s orders, in addition to his direct campaign work for Cahill, Morrison made an indirect cash contribution to Cahill by giving cash to a friend who then wrote a check to the Cahill campaign. Morrison’s campaign work and his indirect financial contribution created a conflict of interest that was not disclosed by Goldman Sachs in the relevant municipal securities offerings in violation of pay-to-play rules. Morrison himself acknowledged the existence of this conflict in an e-mail to a campaign official, saying, "I am staying in banking and don’t want a story that says that I am helping Cahill, who is giving me banking business. If that came out, I’m sure I wouldn’t get any more business."

According to the SEC’s orders against Goldman Sachs and Morrison, Goldman Sachs terminated Morrison in December 2010.

The SEC’s order against Goldman Sachs found that the firm violated Section 15B(c)(1) of the Exchange Act and MSRB Rule G-37(b), which prohibits firms from underwriting offerings for municipal issuers within two years after any contribution to an official of such issuer. The SEC’s order found that Goldman Sachs did not disclose any of the contributions on MSRB Forms G-37, and did not make or keep records of the contributions in violation of MSRB Rules G-37(e), G-8 and G-9. The order found that Goldman Sachs did not take steps to ensure that the attributed contributions or campaign work or the conflicts of interest raised by them were disclosed in the bond offering documents, in violation of MSRB Rule G-17, which requires broker-dealers to deal fairly and not engage in any deceptive, dishonest, or unfair practice. The order found that Goldman Sachs failed to effectively supervise Morrison in violation of MSRB Rule G-27.

Goldman Sachs consented to the SEC’s order without admitting or denying the findings. In addition to paying disgorgement, prejudgment interest, and the penalty, Goldman Sachs agreed to be censured and to cease and desist from committing or causing any violations and any future violations of the provisions referenced in the order.

In its order against Morrison, the SEC’s Enforcement Division alleges that Morrison violated MSRB Rule G-37(d) by making a secret, undisclosed cash campaign contribution to Cahill, that he violated MSRB Rule G-37(c) by soliciting campaign contributions for Cahill, and that he violated MSRB Rule G-17 by failing to disclose conflicts of interest to the purchasers of municipal securities. The Division of Enforcement further alleges that Morrison caused Goldman Sachs to violate Rule G-8, Rule G-9, Rule G-37(b) and Rule G-37(e).

The SEC’s investigation was conducted by members of the Enforcement Division's Municipal Securities and Public Pensions Unit including Senior Enforcement Counsel Louis A. Randazzo and Assistant Director LeeAnn Ghazil Gaunt, and supervised by Unit Chief Elaine C. Greenberg and Deputy Chief Mark Zehner. Richard Harper of the SEC’s Boston Regional Office will lead the litigation against Morrison.

MARINE RECOUNTS CAMP BASTION ATTACK

FROM: U.S. DEPARTMENT OF DEFENSE

Marine Corps Lance Cpl. Ethan Burk stands in front of a bullet-riddled concrete barrier scarred from the Sept. 14, 2012, night attack on Camp Bastion in Helmand province Afghanistan. Carrying a bullet-scarred rifle and wounded during the attack, Burk and another Marine maneuvered out of the kill zone to inform the British Army's quick reaction force of the insurgents' fighting position. U.S. Marine Corps photo by Sgt. James Mercure.
 
Face of Defense: Marine Recalls Camp Bastion Attack
By Marine Corps Sgt. James Mercure
Regional Command Southwest

AFGHANISTAN, Sept. 27, 2012 - "There was blood down my leg after I got shot," recalled Marine Corps Lance Cpl. Ethan Burk, who was present during the Sept. 14 insurgent night attack on Camp Bastion here in Helmand province.

Burk, a hazardous materials management coordinator with Marine Aviation Logistics Squadron 16, 3rd Marine Aircraft Wing (Forward), was on his way to work when he heard the first rocket-propelled grenade explode behind him.

Avoiding the giant fireball from the explosion, he had driven straight into an ambush of heavily armed insurgents firing at his four-wheeled tractor, which had no armor to stop the barrage of bullets striking all around him.

"I could see the muzzle flashes from the corner of the compound," said Burk, a Milford, Texas native. "That's when I realized they were all aiming at me. I felt something hit my arm, but I thought I had just banged it on something. Then I rolled out of the [tractor] and ducked. When I reached for my rifle they started shooting at me again, and that's when I realized they had a lot more firepower than I did because they were firing too fast for just regular AK-47s."

Maneuvering behind a barrier, Burk could only see and judge the insurgents' movements in the darkness by their muzzle flashes. So he pressed on, trying to use the flight line's light to see where the insurgents had holed up so he could get the drop on them.

After moving to a covered position, one of his friends and the only other Marine in the area, Lance Cpl. Kevin Sommers, a cryogenics technician, jumped over a barrier and almost landed on top of Burk. The two Marines waited for the insurgents to try and flank them. When they didn't, the pair climbed over concrete barriers to get better firing points at the enemy.

"Once we realized they weren't coming after us, we jumped over the T-walls and cleared out the area behind the barriers. At that point the British [quick reaction force] showed up, and the [helicopters] were shooting from their main guns at the insurgents fighting position right overhead," Burk said. "We flagged the soldiers down with a light and yelled 'Marines, Marines, Marines' to let them know the situation. The guy in charge of the British QRF told us to go get my arm checked out because he saw the blood on my uniform."

After Burk and Sommers checked in for accountability, Burk went to a corpsman and found out he had been shot in the elbow by one of the insurgent's machine gun rounds.

"After I had it X-rayed, they found two pieces of the bullet still lodged in my arm and they had to surgically remove it," Burk explained. "After the whole ordeal, they asked if I wanted to go home because I was injured, and I told them I just got here, why would I want to go home?"

JUSTICE SAYS PARKING FACILITIES MUST HAVE DIVESTITURES IN ORDER TO MERGE

Credit:  Wikimedia

FROM:  U.S. DEPARTMENT OF JUSTICE ANTITRUST DIVISION
Divetitures Will Preserve Parking Competition in 29 Citis

WASHINGTON — The Department of Justice announced today that it will require Standard Parking Corporation and Central Parking Corporation to divest their interests in certain off-street parking facilities in 29 cities in 21 states in order to proceed with Standard’s acquisition of Central. The department said that without these divestitures, the combined company would have gained a dominant market share of off-street parking facilities in certain areas of each of the cities, resulting in higher prices and reduced service to motorists. The acquisition is valued at approximately $345 million.

The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.

"Consumers have benefited from lower parking prices because of competition between Standard and Central in many urban central business districts," said Acting Assistant Attorney General Joseph Wayland in charge of the Department of Justice’s Antitrust Division. "These divestitures will ensure that consumers in the affected cities and states will receive better services."

