ATTORNEY GENERAL HOLDER SPEAKS ON HUGE MEDICARE FRAUD TAKEDOWN

FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Health Care Fraud Takedown Press Conference

Washington, D.C. ~ Thursday, October 4, 2012

Good afternoon. Today I’m joined by Department of Health and Human Services Secretary, Kathleen Sebelius; Assistant Attorney General of the Justice Department’s Criminal Division, Lanny Breuer; FBI Associate Deputy Director, Kevin Perkins; HHS Inspector General for Investigations, Daniel R. Levinson; and Deputy Administrator for Program Integrity of the Centers for Medicare and Medicaid Services, Dr. Peter Budetti – to announce a critical step forward in our ongoing fight against health care fraud.

Over the last 24 hours, Medicare Fraud Strike Force operations in seven different cities have conducted one of the largest health care fraud takedowns on record. Through a series of coordinated, nationwide law enforcement actions, charges have been brought against 91 individuals – including doctors, nurses, and other licensed medical professionals – for their alleged participation in fraud schemes involving nearly $430 million in false billings. That total includes over $230 million in home health care fraud, more than $100 million in mental health care fraud, and approximately $49 million in ambulance transportation fraud. Thanks to the outstanding work of federal authorities – and the assistance of state and local partners – as of today, most of these individuals have been arrested or surrendered.

Charges against these defendants include health care fraud, conspiracy to commit health care fraud, wire fraud, violations of the anti-kickback statutes, aggravated identity theft, and money laundering. These charges are based on a variety of allegedly fraudulent activities involving treatments and services that were either medically unnecessary or, in some cases, never actually rendered – ranging from home health care and mental health services, to psychotherapy, physical and occupational therapy, durable medical equipment services, and the largest ambulance fraud scheme ever prosecuted by the Medicare Fraud Strike Force.

Such activities not only siphon precious taxpayer resources, drive up health care costs, and jeopardize the strength of the Medicare program – they also disproportionately victimize the most vulnerable members of society, including elderly, disabled, and impoverished Americans. And, unfortunately, we allege that many of those charged today not only broke the law – but also violated their professional obligations, and sacred oaths, as medical practitioners. For example, in one case in Dallas, a doctor and two registered nurses are charged with writing more than 30,000 prescriptions for over 2,000 Medicare beneficiaries, resulting in roughly $100 million in fraud. These alleged actions represent an alarming, and unacceptable, nationwide trend – of individuals attempting to exploit federal health care programs – and, collectively, to steal billions in taxpayer dollars – for personal gain.

But we are fighting back. And today’s takedown underscores the fact that federal efforts to combat health care fraud have never been more strategic, more comprehensive, or more effective.

Since the creation of the Health Care Fraud Prevention and Enforcement Action Team – known as "HEAT" – in May of 2009, preventing and shutting down health care fraud schemes has become a top priority – for DOJ and HHS, for the entire Administration, and for our partners at every level of government and across both the public and private sectors. Today’s announcement represents the fifth significant enforcement action taken under HEAT. And there’s no question that this level of commitment is paying dividends.

Joint DOJ/HHS Medicare Fraud Strike Forces are now operating in 9 locations nationwide – in Miami, Los Angeles, Detroit, Houston, Brooklyn, Baton Rouge, Tampa, Chicago, and Dallas. Since the first Strike Force was launched in 2007, these teams have charged nearly 1,500 defendants for falsely billing the Medicare program more than $4.8 billion. And during the last fiscal year, those convicted in Strike Force cases received an average prison sentence of four years.

In addition to disrupting health care fraud schemes and advancing prosecutions, we’re also working to return precious funds to the public coffers – and, since 2009, have been able to recover more than $10.6 billion. Over the same period, for every dollar spent on combating health care fraud, we’ve returned more than seven dollars to the U.S. Treasury, the Medicare Trust Funds, and others.

However, as today’s announcement proves, we are not yet satisfied. And, in the fight against health care fraud, we will never be complacent.

Through HEAT, we’re taking this fight to a new level – by expanding engagement with state, local, and tribal partners; by streamlining federal investigations and prosecutions; and by leveraging resources and expertise. In each of our Strike Force locations, we’re moving aggressively to eradicate health care fraud in all its forms, to strengthen federal health care programs, and to bring the perpetrators of fraud crimes to justice.

I want to thank each of the dedicated investigators, prosecutors, law enforcement officers, and other agency partners whose tireless, collaborative work has made today’s announcement possible – and who stand on the front lines of our efforts to identify and shut down large-scale fraud schemes, like those detailed in the indictments handed down today.

Their actions prove that, despite the size of the challenge we face, progress is possible. And their dedication to this work is sending a clear message to those willing or attempting to commit health care fraud: that we will use every available tool and resource to find you, to stop you, and to punish you to the fullest extent of the law.

At this time, it is my privilege to turn things over to another critical leader in this work – my good friend, Secretary Kathleen Sebelius – who will provide additional information on today’s actions, as well as our efforts to build on this success and to carry this work into the future.

INTEGRATION OF BUSINESS TECHNIQUES WITH MILITARY ACQUISTIONS

Army Maj. Matthew Bisswurm, plans and operations officer with the 903rd Contingency Contracting Battalion in Kaiserslautern, Germany, was selected for a position at Google Inc. as part of the Army's Training with Industry Program. U.S. Army photo  

FROM:  U.S. DEPARTMENT OF DEFENSE

Face of Defense: Army Acquisition Officer Works With Google
By Jonathan Pruett
21st Theater Sustainment Command

KAISERSLAUTERN, Germany, Oct. 5, 2012 - An Army acquisition officer assigned here is the first in his branch selected to work with Google Inc. as part of the Army's Training with Industry Program.

Maj. Matthew Bisswurm, plans and operations officer with the 903rd Contingency Contracting Battalion, 409th Contracting Support Brigade, began his one-year internship with the Fortune 100 company in August and will bring back to the Army any lessons learned.

"I'm looking to bring some of the innovative processes and successful techniques that Google has used, and help integrate them into the Army," Bisswurm said.

The Army, as well as the acquisition career field, has prepared Bisswurm for this opportunity.

"I love the expeditionary side of contingency contracting," Bisswurm said. "I love doing missions, and I love being on a team."

One of the objectives of the TWI is to provide soldiers hands-on experience in top defense, information technology and pioneering commercial companies, officials said. The program helps improve communication between commercial industry and the Army. Working with major corporations helps the Army speak the same language as its industry partners.

Bisswurm joined the Army in 2000 and made the transition into contracting in 2008 following a second combat deployment to Iraq.

"I wanted to broaden my skills," he said. "Being in a combat deployment, I saw the direct impact contracting had on the warfighter."

Bisswurm said he wants to use the skills he learns at Google and take them back with him to his next assignment.

"I want to have a different perspective on decision making, theory, manufacturing, and problem solving," he said. "I think the Army gains ten-fold on this program. The experience and insight are immeasurable."

Selected officers, warrant officers and noncommissioned officers are placed in jobs with industry partners and exposed to innovative industrial management tactics, techniques and procedures that can benefit the Army, officials said.

After completing the training, participants are immediately placed in a mandatory follow-on Army assignment to improve the Army's ability to interact and conduct business with industry.

"We want our guys to benchmark lessons learned and effect positive change in the Army Acquisition Corps," said Scott Green, acquisition education and training branch chief, U.S. Army Acquisition Support Center.

MERCURY AND LAKE SUPERIOR FISH

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Awards Grant to Protect Women and Children from Mercury in Lake Superior Fish
Chicago (Oct. 4, 2012) – The U.S. Environmental Protection Agency today announced a $1.4 million Great Lakes Restoration Initiative (GLRI) grant to the Minnesota Department of Health (MDH) to reduce mercury exposure risk for women and children who live along Lake Superior’s north shore. Excessive blood mercury levels have been documented in infants in this area. The funding will be used to improve health screening and to develop more effective fish consumption advisories.