Standard and Central are the two largest parking management companies in the United States. The companies are head-to-head competitors in providing motorists with off-street parking services, such as in garages and lots. In its complaint, the department said that the companies compete on prices, including "early-bird" or evening specials, as well as on hours of operation, parking options, security and other terms. As a result of the competition between Standard and Central, consumers have benefitted through lower prices and better services. The proposed merger threatens to end that competition and would provide Standard with the ability to exercise market power by raising prices or reducing the quality of services offered for off-street parking services, the department said in its complaint.

The department’s complaint alleges that the proposed acquisition would lessen competition in certain areas in the central business districts (CBDs) of: Atlanta; Baltimore; Bellevue, Wash.; Boston; Charlotte, N.C.; Chicago; Cleveland; Columbus, Ohio; Dallas; Denver; Fort Myers, Fla.; Fort Worth, Texas; Hoboken, N.J.; Houston; Kansas City, Mo.; Los Angeles; Miami; Milwaukee; Minneapolis; Nashville, Tenn.; New Orleans; New York City (Bronx, Rego Park), N.Y.; Newark, N.J.; Philadelphia; Phoenix; Richmond, Va.; Sacramento, Calif.; and Tampa, Fla.

To remedy the harm, the proposed settlement requires Standard and Central to divest at least 107 parking facilities in the CBDs. The divestitures can be accomplished by selling the companies’ interests in the parking facilities to an approved buyer or by terminating the parking facility agreement or allowing it to expire. The facilities to be divested generate total annual revenues from consumers of about $85 million.

Standard is a Chicago-based company which currently operates in 41 states and Washington, D.C., with approximately 2,200 parking facilities containing more than 1.2 million parking spaces. In 2011, Standard had total revenues of more than $729 million.

Central is a Nashville-based company which operates in 38 states, Washington D.C. and Puerto Rico, with approximately 2,200 parking facilities containing about 1 million parking spaces. It is privately held, with total revenues in 2011 in excess of $800 million.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Scott Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.

HHS SECRETARY SEBELIUS SAYS MENTAL HEALTH CARE IMPROVES WITH AFFORDABLE CARE ACT

FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health care law increases number of mental and behavioral health providers
Affordable Care Act grants also help military personnel, veterans and families

Health and Human Services (HHS) Secretary Kathleen Sebelius today announced a new program, made possible by the Affordable Care Act, which will boost the number of social workers and psychologists who work with Americans in rural areas, military personnel, veterans, and their families.

Through the Mental and Behavioral Health Education and Training grant program, $9.8 million is being awarded to 24 graduate social work and psychology schools and programs for three-year grants. The grants will help eligible institutions of higher education – including accredited schools of social work and psychology and accredited psychology internship programs – to recruit students and provide support for clinical training in mental and behavioral health.

"Mental health services are critical for those dealing with posttraumatic stress and other severe problems," Secretary Sebelius said. "Increasing the number and quality of providers to care for these individuals is a major step forward in addressing these challenges."

Mental health conditions are among the top five chronic illnesses in the United States. This program addresses a critical need for more mental and behavioral health providers, especially those trained in trauma and abuse, combat-related stress, substance abuse, and the needs of chronically ill people and their families.

U.S. NAVY PHOTO: AFGHANISTAN 2001

FROM: U.S. NAVY

011228-N-2383B-516 At the U.S. Marine Corps Base in Kandahar, Afghanistan (Dec. 28, 2001) -- LCpl. Chris Cassa from Westford, Mass., positions his weapon in place as he gears up for the evening watch. LCpl. Cassa of India Company, 26th MEU(SOC) has been in the fields of Kandahar for two weeks now and has been defending and maintaining security of the base perimeter. U.S. Marines are in Afghanistan operating in support of Operation Enduring Freedom. U.S. Navy photo by Chief Photographer's Mate Johnny Bivera. (RELEASED)

Ein Blick auf Saturns B-Ring

Ein Blick auf Saturns B-Ring

TUNA DESIGN AND THE UNMANNED UNDERWATER VEHICLE

Credit:  U.S. Department Of Homeland Security 

FROM:  U.S. DEPARTMENT OF HOMELAND SECURITY
Caption: The tuna has a natural body framework ideal for unmanned underwater vehicles (UUVs), solving some of the propulsion and maneuverability problems that plague conventional UUVs. BIOSwimmer is a UUV inspired by the tuna and designed for high maneuverability in harsh environments, with a flexible aft section and appropriately placed sets of pectoral and other fins.

For constricted and hard-to-reach underwater places where inspection is necessary, it’s the perfect fish

No question about it… they’re very good at what they do. But they don’t take well to orders, especially those to carry out inspection work in oily or dangerous environments, or in any kind of harsh environment, for that matter. Still, they’re one of the fastest and most maneuverable creatures on the planet, having extraordinary abilities at both high and low speeds due to their streamlined bodies and a finely tuned muscular/sensory/control system.

Credit:  U.S. Department Of Homeland Security

This impressive creature is the humble tuna fish.

The Department of Homeland Security’s (DHS) Science and Technology Directorate (S&T) is funding the development of an unmanned underwater vehicle designed to resemble a tuna, called the BIOSwimmer™. Why the tuna? Because the tuna has a natural nbody framework ideal for unmanned underwater vehicles (UUVs), solving some of the propulsion and maneuverability problems that plague conventional UUVs.

Inspired by the real tuna, BIOSwimmer™ is a UUV designed for high maneuverability in harsh environments, with a flexible aft section and appropriately placed sets of pectoral and other fins. For those cluttered and hard-to-reach underwater places where inspection is necessary, the tuna-inspired frame is an optimal design. It can inspect the interior voids of ships such as flooded bilges and tanks, and hard to reach external areas such as steerage, propulsion and sea chests. It can also inspect and protect harbors and piers, perform area searches and carry out other security missions.

Boston Engineering Corporation’s Advanced Systems Group (ASG) in Waltham, Massachusetts, is developing the BIOSwimmer™ for S&T. "It is designed to support a variety of tactical missions and with its interchangeable sensor payloads and reconfigurable Operator Controls, can be optimized on a per-mission basis" says the Director of ASG, Mike Rufo.

BIOSwimmer™ is battery-powered and designed for long-duration operation. Like other unmanned underwater vehicles, it uses an onboard computer suite for navigation, sensor processing, and communications. Its Operator Control Unit is laptop-based and provides intuitive control and simple, mission-defined versatility for the user. A unique aspect of this system is the internal components and external sensing which are designed for the challenging environment of constricted spaces and high viscosity fluids

"It’s all about distilling the science," says David Taylor, program manager for the BIOSwimmer™ in S&T’s Borders and Maritime Security Division. "It’s called ‘biomimetics.’ We’re using nature as a basis for design and engineering a system that works exceedingly well.