"Many Great Lakes fish are unsafe to eat because of mercury contamination," said EPA Regional Administrator and Great Lakes National Program Manager Susan Hedman. "This project will help women make choices that minimize their exposure to mercury, but maximize the health benefits of eating fish."
The Grand Portage Chippewa Tribe and the Sawtooth Mountain Clinics in Grand Portage and Grand Marais, Minnesota will participate in the MDH project. Physicians affiliated with the clinics will survey consenting female patients of childbearing age about fish consumption and test blood mercury levels. Patients will also be counseled to promote safe fish consumption choices.

The work supported by the grant will build on an earlier EPA-funded study which was completed last year by MDH. In that study, 1,465 newborns in the Lake Superior Basin – including 139 infants from Wisconsin and 200 from Michigan – were tested for mercury in their blood. The study found that 8 percent of the infants had mercury levels higher than those recommended as safe by EPA.

"In our prior study we measured mercury levels in the blood of newborns in the Lake Superior Basin and found that these infants were, in fact, being exposed to mercury," said Aggie Leitheiser, Assistant Commissioner of Health, Minnesota Department of Health. "We strongly suspect – but we don’t know for certain – that the mercury came from eating fish. The new EPA grant will fund work to identify and test new strategies for addressing this issue."

"Fish are critical to the diets of people all over Minnesota and all around the Great Lakes region – including members of Minnesota's Native Tribes," said Sen. Al Franken. "That's why it's so important that we do everything we can to protect Minnesotans from dangerous contaminants like mercury that can become concentrated in fish. For years, I've been working to support efforts to protect Minnesotans' health and restore the Great Lakes – including the Great Lakes Restoration Initiative – and I'm so pleased that the Minnesota Department of Health and Grand Portage Band of Lake Superior Chippewa have received this funding."

"The Great Lakes region has some of the highest levels of mercury in the country. We know this neurotoxin has serious consequences for pregnant women and children. This grant will help the Minnesota Department of Health move forward with a strategic approach to reduce prenatal mercury exposure from fish consumption," said U.S. Representative Betty McCollum.

1ST SPACE OPEATIONS SQUADRON CELABRATES ONE YEAR ORS-1 ANNIVERSARY

FROM: U.S. AIR FORCE SPACE COMMAND
Col. James Ross, 50th Space Wing commander, celebrates Operationally Responsive Space-1's latest milestone with the 1st Space Operation Squadron here Sept. 28

1 SOPS celebrates one year with ORS-1
by Staff Sgt. Robert Cloys
50th Space Wing Public Affairs

10/2/2012 - SCHRIEVER AIR FORCE BASE, Colo. -- The 1st Space Operations Squadron celebrated one year of sending operational data to U.S. Central Command via Operationally Responsive Space-1 Sept. 29.

Launched in June 2011, ORS-1 is the first satellite in the Operationally Responsive Space Program and Air Force Space Command's first dedicated intelligence, surveillance and reconnaissance asset providing critical imagery capability to CENTCOM.

"The significance of this milestone cannot be understated for 1 SOPS, the 50th Space Wing and even Air Force Space Command. In many ways, ORS-1 is redefining how we do satellite operations," said Col. Tommy Roberts, 50th Operations Group commander.

"Thanks to the lessons learned and the innovations during the past year, 1 SOPS is aggressively moving this mission area forward on numerous fronts."

Taking only three years to develop from concept to launch and orbit, ORS-1 distinguished itself through its rapid deployment.

"With ORS-1 Air Force Space Command proved it could deliver exceptional space capabilities faster and cheaper to meet urgent needs of the joint force," said Lt. Col. Mike Manor, 1 SOPS commander, during a ceremony here Sept. 28. "This system has demonstrated innovation is not just a buzz word, but alive and well in the 50th Space Wing, and has truly become the hallmark of how our squadron operates."

ORS-1 was built maximizing the use of existing capabilities, systems and architectures. Its payload technology was derived from a camera developed for use aboard U-2 spy planes decades ago. By attaching a larger telescope contractors gave the system adequate resolution from orbit.

Innovative thinking led to success operationally as well as recognition.

Shortly after 1 SOPS took satellite control authority, C4ISR Journal, an intelligence, surveillance and reconnaissance industry magazine named the satellite system to its Big-25 list as one of the top 25 most important ISR concepts of the year. The journal then listed ORS-1 as a Top Five Sensor in 2011. The satellite also received a nomination for the Air Force Space Command Getty award as well as two others.

More recently, ORS-1 was awarded the 2012 Mission Sustainment Integrated Product Team award in September for providing urgent-need imaging to CENTCOM at 20 percent of the cost of traditional satellite systems.

ORS-1 is proof that the Air Force can respond to the needs of the warfighter efficiently.

"During the past year, I've observed a squadron full of people working diligently to make sure that ORS-1 far exceeded the user's expectations," said 1st Lt. Sarah Stewart, ORS-1 space vehicle engineer. "It's amazing how far we have come since launch and early orbit. ORS-1 has continuously proven that with hard work and dedication, you can do more with less."

With such a successful start, Manor is sure there is much more to come.
"We're taking a moment to celebrate, but this is just the beginning for our team and this outstanding satellite," he said.


　

SEC CHARGES BROKERS WITH OVERCHARGING CUSTOMERS $18.7 MILLION

Credit:;  Wikimedia

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Oct. 5, 2012 – The Securities and Exchange Commission today charged four brokers who formerly worked on the cash desk at a New York-based broker-dealer with illegally overcharging customers $18.7 million by using hidden markups and markdowns and secretly keeping portions of profitable customer trades.

The SEC alleges that the brokers purported to charge customers very low commission fees that were typically pennies or fractions of pennies per transaction, but in reality they were reporting false prices when executing the orders to purchase and sell securities on behalf of their customers. The brokers made their scheme especially difficult to detect because they deceptively charged the markups and markdowns during times of market volatility in order to conceal the fraudulent nature of the prices they were reporting to their customers. The surreptitiously embedded markups and markdowns ranged from a few dollars to $228,000 and involved more than 36,000 transactions during a four-year period. Some fees were altered by more than 1000 percent of what was being told to customers.

The SEC further alleges that when a customer placed a limit order seeking to purchase shares at a specified maximum price, the brokers filled the order at the customer’s limit price but used opportune times to sell a portion of that order back to the market to obtain a secret profit for the firm. They falsely reported back to the customer that they could not fill the order at the limit price. Meanwhile, the brokers made millions of dollars in illicit performance bonuses based on the fraudulent earnings they were generating on the cash desk.

The brokers charged in the SEC’s complaint are Marek Leszczynski, Benjamin Chouchane, Gregory Reyftmann, and Henry Condron.

"These brokers stole millions of dollars by overcharging customers for trades involving stocks with high trading volumes and price volatility, which are characteristics they wrongly thought would conceal their illicit pricing scheme," said Robert Khuzami, Director of the SEC’s Division of Enforcement. "They underestimated the SEC’s ability and resolve to pursue such illegal schemes."
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Leszczynski and Chouchane. Condron has pled guilty to criminal charges.

According to the SEC’s complaint filed in federal court in Manhattan, the brokers were employed at an interdealer broker firm. Interdealer brokers typically operate only as agents and execute large volumes of securities trades on behalf of customers for low commissions. The cash desk where these brokers worked executed trades in U.S. and Canadian stocks, and customers were primarily large foreign institutions and foreign banks. The firm’s internal records show that customers were to be charged flat commission rates between $0.005 and $0.02 per share.

The SEC’s complaint alleges that the scheme spanned from 2005 to 2009. Reyftmann, Chouchane, and Leszczynski were sales brokers on the cash desk who were responsible for finding customers, developing relationships, and taking orders from customers. Reyftmann supervised the cash desk. Condron was a sales trader and middle-office assistant on the cash desk who entered orders received from the sales brokers and ensured the orders were executed.