Tuna have had millions of years to develop their ability to move in the water with astounding efficiency. Hopefully we won’t take that long."

NASA PRESENTS THE GLOBAL HAWK AIRCRAFT



GLOBAL HAWK UNMANNED AIRCRAFT

FROM: NASA This image captures a perspective of NASA's Global Hawk unmanned aircraft from one of the wings. The Global Hawk is sitting at the aircraft hangar of NASA's Wallops Flight Facility in Wallops Island, Va. on Sept. 7, 2012.

The month-long Hurricane and Severe Storm Sentinel (HS3), which began in early September, is currently deploying one instrument-laden Global Hawk from the NASA Wallops Flight Facility on Virginia's Eastern Shore to look at the environment of tropical storms. In 2013 and 2014, a second Global Hawk will be added that will focus on getting detailed measurements of the inner core of hurricanes.

The Global Hawk's ability to fly for a much longer period of time than manned aircraft will allow it to obtain previously difficult-to-get data. Scientists hope to use that data to gain new insights into how tropical storms form, and more importantly, how they intensify into major Atlantic hurricanes — information that forecasters need to make better storm predictions, save lives, and ultimately prevent costly coastal evacuations if a storm doesn't warrant them.

Image Credit: NASA

ICE AND THE RISE OF ORGANIC LIFE FORMS

FROM: NASA
Researchers Brew Up Organics on Ice
09.18.12
Researchers are brewing up icy, organic concoctions in the lab to mimic materials at the edge of our solar system and beyond. The laboratory equipment at NASA's Jet Propulsion Laboratory in Pasadena, Calif., is seen at right, and a very young solar system, with its swirling planet-forming disk, is shown in the artist's concept at left. Image credit: NASA/JPL-Caltech

Would you like icy organics with that? Maybe not in your coffee, but researchers at NASA's Jet Propulsion Laboratory in Pasadena, Calif., are creating concoctions of organics, or carbon-bearing molecules, on ice in the lab, then zapping them with lasers. Their goal: to better understand how life arose on Earth.

In a new study published in the Astrophysical Journal Letters, the research team provides the first direct look at the organic chemistry that takes place on icy particles in the frigid reaches of our solar system, and in the even chillier places between stars. Scientists think that the basic ingredients of life, including water and organics, began their journey to Earth on these lonesome ice particles. The ice and organics would have found their way into comets and asteroids, which then fell to Earth, delivering "prebiotic" ingredients that could have jump-started life.

The various steps needed to go from icy organics to slime molds are not clear, but the new findings help explain how the process works. The lab experiments show that organic material can begin the processing it needs to become prebiotic -- while still frozen in ice.

"The very basic steps needed for the evolution of life may have started in the coldest regions of our universe," said Murthy Gudipati, lead author of the new study at JPL. "We were surprised to see organic chemistry brewing up on ice, at these very cold temperatures in our lab."

The organics looked at in the study are called polycyclic aromatic hydrocarbons, or PAHs for short. These carbon-rich molecules can be found on Earth as combustion products: for example, in barbecue pits, candle soot and even streaming out of the tail pipe of your car. They have also been spotted throughout space in comets, asteroids and more distant objects. NASA's Spitzer Space Telescope has detected PAHs in the swirling planet-forming disks around stars, in the spaces between stars and in remote galaxies.

Murthy and his colleague Rui Yang of JPL used their lab setup to mimic the environment of icy PAH molecules in the quiet cold of space, at temperatures as low as 5 Kelvin (minus 450 degrees Fahrenheit, or minus 268 degrees Celsius). First, they bombarded the particles with ultraviolet radiation similar to that from stars. Then, to determine the products of the chemical reaction, they used a type of laser system known as MALDI (for Matrix Assisted Laser Desorption and Ionization), which involves zapping the ice with both infrared and ultraviolet lasers.

The results revealed that the PAHs had transformed: they had incorporated hydrogen atoms into their structure and lost their circular, aromatic bonds, becoming more complex organics. According to Gudipati, this is the type of change that would need to occur if the material were to eventually become amino acids and nucleotides -- bits and pieces of protein and DNA, respectively.

"PAHs are strong, stubborn molecules, so we were surprised to see them undergoing these chemical changes at such freezing-cold temperatures," said Gudipati.

Another bonus for the research is that it might explain the mystery of why PAHs have not yet been identified on ice grains in space. While the hardy organics are pervasive in the cosmos as gases and hot dust, researchers have remained puzzled that their signatures do not show up on ice. The new findings show that PAHs, once they stick to the ice surface, are chemically transformed into other complex organics, explaining why they might not be seen.

While the new results teach us that life's journey could have already begun in the very cold regions of the universe, another question remains: Did it arise elsewhere beyond our sun, too? Researchers don't know, but studies like this one help the ongoing search for life beyond Earth.

SPECIAL BRIEFING: U.S.-CHINA MEETING

U.S.-China Joint Exercise. Credit: U.S. Navy. 

FROM: U.S. STATE DEPARTMENT

Background Briefing: Readout of the Secretary's Meeting With Chinese Foreign Minister Yang Jiechi

Special Briefing
Office of the Spokesperson
Waldorf Astoria Hotel
New York City
September 27, 2012
 
SENIOR STATE DEPARTMENT OFFICIAL: So briefly, on background, Senior State, the Secretary had a very full meeting with Chinese Foreign Minister Yang this morning. They began the meeting talking about the Chinese-Japanese tensions over the Senkakus. The Secretary, as she has been urging for a number of months, including when she was in China in the summer and when she was at APEC and had a chance to see Prime Minister Noda, again urged that cooler heads prevail, that Japan and China engage in dialogue to calm the waters, that we believe that Japan and China have the resources, have the restraint, have the ability to work on this directly and take tensions down. And that is our message to both sides.

They then talked about South China Sea issues. As you may know, this is an area where, after intense diplomatic focus by all the players, including, notably, the Foreign Minister of Indonesia who was in Washington not too long ago, we now have restarted informal meetings between senior officials of China and ASEAN. They had a meeting in Phnom Penh two weeks ago. We expect these meetings are going to continue in the lead-up to the East Asia Summit in November. This is precisely what the Secretary had been advocating, what we had been advocating – that they restart a dialogue. And so the Secretary commended China for that. I think she’ll make the same point when she sees the ASEAN foreign ministers later today.

They compared notes on the situation in the DPRK briefly. They also talked about Iran in preparation for the P-5+1 minus Iran meeting this afternoon, and about the two-track strategy of diplomacy and pressure. The Secretary, as she always does, raised human rights concerns – notably in this particular meeting, concerns about Tibet and increasing pace of immolations. They talked about bilateral economic relations and the global financial situation. The Secretary again urged that the – some of the cases of concerns, including FedEx, be dealt with on the Chinese side.

And of course, they talked about Syria. The Secretary debriefed the Foreign Minister on her meeting with Special Envoy Brahimi, and she made the same point to him, to Foreign Minister Yang, that she has made this week to Foreign Minister Lavrov and that she’s made when she was in Vladivostok to Russian leaders, that we still see value in the Geneva document that the Security Council members agreed on, and working from that, drawing on elements of it. But if we go in that direction in terms of the Security Council, there have to be real consequences for noncompliance with it, consequences for both sides. So that was the meeting with Foreign Minister Yang.

Okay.

QUESTION: On Syria, do you have any sense for – first, when did she meet Lavrov here? And do you have any sense that there’s any Security Council movement possible in this week or in coming --

SENIOR STATE DEPARTMENT OFFICIAL: I think where we are on Syria, as she said, I think, herself, is that – or maybe we said it here after one of our earlier sessions in debriefing the Brahimi meeting – is that we expect that Envoy Brahimi’s going to do another round of consultation and then he’s going to come back to the Security Council with his own ideas. So I don’t think that we will see any formal action unless and until he comes forward with something. But it was in the context of informing his thinking that she wanted him to know, she wants the Russians to know, she wants the Chinese to know that we still think there’s some value in that Geneva document, but only if it’s got real consequences for noncompliance.

QUESTION: She didn’t sense any movement on their part, neither the Chinese or Russians?

SENIOR STATE DEPARTMENT OFFICIAL: I think everybody’s waiting to see what Brahimi comes forward with.

PANETTA REFLECTS ON TRAVELS TO THE ASIA-PACIFIC SIDE OF THE WORLD

P

Photo:  Leon Panetta In New Zealand.  Credit:  U.S. DOD.

FROM: U.S. DEPARTMENT OF DEFENSE
Panetta Shares Perspectives From Latest Trip
American Forces Press Service

WASHINGTON, Sept. 26, 2012 - In a message to the men and women of the Defense Department, Defense Secretary Leon E. Panetta shared his perspectives from his recent trip to the Asia-Pacific region.

Here is the secretary's message:

This week I returned from a week-long trip to Japan, China, and New Zealand, my third trip to the Asia-Pacific region as Secretary of Defense.

The underlying purpose of the trip was to support our new defense strategy, which calls for the Department of Defense to increase our focus on the Asia-Pacific region. This strategy is part of a government-wide effort that includes increased economic, diplomatic, development, and security efforts – all in order to renew and revitalize America's role in a region that is becoming more critical to our future security and prosperity.

My first stop was Tokyo, a city that I have visited a number of times in previous capacities, and on my first trip to Asia as Secretary of Defense last year. I am always appreciative of the warm hospitality and genuine friendship that the people of Japan extend to me and all their American visitors. It reflects the fact that Japan is a very close ally in the region, and that our Alliance has served as the cornerstone of peace and stability in the Asia-Pacific for more than 50 years.

This trip took place during a time of increased tensions between China and Japan over competing claims to the Senkaku Islands in the East China Sea – an episode that serves as a reminder of the important role the United States military continues to play in ensuring peace and security in the region. My message to the Government of Japan, which I would later repeat in China, was simple: the United States doesn't take a position on competing sovereignty claims but we urge both sides to exercise calm and restraint, and we have an interest in seeing this dispute resolved peacefully and through diplomatic means.

While in Japan, I had very productive meetings with Foreign Minister Gemba and Defense Minister Morimoto that allowed us to make progress on two key issues for our Alliance. First, we agreed to pursue an additional ballistic missile defense radar, directed at protecting the people of Japan, U.S. forward-deployed forces, and the U.S. homeland, from the North Korean missile threat. Second, we set the stage for an agreement, announced later in the week that reconfirmed the safety of the MV-22 Osprey aircraft, enabled the commencement of flight operations, and paved the way for the deployment of the aircraft to in Okinawa. The Osprey is an important new capability that will greatly enhance our ability to defend Japan and respond to crises in the region – with twice the speed, three times the payload, and four times the range of the platform it replaces.

Before departing Tokyo, I had the opportunity to visit with several hundred American service members stationed at Yokota Air Base – a critical hub for our activities in the region. I had the chance to describe our new defense strategy and point out that the key to our strength rests with them – the men and women in uniform serving our Nation. It's always a highlight for me to have the opportunity to interact with service members wherever I travel in the world.

My next stop was Beijing, a visit that marked my first trip to China as Secretary of Defense. The goal of this visit was to build on the progress we have made toward establishing a military-to-military relationship with China that is healthy, stable, reliable, and continuous. Our two nations have had a series of high-level interactions this year – from the visit of Vice President Xi to the Pentagon earlier in the year to General Liang's visit in May – that have helped to build sustained and substantive interactions between our leaders. My visit continued this trend. One of the highlights was an elaborate welcome banquet General Liang hosted in my honor at the State Guest House in Beijing, which even included a magic show and a few hundred toasts that we all survived.

In my discussions with key military and civilian leaders, the thing that most impressed me is that we are building the kind of relationship where we can talk openly and candidly about our disagreements. At the same time, we are increasingly able to identify areas where our militaries can cooperate more – such as counterpiracy and maritime security, humanitarian relief and disaster assistance, and peacekeeping operations. In that spirit, I invited China to send a ship to RIMPAC 2014 – the world's largest multilateral Naval exercise.

I was also encouraged by my interactions with young officers and cadets at the Engineering Academy of PLA Armored Forces, where I gave a speech focusing on the United States rebalance to Asia-Pacific region and had the opportunity to join students for lunch in the cafeteria. The questions that I got from the young cadets were candid and thoughtful, and it was clear that they appreciated my message that a stronger defense relationship between the U.S. and China is critically important to security and prosperity in the 21st century.

On my third and final day in China, I was able to fly to the coastal city of Qingdao and visit the headquarters of the North Sea fleet. There, I toured a PLA frigate and a diesel powered submarine. I was impressed with the professionalism and discipline of the PLA sailors, and it is clear that they are working to modernize their military. Throughout my visit, I stressed the importance of increasing their transparency as they undergo this modernization, so it was a positive step for me to be given a tour of these ships.

From Qingdao, we boarded our plane for the final time in China and took an overnight flight down to Auckland, New Zealand, the final stop on this trip.