The SEC alleges that the fraudulent scheme worked as follows:
Leszczynski, Chouchane, or Reyftmann received a customer order by phone, instant message, or e-mail and gave the order to Condron, who executed the trade.
Condron recorded the actual execution price on the trade blotter and informed the sales brokers of the execution.
Shortly after the trade was executed, Leszczynski, Chouchane, or Reyftmann examined other market executions around the time of the actual execution to determine whether the stock price fluctuated.
If the stock price’s fluctuation was favorable to the firm and sufficient to conceal the fraud from customers, the sales brokers instructed Condron to record a false execution price in the gross price field on their internal trade blotter.
Leszczynski, Chouchane, Reyftmann, or Condron then reported the false execution price and the commission to the customers.
The SEC alleges that the brokers further defrauded customers by stealing portions of their profitable trades and keeping them for the firm:
After receiving and executing a customer’s limit order to buy shares, Reyftmann, Chouchane, or Leszczynski looked for an opportunity to sell that same stock at a higher price than the price at which the customer’s trade was executed.
Leszczynski, Chouchane, or Reyftmann then instructed Condron to sell a portion of that customer execution back at the higher price.
Rather than properly recording the actual price and quantity of the order fill, Condron entered a partial fill into the trade blotter, keeping the secret profits for the firm.
Leszczynski, Chouchane, Reyftmann, or Condron then reported a partial fill to the customer, falsely stating that they were unable to fully execute the customer’s limit order.
Meanwhile, the SEC alleges that the brokers’ scheme enriched not only the firm but themselves as well. The four brokers received substantial performance bonuses totaling more than $15.6 million based, in part, on the fraudulent earnings generated by the cash desk.

The SEC alleges that Leszczynski, Chouchane, Reyftmann, and Condron violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking disgorgement of ill-gotten gains with prejudgment interest, financial penalties, and a permanent injunction against the brokers.

The SEC’s investigation, which is continuing, has been conducted by Mary P. Hansen (Assistant Director in the Market Abuse Unit in the Philadelphia Regional Office), A. Kristina Littman (Senior Counsel in the Philadelphia office) and Darren Boerner (Specialist in the Market Abuse Unit in the Chicago Regional Office). G. Jeffrey Boujoukos (Regional Trial Counsel) and John V. Donnelly (Senior Trial Counsel) in the Philadelphia office are handling the litigation.

The SEC acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation

NSA AND U.S. CYBERSECURITY

From:  U.S. Department of Defense

FROM: U.S. DEPARTMENT OF DEFENSE
U.S. Should Lead Cybersecurity Efforts, NSA Director Says
By Amaani Lyle
American Forces Press Service

WASHINGTON, Oct. 4, 2012 - Analyzing and solving the challenge of cybersecurity is critical to the global economy, the National Security Agency director said during the U.S. Chamber of Commerce Cybersecurity Summit here today.

U.S. Army Gen. Keith Alexander, who also heads U.S. Cyber Command and the Central Security Service, discussed the costs and consequences of cybersecurity issues on commerce during his keynote address at the summit.

Well-known, seemingly invulnerable companies such as Symantec, L3, Sony, Google, Visa and even the U.S. Chamber of Commerce itself have been hacked, Alexander said, noting that even the military and government agencies have fallen prey to hackers.

"Either you know you've been hacked, or you've been hacked and you don't know you've been hacked," Alexander said. The greatest threats stem from theft of intellectual property, and disruptive attacks, Alexander said, citing examples since May 2007 that include attacks against Estonia, Georgia, Latvia and Lithuania.
"Distributed denial of service attacks ... are gaining in momentum, intensity and frequency," he said, emphasizing the urgency of defending the United States from attacks and exploitation.

Industry partnership with government agencies such as the Defense Department, Department of Homeland Security, and Federal Bureau of Investigation to counter threats will be a critical component of fortifying cybersecurity, Alexander said, noting that U.S. should develop the solution.

"Our country ... built this Internet and all the stuff that goes with it, and it is absolutely superb," Alexander said. "We're the nation that developed the Internet; we ought to be the first to secure it."

According to Alexander, last year, the average number of emails sent per day was 419,000 billion, or about 70 emails per person. Additionally, there were 4.7 billion Google searches per day and still billions of steadily increasing bytes of global traffic, the general explained.

From a commerce perspective, the growth of new major companies in less than a decade demonstrates the importance of protecting intellectual property and proprietary information, Alexander said. The general offered compelling examples of growth and how quickly it could have been stymied if privileged information had been compromised.

In 2002, he said, Amazon was worth $851 million, compared to $12.83 billion today. Apple, worth $5.7 billion in 2002, is now worth a staggering $148 billion today. Google, worth $3.1 billion in 2004, is now valued at $43 billion in 2012, he said. "The value ... is extraordinary," Alexander said, adding that the government depends on similar networks to defend the country.

"If we've all been hacked, that means that we can all be attacked, and if we can be attacked, we have a vulnerability that ... is critical to the operation of this country," the general said.

Education, training and a defensible architecture such as cloud computing, however, can help steel government networks from such vulnerabilities, Alexander explained. "The cloud ... has tremendous opportunities for a more defensible architecture," Alexander said. "So ... the Defense Department and the [intelligence] community moving to a thin, virtual client approach makes a lot of sense."

Alexander also noted the importance of military, government and industry developing a common view of cyberspace issues and their solutions. "We have to have that understanding, especially when you talk to your [chief executive officers] and others about the solutions that you're trying to put in there," he said.

U.S. SECRETARY OF STATE CLINTON COMMENTS ON PHILIPPINE FRAMEWORK AGREEMENT REGARDING MILF

FROM: U.S. STATE DEPARTMENT

Finalization of the Philippines - Moro Islamic Liberation Front Framework Agreement
Remarks
Hillary Rodham Clinton
Secretary of State
Washington, DC
October 7, 2012

The United States welcomes the announcement of the framework agreement between the Government of the Philippines and the Moro Islamic Liberation Front. This agreement is a testament to the commitment of all sides for a peaceful resolution to the conflict in the southern Philippines. The next steps will be to ensure that the framework agreement is fully implemented. We encourage all parties to work together to build peace, prosperity and greater opportunities for all the people of the Philippines.

MORE INFORMATION FROM U.S. STATE DEPARTMENT

U.S.-PHILIPPINES RELATIONS
The United States recognized the Philippines as an independent state and established diplomatic relations with it in 1946. Except for the 1942-45 Japanese occupation during World War II, the Philippines had been under U.S. sovereignty since the end of the Spanish-American War in 1898.

U.S.-Philippine relations are based on strong historical and cultural links and a commitment to democracy and human rights. The United States has designated the Philippines as a Major Non-NATO Ally, and there are close and abiding security ties between the two nations. The Manila Declaration signed in 2011 reaffirmed the 1951 U.S.-Philippines Mutual Defense Treaty as the foundation for a robust, balanced, and responsive security partnership. There is also a focus on economic, commercial, and people-to-people ties. There are an estimated four million Americans of Philippine ancestry in the United States, and more than 300,000 U.S. citizens in the Philippines. An estimated 600,000 Americans visit the Philippines each year. Many people-to-people programs exist between the United States and the Philippines, including Fulbright, International Visitors, and Aquino Fellowship exchange programs.

FROM: CIA WORLD FACTBOOK

The Philippine Government faces threats from several groups, some of which are on the US Government's Foreign Terrorist Organization list. Manila has waged a decades-long struggle against ethnic Moro insurgencies in the southern Philippines, which has led to a peace accord with the Moro National Liberation Front and on-again/off-again peace talks with the Moro Islamic Liberation Front. The decades-long Maoist-inspired New People's Army insurgency also operates through much of the country. The Philippines faces increased tension with China over disputed territorial claims in the South China Sea.

CONVICTED FELON FRAUDSTER CHARGED WITH STEERING RETIREES TO FRAUDULENT INVESTMENT SCHEMES

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Charges Unlicensed Financial Advisor James S. Quay for Defrauding Investors in Atlanta Area

The Securities and Exchange Commission today charged an Atlanta-based unlicensed financial advisor with a history of steering retirees into fraudulent investment schemes with defrauding two elderly women he convinced to invest with him directly.