It was the first visit I've ever made to New Zealand, and I was struck by the similarities in landscape between Auckland and my native Northern California. It was a special honor to be in Auckland because I was the first United States Secretary of Defense to visit New Zealand in 30 years.

Soon after I arrived, New Zealand's Defence Forces hosted a welcome ceremony for me that befitted the historic nature of this visit. During the ceremony, a group of Maori tribesman approached me with a ceremonial challenge. My job was to pick up a dagger while not smiling and maintaining eye contact in order to signal that I came in peace. Luckily, I passed the test.

My broader purpose in traveling to New Zealand was first and foremost to recognize that New Zealand has been a stalwart friend over the past decade of war. In Afghanistan, New Zealand has made a variety of contributions to the war effort and continues to lead the Bamiyan provincial reconstruction team. During my visit, I paid tribute to New Zealand's war heroes at their National War Memorial Museum, and I had the opportunity to recognize five individual soldiers from the New Zealand Defence Forces with Army Commendation Medals.

New Zealand also plays an important role as a provider of security in the South Pacific, and as the United States rebalances to the Asia-Pacific region we are looking for new ways to partner together to enhance regional security. To that end, I was pleased to be able to announce while in New Zealand that the U.S. government is changing some policies that govern interactions with New Zealand's military, which were put into effect after New Zealand passed nuclear-free legislation in the mid-1980s. Specifically, we have eliminated restrictions on discussions and exercises between our two militaries, and we have established a mechanism to authorize individual visits by ships of New Zealand's Royal Navy to U.S. military and coast guard facilities, both in the United States and around the world.

These changes sent a strong signal that we are entering into a new era of defense cooperation with New Zealand. More broadly, my entire week-long trip sent the message that the United States is following through with our strategy to rebalance towards the Asia-Pacific region. Throughout the week, it was heartening to hear Allies, friends and partners in the region welcome the Department's renewed focus on Asia-Pacific. The high regard they have for the U.S. military is a reflection of the dedication and professionalism of all our men and women in uniform, and the civilians who support them. I am proud of what we have accomplished together and grateful for your continued service to a strong and secure America.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING SEPTEMBER 22, 2012

Michigan Lumberjacks.  Circa:  1890's

FROM: U.S. DEPARTMENT OF LABOR
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

SEASONALLY ADJUSTED DATA

In the week ending September 22, the advance figure for seasonally adjusted initial claims was 359,000, a decrease of 26,000 from the previous week's revised figure of 385,000. The 4-week moving average was 374,000, a decrease of 4,500 from the previous week's revised average of 378,500.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending September 15, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 15 was 3,271,000, a decrease of 4,000 from the preceding week's revised level of 3,275,000. The 4-week moving average was 3,295,500, a decrease of 15,000 from the preceding week's revised average of 3,310,500.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 300,661 in the week ending September 22, a decrease of 29,702 from the previous week. There were 328,073 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.2 percent during the week ending September 15, a decline of 0.1 percentage point from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,833,088, a decrease of 94,416 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,207,559.

The total number of people claiming benefits in all programs for the week ending September 8 was 5,173,586, a decrease of 11 from the previous week. There were 6,983,307 persons claiming benefits in all programs in the comparable week in 2011

Extended Benefits were not available in any states during the week ending September 8.

Initial claims for UI benefits by former Federal civilian employees totaled 1,270 in the week ending September 15, an increase of 308 from the prior week. There were 2,909 initial claims by newly discharged veterans, an increase of 194 from the preceding week.

There were 17,029 former Federal civilian employees claiming UI benefits for the week ending September 8, an increase of 419 from the previous week. Newly discharged veterans claiming benefits totaled 38,128, an increase of 1,035 from the prior week.

States reported 2,160,448 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending September 8, a decrease of 2,084 from the prior week. There were 3,036,635 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending September 8 were in Puerto Rico (3.9), Alaska (3.6), New Jersey (3.5), Pennsylvania (3.4), California (3.1), Connecticut (3.1), Nevada (2.9), New York (2.8), Oregon (2.8), and Arkansas (2.7).

The largest increases in initial claims for the week ending September 15 were in California (+18,522), Michigan (+3,522), Florida (+2,018), New York (+1,969), and Indiana (+1,739), while the largest decreases were in Louisiana (-4,150), Puerto Rico (-854), Missouri (-811), Kentucky (-710), and Mississippi (-518).

DOD News Briefing with Secretary Panetta and Gen. Dempsey from the Pentagon

DOD News Briefing with Secretary Panetta and Gen. Dempsey from the Pentagon

AFGHAN AND NATO TROOPS WORK TOGETHR AGAIN

Defense Secretary Leon E. Panetta and Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, brief the press at the Pentagon Sept. 25, 2012. DOD photo by Erin A. Kirk-Cuomo
FROM: U.S. DEPARTMENT OF DEFENSE

By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 27, 2012 - Afghan and NATO troops have resumed partnered operations which were suspended earlier this month because of a series of deadly insider attacks, Defense Secretary Leon E. Panetta announced during a news conference here today.

Marine Corps Gen. John R. Allen, the top U.S. and NATO commander in Afghanistan, had ordered that all combined operations below the battalion level be approved by regional commanders following attacks by Afghan soldiers and police that have killed 51 members of the coalition this year.

However, Afghan and coalition troops are now back to conducting partnered operations as before, Panetta told Pentagon reporters. The military believes some of the insider attacks were perhaps triggered by Muslim anger over an American-made internet video that defamed the Prophet Muhammad.

"I can now report to you that most ISAF units have returned to their normal partnered operations at all levels," said Panetta, who was accompanied by Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff.

Dempsey, just back from a visit to Afghanistan, said partnering efforts are back to the level they were before the difficulties. Around 90 percent of all operations in the country are partnered.

Even with the insider attacks, Panetta said the coalition and Afghan efforts are paying off. He said the Taliban were in control of large swaths of Afghanistan and were poised to take more when the coalition surge into the country began in December 2009.

Last week, the secretary announced the end of the surge, with the departure of the last of the 33,000 troops who were ordered deployed. There are now 68,000 American service members in Afghanistan.

"[The surge] accomplished the primary objectives of reversing the Taliban's momentum on the battlefield and dramatically increased the size and capability of the Afghan national security forces," Panetta said.

This will continue, said Dempsey, noting coalition troops will continue to partner with Afghan soldiers and police. The Taliban has failed to recover momentum or any territory. "Our Afghan partners are working with us to shut down the threat of insider attacks," the chairman said. "As one Afghan army commander told me, insider attacks are an affront to their honor, at odds with their culture and their faith."

Taliban insurgents are actively trying to infiltrate Afghan army and police formations, Dempsey said. The insurgent group is also trying to turn Afghan soldiers and police against their coalition allies.

Dempsey said coalition forces are adapting to the Taliban's change in tactics.

"That's what professional militaries do," he said. "And we are doing it in a way that ensures we continue to be able to partner."

The Taliban wants to break the coalition, the general said, but the coalition's resolve to stand with Afghan formations is strong.

Still, it will be tough going in the country, Panetta said. "The enemy we are dealing with ... is adaptive and resilient," the secretary said. "Their focus has shifted to carrying out high-profile attacks in order to undermine the new sense of security that has been felt by ordinary Afghans."

Panetta expects there will be more high-profile attacks like the one that struck Camp Bastion last week.

"The enemy will do whatever they can to try and break our will using this kind of tactic. That will not happen," he said.

Afghan forces are the "defeat mechanism" of the insurgency, Panetta said.

"We have an enduring commitment to an Afghanistan that can secure and govern itself and that is never again a safe haven from which terrorists can attack us," he said. "Our men and women in uniform, our fighting forces, ISAF, Afghanistan fighting forces I think have sent a strong message to the Taliban that time is not on their side."

NEWS FROM AFGHANISTAN, SEPTEMBER 27, 2012

Photo:  Afghanistan.  From:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF DEFENSE

Combined Force Detains Insurgents, Seizes Narcotics
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Sept. 27, 2012 - A combined security force detained several suspected insurgents during an operation to arrest a Taliban facilitator in the Washer district of Helmand province today, military officials reported.

The facilitator is alleged to coordinate the movement of insurgent fighters and weapons, as well as coordinating attacks across northern Helmand province, officials said.

The security force also seized multiple assault rifles and several pounds of illegal narcotics, officials said.

Also today, an Afghan-led, coalition-supported force killed a number of insurgents and detained two suspects during a search for a Haqqani leader in the Sabari district of Khost province. The sought-after insurgent leader is linked to multiple rocket-propelled grenade attacks on Afghan and coalition security forces. The security force also seized several assault rifles and other military equipment.

In Sept. 26 operations:

An Afghan-led, coalition-supported force recovered a cache of weapons, improvised explosive devices and IED-making components in the Qalat district of Zabul province. The force found some pressure plate IEDs, 573 pounds of ammonium nitrate, 220 pounds of potassium chloride, 55 pounds of homemade explosive, 33 pounds of aluminum powder, RPGs, ammunition, and two Afghan National Security Forces uniforms.

In Sept. 23 operations:

-- Al-Qaida facilitator Abdul Rauf was killed along with two other insurgents during an airstrike in the Marawarah district of Kunar province. Abdul Rauf was a Pakistani al-Qaida facilitator who coordinated the movement of foreign fighters into Afghanistan. He also constructed IEDs for use in attacks against security forces. No civilians were harmed and no civilian structures were damaged during the operation.

OCEAN ACIDIFICATION RESEARSH

Picture:  Ocean Acidification.  From:  NOAA.

FROM:  NATIONAL SCIENCE FOUNDATION
Ocean Acidification: Finding New Answers Through National Science Foundation Research Grants

September 26, 2012
With increasing levels of carbon dioxide accumulating in the atmosphere and moving into marine systems, the world's oceans are becoming more acidic.

The oceans may be acidifying faster today than at anytime in the past 300 million years, scientists have found.

To address the concern for acidifying marine ecosystems, the National Science Foundation (NSF) recently awarded new grants totaling $12 million in its Ocean Acidification program.

The program is part of NSF's Science, Engineering and Education for Sustainability (SEES) investment.

The awards, the second round in this program, are supported by NSF's Directorates for Geosciences and Biological Sciences, and Office of Polar Programs.

From tropical oceans to icy seas, the projects will foster research on the nature, extent and effects of ocean acidification on marine environments and organisms in the past, present and future.

"With this round of awards, NSF has an increasingly diverse portfolio of research projects on ocean acidification," says David Garrison, program director in NSF's Directorate for Geosciences and chair of NSF's Ocean Acidification Working Group.

"These scientists will make major contributions to understanding this serious environmental threat," says Garrison.

"We look forward to building on this effort over the next few years, and expect that ocean acidification research will be a major contribution to SEES efforts at NSF."

Ocean acidification affects marine ecosystems, organisms' life histories, ocean food webs and biogeochemical cycling, scientists have discovered.

The researchers believe there is a need to understand the chemistry of ocean acidification and its interplay with marine biochemical and physiological processes before Earth's seas become inhospitable to life as it is known today.

Animal species from pteropods--delicate, butterfly-like planktonic drifters--to hard corals are affected by ocean acidification. So, too, are the unseen microbes that fuel ocean productivity and influence the chemical functioning of ocean waters.

As the oceans become more acidic, the balance of molecules needed for shell-bearing organisms to manufacture shells and skeletons is altered.

The physiology of many marine species, from microbes to fish, may be affected. A myriad of chemical reactions and cycles are influenced by the pH, or acidity, of the oceans.

"The Ocean Acidification awards address how organisms detect carbon dioxide and levels of acidity, and regulate these variables in their cells and body fluids," says William Zamer, program director in NSF's Directorate for Biological Sciences.

"These projects include studies of whether populations of animals have the genetic capacity to adapt to ocean acidification. The findings will yield new insights about how a future more acidic ocean will affect marine life."

Has ocean life faced similar challenges in our planet's past?

Earth system history informs our understanding of the effects of ocean acidification in the present and the future, says Garrison.

For a true comprehension of how acidification will change the oceans, he says, we must integrate paleoecology with marine chemistry, physics, ecology and an understanding of the past environmental conditions on Earth.

Overall, Ocean Acidification grantees will ask questions such as will regional differences in marine chemistry and physics increase acidification? Are there complex interactions, cascades and bottlenecks that will emerge as the oceans acidify, and what are their ecosystem implications? And if current trends continue, how far-reaching will the changes be?

U.S. SECURITIES AND EXCHANGE COMMISSION

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to help educate investors about affinity fraud, a type of investment scam that preys upon members of identifiable groups, such as religious or ethnic communities or the elderly.

What is Affinity Fraud?

Affinity fraud almost always involves either a fake investment or an investment where the fraudster lies about important details (such as the risk of loss, the track record of the investment, or the background of the promoter of the scheme). Many affinity frauds are Ponzi or pyramid schemes, where money given to the promoter by new investors is paid to earlier investors to create the illusion that the so-called investment is successful. This tricks new investors into investing in the scheme, and lulls existing investors into believing their investments are safe. In reality, even if there really is an actual investment, the investment typically makes little or no profit. The fraudster simply takes new investors’ money for the fraudster’s own personal use, often using some of it to pay off existing investors who may be growing suspicious. Eventually, when the supply of investor money dries up and current investors demand to be paid, the scheme collapses and investors discover that most or all of their money is gone.