The SEC alleges that James S. Quay (Quay) and his brother Jeffrey A. Quay facilitated a scheme in which the women invested $560,000 with the understanding that they were investing in a covered-call equities trading program. The Quays created a sham limited partnership called Trinity Charitable Solutions (TCS) to purportedly operate the program. However, TCS never became a legal entity, and instead the Quays merely deposited the investors’ money in a Scottrade account and personally misused at least $180,000 to afford mortgage payments, lavish restaurant meals, and membership at a massage spa.

According to the SEC’s complaint filed in U.S. District Court for the Northern District of Georgia, Quay concealed from these two women and other investors that he is a convicted felon and disbarred attorney. Previously, Quay steered investors toward fraudulent investment opportunities from which he received $1.4 million in illicit sales commissions. For instance, Quay was an active sales agent and recruiter for a multi-million dollar Ponzi scheme conducted by a Georgia attorney and a scheme involving an unregistered covered-call equities trading program. He has used various aliases and fake names including Jim Quay, Stephen Quay, and Stephen Jameson.

The SEC alleges that Quay would often host free dinner seminars that target retirees in order to gain their trust. Quay would then encourage the attendees to schedule private consultations with him to discuss their financial situation in greater detail. Attendees would receive a biography that detailed Quay’s educational background and professional designations. The follow-up consultations would often take place at Quay’s personal office, where his legal diplomas, bar certification, and other professional licenses and certifications were displayed on the wall. While he would regularly tout his academic background and legal expertise, he typically would not disclose to investors his criminal background, disbarment, and loss of professional designations and licenses.

Quay agreed to settle the SEC’s charges by consenting to the entry of a final judgment by the court providing permanent injunctive relief under Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The proposed final judgment orders Quay to pay disgorgement of $1,403,638.62 plus prejudgment interest of $179,118.78 and a penalty of $450,000. Quay agreed to be permanently barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. Quay also agreed to a penny stock bar and to be barred from appearing or practicing before the SEC as an attorney or an accountant. The settlement, in which Quay neither admits nor denies the allegations, is subject to court approval. The SEC’s litigation against Jeffrey Quay remains pending.

ARIZONA STATE REPRESENTATIVE PLEADS GUILTY TO TAKING BRIBES

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, October 5, 2012

Arizona State Representative Pleads Guilty, Admits Taking Bribe to Influence Official Duties
WASHINGTON – Arizona State Representative Paul Ben Arredondo pleaded guilty today in Phoenix federal court, admitting that he solicited and took a bribe in exchange for promises of official action both as a city councilmember and a state representative. Arredondo also pleaded guilty to mail fraud, admitting that he defrauded donors to the Ben Arredondo scholarship fund. The guilty plea was announced by 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.

Arredondo pleaded guilty to depriving the citizens of the city of Tempe, Ariz., and the state of Arizona of his honest services as an elected official, and to committing mail fraud. He entered his guilty plea before U.S. Magistrate Judge Frederick J. Martone.

Arredondo, 65, of Tempe, was a Tempe city councilmember for approximately 16 years, until July 2010. In November 2010, Arredondo was elected to the House of Representatives of the Arizona State Legislature.

During his plea, Arredondo admitted that from February 2009 to November 2010, he solicited and accepted things of value, collectively a bribe, from representatives of "Company A," a fictitious company operated by FBI undercover agents that was purportedly seeking to develop real estate projects in Tempe. Arredondo took the bribe with the intent to be influenced in the performance of his official duties, first as a councilmember and later as an elected member of the Arizona House of Representatives. Arredondo admitted that the things he took included tickets to college and professional sporting events, some of which he caused to be mailed to his home, and tables at charity events with his choice of guests.

In exchange for the bribe, Arredondo agreed to take a number of official actions, including revealing confidential information to Company A – such as the price Tempe would be willing to accept for property and the best way to present a purchase proposal. He also agreed to use his position as a councilmember to influence the decisions of other Tempe officials in ways that were favorable to Company A; to contact various Tempe officials to facilitate and promote the company’s efforts to win support for its real estate project; and, following his election to the Arizona House of Representatives, to assure representatives of Company A that he would continue to support Company A’s project. Arredondo did not disclose that he had received anything of value from representatives of the company during any of his interactions with Tempe officials about Company A.

Arredondo also admitted during his plea that he fraudulently used the Arredondo Scholarship Fund – which he established in 2001 and operated through at least 2011 – to benefit his own relatives without informing donors. In support of the fund, Arredondo solicited and received contributions – in part by telling prospective donors that the Fund would pay for college fees and books for "average" students – and assured donors that fund payments would not go to those "whose parents have saved a college fund" or otherwise qualified for scholarships. Arredondo never told prospective donors that a portion of their donations would be used to make scholarship payments for the benefit of his own family members. Through 2011, Arredondo caused the scholarship fund to pay approximately $49,750 to three different educational institutions in Arizona on behalf of seven of his relatives. In furtherance of his scheme to defraud donors, he caused a letter sent to ASU on behalf of the fund which directed how payments should be allocated, stating: "The students are not the children nor any other direct relatives" of the fund’s administrators.

Arredondo pleaded guilty to one count each of honest services mail fraud and mail fraud. Each charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount gained or lost in the scheme. Sentencing has been scheduled for Jan. 22, 2013.

The case is being prosecuted by Deputy Chief M. Kendall Day and Trial Attorney 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 agents from the FBI Phoenix Field Office.

MAJOR MEDICARE FRAUD TAKEDOWN

FROM: U.S. DEPARTMENT OF JUSTICE
We are announcing charges against 91 defendants in seven Medicare Fraud Strike Force cities across the country.

From Brooklyn, to Miami, to Los Angeles, these defendants allegedly submitted approximately $430 million in fraudulent claims to the Medicare program. This represents one of the largest Medicare fraud takedowns in Department history, as measured by the amount of alleged fraudulent billings.

Today’s defendants include the owners and operators of two different hospitals, one in Miami and one in Houston; 16 medical professionals, including seven physicians, chiropractors, nurses, a psychologist, and a physical therapist.

We have made it one of our missions at the Department of Justice to hold accountable those who abuse the Medicare program for personal profit. And there are Medicare fraudsters in prisons across the country – some who will be there for decades – who can attest to our determination and our effectiveness.

Today’s actions allege multiple, brazen schemes. In Houston, for example, seven defendants are charged with running a hospital that submitted approximately $158 million in fraudulent claims to Medicare for partial hospitalization program, or PHP, services, which are designed to treat those with severe mental illness.

These defendants allegedly bribed Medicare beneficiaries with cigarettes, food and coupons redeemable for items at the hospital’s "country stores," to entice them to attend the hospital’s PHPs. But, instead of giving these beneficiaries real medical care, the hospital owners and operators allegedly plunked them in front of the television, and billed Medicare on their behalf, for millions of dollars in expensive mental health treatment.

In one of our Miami cases, the owners and operators of a psychiatric hospital are charged with paying cash kickbacks to owners and operators of assisted living facilities and halfway houses to obtain patients, and then billing Medicare for over $67 million in mental health services that were unnecessary or never even provided. The owners and operators even allegedly sought to have the government reimburse them for the kickbacks, by disguising them as legitimate expenses on cost reports submitted to Medicare.

In addition to charging today’s defendants with crimes, we are also restraining their assets. In another Miami case, for example, we are restraining 40 bank accounts, and 16 residences valued at approximately $4.6 million, that belong to the owners and operators of a home health agency charged with defrauding Medicare to the tune of approximately $74 million.

The Criminal Division will continue – together with our partners in the U.S. Attorneys’ offices, the FBI, the Department of Health and Human Services and our many state and local law enforcement colleagues – to fight Medicare fraud across the country, in the smart and effective way we have been doing.

Thank you.

EXPORT-IMPORT BANK ANNOUNCES VIETNAM ROADSHOW FOR U.S. EXPORTS

A few of the many limestone monolithic islands in Halong Bay.  Credit:  CIA World Factbook.

FROM: U.S. EXPORT-IMPORT BANK
Friday, October 5, 2012

Ex-Im to Offer Trade-Finance Seminars in Vietnam
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) is scheduled to offer a series of trade-finance seminars in cities throughout Vietnam, one of the Bank’s nine key markets, from Oct. 10 to Oct. 16 as part of a "roadshow" designed to boost U.S. exports to the region.


The half-day seminars, organized in conjunction with the American Chambers of Commerce of Hanoi and Ho Chi Minh City, will introduce the Vietnamese participants to Ex-Im Bank’s menu of products by way of outreach, training, and market sounding.

Ex-Im Bank representatives will publicize the availability of the Bank’s export financing, explain how Vietnamese companies can access the Bank’s programs, and listen to Vietnamese buyers to learn how the Bank can accommodate their needs.

"We are excited about the growth opportunities in Vietnam and want to see companies tap into Ex-Im Bank for their financing," said Ex-Im Bank Chairman and President Fred P. Hochberg. "Our exports will help grow jobs both in the United States and Vietnam."

Ex-Im Bank recently approved a $118 million direct loan to the government of Vietnam for the export of a Lockheed Martin Space Systems Company telecommunications satellite.

NEAR EARTH PLANET CENSUS SPACE TELESCOPE

FROM:  NASA-JPL PHOTOS
SIM PlanetQuest Mission
SIM PlanetQuest, scheduled for launch within the next decade, will be the most powerful planet-hunting space telescope ever devised. Using two separated mirrors and combining their light with a technique known as interferometry, SIM PlanetQuest will able to detect planets as small as Earth. These are the kind of planets that scientists believe have the most potential to support life.

Although more than 160 planets have been discovered beyond our solar system since 1995, the "holy grail" - Earthlike planets located in the habitable zone - remains beyond the reach of current telescopes.

SIM PlanetQuest will perform the first census of nearby Earth-like planets by observing the "wobble" in each parent star's apparent motion as the planet orbits, to an accuracy of one millionth of an arcsecond.

The SIM PlanetQuest study of neighboring planetary systems will set the stage for future space telescopes, like Terrestrial Planet Finder, that will be able to directly image these distant worlds, and probe their atmospheres for the signatures of life.

nasa, Image credit- NASA-JPL

NAVAIR Clips: RQ-21A Small Tactical Unmanned Aircraft System

COURT ORDERS NOTICE TO CORPUS CHRISTI RESIDENTS REGARDING ALLEGED EVNIROMENTAL CRIMES BY CITGO REFINERY

FROM:  U.S. DEPARTMENT OF JUSTICE, 
Thursday, October 4, 2012

U.S. District Court Orders Community Notice to Corpus Christi, Texas, Residents Who May Be Victims of Environmental Crimes by Citgo Refinery

WASHINGTON – Persons living around the CITGO refinery in Corpus Christi, Texas, who suffered immediate negative health effects from emissions from two large tanks at the facility that were operated between January 1994 and May 2003 in violation of the federal Clean Air Act, may be crime victims in United States v. CITGO Petroleum Corporation et al.

U.S. District Judge John D. Rainey has ordered the government to make this announcement so that any member of the community at large who believes they may be a crime victim and wishes to participate in the proceeding is made aware of their potential rights. To be able to participate, members of the community must submit by Nov. 4, 2012, (40 days from the order) a victim impact statement consistent with the Sept. 14, 2012, order, which is attached to this release. Under the Crime Victim’s Rights Act, persons who are directly and proximately harmed by the commission of a crime are crime victims and have certain, enumerated rights under the law. In this instance, community members may be considered crime victims based on the immediate negative health effects they suffered from breathing noxious fumes from Tanks 116 and 117 during the 1994 – 2003 time frame.


In June 2007, a jury convicted CITGO Petroleum Corporation and CITGO Refining and Chemicals Company L.P. for illegally operating two massive tanks at their Corpus Christi East Plant Refinery between January 1994 and March 2002. The tanks were the source of emissions including benzene, a known carcinogen, that may have affected persons in the surrounding communities of Hillcrest and Oak Park. Witnesses at the trial testified that emissions from the tanks could be detected in Oak Park and Hillcrest in the form of strong gaseous type odors.


On Sept. 25 and 26, 2007, the U.S. Department of Justice and the U.S. Environmental Protection Agency held community meetings at the Oveale Williams Senior Center in Corpus Christi during which more than 300 persons submitted victim impact statements. The current order is to identify any additional persons who may qualify as crime victims.

WORLD FOOD PROGRAM-USA AWARDS CEREMONY

FROM: U.S. DEPARTMENT OF STATE
Remarks at the World Food Program - USA Awards Ceremony Remarks

Hillary Rodham Clinton
Secretary of State
Ben Franklin Room
Washington, DC
October 3, 2012

SECRETARY CLINTON: Thank you. Thank you so much. Halima, please tell all of the women in the valley how proud I am of them and what they are doing, and thank them for taking such good care of that sweet pepper plant – (laughter) – so it would have a good yield. And thank you for coming to be with us for this event today, because really what you represent and what you just said is so important to us to know that our efforts are helping you make a difference.

And let me welcome all of you here to the State Department, to the Benjamin Franklin Room. I think Mr. Franklin would be very happy we’re having this event here. There are so many champions in the fight against hunger and food insecurity who are here with us today. I thank Frank Sesno for once again lending his experience and expertise to this important mission that we share. I thank Hunter Biden for, as was said, continuing his extraordinary family’s record of service and stewardship. Thank you so much, Hunter. And Rick Leach, who provides essential leadership for World Food Program USA.

And I also want to pay tribute to Dr. Raj Shah, who is here in his capacity as the Administrator of USAID, but the real story behind his becoming Administrator of USAID is that I stole him from USDA, where he was working on these issues and was one of our absolutely indispensible partners in conceiving and putting together Feed the Future. And under Raj’s leadership, USAID is doing an amazing job of implementing the vision that we had at the beginning of this Administration.

I also want to thank David Lane, Ambassador Lane, who is our Ambassador to the World Food Program. And it’s good to see you here and thank you for your leadership. I also want to acknowledge a dear friend, a Congressman who, upon hearing that I would be nominated to be Secretary of State, set up an appointment to talk to me about hunger. Jim McGovern, thank you for your years of commitment on these issues that affect people’s lives and futures. (Applause.)

Dan Glickman, a former Secretary at the U.S. Department of Agriculture and one of the real brains behind the Chicago Council Report on Food Security and Ending Hunger, and so many others who are here who have been involved in this struggle. And of course, we wouldn’t be here were it not for the man who inspired this award, Senator George McGovern, who his entire 90 years has been at the forefront of our nation’s fight against hunger. And I was thrilled to receive this award from him two years ago because I admire and respect the work that he’s done over a lifetime.

And then finally, the two people that we are here to honor today. You’ll hear more about David and Christina, but I am personally delighted that they would come from the world of business and entertainment and, with such passion and commitment, really give of themselves to this global issue. And we are so grateful to you both. If I could sing, Christina, I would – (laughter) – want to be on your team. (Laughter and applause.) But since I can’t, I’m glad you’re on this team. (Laughter.)

Before we hear from David and Christina, I want to take just a moment to look at how far we have come since starting this journey together four years ago. We had studied the historic trends and saw that while the Green Revolution had lifted hundreds of millions of people out of poverty, it had largely bypassed many others, especially in Africa. At the same time, if you remember back to the global economic crisis of 2008, one of the impacts was skyrocketing food prices combined with climate problems that really conspired to put so many people into hunger and malnutrition. There were, for the first time in history, more than one billion hungry people in the world.

And so the Obama Administration and partners around the world looked at how both the trend lines and the headlines were talking to us, and said: Look, we can’t wait; we have to act now. And we called on G-8 donor partners, and at the G-8 Summit in L’Aquila, they came up with the Food Security Initiative, which was an unprecedented $22 billion commitment. And the United States did our part with President Obama’s announcement of a $3.5 billion pledge, which led to our Feed the Future program.

As you saw on the video, our efforts are starting to pay off. Feed the Future has helped 9 million children get the nutrition they need to thrive, especially in those first 1,000 days from pregnancy through a child’s second birthday. We’re working with the private sector to help farmers connect with markets where they get better prices for their products. Nearly 2 million more farmers are producing the high-quality, sustainably grown products – like rice, coffee, and cacao – that businesses and customers are demanding. Now, we have an ambitious research agenda, collaborating with the private sector, on the next generation of tools that will accelerate our progress. And we will soon launch an action plan to deepen our work with civil society groups.

So we have a full agenda and we’re moving ahead. But I think it’s fair to say that we’re quite humble about the challenges ahead of us. We are racing to stay ahead of climate change, of droughts, in our country and around the world. We’re racing to stay ahead of conflict that disrupts markets and terrorizes smallholder farmers, particularly women. We’re racing to stay ahead of corruption that stands in the way of farmers getting a decent price for their products or even getting their harvest to market unspoiled.

So we know we face a lot of very big obstacles. But what I’m encouraged by, and excited even, is how far we have come and the fact that we have a vision and a plan about how we’re going to get the rest of the way, because we cannot accept a world where children go hungry simply because of where they are born.

So I often say we need everyone who cares about this issue to stand up and use their voice. And well, with Christina, that is literally true. (Laughter.) Now, although she is best known for her chart-topping hits and her top-rated television show, she’s also a mom and a concerned citizen. And as a World Food Program Ambassador Against Hunger, she has traveled to Latin America and seen firsthand the devastation that malnutrition, especially early in life, can cause. And of all the videos that Christina has made over the years, to me the most heartwarming may be the one where she sits with a group of kids in Haiti and sings "Itsy Bitsy Spider." I even know that song, Christina. (Laughter.)

But I am so appreciative of what you’re giving to the cause. I mean, it’s easy when you’re a big star, as you rightly are, to just stay focused on what you’re doing and producing. But you’ve used your talent to help others, and that is a great gift.

Now, if there is a rock star of the food industry, that is David, the man who oversees some of the best-known brands in the world, and now he is turning his relentless drive and enthusiasm to Yum! Brands’ World Hunger Relief initiative.

With Christina as its global spokesperson, this program has become one of the largest private sector hunger relief efforts in the world, raising $115 million for the World Food Program and other organizations, and providing 460 million meals to hungry children around the globe. That’s the kind of commitment that Rick and the World Food Program here in the United States and around the world are really grateful for. So thank you for taking your business success and just matching those up with values and compassion and doing so much for others.

Now as we look ahead, we are hoping to keep expanding the circle of partners. We want to bring in more private sector partners, more civil society groups, more faith communities, and we want to bring in people who are on the front lines, women who themselves know what we’re talking about. And we need to measure progress not just by what individuals can do, but by what we all together can achieve.

So it’s been my great privilege to work with all of you, and we’re going to make sure that this commitment stays institutionalized at USAID and the State Department for the foreseeable future, because we have a lot to do before we can rest easy.

But it’s been a great honor for me, and now I think we’re going to give out some awards, right? Oh, we’re going to do another video, Frank. Okay. So we’re going to do another video – (laughter) – and pay attention to the video and then we’ll hear from our two honorees. (Applause.)

ALLEGED PONZI SCHEME TARGETED SENIORS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Brings Charges in $42 Million Offering Fraud Targeting Seniors

The Securities and Exchange Commission today announced charges against Bradley A. Holcom, of Welches, Oregon, and Jose L. Pinedo, of San Diego, California, in connection with a fraudulent scheme that sold $42 million of promissory notes to more than 150 investors located across the United States, many of whom are senior citizens.

According to the complaint against Holcom, he lured investors by offering them guaranteed monthly interest payments on purportedly safe deals. He promised that their funds would be used to finance the development of specific pieces of real estate, and that each investment would be fully secured. In reality, the investments were unsecured, and the same piece of underlying property was often pledged as purported collateral on numerous investors’ promissory notes.

In addition to his misrepresentations, the complaint alleges that Holcom was also running a classic Ponzi scheme. While Holcom used some of the investors’ money to develop real estate, he also relied on those funds to make interest and principal payments on promissory notes as they came due. Holcom also used investor funds for personal use and on unrelated business ventures. By 2008, as the real estate market declined, Holcom’s scheme collapsed. Investors lost principal in excess of $25 million.

The Commission also alleges that Pinedo, who served as Holcom’s bookkeeper and as an officer or manager of Holcom’s numerous corporate entities, routinely signed promissory notes and other false and misleading documents that were sent to investors.

The Commission alleges that Holcom violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Commission is seeking a permanent injunction, disgorgement plus pre- and post-judgment interest, and civil penalties against Holcom. Without admitting or denying the allegations in the Commission’s complaint against him, Pinedo has agreed to settle the matter, and consented to a final judgment enjoining him from violations of Sections 5(a), 5(c), 17(a)(2) and 17(a)(3) of the Securities Act.

C-17 GLOBMASTER III AIRCRAFT VISITS CHRISTCHURCH, NEW ZEALAND

People line up to take a tour of a C-17 Globemaster III aircraft, Sept. 29, 2012 at Christchurch International Airport, New Zealand. The plane, deployed from Joint Base Lewis-McChord, accomodated more than 10,000 visitors from the Christchurch area as part of the city's IceFest event. (U.S. Air Force photo/Staff Sgt. Sean Tobin)

Airmen showcase C-17 to New Zealanders

by Staff Sgt. Sean J. Tobin
62nd Airlift Wing Public Affairs
10/3/2012 - CHRISTCHURCH, New Zealand (AFNS) -- Thousands of New Zealanders visited the Christchurch International Airport for a chance to get a glimpse inside the cockpit of a C-17 Globemaster III aircraft, which deployed to Christchurch from Joint Base Lewis-McChord, Wash., Sep. 29 in support of Operation Deep Freeze 2012.

Airmen from the 62nd and 446th Airlift Wings guided visitors onto the aircraft and answered questions about the plane's capabilities. The tour was one of the many attractions arranged for the city's first ever New Zealand IceFest, an event with Antarctic-themed attractions throughout the city.

The event, which started Sept. 14 and is scheduled to last until Oct. 14, is a celebration of New Zealand's long history with Antarctica.

Upon arrival into Christchurch, the aircraft made a grand entrance performing a low-altitude flyover of various parts of the city. This included a flyover of Hagley Park, in the city center, where hundreds of school children gathered in a large formation to spell the word "IceFest" as a gesture to welcome the jet and its occupants to Christchurch.

The following day, people waited in line for as long as three hours for their chance to tour the jet that will soon be transporting cargo and National Science Foundation personnel to McMurdo Station, Antarctica.

"Christchurch is celebrating a century of being the gateway to Antarctica," said Jo Blair, the IceFest event director. "The goal of this event is to showcase our heritage with Antarctica and to help get kids interested in science, as well."

Getting a chance to tour the C-17 that will be transporting hundreds of NSF personnel is great for the kids in that respect, she said.

Also in attendance was the United States ambassador to New Zealand, David Huebner.

"This tour helps put a human face on U.S. military personnel," said Huebner. "Often, people tend to form their opinions from what they see on TV, and this tour is a great way to interact with U.S. Airmen and meet them face to face."

Christchurch got hit hard by the earthquakes in the past couple years and it hurt the city's morale and the people's confidence in the city's future, he said.

"This tour is a very tangible sign of the relationship the U.S. has with Christchurch," said Huebner. "It's great for the city to have friends demonstrate that they care."

Edwina Cordwell, a resident of Christchurch and one of the local attendees on the C-17 tour, described her amazement at seeing the large aircraft maneuver so effortlessly over her home.

"It gives you goose bumps," she said. "Seeing how nimble that huge plane can be. It's almost acrobatic."

Cordwell got choked up describing how she felt seeing the U.S. Air Force visiting Christchurch, especially in light of the devastation the city has suffered over recent years.

"It's quite emotional knowing someone cares," said Cordwell. "Seeing all this is just magical."

According to a representative of the event, more than 10,000 people showed up to tour the aircraft.

The first of 52 main season ODF missions departed Christchurch International Airport, en route to McMurdo Station, Antarctica, Oct. 1.



　

OBSTACLES AND MOTIVATION

Army Sgt. 1st Class Oscar Ayala does situps during a physical fitness test for the Sullivan Cup at Fort Benning, Ga, May 7, 2012. In the past two years, Ayala has had two hip surgeries, but has not let it affect his physical condition. "It's all in how you maintain yourself," he explained. U.S. Army photo by Spc. Bailey Kramer

Face of Defense: Soldier Uses Obstacles as Motivation
By Army Spc. Bailey Kramer
1st Brigade Combat Team, 1st Cavalry Division

FORT HOOD, Texas, Oct. 3, 2012 - Growing up, his dream was to be a United States soldier. So even after two hip surgeries only months apart, Army Sgt. 1st Class Oscar Ayala, a platoon sergeant assigned to 1st Cavalry Division's Company D, 2nd Battalion, 8th Cavalry Regiment, "Ironhorse," 1st Brigade Combat Team, still manages to outperform his soldiers.

"I always wanted to be a soldier," Ayala said. "When I was in high school, I told my recruiter I wanted to join the Army. I didn't ask for anything. I just joined."

Ayala, a native of Kearny, N.J., enlisted as a tanker in the National Guard in 1999. After a year and a half, he switched to active duty.

Serving as a platoon sergeant is special to Ayala.

"I never pictured myself being in the position I am in now," he said. "I mean, I am just one of many at my position, but going back to my childhood, I never thought I would have this impact on other soldiers, or even [noncommissioned officers]."

After converting to active duty, Ayala was stationed at Fort Lewis, Wash., where he stayed for two years before moving to here. Since then, he has been deployed four times in support of Operation Iraqi Freedom, Operation New Dawn and, in his most recent deployment in Kuwait, Operation Spartan Shield.

Although he has deployed numerous times, Ayala said, he has not let it affect his attitude toward the Army.

"I know I have younger soldiers looking up to me," he said. "I have to show my soldiers that even though we go through tough times, we are still soldiers, and that's what we get paid to do. We have to get the mission accomplished whether we are going through good or bad times."

One of Ayala's soldiers, Army Spc. Sam Garcia, said he can look to Ayala for guidance and leadership.

"[Ayala] has always been approachable," Garcia said about his respected mentor. "He's [seasoned], and I know I can count on him to help me when I need him most."

Ayala sustained a hip injury during his 2006-2008 Iraq deployment. During his check-up, problems were found in both hips, resulting in a dual surgery -- the first in April 2011 and the second following less than two months later.

Even with the surgeries and the pain, Ayala said, his motivation hasn't wavered.

"I am still motivated, probably a little more," he said. "I learned to ignore the majority of the pain. Whether I am injured or not, I still go up there and lead my guys."

Ayala still receives a perfect score of 300 on his physical fitness test, consisting of pushups, situps and a two-mile run.

"I feel as though I set the bar for my platoon," he said. "If I can do it, they can, too. A lot of my guys see me trying and they get behind me. It keeps me and them motivated."

Ayala was the tank commander of the Ironhorse tank team that participated in the prestigious Sullivan Cup, a competition testing tankers' skills across the Army. He was one of only two competitors to earn a perfect score of 300 in the fitness test portion of the competition.

"It made me feel that although I am on the older side of the competitors, that age is just a number," Ayala said. "It's all in how you maintain yourself."

His wife of 25 years, Katherine, also is aware of his self-motivation, he said.

"[She] keeps telling me to slow down on the physical side of work, exercising and such," Ayala said with a chuckle. "But I remind her I am a leader, and I can't lead my soldiers from the rear. She understands and is very supportive of my choices."

With everything that has happened, Ayala said, having a supportive wife has helped him push through his obstacles.

"It's a little bit hard," he said. "But like I tell my guys, even though we go through tough times, I am a soldier."

HURRICANE HUNTERS

 FROM: NATIONAL SCIENCE FOUNDATION
September 24, 2012

The Deep Convective Clouds & Chemistry (DC3) Experiment, which began in mid-May, explores the influence of thunderstorms on air just beneath the stratosphere, a region that influences Earth's climate and weather patterns. Scientists used three research aircraft, mobile radars, lightning mapping arrays and other tools to pull together a comprehensive picture. Credit: NOAA

Dropsondes--Work Horses in Hurricane Forecasting
Small cylinders dropped from airplanes gather atmospheric data on their way down

Inside a cylinder that is about the size of a roll of paper towels lives a circuit board filled with sensors. It's called a dropsonde, or "sonde" for short. It's a work horse of hurricane forecasting, dropping out of "Hurricane Hunter" airplanes right into raging storms. As the sonde falls through the air, its sensors gather data about the atmosphere to help us better understand climate and other atmospheric conditions.

"Dropsondes have a huge impact on our understanding of hurricanes and our ability to predict hurricanes," explains electrical engineer Terry Hock at the Earth Observing Laboratory in the National Center for Atmospheric Research (NCAR), located in Boulder, Colo.

With support from the National Science Foundation (NSF), Hock and his colleagues at NCAR have been designing, building and improving dropsonde technology for more than 30 years. "Our most current development is a fully automated dropsonde system for NASA's unmanned Global Hawk aircraft," says Hock.

Compared to earlier models, today's sondes are lighter weight, relatively inexpensive and loaded with sensors.

"We have a lot of electronics and, on the back side, a battery pack to operate the sonde. We have a temperature and two humidity sensors, and we have a GPS receiver," explains Hock, as he points out the different circuit board components. "As the sonde moves, we're using that GPS receiver to track the sonde's movements very precisely, which is then telling us the wind speed and wind direction. At the top of the sonde is a parachute which slows down the descent."

Electrical engineer Dean Lauritsen, a member of Hock's team, developed the system software on the aircraft, which controls the aircraft data system and process, and also displays dropsonde data during the sondes free fall to earth. There's such a system on the HIAPER, the NSF/NCAR Gulfstream V Research Aircraft, which uses sondes for scientific research, and a similar system used by the U.S. Air Force Reserve Hurricane Hunters in Biloxi, Miss., and the NOAA Hurricane Hunters in Tampa, Fla. On board each aircraft are a computer and a rack of electronic equipment to monitor and receive information from sondes. "The system is capable of tracking as many as eight dropsondes in the air at the same time. Each one of them is transmitting data on a separate frequency as it falls." says Lauritsen.

From the time the sonde leaves the aircraft, it is checking surroundings two times a second and sending information back to the aircraft, including pressure, temperature, humidity, wind speed, and wind direction. Future developments are expected to include sensors for chemicals such as ozone.

"We're taking vertical slices of the atmosphere constantly as the sonde falls," says Hock. "We're seeing very precise single measurements show up immediately on the computer screen."

Researchers process the information using NCAR-developed custom software, and then send it to weather forecasters and researchers around the world. In the case of the Hurricane Hunters, the information goes to the National Hurricane Center in Miami.

NCAR software engineer Charlie Martin develops custom software called ASPEN, which stands for Atmospheric Sounding Processing Environment. ASPEN helps make sense of all the dropsonde data. "Once the dropsonde has fallen through the atmosphere and the data has come back to the aircraft, that raw data needs a little more treatment before we send it to weather services around the world," explains Martin.

Martin points to a map showing a compilation of dropsonde wind data collected in August 2011, as Hurricane Irene was churning its way toward the Florida coast. "The winds are in a circular pattern," says Martin, as he identifies small triangles on the map that represent the wind and wind direction. "The center of the hurricane is clearly depicted in the center of the circular pattern. The National Hurricane Center uses this data along with other data to classify the hurricane and assign a category to it."

Hock and his team also custom fit aircraft with launchers to deploy the sondes, including one system for helium-filled balloons. In 2010, American and French researchers deployed balloons over Antarctica that dropped 600 sondes over a four-month period to study atmospheric conditions and the shifting ozone layer. "There is now a very dense set of measurements that came out of this project that has mapped the Antarctic atmosphere like it has never been done before," notes Martin.

"Atmospheric conditions above the Antarctic continent are hard to study since only a handful of sounding stations are regularly maintained there," says Peter Milne, program manager for ocean and atmospheric sciences within NSF's Office of Polar Programs. "Fortunately, the Antarctic polar vortex, a huge cyclone that sets up above the entire continent, is like the NASCAR of long distance ballooning, with balloons sweeping around the continent for as long as they stay aloft. Using these drifting platforms provided a unique data set."

Such "inside information" is helping scientists learn more about climate and hurricanes. Data from dropsondes is also giving scientists a better understanding about atmospheric conditions that spawn any number of weather conditions. Hock expects this will help forecasters make earlier and more precise hurricane predictions, giving people in the path of a killer storm more time to get out of harm's way.

LOST 'TONIGHT SHOW' EPISODES FOUND AT MILITARY STORAGE FACILITY

FROM: U.S. DEPARTMENT OF DEFENSE

Pedro Loureiro, left, archivist at the Defense Imagery Management Operations Center, and Jeff Sotzing, CEO at Carson Entertainment Group, review a 1963 film of "The Tonight Show Starring Johnny Carson" once thought to be lost, that was found at DIMOC's facility in Riverside, Calif. DIMOC turned over the film to Sotzing to be added to the Carson archives. DOD photo by Navy Petty Officer 3rd Class Will Gaskill
'Tonight' Episodes Believed Lost Turn Up at DOD Facility
By Navy Petty Officer 3rd Class Will Gaskill
American Forces Network Broadcast Center

RIVERSIDE, Calif., Oct. 3, 2012 - Once thought to be lost, a film reel containing clips of "The Tonight Show Starring Johnny Carson" was discovered in a military visual information storage facility here and was turned over Oct. 1 to Jeff Sotzing, nephew of Johnny Carson.

The clips, dating back to 1963, were found on an archived 16 mm film reel stored at the Defense Imagery Management Operations Center, known as DIMOC, just outside of March Air Reserve Base.

In the 1960s, the Armed Forces Radio and Television Service received film reels from the production studios and distributed the programming to its stations for service members around the world. After the footage was shown and no longer needed, it was returned to the studios, destroyed, or sometimes kept on site at the AFRTS facility, now called the American Forces Network Broadcast Center.

"Somebody had the brains or historical foresight to save this reel," said Pedro Loureiro, archivist at DIMOC.

The television industry used to reuse tapes, Loureiro said. Newer episodes were recorded over the older material without much thought of archiving what is now thought of as part of the "golden age" of television.

"Everything from the 1960s is considered lost," he said. "That's what they did with everybody's show," said Sotzing, CEO of the Carson Entertainment Group, the owners of Carson's archive. Besides being related to the late entertainer, Sotzing worked on the show from 1977 to 1992, working his way up from being a runner to producing the show.

"I'm really looking forward to adding this film to the collection. Almost everything from 1962 to 1973 is gone," Sotzing said.

Mary Carnes, a retired program support manager at the broadcast center, discovered the reel as she was sorting through a box of old items that had been overlooked for years.

"As soon as I saw it, I knew it was a gem," Carnes said. "Giving it back to the family and the Carson archives will be like a birthday or Christmas for them.

"This is one of the great parts of the job here," she continued. We can do the work we do to entertain our troops, and document history at the same time. It's really great."

In all, "The Tonight Show Starring Johnny Carson" highlighted nearly 23,000 stars in 4,351 episodes over a 30-year span. Carson won six Emmy Awards, the Peabody Award, the Presidential Medal of Freedom and Kennedy Center Honors, and is enshrined in the Television Academy Hall of Fame.

"Johnny would make an on-air plea [for lost footage]," Sotzing said. "He would be thrilled to get this. A lot of young people don't know who Johnny Carson is. This helps show them."

The newly discovered footage will be digitally recorded, transcribed and then made available for users of the Carson Entertainment Group's searchable online archives. The physical film will be stored at a former salt mine in Hutchinson, Kan., which currently houses the Carson archives as well as many other Hollywood film archives, Sotzing said.

NEW U.S. GUIDED-MISSILE DESTROYER HONORS NAVY SEAL HERO

FROM:  U.S. NAVY

121001-G-TG089-038 NEW YORK (Oct. 1, 2012) The guided-missile destroyer Pre-Commissioning Unit (PCU) Michael Murphy (DDG 112) makes its way through New York Harbor in preparation for its commissioning Oct. 6. The new destroyer honors the late Lt. (SEAL) Michael P. Murphy, a New York native, who was posthumously awarded the Medal of Honor for his actions in combat as leader of a four-man reconnaissance team in Afghanistan. Murphy was the first person to be awarded the Medal of Honor for actions in Afghanistan, and the first member of the U.S. Navy to receive the award since the Vietnam War. #murph (U.S. Coast Guard photo by Petty Officer 2nd Class Erik Swanson/Released)

NEW YORK (NNS) -- The Navy will commission the newest guided-missile destroyer, Michael Murphy (DDG 112), Oct. 6, during a 10 a.m. EDT ceremony at Pier 88 in Manhattan, N.Y.

The newest destroyer honors Navy SEAL (Sea, Air, Land) Lt. Michael P. Murphy, who was posthumously awarded the Medal of Honor for his heroic actions during Operation Red Wings in Afghanistan June 28, 2005.

Murphy led a four-man team tasked with finding a key Taliban leader in the mountainous terrain near Asadabad, Afghanistan, when they came under fire from a much larger enemy force with superior tactical position.

Mortally wounded while exposing himself to enemy fire, Murphy knowingly left his position of cover to get a clear signal in order to communicate with his headquarters. While being shot at repeatedly, Murphy calmly provided his unit's location and requested immediate support for his element. He returned to his cover position to continue the fight until finally succumbing to wounds.

Secretary of the Navy Ray Mabus will deliver the ceremony's principal address. Maureen Murphy will serve as sponsor of the ship named for her late son. The ceremony will be highlighted by a time-honored Navy tradition when she gives the first order to "man our ship and bring her to life!"

"This ship honors the courage, service and sacrifice of Lt. Michael Murphy, his Red Wings brothers, fellow SEALs, special operators and service members around the world who answer the call of duty every day," said Mabus. "It is absolutely fitting that the USS Michael Murphy bears a SEAL trident on her crest because, much like Michael and every Navy SEAL who has earned the honor of wearing the trident, this ship is designed to counter threats from above and below the surface of the oceans, in the air and on land."

Designated DDG 112, Michael Murphy is the 62nd Arleigh Burke-class destroyer, capable of conducting operations from peacetime presence and crisis management to sea control and power projection. Michael Murphy is capable of fighting air, surface and subsurface battles simultaneously and will contain a myriad of offensive and defensive weapons designed to support maritime warfare.

"USS Michael Murphy, the most flexible, lethal and multi-mission capable ship of its kind, represents the backbone of our surface combatant fleet," said Adm. Jonathan Greenert, chief of naval operations. "It is one of the best destroyers in the world. This ship will operate forward around the globe, assuring allies, projecting power and defending our nation. And, like its namesake Lt. Michael Murphy, this ship will serve to protect, influence and win in an era of uncertainty."

Cmdr. Thomas E. Shultz, a native of El Cajon, Calif., is the commanding officer of the ship and will lead the crew of 279 officers and enlisted personnel. The 9,200-ton Michael Murphy was built by General Dynamics Bath Iron Works. The ship is 509 feet in length, has a waterline beam of 59 feet, and has a navigational draft of 31 feet. Four gas turbine engines will power the ship to speeds in excess of 30 knots.