How Does Affinity Fraud Work?

Fraudsters who carry out affinity scams frequently are (or pretend to be) members of the group they are trying to defraud. The group could be a religious group, such as a particular denomination or church. It could be an ethnic group or an immigrant community. It could be a racial minority. It could be members of a particular workforce – even members of the military have been targets of these frauds. Fraudsters target any group they think they can convince to trust them with the group members’ hard-earned savings.

At its core, affinity fraud exploits the trust and friendship that exist in groups of people who have something in common. Fraudsters use a number of methods to get access to the group. A common way is by enlisting respected leaders from within the group to spread the word about the scheme. Those leaders may not realize the "investment" is actually a scam, and they may become unwitting victims of the fraud themselves.

Because of the tight-knit structure of many groups, it can be difficult for regulators or law enforcement officials to detect an affinity scam. Victims often fail to notify authorities or pursue legal remedies. Instead, they try to work things out within the group. This is particularly true where the fraudsters have used respected community or religious leaders to convince others to join the investment.

How to Avoid Affinity Fraud

Here are a few tips to help you avoid affinity fraud.
Even if you know the person making the investment offer, be sure to research the person’s background, as well as the investment itself – no matter how trustworthy the person who brings the investment opportunity to your attention seems to be. Be aware that the person telling you about the investment may have been fooled into believing that the investment is legitimate when it is not.
Never make an investment based solely on the recommendation of a member of an organization or group to which you belong. This is especially true if the recommendation is made online. An investment pitch made through an online group of which you are a member, or on a chat room or bulletin board catered to an interest you have, may be a fraud.
Do not fall for investments that promise spectacular profits or "guaranteed" returns. Similarly, be extremely leery of any investment that is said to have no risks. Very few investments are risk-free. Promises of quick and high profits, with little or no risk, are classic warning signs of fraud.
Be skeptical of any investment opportunity that you can’t get put in writing. Fraudsters often avoid putting things in writing. Avoid an investment if you are told they do "not have the time to put in writing" the particulars about the investment. You should also be suspicious if you are told to keep the investment opportunity confidential or a secret.
Don’t be pressured or rushed into buying an investment before you have a chance to research the "opportunity." Just because someone you know made money, or claims to have made money, doesn’t mean you will, too. Be especially skeptical of investments that are pitched as "once-in-a-lifetime" opportunities, particularly when the salesperson bases the recommendation on "inside" or confidential information.
Recent Affinity Fraud Schemes

Ponzi scheme promoters raised almost $6 million from nearly 80 evangelical Christian investors through fraudulent, unregistered offerings of stock and short-term, high-yield promissory notes issued by their company, which was marketed as a voice-over-internet-protocol video services provider around the world.

Fraudster raised nearly $11 million claiming returns as high as 26%. He typically met and pitched prospective investors over meals at expensive restaurants in and around Fort Lauderdale. His clients typically came to him through word-of-mouth referrals among friends and relatives. A significant number of the victims of his scheme were members of the gay community in Wilton Manors, Florida.

TV and teens’ weight

TV and teens’ weight

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
Flight deck crewmen remove chock and chains from a Brazilian navy MK.21A Super Lynx helicopter on the flight deck of the Ticonderoga-class guided-missile cruiser USS Anzio (CG 68) during UNITAS Atlantic 2012. UNITAS is an annual multi-national exercise that involves naval forces from 13 partner nations to promote interoperability and cooperation with each other and is hosted by U.S. Fourth Fleet. U.S. Navy photo by Mass Communications Specialist 3rd Class Frank J. Pikul (Released) 120925-N-ZE938-041

Landing Craft Air Cushion (LCAC) 10, bottom, assigned to Naval Beach Unit (NBU) 7, passes by LCAC 9 during well deck operations aboard the amphibious assault ship USS Bonhomme Richard (LHD 6). Bonhomme Richard is the lead ship of the only forward-deployed amphibious ready group and is operating in the U.S. 7th Fleet area of responsibility. U.S. Navy photo by Mass Communication Specialist 2nd Class Michael Russell (Released) 120925-N-KB563-060

U.S. STATE DEPARTMENT SPRECIAL BRIEFING ON MEETINGS BETWEEN U.S., JORDAN AND THE PALESTINIAN AUTHORITY



CREDIT:  U.S. STATE DEPARTMENT

FROM: U.S. DEPARTMENT OF STATE
Background Briefing on the Secretary's Bilateral Meetings With Jordanian King Abdullah II and Palestinian Authority President Mahmoud Abbas
Special Briefing

Senior State Department Official
Waldorf Astoria Hotel
New York City
September 26, 2012
MODERATOR: All right, everybody. Thank you for hanging with us for the late hour. We have with us [Senior State Department Official], hereafter Senior State Department Official, to talk to you both about the working lunch that the Secretary had with Jordanian King Abdullah, and also about the meeting that she just had with the President of the Palestinian Authority, Mr. Abbas. Take it away, [Senior State Department Official].

SENIOR STATE DEPARTMENT OFFICIAL: Okay. Well, thank you very much, and good evening. We might start with the working lunch that the Secretary had. It lasted about an hour. It was preceded by, oh, I don’t know, about 15-20 minutes of one-on-one time as well. It was over at the King’s Hotel at the Mandarin Oriental. And the participants in the lunch were, on our side, in addition to the Secretary, Acting Assistant Secretary Beth Jones, Special Envoy David Hale, (inaudible) the Policy Planning Chief, Jake Sullivan, on our side. And on their side it was the Foreign Minister Nasser Judeh, the King’s Chief of Staff Imad Fakhoury, and their Ambassador to Washington Alia Bouran.

As you know, the relationship between Jordan and the United States is one of – it’s very, very close, and between the King and the Secretary and our leadership similarly one very close. So this was a good opportunity to compare notes about developments across the region that we and the King are both focused on.

I’d say that it really boiled down to three topics. One was Middle East peace and the Israeli-Palestinian set of issues. The second related to Syria, which of course is a major challenge for Jordan. And third, the internal reform agenda of the King and the people of Jordan.

On Middle East peace, the King has been a leader on this from the beginning. Most recently in January, he devoted a lot of time and energy and effort and showed great leadership and skill in bringing the parties together at a level below that of the leaders for a set of talks. He has been someone, along with the Foreign Minister, who has been in very close coordination with us on the way forward. We talked a bit about that, and certainly we understood that we can count on Jordan and his leadership when we need to, and we often do, to try to overcome the obstacles that are blocking the parties right now.

On Syria, I think that there was very lengthy discussion about the terrible situation there and the options to try to reverse that and change it. The humanitarian situation, which weighs very heavily on Jordan, was also a major theme – the refugee flows and the danger that there will be more to come into Jordan and the challenges and burdens that that poses on that country with its limited resources. The Secretary talked about what we could do to help the Jordanians bear that burden and to work with the international community and the UN and others to make sure that the resources were available for them to do that.

There was also a discussion, obviously, of the political situation there and how we would work together and work – and try to encourage the Syrian opposition to work together on a unity plan. And there was an agreement that we would be working and talking more about this on Friday when there is a Friends of the Syrian Opposition Ad Hoc meeting. So this is something that we’re both very much focused on. And of course, the Secretary made very clear our position on President Assad and the fact that he must go.

On the set of reform issues, the King was very upbeat and very optimistic about the direction things are going in and the pace at which they’re going in. Secretary Clinton welcomed the progress that has been made so far to broaden and deepen participation in the political process for all Jordanians, by all Jordanians, and expressed our support for pursuing that in the way that he described. That, in a nutshell, was the discussion with the Jordanians, so I move onto the Palestinians.

We had a meeting there with – at his hotel at the Grand Hyatt – that lasted for about half an hour, and then they had another 10 minutes or so one-on-one. In the larger meeting, participation on our side was Ambassador Susan Rice, Under Secretary of State Sherman, Michael Ratney, our Consul General in Jerusalem who came here for the meeting, Acting Assistant Secretary Beth Jones from the Near East Bureau, Special Envoy David Hale, and Policy Planning Director Jake Sullivan. On the Palestinian side the participants were their lead negotiator Saeb Erekat and key advisors to the President, Akram Haniyeh, Nabil Aburudainah, and their representative – the PLO representative in Washington, Maen Areikat.

The discussion also, as always I think with Abu Mazen, covered a whole range of issues. He is watching the region very closely and he has been a leader of the Palestinian people for a very long time, and his insights and observations are of great interest to us, and he shared them. They compared notes on really everything you could think of – Syria certainly, Lebanon, Jordan, Iran, Egypt, and all the changes going on around the Palestinians. And certainly, we recognize that these events reflect on the Palestinians and the choices that they have as they look at the future.


The Secretary also asked him about the situation in the West Bank and expressed her concern for what we’ve seen in terms of the financial and economic pressures and challenges that the Palestinian people are enduring and the Palestinian Authority trying to address. He went on at some length about that and about the difficulties.

We indicated that we are looking at every means we can to help the Palestinian Authority meet these financial challenges. There was a major event that we hold twice a year earlier this week. The Ad Hoc Liaison Committee met, chaired by the Norwegians and co-chaired by the United States and the EU, in which all the donors involved with the Palestinians came together and talked about ways in which they could help make a difference.


The Secretary also talked about our own assistance and the status of that as we work with our Congress to – the assistance package is now with the Hill, and her efforts to work with Congress so we could get that money to the Palestinian Authority, including a crucial $200 million in budget – direct budget support. And we also talked about what could be done on the ground, in the here and now, as Prime Minister Fayyad often calls it, to help overcome the difficulties.

We also, of course, turned to the Middle East peace process and the efforts that we’ve been working on to try to overcome the differences separating the parties, exchanged ideas on how to do that. And we certainly plan to continue our intensive work in that direction.

I think I’ll stop there, unless, [Moderator], you want me to cover any other topics.



PHOTO:  THE DEAD SEA.  CREDIT:  CIA WORLD FACTBOOK 

MODERATOR:
No, I think that’s good.

SENIOR STATE DEPARTMENT OFFICIAL: But those are the main themes that we discussed this evening.

MODERATOR: Questions? Michel.

QUESTION: Will there be a meeting between President Abbas and Prime Minister Netanyahu, since both of them are in the (inaudible)?

SENIOR STATE DEPARTMENT OFFICIAL: Yeah. They are both going to be here tomorrow, but I don’t know of any plans. You, of course, would have to ask them, but I’m not aware of any between them.

QUESTION: But are you trying to (inaudible)?

SENIOR STATE DEPARTMENT OFFICIAL: No. We’re not anticipating a meeting like that now. We do want to – of course, have a long-term objective of resuming direct talks, but at this stage, I don’t anticipate any encounter like that.

MODERATOR: Jo.

QUESTION: Is there a Quartet (inaudible)?

SENIOR STATE DEPARTMENT OFFICIAL: The Quartet envoys met earlier this week on Monday. Tony Blair joined us. The Quartet principals, as we call them, will not be meeting this week. They’ve met twice this year already. I have every expectation there’ll be another meeting at some stage down the road. We’re in complete coordination. The envoys are – talk all the time. We’ve had, by last count, eight meetings or conference calls since the beginning of the summer. So we have a work plan, we’re working on it, and there’s really no urgent need to meet right now.

MODERATOR: Anybody else? Michel.

QUESTION: President Abbas will have a speech tomorrow, and he will ask the General Assembly to recognize the state of Palestine. Have you discussed this issue with him, and do you encourage him to ask the General Assembly recognizing the state of Palestine?

SENIOR STATE DEPARTMENT OFFICIAL: Well, we have had conversations with President Abbas on this topic, including this evening. I think that obviously we’ll have to wait and see what the President does tomorrow. I think that he’s been talking about this initiative for quite some time, so it’s not news that he has this ambition.

We’ve made clear all along our position on this to him publicly, privately, in every way, so there are no surprises on our part. And I don’t know that there’ll be – certainly, we have made very clear that our goal is to resume direct talks and that the idea of going to the UN is not the road that takes us there. So, as I said though, we’ll see what happens tomorrow.

MODERATOR:

Anything else? All right. Thank you very much.

MAN PLEADS GUILTY TO TRAFFICKING IN COUNTERFEIT GM DIAGNOSTIC EQUIPMENT

Photo Credit: Wikimedia

 . 

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, September 26, 2012

 

Virginia man pleaded guilty today in federal court to selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and FBI Assistant Director Joseph Demarest.

 

Justin DeMatteo, 31, of Saxe, Va., pleaded guilty before Senior U.S. District Judge Claude M. Hilton in U.S. District Court in the Eastern District of Virginia to an information charging him with one count of trafficking in goods bearing counterfeit marks. DeMatteo, in a plea agreement with the government, also agreed to pay restitution of $328,500 (the full amount of GM’s losses) and forfeit $109.074 and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011 . Sentencing is scheduled for Jan. 11, 2013.



In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded "Tech 2" vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.

DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via Paypal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.

The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit.