Saturday, April 13, 2013
STATE DEPARTMENT OFFICIAL'S REMARKS ON U.S. NUCLEAR POLICY
FROM: U.S. STATE DEPARTMENT
The Future of U.S. Nuclear Policy
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
As Prepared
The Pryzbyla Center, Catholic University of America
Washington, DC
April 9, 2013
Thank you for that kind introduction, Stephen. I am glad to be here at Catholic University today to talk about U.S. nuclear policy. I want to thank the Catholic Peacebuilding Network for sponsoring this program. It is my pleasure to represent the State Department this afternoon.
Today, I would like to provide an update on our work, which the President laid out four years ago in Prague, when he committed the United States to seeking the peace and security of a world without nuclear weapons.
As President Obama noted in his famous speech, this will not be easy. Nor is it likely to happen in his lifetime. Still, over the last four years we have succeeded in moving closer to this goal.
In 2010, the Administration concluded a Nuclear Posture Review, or NPR, which outlines the President’s agenda for reducing nuclear dangers, as well as advancing the broader security interests of the United States and its allies. As the NPR states nuclear terrorism is one of the greatest threats facing the United States. The traditional concept of nuclear deterrence — the idea that a country would not initiate a nuclear war for fear of nuclear retaliation — does not apply to terrorists. While our nuclear arsenal has little relevance in deterring this threat, concerted action by the United States and Russia – and indeed, by all nuclear weapon states – to reduce their arsenals is key to garnering support from partners around the world for strengthening the nuclear nonproliferation regime, while also securing nuclear materials worldwide to make it harder for terrorists to acquire nuclear materials.
For instance, by the end of this year, we expect the 1993 U.S.-Russia HEU Purchase Agreement to be completed, under which 500 MT of highly enriched uranium or HEU from dismantled Russian weapons will have been converted into low-enriched uranium or LEU to fuel U.S. commercial nuclear power plants. Over 472 MT (equivalent to approximately 18,900 nuclear warheads) has been downblended and sent to the United States so far. In the United States, 374 MT of U.S. HEU has been declared excess to nuclear weapons; most of the remainder will be downblended or used as fuel in naval or research reactors. In 2011, the United States and Russia brought into force the Plutonium Management and Disposition Agreement and its 2006 and 2010 protocols, which requires each side to dispose of 34 MT of weapon-grade plutonium – enough in total for about 17,000 nuclear weapons – and thus permanently remove this material from military programs. Russia has also been an essential partner in the U.S. Global Threat Reduction Initiative efforts to convert research reactors from HEU to LEU and repatriate those reactors’ HEU to the country of origin. These efforts have now converted or verified the shutdown of over 75 research and test reactors, and repatriated to the United States or to Russia over 3,000 kg of HEU for secure storage, downblending and disposition.
In addition to working on the prevention of nuclear proliferation and nuclear terrorism, we have taken steps to reduce the role of nuclear weapons in U.S. national security strategy. We are not developing new nuclear weapons or pursuing new nuclear missions; we have committed not to use or threaten to use nuclear weapons against non-nuclear weapon states that are party to the NPT and in compliance with their nonproliferation obligations; and we have clearly stated that it is in the U.S. interest and that of all other nations that the nearly 68-year record of non-use of nuclear weapons be extended forever.
As President Obama said in Seoul in March of last year:
"[W]e can already say with confidence that we have more nuclear weapons than we need. I firmly believe that we can ensure the security of the United States and our allies, maintain a strong deterrent against any threat, and still pursue further reductions in our nuclear arsenal."
Let me now address what we believe our next steps should be.
The Administration continues to believe that the next step in nuclear arms reductions should be pursued on a bilateral basis. The United States and Russia still possess the vast majority of nuclear weapons in the world. With that in mind, we have a great example in the New START Treaty. The implementation of New START, now in its third year, is going well. When New START is fully implemented, the United States and the Russian Federation will each have no more than 1,550 deployed strategic nuclear warheads – the lowest levels since the 1950s.
Going forward, the United States has made it clear that we are committed to continuing a step-by-step process to reduce the overall number of nuclear weapons, including the pursuit of a future agreement with Russia to address all categories of nuclear weapons – strategic, non-strategic, deployed and non-deployed.
To this end, we are engaged in a bilateral dialogue to promote strategic stability and increase transparency on a reciprocal basis with the Russian Federation. We are hopeful our dialogue will lead to greater reciprocal transparency and negotiation of even further nuclear weapons reductions.
As part of this process, the Administration is consulting with Allies to lay the groundwork for future negotiations. As you may know, NATO has already dramatically reduced its holdings of, and reliance on, nuclear weapons since the end of the Cold War. That said, NATO is prepared to consider further reducing its requirement for nonstrategic nuclear weapons assigned to the Alliance in the context of reciprocal steps by Russia, taking into account the greater Russian stockpiles of nonstrategic nuclear weapons stationed in the Euro-Atlantic area. While seeking to create the conditions for further nuclear reductions, NATO will continue to ensure that the Alliance’s nuclear deterrent remains safe, secure, and effective as NATO is committed to remaining a nuclear alliance for as long as nuclear weapons exist.
There are still further initiatives that are part of this Administration’s nuclear agenda. The United States is revitalizing an international effort to advance a new multilateral treaty to verifiably ban the production of fissile material for use in nuclear weapons or other nuclear explosive devices. A Fissile Material Cutoff Treaty or FMCT– would for the first time put an end to the dedicated production of weapons-grade fissile material needed to create nuclear weapons and provide the basis for further, deeper, reductions in nuclear arsenals.
Beginning multilateral negotiations on the FMCT is a priority objective for the United States and for the vast majority of states, and we have been working to initiate such negotiations at the Conference on Disarmament in Geneva. An overwhelming majority of nations support the immediate commencement of FMCT negotiations. The United States is consulting with China, France, Russia, and the United Kingdom, as well as others, to find a way to commencing negotiation of an FMCT.
In 2009, the five nuclear-weapon states, or "P5," began to meet regularly to have discussions on issues of transparency, mutual confidence, and verification. Since the 2010 NPT Review Conference, these discussions have expanded to address P5 implementation of our commitments under the NPT and the 2010 Review Conference’s Action Plan. The U.S. hosted the most recent P5 conference in Washington in June 2012, where the P5 tackled issues related to all three pillars of the NPT – nonproliferation, the peaceful uses of nuclear energy and disarmament, including confidence-building, transparency, and verification experiences. We are looking forward to a fourth conference on April 18-19, which Russia will host in Geneva prior to the next NPT Preparatory Committee meeting.
In addition to providing a senior level policy forum for discussion and coordination among the P5, this process has spawned a series of discussions among policymakers and government experts on a variety of issues. China is leading a P5 working group on nuclear definitions and terminology. The P5 are discussing approaches to a common format for NPT reporting, and we are also beginning to engage at expert levels on some important verification and transparency issues. In the future, we would like the P5 conferences and intersessional meetings to expand and to develop practical transparency measures that build confidence and predictability.
I should add at this point that when discussing areas to broaden and deepen our cooperation and to advance our common interests, it’s necessary to address the question of Missile Defense. Thirty years ago at the height of the Cold War, President Ronald Reagan saw virtue in cooperating with Moscow on Missile Defense.
While we have our differences on this issue, we remain convinced that missile defense cooperation between the United States and Russia (and between NATO and Russia) is in the national security interests of all countries involved. For that reason, missile defense cooperation with Russia remains a priority for the President. To be clear, U.S. missile defense efforts are focused on defending our homeland as well as our European, Middle Eastern, and Asian allies and partners against ballistic missile threats coming from Iran and North Korea. These are threats that are growing, and must be met.
In meeting those threats, it is important to note that U.S. missile defenses are not designed for, or capable of, undermining the Russian or Chinese strategic deterrents. For its part, Russia has been insistent on legally binding guarantees that our missile defenses will not threaten its strategic deterrent. Rather than legal guarantees, we believe that the best way for Russia to see that U.S. and NATO missile defenses in Europe do not undermine its strategic deterrent would be for it to cooperate with us. In addition to making all of us safer, cooperation would send a strong message to proliferators that the United States, NATO, and Russia are working together to counter proliferation. With regard to China, the United States welcomes the opportunity to engage in a dialogue about missile defense and other security issues of strategic importance.
As our work together over the past four years has shown, we can produce significant results that benefit both countries. As mentioned earlier, the New START Treaty is a great example of this. Cooperation on missile defense would also facilitate improved relations between the United States and Russia. In fact, it would be a game-changer for those relations. It has the potential to enhance the national security of both the United States and Russia, as well as build a genuine strategic partnership.
None of this will be easy, but the policies the Administration is pursuing are suited for our security needs and tailored for the global security threats of the 21st century. By maintaining and supporting a safe, secure and effective stockpile — sufficient to deter any adversary and guarantee the defense of our allies — at the same time that we pursue responsible verifiable reductions through arms control, we will make this world a safer place.
To paraphrase President Kennedy, whose speech 50 years ago at American University launched the NPT process, we will succeed by moving forward step by step, confident and unafraid. There is something very appropriate in mentioning President Kennedy and his era because your generation has a unique advantage. You are not burdened by the memories of the Cuban Missile Crisis, or the experience of duck and cover drills, events that characterize the experience of those who lived through the Cold War at its most dangerous points. You have the freedom to bring fresh thinking and new perspectives to how we can best enhance our national security. Positive change is hard to accomplish, so we will need your energy and your expertise to extend this debate beyond college campuses if we are to move safely and securely to a world without nuclear weapons. Your energy and your commitment are important to our efforts to reduce global nuclear dangers.
Thank you and I look forward to your questions.
The Future of U.S. Nuclear Policy
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
As Prepared
The Pryzbyla Center, Catholic University of America
Washington, DC
April 9, 2013
Thank you for that kind introduction, Stephen. I am glad to be here at Catholic University today to talk about U.S. nuclear policy. I want to thank the Catholic Peacebuilding Network for sponsoring this program. It is my pleasure to represent the State Department this afternoon.
Today, I would like to provide an update on our work, which the President laid out four years ago in Prague, when he committed the United States to seeking the peace and security of a world without nuclear weapons.
As President Obama noted in his famous speech, this will not be easy. Nor is it likely to happen in his lifetime. Still, over the last four years we have succeeded in moving closer to this goal.
In 2010, the Administration concluded a Nuclear Posture Review, or NPR, which outlines the President’s agenda for reducing nuclear dangers, as well as advancing the broader security interests of the United States and its allies. As the NPR states nuclear terrorism is one of the greatest threats facing the United States. The traditional concept of nuclear deterrence — the idea that a country would not initiate a nuclear war for fear of nuclear retaliation — does not apply to terrorists. While our nuclear arsenal has little relevance in deterring this threat, concerted action by the United States and Russia – and indeed, by all nuclear weapon states – to reduce their arsenals is key to garnering support from partners around the world for strengthening the nuclear nonproliferation regime, while also securing nuclear materials worldwide to make it harder for terrorists to acquire nuclear materials.
For instance, by the end of this year, we expect the 1993 U.S.-Russia HEU Purchase Agreement to be completed, under which 500 MT of highly enriched uranium or HEU from dismantled Russian weapons will have been converted into low-enriched uranium or LEU to fuel U.S. commercial nuclear power plants. Over 472 MT (equivalent to approximately 18,900 nuclear warheads) has been downblended and sent to the United States so far. In the United States, 374 MT of U.S. HEU has been declared excess to nuclear weapons; most of the remainder will be downblended or used as fuel in naval or research reactors. In 2011, the United States and Russia brought into force the Plutonium Management and Disposition Agreement and its 2006 and 2010 protocols, which requires each side to dispose of 34 MT of weapon-grade plutonium – enough in total for about 17,000 nuclear weapons – and thus permanently remove this material from military programs. Russia has also been an essential partner in the U.S. Global Threat Reduction Initiative efforts to convert research reactors from HEU to LEU and repatriate those reactors’ HEU to the country of origin. These efforts have now converted or verified the shutdown of over 75 research and test reactors, and repatriated to the United States or to Russia over 3,000 kg of HEU for secure storage, downblending and disposition.
In addition to working on the prevention of nuclear proliferation and nuclear terrorism, we have taken steps to reduce the role of nuclear weapons in U.S. national security strategy. We are not developing new nuclear weapons or pursuing new nuclear missions; we have committed not to use or threaten to use nuclear weapons against non-nuclear weapon states that are party to the NPT and in compliance with their nonproliferation obligations; and we have clearly stated that it is in the U.S. interest and that of all other nations that the nearly 68-year record of non-use of nuclear weapons be extended forever.
As President Obama said in Seoul in March of last year:
"[W]e can already say with confidence that we have more nuclear weapons than we need. I firmly believe that we can ensure the security of the United States and our allies, maintain a strong deterrent against any threat, and still pursue further reductions in our nuclear arsenal."
Let me now address what we believe our next steps should be.
The Administration continues to believe that the next step in nuclear arms reductions should be pursued on a bilateral basis. The United States and Russia still possess the vast majority of nuclear weapons in the world. With that in mind, we have a great example in the New START Treaty. The implementation of New START, now in its third year, is going well. When New START is fully implemented, the United States and the Russian Federation will each have no more than 1,550 deployed strategic nuclear warheads – the lowest levels since the 1950s.
Going forward, the United States has made it clear that we are committed to continuing a step-by-step process to reduce the overall number of nuclear weapons, including the pursuit of a future agreement with Russia to address all categories of nuclear weapons – strategic, non-strategic, deployed and non-deployed.
To this end, we are engaged in a bilateral dialogue to promote strategic stability and increase transparency on a reciprocal basis with the Russian Federation. We are hopeful our dialogue will lead to greater reciprocal transparency and negotiation of even further nuclear weapons reductions.
As part of this process, the Administration is consulting with Allies to lay the groundwork for future negotiations. As you may know, NATO has already dramatically reduced its holdings of, and reliance on, nuclear weapons since the end of the Cold War. That said, NATO is prepared to consider further reducing its requirement for nonstrategic nuclear weapons assigned to the Alliance in the context of reciprocal steps by Russia, taking into account the greater Russian stockpiles of nonstrategic nuclear weapons stationed in the Euro-Atlantic area. While seeking to create the conditions for further nuclear reductions, NATO will continue to ensure that the Alliance’s nuclear deterrent remains safe, secure, and effective as NATO is committed to remaining a nuclear alliance for as long as nuclear weapons exist.
There are still further initiatives that are part of this Administration’s nuclear agenda. The United States is revitalizing an international effort to advance a new multilateral treaty to verifiably ban the production of fissile material for use in nuclear weapons or other nuclear explosive devices. A Fissile Material Cutoff Treaty or FMCT– would for the first time put an end to the dedicated production of weapons-grade fissile material needed to create nuclear weapons and provide the basis for further, deeper, reductions in nuclear arsenals.
Beginning multilateral negotiations on the FMCT is a priority objective for the United States and for the vast majority of states, and we have been working to initiate such negotiations at the Conference on Disarmament in Geneva. An overwhelming majority of nations support the immediate commencement of FMCT negotiations. The United States is consulting with China, France, Russia, and the United Kingdom, as well as others, to find a way to commencing negotiation of an FMCT.
In 2009, the five nuclear-weapon states, or "P5," began to meet regularly to have discussions on issues of transparency, mutual confidence, and verification. Since the 2010 NPT Review Conference, these discussions have expanded to address P5 implementation of our commitments under the NPT and the 2010 Review Conference’s Action Plan. The U.S. hosted the most recent P5 conference in Washington in June 2012, where the P5 tackled issues related to all three pillars of the NPT – nonproliferation, the peaceful uses of nuclear energy and disarmament, including confidence-building, transparency, and verification experiences. We are looking forward to a fourth conference on April 18-19, which Russia will host in Geneva prior to the next NPT Preparatory Committee meeting.
In addition to providing a senior level policy forum for discussion and coordination among the P5, this process has spawned a series of discussions among policymakers and government experts on a variety of issues. China is leading a P5 working group on nuclear definitions and terminology. The P5 are discussing approaches to a common format for NPT reporting, and we are also beginning to engage at expert levels on some important verification and transparency issues. In the future, we would like the P5 conferences and intersessional meetings to expand and to develop practical transparency measures that build confidence and predictability.
I should add at this point that when discussing areas to broaden and deepen our cooperation and to advance our common interests, it’s necessary to address the question of Missile Defense. Thirty years ago at the height of the Cold War, President Ronald Reagan saw virtue in cooperating with Moscow on Missile Defense.
While we have our differences on this issue, we remain convinced that missile defense cooperation between the United States and Russia (and between NATO and Russia) is in the national security interests of all countries involved. For that reason, missile defense cooperation with Russia remains a priority for the President. To be clear, U.S. missile defense efforts are focused on defending our homeland as well as our European, Middle Eastern, and Asian allies and partners against ballistic missile threats coming from Iran and North Korea. These are threats that are growing, and must be met.
In meeting those threats, it is important to note that U.S. missile defenses are not designed for, or capable of, undermining the Russian or Chinese strategic deterrents. For its part, Russia has been insistent on legally binding guarantees that our missile defenses will not threaten its strategic deterrent. Rather than legal guarantees, we believe that the best way for Russia to see that U.S. and NATO missile defenses in Europe do not undermine its strategic deterrent would be for it to cooperate with us. In addition to making all of us safer, cooperation would send a strong message to proliferators that the United States, NATO, and Russia are working together to counter proliferation. With regard to China, the United States welcomes the opportunity to engage in a dialogue about missile defense and other security issues of strategic importance.
As our work together over the past four years has shown, we can produce significant results that benefit both countries. As mentioned earlier, the New START Treaty is a great example of this. Cooperation on missile defense would also facilitate improved relations between the United States and Russia. In fact, it would be a game-changer for those relations. It has the potential to enhance the national security of both the United States and Russia, as well as build a genuine strategic partnership.
None of this will be easy, but the policies the Administration is pursuing are suited for our security needs and tailored for the global security threats of the 21st century. By maintaining and supporting a safe, secure and effective stockpile — sufficient to deter any adversary and guarantee the defense of our allies — at the same time that we pursue responsible verifiable reductions through arms control, we will make this world a safer place.
To paraphrase President Kennedy, whose speech 50 years ago at American University launched the NPT process, we will succeed by moving forward step by step, confident and unafraid. There is something very appropriate in mentioning President Kennedy and his era because your generation has a unique advantage. You are not burdened by the memories of the Cuban Missile Crisis, or the experience of duck and cover drills, events that characterize the experience of those who lived through the Cold War at its most dangerous points. You have the freedom to bring fresh thinking and new perspectives to how we can best enhance our national security. Positive change is hard to accomplish, so we will need your energy and your expertise to extend this debate beyond college campuses if we are to move safely and securely to a world without nuclear weapons. Your energy and your commitment are important to our efforts to reduce global nuclear dangers.
Thank you and I look forward to your questions.
Friday, April 12, 2013
THE COUNTERTERRORISM FOREFRONT
FROM: U.S. DEPARTMENT OF DEFENSE
Partner Capacity Moves to Counterterrorism Forefront
By Amaani Lyle
American Forces Press Service
WASHINGTON, April 10, 2013 - As al-Qaida affiliates seek sanctuary in North Africa and the Middle East, the United States must continue to take decisive action and help partners improve their capacity to thwart terrorist organizations, a senior Pentagon official said yesterday on Capitol Hill.
In testimony before the Senate Armed Services Committee's emerging threats and capabilities subcommittee, Michael A. Sheehan, assistant secretary of defense for special operations and low-intensity conflict, praised the special operations community for continually targeting key al-Qaida leadership and networks within countries of varying capabilities.
The United States "cannot allow al-Qaida to have sanctuary with impunity," Sheehan said. "A year ago, if I testified from here, I would've been talking about al-Qaida controlling massive swaths of territory in Yemen ... and Somalia. In both cases, they've been rolled back," he added.
Components of the U.S. strategy involve developing innovative, low-cost and "small-footprint" approaches to achieve security objectives, Sheehan explained.
"The task of training, advising and partnering with foreign military security forces has moved from the periphery to become a critical skill set across our armed services," Sheehan said.
In Yemen, Sheehan said, multinational forces worked with Yemenis to roll back al-Qaida. And in Somalia, which has no functioning government, the United States worked with the African Union in a United Nations peacekeeping operation to eject terrorists.
"The French have pushed [al-Qaida in the Islamic Maghreb] out of the major cities in north Mali, and we're working to create a U.N. operation to follow that," he said.
Sheehan told the senators that legislation authorizing training and equipping of host-nation forces, particularly in Yemen and East Africa, has been "fundamental" for the United States in successfully building antiterrorism capacity during efforts targeting al-Qaida over the past year.
In Syria, Sheehan said, al-Qaida in Iraq's network, operating under the name al-Nusrah Front, has sought to portray itself as part of the legitimate Syrian opposition to President Bashar Assad's regime.
"Al-Nusrah Front is, in fact, an attempt by [al-Qaida in Iraq] to hijack the struggles of the Syrian people for its own malign purposes, attempting to establish an al-Qaida-governed state in the region," he said.
Partner Capacity Moves to Counterterrorism Forefront
By Amaani Lyle
American Forces Press Service
WASHINGTON, April 10, 2013 - As al-Qaida affiliates seek sanctuary in North Africa and the Middle East, the United States must continue to take decisive action and help partners improve their capacity to thwart terrorist organizations, a senior Pentagon official said yesterday on Capitol Hill.
In testimony before the Senate Armed Services Committee's emerging threats and capabilities subcommittee, Michael A. Sheehan, assistant secretary of defense for special operations and low-intensity conflict, praised the special operations community for continually targeting key al-Qaida leadership and networks within countries of varying capabilities.
The United States "cannot allow al-Qaida to have sanctuary with impunity," Sheehan said. "A year ago, if I testified from here, I would've been talking about al-Qaida controlling massive swaths of territory in Yemen ... and Somalia. In both cases, they've been rolled back," he added.
Components of the U.S. strategy involve developing innovative, low-cost and "small-footprint" approaches to achieve security objectives, Sheehan explained.
"The task of training, advising and partnering with foreign military security forces has moved from the periphery to become a critical skill set across our armed services," Sheehan said.
In Yemen, Sheehan said, multinational forces worked with Yemenis to roll back al-Qaida. And in Somalia, which has no functioning government, the United States worked with the African Union in a United Nations peacekeeping operation to eject terrorists.
"The French have pushed [al-Qaida in the Islamic Maghreb] out of the major cities in north Mali, and we're working to create a U.N. operation to follow that," he said.
Sheehan told the senators that legislation authorizing training and equipping of host-nation forces, particularly in Yemen and East Africa, has been "fundamental" for the United States in successfully building antiterrorism capacity during efforts targeting al-Qaida over the past year.
In Syria, Sheehan said, al-Qaida in Iraq's network, operating under the name al-Nusrah Front, has sought to portray itself as part of the legitimate Syrian opposition to President Bashar Assad's regime.
"Al-Nusrah Front is, in fact, an attempt by [al-Qaida in Iraq] to hijack the struggles of the Syrian people for its own malign purposes, attempting to establish an al-Qaida-governed state in the region," he said.
AIRMAN'S PERSONAL STORY
 |
| Air Force Senior Airman Austin Stoker replenishes a .50-caliber machine gun after a training mission in Afghanistan, March 11, 2013. U.S. Air Force photo by Tech. Sgt. Dennis J. Henry Jr. |
Face of Defense: Airman Keeps Squadron Ready to Fight
By Air Force Staff Sgt. Alexander Martinez
U.S. Air Forces Central
SOUTHWESTERN AFGHANISTAN, April 9, 2013 - When 26th Expeditionary Rescue Squadron HH-60G Pave Hawk helicopters scramble for a casualty evacuation mission, the environment they are flying into is unpredictable.
Whether the environment is hostile or not, they always prepare for the worst -- that's where Air Force Senior Airman Austin Stoker comes in. The munitions systems specialist ensures the crews have the resources to fight if they have to.
"You have to be able to go into a combat area where people are dying and pull them out, and you need firepower to do it," Stoker said. "Without it, there is no rescue and the crew isn't coming back."
Deployed from the California National Guard's 129th Rescue Wing, Moffett Federal Airfield, Calif., Stoker and the 26th ERQS aircrew, maintenance and support teams augment a highly visible and important medical evacuation mission in Regional Command Southwest.
Air Force pararescue members, combat rescue officers, crew chiefs and gunners scramble when they get word that a coalition service member is injured and needs lifesaving assistance.
Air Force Lt. Col. George Dona, 26th ERQS commander, said without all the parts of the mission working, "the crews can't fly, the helicopters won't work, and the guns won't shoot."
"I need all of this to come together," he added, "and I need it to come together on a moment's notice."
Dona said that so far, the support teams have delivered.
"They have more than just met the challenge -- they have far exceeded the expectations that I had for the squadron," he said.
Stoker's role in the mission is important in ensuring the crews can defend themselves with the ammunition he maintains and provides.
"Our mission is to provide munitions support, from the smallest rounds to grenades, [including .50-caliber machine guns] and countermeasure flares used to keep the aircraft from being shot out of the skies," the Stockton, Calif., native said.
Countermeasure flares help prevent projectiles from hitting the aircraft. Stoker said successful countermeasures sometimes are the only thing that ensures a crew makes it back from a rescue mission.
His daily duties include maintenance on ammunition systems, weapons compatibility checks, and inventory on stockpiles and expended rounds.
Stoker said maintaining an inventory is a large part of his job because the Air Force tracks 100 percent of its ammo.
"Every bullet is accounted for," he said. "If you shoot a bullet, you better have a reason."
After transitioning from active duty service to the Guard in 2011, Stoker said, he joined the 129th Rescue Wing with hopes to deploy more often.
Stoker said he has a strong respect for the rescue mission here, and for his coworkers.
"The pararescue mission is so dynamic," he said. "The lives that they save, the humanitarian missions that they do, and just being a part of it all makes me feel very good about my day-to-day service."
JUSTICE AND SOUTH DAKOTA CHIROPRATORS SETTLE FEE CONSPIRACY CASE
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, April 8, 2013
Justice Department Challenges Joint Contracting on Behalf of South Dakota Chiropractors
Settlement Bars Chiropractor Association from Conspiring to Raise Fees
The U.S. Department of Justice announced today that it has reached a settlement with Chiropractic Associates Ltd. of South Dakota (CASD), an association comprising approximately 80 percent of all practicing chiropractors in South Dakota. The settlement prohibits CASD from jointly determining prices and negotiating contracts with insurers on behalf of competing chiropractors in South Dakota, North Dakota, Minnesota and Iowa. The department said that CASD negotiated at least seven contracts with insurers that set prices for chiropractic services on behalf of CASD’s members and that CASD’s conduct caused consumers to pay higher fees for chiropractic services.
The department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of South Dakota against CASD. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the lawsuit.
"Chiropractic Associates Ltd. of South Dakota negotiated contracts on behalf of all its members, including competing providers, resulting in increased prices for chiropractic services in South Dakota," said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "Today’s settlement promotes competition among health care providers and prevents collective action that harms consumers and violates the antitrust laws."
According to the complaint, since 1997, CASD collectively negotiated the rates and price-related terms for at least seven contracts with insurers on behalf of CASD’s members. Except for members who were part of the same practice groups, CASD’s members were not clinically or financially integrated, and CASD’s actions were not necessary to achieve any benefits for consumers.
The proposed settlement will prevent CASD from establishing prices or terms for chiropractic services and from negotiating with insurers on behalf of competing chiropractors. The proposed settlement will also require CASD to terminate its current payer contracts at various specified times, but in no event later than three months after the court's entry of the final judgment.
CASD is a company organized and doing business under the laws of the state of South Dakota, with its principal place of business in Brookings, S.D.
The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.
Monday, April 8, 2013
Justice Department Challenges Joint Contracting on Behalf of South Dakota Chiropractors
Settlement Bars Chiropractor Association from Conspiring to Raise Fees
The U.S. Department of Justice announced today that it has reached a settlement with Chiropractic Associates Ltd. of South Dakota (CASD), an association comprising approximately 80 percent of all practicing chiropractors in South Dakota. The settlement prohibits CASD from jointly determining prices and negotiating contracts with insurers on behalf of competing chiropractors in South Dakota, North Dakota, Minnesota and Iowa. The department said that CASD negotiated at least seven contracts with insurers that set prices for chiropractic services on behalf of CASD’s members and that CASD’s conduct caused consumers to pay higher fees for chiropractic services.
The department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of South Dakota against CASD. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the lawsuit.
"Chiropractic Associates Ltd. of South Dakota negotiated contracts on behalf of all its members, including competing providers, resulting in increased prices for chiropractic services in South Dakota," said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "Today’s settlement promotes competition among health care providers and prevents collective action that harms consumers and violates the antitrust laws."
According to the complaint, since 1997, CASD collectively negotiated the rates and price-related terms for at least seven contracts with insurers on behalf of CASD’s members. Except for members who were part of the same practice groups, CASD’s members were not clinically or financially integrated, and CASD’s actions were not necessary to achieve any benefits for consumers.
The proposed settlement will prevent CASD from establishing prices or terms for chiropractic services and from negotiating with insurers on behalf of competing chiropractors. The proposed settlement will also require CASD to terminate its current payer contracts at various specified times, but in no event later than three months after the court's entry of the final judgment.
CASD is a company organized and doing business under the laws of the state of South Dakota, with its principal place of business in Brookings, S.D.
The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.
CFTC CHAIRMAN GENSLER ADDRESSES U.S. CHAMBER OF COMMERCE
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FROM: U.S. COMMODITY FUTURES TRADING COMMISSION,
Remarks of Chairman Gary Gensler Before the U.S. Chamber of Commerce Seventh Annual Capital Markets Summit
April 10, 2013
Good afternoon, thank you David for that kind introduction. I’d also like to thank the Chamber of Commerce for inviting me to speak at your annual Capital Markets Summit. I’m honored to be joining this summit for the fourth year in a row.
Your conference is about managing risk in a global economy so I want to start by addressing what may be one of the most significant risks you’re facing in the capital markets.
That is the risk to market integrity of the continued use of LIBOR, Euribor and similar benchmark interest rates.
Interest rate benchmarks – central to borrowing, lending and hedging in our economy – are of critical importance to members of the Chamber.
LIBOR, as you may know, purports to represent the rate at which unsecured borrowing occurs between large banks. The insufficient number of transactions in this market, though, undermines market integrity.
Given their fundamental role in the capital markets and our economy, benchmark rates must be based on facts, not fiction.
Prices and rates formed by the competitive forces of supply and demand in a robust, transparent marketplace are the best guarantee of a reliable price or rate. Yet hundreds of trillions of dollars of financial instruments and contracts rely upon a benchmark referencing a market where essentially no borrowing occurs.
Banks simply are not lending to each other as they once did. In 2008, Mervyn King, the governor of the Bank of England, said of LIBOR: "It is, in many ways, the rate at which banks do not lend to each other."
This is a result of many factors: the 2008 crisis, the continuing European debt crisis, the downgrading of large banks’ credit ratings, as well as central banks providing significant funding directly to banks. Recent changes to Basel capital rules, including the new liquidity coverage ratio, suggest that banks may not return to interbank lending on an unsecured basis.
The shift away from banks funding each other in the unsecured market (without posting collateral) has led to a scarcity or outright absence of actual transactions underpinning LIBOR and other benchmark rates.
This situation – having benchmark rates that are not anchored in actual transactions – undermines market integrity and leaves the financial system with benchmarks that are prone to misconduct.
Indeed, as law enforcement actions brought by the Commodity Futures Trading Commission (CFTC), the U.K. Financial Conduct Authority and the U.S. Justice Department have shown, LIBOR and other benchmark rates have been readily and pervasively rigged.
These cases resulted in Barclays, UBS and RBS paying fines of approximately $2.5 billion for manipulative conduct relating to these rates. At each bank, the misconduct spanned many years.
At each bank it took place in offices in several cities around the globe.
At each bank it included numerous people – sometimes dozens, among them senior management.
Each case involved multiple benchmark rates and currencies. In one case, there were over 2,000 instances of misconduct over a six-year period.
And in each case, there was evidence of collusion.
In the UBS and RBS cases, one or more inter-dealer brokers painted false pictures to influence submissions of other banks, i.e., to spread the falsehoods more widely.
Barclays and UBS also were reporting falsely low borrowing rates in an effort to protect their reputations.
Beyond these cases, there is a significant amount of publicly available market data that further calls the integrity of LIBOR into question.
A comparison of LIBOR submissions to the volatilities of other short-term rates reflects that LIBOR is curiously more stable than any comparable rate. For instance, how is it that in 2012 – if we look at the 252 submission days for three-month U.S. dollar LIBOR – the banks didn’t change their rate 85 percent of the time?
When comparing LIBOR submissions to the same banks’ credit default swaps spreads or to the broader markets’ currency forward rates, why is there a continuing disconnect between LIBOR and what those other market rates tell us?
Whether we consider the broad structural shift away from unsecured, interbank lending; the recent enforcement actions; or questions about market data, confidence in the continued use of LIBOR and other similar interest rate benchmarks is undermined.
For capital and risk to be efficiently allocated within the economy – which is of vital importance to Chamber members – interest rate benchmarks should reflect actual price discovery anchored in observable transactions.
While ongoing international efforts targeting benchmarks, which I am pleased to be a part of, will focus on governance principles for benchmarks, these efforts cannot address a central vulnerability of LIBOR: the lack of transactions in the underlying market.
The time has come for U.S. regulators to work with our counterparts abroad, along with market participants, such as the people in this room, to promptly identify alternative benchmarks that are anchored in observable transactions and determine how to transition to such alternatives. The transition must be as smooth and orderly as possible, but given the vulnerabilities in the system, I believe that a transition is warranted.
The market has some experience with benchmark transitions, albeit for smaller contracts. When the euro was created, a number of interest rate benchmarks were discontinued. How many of you remember PIBOR, RIBOR, MIBOR and FIBOR? Transitions have also occurred for energy and shipping rate benchmarks.
I recognize that moving on from LIBOR and Euribor may be challenging. But continuing to support LIBOR and Euribor in the name of stability may have the opposite effect. Using benchmarks that threaten market integrity may create more instability in the long run.
The status quo leaves your members at risk that benchmarks that were rigged in the past may be exposed to rigging again in the future.
That risk is neither good for the capital markets nor for our economy.
Swaps Market Reform
Now, let me turn to swaps market reform.
Your members benefit from transparent and efficient derivatives markets. Both futures and swaps markets provide the opportunity to hedge a risk by locking in a future price or rate. Managing the price risk of energy or agriculture or the rate risk of interest rates or foreign currency allows your members to focus on what they do best – innovating and producing goods and services for the economy.
The derivatives markets work best for farmers, ranchers, producers and commercial companies when they are transparent; competitive; and free of fraud, manipulation and other abuses. The implementation of the common-sense reforms in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) brings these benefits to the once opaque and unregulated swaps market.
Transparency lowers costs for businesses and consumers, as it shifts information from dealers to the broader public. Post-trade transparency has come to the marketplace. The price and volume of transactions is available to the public on a website, like a modern-day ticker tape.
Seventy-five swap dealers and two major swaps participants are now provisionally registered. With this new oversight, they are subject to standards for sales practices, recordkeeping and business conduct to help lower risk to the economy and protect the public from fraud and manipulation.
As of last month, the public is benefiting from the greater access to the swaps market and risk reduction that comes with central clearing. Swap dealers and the largest hedge funds began clearing the vast majority of interest rate and credit default index swaps. Compliance will continue to be phased in throughout this year.
Swaps Reforms Benefit End-users
Each component of swaps market reform has been done with an eye toward ensuring they work for end-users, America’s job providers. It’s the end-users in the non-financial side of our economy that provide 94 percent of private sector jobs.
Congress provided in the Dodd-Frank Act that end-users should be able to choose whether or not to clear swaps that hedge or mitigate commercial risks. Last summer, the Commission finalized rules to implement this exception, including for small financial institutions.
As the Chamber calls for in your Financial Regulatory Reform 2013 Report Card, the Commission’s proposed rule on margin provides that end-users will not have to post margin for uncleared swaps. We also continue to advocate with global regulators for an approach consistent with that of the CFTC.
Non-financial companies, other than those genuinely making markets in swaps, will not have to register as swap dealers.
Further, the CFTC has ensured that when end-users are required to report their transactions, they are given more time to do so than other market participants.
Exceptions for Inter-affiliate swaps
Also of importance to your members, last week the CFTC finalized a rule to exempt swaps between certain affiliated entities within a corporate group from the clearing requirement.
In addition, CFTC staff issued a letter last week exempting swaps between affiliated counterparties that are not swap dealers or major swap participants from certain swap reporting requirements. This "no-action" letter extends to swaps between almost all non-financial affiliates.
Treasury Affiliates
We’ve received many comments and had many meetings with non-financial end-users that about required clearing if they use a treasury affiliate when entering into their market facing swaps. Though I don’t have any announcements today, let me assure you that the staff and Commission are taking a close look at how to appropriately address these issues in the context of the Dodd-Frank Act.
Further Implementation of Swaps Market Reform
Pre-trade Transparency
Looking forward, it’s a priority that the Commission finishes rules to promote pre-trade transparency, including those for swap execution facilities (SEFs) and the block rule for swaps.
Pre-trade transparency will allow buyers and sellers to meet and compete in the marketplace, just as they do in the securities and futures marketplaces. Market participants will be able to view the prices of available bids and offers prior to making their decision on a transaction.
End-users will get to see the pricing and volume of swap transactions on these platforms, but get to choose whether or not to use them. Furthermore, companies will continue to be able to rely on customized transactions to meet their particular needs, as well as to enter into large block trades.
Cross-border
Looking forward, it’s also a priority that the Commission ensures the cross-border application of swaps market reform appropriately covers the risk of U.S. affiliates operating offshore. During a default, risk knows no geographic border.
If a run starts in one part of a modern financial institution, whether it's here or offshore, the risk comes back to our shores. That was true with AIG, which ran most of its swaps business out of the London neighborhood Mayfair. It was also true at Lehman Brothers, Citigroup, Bear Stearns and Long-Term Capital Management.
Thus, as the CFTC completes the cross-border guidance, I believe it’s critical that Dodd-Frank swaps reform applies to transactions entered into by branches of U.S. institutions offshore, between guaranteed affiliates offshore, and for hedge funds that are incorporated offshore but operate in the U.S. Where there are comparable and comprehensive home country rules abroad, we can look to substituted compliance, but the transactions would still be covered.
If we fail to provide common-sense oversight to offshore affiliates of U.S. entities, American jobs and markets may move offshore, but, particularly in times of crisis, risk would come crashing back to our economy and could affect your businesses all over again. As I’m standing here speaking with the American Chamber of Commerce, which has the words "JOBS" in giant letters on the front of your building, I would imagine we would agree that this would not be a good result for the American public.
Ensuring we get the cross-border application of swaps reforms right is critical to protecting you members from the risk of another foreign-affiliate failure.
Conclusion
I was flattered to see that this year, the CFTC got a slightly better grade in your annual report card than last year – you moved us up to a C+ from a C.
I also noticed that derivatives reform was graded higher than all the other issues you covered, except "Preserving the Integrity of Accounting and Auditing."
More seriously, I was pleased to see that we agree on your overall statement on derivatives reform: moving the vast majority of swaps into central clearing and onto transparent exchanges increases transparency and lowers risk.
As I’ve said in past speeches to you, why aren’t we more aligned? We both want more transparency, openness and competition in these markets, which lowers costs for companies and their customers.
And we cannot forget the real scorecard for so many Americans that resulted in eight million jobs lost.
AIR FORCE GEN. KEHLER ON PLANNING FOR THE UNEXPECTED
FROM: U.S. DEPARTMENT OF DEFENSE
Strategic Command Plans for Unexpected, Commander Says
By Donna Miles
American Forces Press Service
OFFUTT AIR FORCE BASE, Neb., April 8, 2013 - The last thing Air Force Gen. C. Robert Kehler -- the point man for the U.S. nuclear arsenal as well as space, cyber, ballistic missile and other capabilities -- wants is to be caught by surprise.
As commander of U.S. Strategic Command, Kehler's job is to ensure U.S. deterrence remains so strong that it dissuades potential adversaries from challenging it.
In the days of the Cold War, the concept of deterrence was relatively straightforward, with both the United States and former Soviet Union recognizing that a nuclear attack by either side would result in "mutually assured destruction," he told American Forces Press Service.
Today, deterrence is a whole different matter, he said, with a broader array of potential adversaries, all operating in different ways and guided by different motivations. The challenge is to ensure that as the United States confronts this whole new ball game, it doesn't get dealt a devastating curve ball.
So Kehler regularly challenges his staff to think about the unthinkable to ensure they're ready for whatever comes their way.
"The question for us is, 'Are we ready to deal with uncertainty?'" he said. "Have we prepared ourselves in a way that acknowledges that surprise is going to happen -- and that surprise can be deadly if we allow it to be so?"
Being open to "alternative futures," he said, "helps us think about things we are not thinking about today, and therefore, prepare as a matter of course for things that may not unfold the way we think they will."
Kehler is such a firm believer in out-of-the-box thinking that he's made "prepare for uncertainty" one of his top five command priorities. He and his senior staff regularly gather around a conference table to ponder "what ifs" that may seem inconceivable to many.
"This isn't about what happens if Martians land," Kehler said. "This is about coming up with some plausible scenarios that make you step back and go, 'Hmmm ....'"
Doing so presents situations in a new light, and sometimes with new insights, the general said.
"I believe you can train yourself to recognize that you probably don't have it right, and that there is going to be something else out there," he said.
Kehler cited historical examples when an unrecognized "something else out there" had a devastating effect on the United States.
"I think it's our responsibility to go back and ask ourselves, 'What were we thinking on 6 December 1941, and then on 8 December 1941?" he said, referring to the dates surrounding the attack on Pearl Harbor. "And what were we thinking on 10 September 2001, and then on September 12?"
Kehler said he largely agrees with those who blame the 9/11 attacks on "a failure of imagination."
"If that is so, then we had better be imaginative now," he said. "Because as complex and uncertain as the world is, we are not going to get all this right. It is not going to be all neatly presented to us in a planning problem. And that makes it more important than ever that we understand the things that are out there."
Tabletop exercises and brainstorming sessions might not identify the exact next threat or predict who will launch it, and when, he acknowledged.
"But at least we will have given ourselves a bunch of challenges to think about that I believe help us prepare for the day when something has happened that you just didn't foresee," Kehler said. "That way, we're not left flabbergasted and flat-footed here because something happened, because we weren't so locked in on things that we didn't recognize that it could happen."
Strategic Command Plans for Unexpected, Commander Says
By Donna Miles
American Forces Press Service
OFFUTT AIR FORCE BASE, Neb., April 8, 2013 - The last thing Air Force Gen. C. Robert Kehler -- the point man for the U.S. nuclear arsenal as well as space, cyber, ballistic missile and other capabilities -- wants is to be caught by surprise.
As commander of U.S. Strategic Command, Kehler's job is to ensure U.S. deterrence remains so strong that it dissuades potential adversaries from challenging it.
In the days of the Cold War, the concept of deterrence was relatively straightforward, with both the United States and former Soviet Union recognizing that a nuclear attack by either side would result in "mutually assured destruction," he told American Forces Press Service.
Today, deterrence is a whole different matter, he said, with a broader array of potential adversaries, all operating in different ways and guided by different motivations. The challenge is to ensure that as the United States confronts this whole new ball game, it doesn't get dealt a devastating curve ball.
So Kehler regularly challenges his staff to think about the unthinkable to ensure they're ready for whatever comes their way.
"The question for us is, 'Are we ready to deal with uncertainty?'" he said. "Have we prepared ourselves in a way that acknowledges that surprise is going to happen -- and that surprise can be deadly if we allow it to be so?"
Being open to "alternative futures," he said, "helps us think about things we are not thinking about today, and therefore, prepare as a matter of course for things that may not unfold the way we think they will."
Kehler is such a firm believer in out-of-the-box thinking that he's made "prepare for uncertainty" one of his top five command priorities. He and his senior staff regularly gather around a conference table to ponder "what ifs" that may seem inconceivable to many.
"This isn't about what happens if Martians land," Kehler said. "This is about coming up with some plausible scenarios that make you step back and go, 'Hmmm ....'"
Doing so presents situations in a new light, and sometimes with new insights, the general said.
"I believe you can train yourself to recognize that you probably don't have it right, and that there is going to be something else out there," he said.
Kehler cited historical examples when an unrecognized "something else out there" had a devastating effect on the United States.
"I think it's our responsibility to go back and ask ourselves, 'What were we thinking on 6 December 1941, and then on 8 December 1941?" he said, referring to the dates surrounding the attack on Pearl Harbor. "And what were we thinking on 10 September 2001, and then on September 12?"
Kehler said he largely agrees with those who blame the 9/11 attacks on "a failure of imagination."
"If that is so, then we had better be imaginative now," he said. "Because as complex and uncertain as the world is, we are not going to get all this right. It is not going to be all neatly presented to us in a planning problem. And that makes it more important than ever that we understand the things that are out there."
Tabletop exercises and brainstorming sessions might not identify the exact next threat or predict who will launch it, and when, he acknowledged.
"But at least we will have given ourselves a bunch of challenges to think about that I believe help us prepare for the day when something has happened that you just didn't foresee," Kehler said. "That way, we're not left flabbergasted and flat-footed here because something happened, because we weren't so locked in on things that we didn't recognize that it could happen."
THE GREENING OF THE ARTIC
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| Photo: Melting Artic Ice. Credit: NOAA |
New Models Predict Dramatically Greener Arctic in the Coming Decades
Rising temperatures will lead to a massive "greening" of the Arctic by mid-century, as a result of marked increases in plant cover, according to research supported by the National Science Foundation (NSF) as part of its International Polar Year (IPY) portfolio.
The greening not only will have effects on plant life, the researchers noted, but also on the wildlife that depends on vegetation for cover. The greening could also have a multiplier effect on warming, as dark vegetation absorbs more solar radiation than ice, which reflects sunlight.
In a paper published March 31 in Nature Climate Change, scientists reveal new models projecting that wooded areas in the Arctic could increase by as much as 50 percent over the coming decades. The researchers also show that this dramatic greening will accelerate climate warming at a rate greater than previously expected.
"Such widespread redistribution of Arctic vegetation would have impacts that reverberate through the global ecosystem," said Richard Pearson, lead author on the paper and a research scientist at the American Museum of Natural History's Center for Biodiversity and Conservation.
In addition to Pearson, the research team includes other scientists from the museum, as well as from AT&T Labs-Research, Woods Hole Research Center, Colgate and Cornell universities, and the University of York.
The research was funded by two related, collaborative NSF IPY grants, one made to the museum and one to the Woods Hole Researc Center.
IPY was a two-year, global campaign of research in the Arctic and Antarctic that fielded scientists from more than 60 nations in the period 2007-2009. The IPY lasted two years to insure a full year of observations at both poles, where extreme cold and darkness preclude research for much of the year. NSF was the lead U.S. government agency for IPY.
Although the IPY fieldwork has been largely accomplished "in addition to the intensive field efforts undertaken during the IPY, projects such as this one work to understand IPY and other data in a longer-term context, broadening the impact of any given data set," said Hedy Edmonds, Arctic Natural Sciences program director in the Division of Polar Programs of NSF's Geosciences Directorate.
Plant growth in Arctic ecosystems has increased over the past few decades, a trend that coincides with increases in temperatures, which are rising at about twice the global rate.
The research team used climate scenarios for the 2050s to explore how the greening trend is likely to continue in the future. The scientists developed models that statistically predict the types of plants that could grow under certain temperatures and precipitation. Although it comes with some uncertainty, this type of modeling is a robust way to study the Arctic because the harsh climate limits the range of plants that can grow, making this system simpler to model compared to other regions, such as the tropics.
The models reveal the potential for massive redistribution of vegetation across the Arctic under future climate, with about half of all vegetation switching to a different class and a massive increase in tree cover. What might this look like? In Siberia, for instance, trees could grow hundreds of miles north of the present tree line.
These impacts would extend far beyond the Arctic region, according to Pearson.
For example, some species of birds migrate from lower latitudes seasonally, and rely on finding particular polar habitats, such as open space for ground-nesting.
The computer modeling for the project was supported by a separate NSF grant to Cornell by the Division of Computer and Network Systems in NSF's Directorate for Computer & Information Science & Engineering, as part of the directorate's Expeditions in Computing program.
"The Expeditions grant has enabled us to develop sophisticated probabilistic models that can scale up to continent-wide vegetation prediction and provide associated uncertainty estimates. This is a great example of the transformative research happening within the new field of Computational Sustainability," said Carla P. Gomes, principal investigator at Cornell.
In addition to the first-order impacts of changes in vegetation, the researchers investigated the multiple climate-change feedbacks that greening would produce.
They found that a phenomenon called the albedo effect, based on the reflectivity of the Earth's surface, would have the greatest impact on the Arctic's climate. When the sun hits snow, most of the radiation is reflected back to space. But when it hits an area that's "dark," or covered in trees or shrubs, more sunlight is absorbed in the area and temperature increases. This has a positive feedback to climate warming: the more vegetation there is, the more warming will occur.
"By incorporating observed relationships between plants and albedo, we show that vegetation distribution shifts will result in an overall positive feedback to climate that is likely to cause greater warming than has previously been predicted," said co-author and NSF grantee Scott Goetz, of the Woods Hole Research Center.
-NSF-
WEIGHT GAIN OR SMOKING; WHICH IS WORSE?
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.
Smokers gain a little weight when they quit, but they gain a lot more in health. A study checked whether the extra weight could raise the risk of heart disease. James Meigs of Massachusetts General Hospital and his colleagues looked at data on weight gain and cardiovascular disease among participants in the long-running Framingham Heart Study.
The researchers found quitters cut their risk of cardiovascular disease by about half compared with smokers, even though the quitters gained a bit more weight. So Meigs says:
"Patients will gain weight when they stop smoking but that weight gain doesn’t lower the overall benefit of quitting smoking, heart attack risk and stroke risk."
The study in the Journal of the American Medical Association was supported by the National Institutes of Health.
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.
Smokers gain a little weight when they quit, but they gain a lot more in health. A study checked whether the extra weight could raise the risk of heart disease. James Meigs of Massachusetts General Hospital and his colleagues looked at data on weight gain and cardiovascular disease among participants in the long-running Framingham Heart Study.
The researchers found quitters cut their risk of cardiovascular disease by about half compared with smokers, even though the quitters gained a bit more weight. So Meigs says:
"Patients will gain weight when they stop smoking but that weight gain doesn’t lower the overall benefit of quitting smoking, heart attack risk and stroke risk."
The study in the Journal of the American Medical Association was supported by the National Institutes of Health.
THE ASTEROID RETRIEVAL INITIATIVE
FROM: NASA
Animation: Asteroid Retrieval Initiative
NASA's FY2014 budget proposal includes a plan to robotically capture a small near-Earth asteroid and redirect it safely to a stable lunar orbit where astronauts can visit and explore it. The proposed mission would combine the efforts of three NASA mission directorates: Human Exploration and Operations, Science and Space Technology.
Thursday, April 11, 2013
MEMBER OF "IMAGINE" GROUP SENTENCED TO PRISON FOR CRIMINAL COPYRIGHT CONSPIRACY
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 10, 2013
Member of Internet Piracy Group "IMAGiNE" Sentenced in Virginia to 23 Months in Prison for Criminal Copyright Conspiracy
A member of the Internet piracy group "IMAGiNE" was sentenced today to serve 23 months in prison, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.
On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy.
On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group.
According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters. After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia . Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison. Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.
The investigation of the case and the arrests were conducted by agents with the HIS Washington, D.C., Field Office. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
Wednesday, April 10, 2013
Member of Internet Piracy Group "IMAGiNE" Sentenced in Virginia to 23 Months in Prison for Criminal Copyright Conspiracy
A member of the Internet piracy group "IMAGiNE" was sentenced today to serve 23 months in prison, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.
On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy.
On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group.
According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters. After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia . Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison. Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.
The investigation of the case and the arrests were conducted by agents with the HIS Washington, D.C., Field Office. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
ISAF NEWS FROM AFGHANISTAN
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| U.S. soldiers provide security in a local village during a patrol in the Khogyani district of Afghanistan's Nangarhar province, March 28, 2013. U.S. Army photo by Sgt. Jon Heinrich |
Combined Force in Kandahar Arrests Taliban Leader
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, April 11, 2013 - A combined Afghan and coalition security force arrested a Taliban leader and detained another insurgent in the Kandahar district of Afghanistan's Kandahar province today, military officials reported.
The leader is believed to be in charge of a cell of fighters responsible for improvised explosive device operations against Afghan civilians. He also was involved in obtaining weapons and vehicles for attacks against Afghan and coalition forces.
In Afghanistan operations yesterday:
-- A combined force detained two insurgents during a search for a senior insurgent leader with ties to both the Taliban and the Islamic Movement of Uzbekistan in Balkh province's Sholgarah district. The leader is the ranking Taliban official in the district and has ties to Taliban officials responsible for attacks against Afghan and coalition forces. He also has a history of collecting illegal taxes to finance the Taliban terrorist network, and he manages the Balkh weapons distribution chain.
-- In Helmand province's Nahr-e Saraj district, a combined force arrested a Taliban leader alleged to be instrumental in acquiring weapons, distributing them to insurgents, and leading them in attacks against Afghan and coalition forces. He also is involved in IED research and development, with a history of experimenting with different device configurations. The security force also detained another insurgent.
-- A combined force killed two insurgents during a separate operation in Helmand's Nahr-e Saraj district in search of a senior Taliban leader. The leader has operational control over a cell of insurgents responsible for attacks against Afghan and coalition forces. His group is known to use IEDs, vehicle-mounted automatic grenade launchers, rocket-propelled grenades and various other weapons. The leader also is vital in insurgent weapons facilitation throughout Helmand.
In an April 9 operation in Baghlan province's Burkah district, a combined force killed several insurgents during a search for a senior insurgent leader with ties to both the Taliban and the Islamic Movement of Uzbekistan. The leader is the second-highest-ranking insurgent in the district and was responsible for recruiting and training insurgents and targeting Afghan officials for kidnappings and assassinations. He also has played a significant role in linking Taliban and Islamic Movement of Uzbekistan fighters in Baghlan, working as a mediator and coordinating operations between the networks.
THE IRAQ MUSEUM AFTER TEN YEARS OF U.S.-IRAQ COLLABORATION
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| Photo: Iraq Cultural Heritage Initiatives. Credit: U.S. State Department |
Commemorating a Decade of U.S.-Iraqi Collaboration in Renewing the Iraq Museum
Office of the Spokesperson
Washington, DC
April 10, 2013
For ten years, the U.S. Department of State has been working closely with Iraqi counterparts and American academic and nonprofit institutions to protect, preserve, and display the rich cultural heritage of Iraq. Cultural heritage cooperation is a major pillar of the Iraq-U.S. Strategic Framework Agreement, reflecting the high value both nations place on this irreplaceable resource.
A major continuing effort has focused on the Iraq Museum in Baghdad, where looting in April 2003 left the facility physically damaged and an unsafe environment for both staff and the Museum’s collections. In summer 2003, State Department personnel were among the first responders to the museum’s needs, providing replacement photographic equipment, office furniture, and supplies. An assessment in autumn 2003 conducted by experts in museum security, environmental control, conservation, and information technology initiated a 2004 project of major improvements to the museum’s physical plant, IT capabilities, and security.
This assessment also laid the groundwork for the Iraq Cultural Heritage Project, a $12.9 million initiative developed and funded by the State Department, and implemented by the nonprofit International Relief and Development from 2008 to 2011. This project rehabilitated and furnished 11 of the museum’s public galleries, a 3-story collections storage facility, and the conservation labs, as well as providing a new roof and upgraded climate control systems.
Along with physical improvements to the building, the State Department sponsored and organized trainings for museum staff as part of its comprehensive approach to partnering with Iraqis in the preservation of their cultural heritage. In 2004, the Department funded a special five-week "Cultural Heritage Institute" through the Council of American Overseas Research Centers, to bring 22 Iraqi museum staff to the Smithsonian Institution for training in museum management, conservation, and curatorial practices. In 2009-2010, the Department’s Iraq Cultural Heritage Project also provided training for 20 museum professionals from throughout Iraq at the Field Museum of Natural History in Chicago, covering topics from exhibit design and museum education to archaeological site excavation and stabilization.
Funding for these projects was provided through the Bureau of Educational and Cultural Affairs’ Cultural Heritage Center and Office of Academic Exchanges, the U.S. Embassy Baghdad, and private foundations.
GEN. HYTEN SPEAKS ABOUT CYBER OPERATIONS AND CHANGE
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| Lt. Gen. John E. Hyten speaks about how cyber operations are a clear catalyst for change in the art and science of modern warfare during the Space Foundation's Cyber 1.3 luncheon April 8, 2013 in Colorado Springs, Colo. Hyten is the Air Force Space Command vice commander. U.S. Air Force photo/Duncan Wood |
Cyberspace: Fundamental to joint fight
by Maj. Christina Hoggatt
Air Force Space Command Public Affairs
4/10/2013 - COLORADO SPRINGS, Colo. (AFNS) -- Cyber operations are a clear catalyst for change in the art and science of modern warfare, Lt. Gen. John Hyten, the Air Force Space Command vice commander, said during the Space Foundation's Cyber 1.3 luncheon here, April 8.
Hyten emphasized the importance of getting back to the basics in cyber, the efficacy and potential sticking points in creating a joint information environment, and the distinctions between cyber operations, information technology, and weapon systems.
"The chief of staff of the Air Force just approved weapons system designation for six of our cyber weapons systems," he said. "We're gaining ground in normalizing cyber operations in the Air Force."
The Air Force is also integrating those cyber capabilities with other joint capabilities to meet combatant commanders' requirements. He noted that all services are endorsing a force presentation model that will build mission ready teams to support both U.S. Cyber Command and combatant command missions.
He went on to speak in support of the joint information environment.
"As the cyber core function lead integrator for the Air Force, we're committed to the goals of the JIE, but we need to make sure we don't reset any of the progress we've made in network defense, network security and cyber normalization," Hyten said.
Though the general believes in the JIE concept, he is concerned that the single security architecture remains undefined, rigorous operational processes have not been put in place or tested, and there are still significant questions about resourcing this endeavor.
"Commercialization can also reduce our need for larger server infrastructures -- they shift the significant operations and maintenance burden onto the commercial sector," he said.
He also pointed out that since cyberspace is such a sophisticated environment, both the Department of Defense and the private sector need to agree on some basic definitions.
"While our Airmen have mastered the ability to communicate through cyberspace, our inability to communicate about cyberspace, the domain, and cyberspace operations in particular, frequently causes confusion and the inability to effectively and efficiently bring cyber capabilities to the fight," Hyten said. "We won't operationalize cyberspace until we operationalize our lexicon."
Using the three recently approved lines of operation for cyber to illustrate his point, Hyten said the key to understanding this new warfighting domain will be to understand the difference between cyberspace operations and information technology.
"Each of these lines of operation is pivotal to maintaining the freedom to operate in and through cyberspace and enable the exchange of information for space and cyberspace operations," he said.
The different areas of cyber all have unique definitions, Hyten said, adding that many times cyberspace and information technology are often confused.
"If we allow these definitions to become more than that, if they become too unwieldy, they lose their meaning and they become weapons in a religious debate between different elements of our force," he said.
The general went on to suggest that by using the foundational definitions found in the Clinger-Cohen Act of 1996 and Joint Publication 3-12, Cyberspace Operations, the joint force will develop a more clear understanding of cyberspace, cyberspace operations and information technology.
"Despite the changes ahead, one thing remains certain, the cyberspace domain is a priority for this Nation, for the Department of Defense and for the U.S. Air Force," Hyten said. "Our success on the battlefield is one that depends on the timely movement of information. We must be ready to meet any adversary in cyberspace that presents themselves."
57 CHARGED FOR ROLES IN OPERATING ILLEGAL ONLINE SPORTS GAMING BUSINESS
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 10, 2013
Fifty-Seven Charged with Operating Illegal Online Sports Gaming Business
Indictment Seeks Forfeiture Money Judgment of $1 Billion
Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
"These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds," said Acting Assistant Attorney General Raman. "Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside."
"The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries," said U.S. Attorney Sanford C. Coats. "I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise."
According to the indictment, Bartice Alan King, aka "Luke" and "Cool," 42, of Spring, Texas, conspired with others to operate internet and telephone gambling services first from San Jose, Costa Rica and then from Panama City, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both "post-up" betting, which requires a bettor to first set up and fund an account before placing bets and "credit" betting, which allowed the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling over $1 billion.
"These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds," said Acting Assistant Attorney General Raman. "Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside."
"The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries," said U.S. Attorney Sanford C. Coats. "I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise."
"Individuals cannot skirt the laws of the United States by setting up illegal internet gambling operations in a foreign country, while living in the United States and enjoying all the benefits of U.S. citizens," said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. "The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law."
"Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes," said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. "This massive indictment is the result of our highly effective law enforcement partnership."
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, individual retirement accounts, domain names, a Sabreliner aircraft, a gas lease and vehicles.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden Jr., from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.
Wednesday, April 10, 2013
Fifty-Seven Charged with Operating Illegal Online Sports Gaming Business
Indictment Seeks Forfeiture Money Judgment of $1 Billion
Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
"These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds," said Acting Assistant Attorney General Raman. "Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside."
"The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries," said U.S. Attorney Sanford C. Coats. "I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise."
According to the indictment, Bartice Alan King, aka "Luke" and "Cool," 42, of Spring, Texas, conspired with others to operate internet and telephone gambling services first from San Jose, Costa Rica and then from Panama City, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both "post-up" betting, which requires a bettor to first set up and fund an account before placing bets and "credit" betting, which allowed the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling over $1 billion.
"These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds," said Acting Assistant Attorney General Raman. "Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside."
"The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries," said U.S. Attorney Sanford C. Coats. "I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise."
"Individuals cannot skirt the laws of the United States by setting up illegal internet gambling operations in a foreign country, while living in the United States and enjoying all the benefits of U.S. citizens," said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. "The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law."
"Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes," said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. "This massive indictment is the result of our highly effective law enforcement partnership."
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, individual retirement accounts, domain names, a Sabreliner aircraft, a gas lease and vehicles.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden Jr., from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING APRIL 6, 2013
SEASONALLY ADJUSTED DATA
In the week ending April 6, the advance figure for seasonally adjusted initial claims was 346,000, a decrease of 42,000 from the previous week's revised figure of 388,000. The 4-week moving average was 358,000, an increase of 3,000 from the previous week's revised average of 355,000.
The advance seasonally adjusted insured unemployment rate was 2.4 percent for the week ending March 30, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending March 30 was 3,079,000, a decrease of 12,000 from the preceding week's revised level of 3,091,000. The 4-week moving average was 3,079,250, an increase of 5,250 from the preceding week's revised average of 3,074,000.
The advance number of actual initial claims under state programs, unadjusted, totaled 353,973 in the week ending April 6, an increase of 37,025 from the previous week. There were 390,064 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.5 percent during the week ending March 30, a decrease 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 3,266,392, a decrease of 84,488 from the preceding week's revised level of 3,350,880. A year earlier, the rate was 2.7 percent and the volume was 3,470,104.
The total number of people claiming benefits in all programs for the week ending March 23 was 5,277,512, a decrease of 10,573 from the previous week. There were 6,952,894 persons claiming benefits in all programs in the comparable week in 2012.
Extended Benefits were available only in Alaska during the week ending March 23.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,139 in the week ending March 30, an increase of 30 from the prior week. There were 2,143 initial claims filed by newly discharged veterans, a decrease of 192 from the preceding week.
There were 19,791 former Federal civilian employees claiming UI benefits for the week ending March 23, a decrease of 452 from the previous week. Newly discharged veterans claiming benefits totaled 38,090, a decrease of 587 from the prior week.
States reported 1,837,554 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending March 23, an increase of 37,929 from the prior week. There were 2,794,553 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending March 23 were in Alaska (5.5), Puerto Rico (4.3), California (3.8), New Jersey (3.8), Rhode Island (3.8), Connecticut (3.7), Pennsylvania (3.7), Wisconsin (3.6), Massachusetts (3.5), and Montana (3.5).
The largest increases in initial claims for the week ending March 30 were in Pennsylvania (+3,015), New Jersey (+2,409), Illinois (+2,149), Kentucky (+1,718), and Wisconsin (+1,583), while the largest decreases were in Texas (-3,489), California (-2,661), North Carolina (-1,601), Arkansas (-1,221), and Connecticut (-774).
GSA SAYS 2014 BUDGET INVESTS HEAVILY IN PUBLIC CONSTRUCTION AND REPAIRS
GSA SAYS 2014 BUDGET INVESTS HEAVILY IN PUBLIC CONSTRUCTION AND REPAIRS
FROM: GENERAL SERVIES ADMINISTRAION
GSA Announces Major Investments in the Nation's Public Buildings as Part of President's Budget
April 10, 2013
Washington, DC -- Today the U.S. General Services Administration (GSA) Acting Administrator Dan Tangherlini announced major public building construction and repair projects outlined in President Obama's Fiscal Year 2014 Budget.
The President’s Budget calls for important, common sense investments in the nation’s public buildings managed by the U.S. General Services Administration. These investments enable GSA to properly maintain and improve the real estate assets owned and paid for by the American people.
"By investing in our public buildings, a smaller federal footprint and improved border crossing stations, GSA will not only create savings for the American people, but also assist in providing them with the most efficient and effective government possible," said GSA Acting Administrator Dan Tangherlini. "The President’s Budget will ensure that federal agencies can support economic and job growth in communities across this country."
Investing in the Nation’s Public Buildings:
As a result of consecutive years of reduced funding, GSA’s portfolio of facilities have forgone over $4 billion worth of capital improvements including major repairs and maintenance as well as critical additions to the inventory. The President’s Budget restores GSA’s authority to fully use incoming rent funds to meet the urgent needs of its real estate portfolio by investing $1.3 billion in repair and maintenance of federal buildings, including $379 million for basic repairs.
The Budget also identifies important construction projects across the country, including more than $800 million investment in eight construction projects, such as the consolidation of the Department of Homeland Security (DHS) at the St. Elizabeth’s campus in Washington, DC. By bringing these agency components into a single campus, DHS will save on leased space and enhance staff collaboration.
Making Federal Real Estate Smaller and More Efficient:
The Budget includes $100 million to further GSA’s efforts to consolidate agencies within existing Federally owned space across the country to improve space utilization, optimize inventory, decrease reliance on leased space, increase energy and water conservation, and reduce the federal government’s footprint. GSA’s consolidation program will save taxpayer dollars by reducing agency dependence on leased space, and reducing the total amount of space occupied by the government.
Investing in Border Infrastructure and Modernization:
The Budget includes two border crossing and inspection projects that will promote economic growth and national security. This includes a $226 million request this year to work on the next phase of the San Ysidro Port of Entry in Southern California, the busiest border crossing in the world.
GSA is also requesting $61 million to expand and modernize the U.S. Land Port of Entry facilities at the Port of Laredo in Laredo, Texas. These investments will increase efficiency, create economic growth, and improve safety and security for both vehicular and pedestrian traffic.
These are critical investments in infrastructure that will create significant savings by preventing costly emergency repairs in the future and build upon our progress.
Savings from Internal Reforms:
Over the past year, GSA has increased its transparency and accountability and has streamlined the agency’s operations. In just one year as GSA Acting Administrator, Tangherlini has led the agency in delivering more than $73 million in internal savings by implementing common sense reforms. The President’s Budget is an opportunity for GSA to further these efforts.
FROM: GENERAL SERVIES ADMINISTRAION
GSA Announces Major Investments in the Nation's Public Buildings as Part of President's Budget
April 10, 2013
Washington, DC -- Today the U.S. General Services Administration (GSA) Acting Administrator Dan Tangherlini announced major public building construction and repair projects outlined in President Obama's Fiscal Year 2014 Budget.
The President’s Budget calls for important, common sense investments in the nation’s public buildings managed by the U.S. General Services Administration. These investments enable GSA to properly maintain and improve the real estate assets owned and paid for by the American people.
"By investing in our public buildings, a smaller federal footprint and improved border crossing stations, GSA will not only create savings for the American people, but also assist in providing them with the most efficient and effective government possible," said GSA Acting Administrator Dan Tangherlini. "The President’s Budget will ensure that federal agencies can support economic and job growth in communities across this country."
Investing in the Nation’s Public Buildings:
As a result of consecutive years of reduced funding, GSA’s portfolio of facilities have forgone over $4 billion worth of capital improvements including major repairs and maintenance as well as critical additions to the inventory. The President’s Budget restores GSA’s authority to fully use incoming rent funds to meet the urgent needs of its real estate portfolio by investing $1.3 billion in repair and maintenance of federal buildings, including $379 million for basic repairs.
The Budget also identifies important construction projects across the country, including more than $800 million investment in eight construction projects, such as the consolidation of the Department of Homeland Security (DHS) at the St. Elizabeth’s campus in Washington, DC. By bringing these agency components into a single campus, DHS will save on leased space and enhance staff collaboration.
Making Federal Real Estate Smaller and More Efficient:
The Budget includes $100 million to further GSA’s efforts to consolidate agencies within existing Federally owned space across the country to improve space utilization, optimize inventory, decrease reliance on leased space, increase energy and water conservation, and reduce the federal government’s footprint. GSA’s consolidation program will save taxpayer dollars by reducing agency dependence on leased space, and reducing the total amount of space occupied by the government.
Investing in Border Infrastructure and Modernization:
The Budget includes two border crossing and inspection projects that will promote economic growth and national security. This includes a $226 million request this year to work on the next phase of the San Ysidro Port of Entry in Southern California, the busiest border crossing in the world.
GSA is also requesting $61 million to expand and modernize the U.S. Land Port of Entry facilities at the Port of Laredo in Laredo, Texas. These investments will increase efficiency, create economic growth, and improve safety and security for both vehicular and pedestrian traffic.
These are critical investments in infrastructure that will create significant savings by preventing costly emergency repairs in the future and build upon our progress.
Savings from Internal Reforms:
Over the past year, GSA has increased its transparency and accountability and has streamlined the agency’s operations. In just one year as GSA Acting Administrator, Tangherlini has led the agency in delivering more than $73 million in internal savings by implementing common sense reforms. The President’s Budget is an opportunity for GSA to further these efforts.
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
130409-N-GA424-179 PACIFIC OCEAN (April 9, 2013) Lt. Mary Gresko directs an F/A-18F Super Hornet assigned to the Black Knights of Strike Fighter Squadron (VFA) 154 before a launch from the aircraft carrier USS Nimitz (CVN 68). Nimitz and Carrier Air Wing 11 are underway for a sustainment training exercise in preparation for an upcoming deployment. (U.S. Navy photo by Mass Communication Specialist 2nd Class Jacquelyn D. Childs/Released)
130410-N-YW024-211 PACIFIC OCEAN (April 10, 2013) An MH-60S Sea Hawk helicopter from the Eightballers of Helicopter Sea Combat Squadron (HSC) 8 carries ordnance from the aircraft carrier USS John C. Stennis (CVN 74) to the Military Sealift Command fast combat support ship USNS Bridge (T-AOE 10) during a weapons transfer. John C. Stennis is deployed to the U.S. 7th Fleet area of responsibility conducting maritime security operations and theater security cooperation efforts. (U.S. Navy photo by Mass Communication Specialist 3rd Class Katarzyna Kobiljak/Released)
SPECIAL AGENT HOMELAND SECURITY OIG INDICTED FOR RECORDS FALSIFICATION
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, April 9, 2013
Former Department of Homeland Security Office of Inspector General Special Agent in Charge Indicted in Texas for Role in Records Falsification Scheme
A former U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) special agent in charge and another special agent were indicted in the Southern District of Texas late yesterday for their roles in a scheme to falsify records and to obstruct an internal field office inspection, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Armando Fernandez of the FBI San Antonio Field Office.
The indictment returned by a federal grand jury in Brownsville, Texas, charges Eugenio Pedraza, 49, of McAllen, Texas, with six counts of falsification of records in federal investigations, five counts of obstructing an agency proceeding, one count of obstruction of justice and one count of conspiracy. The indictment also charges Marco Rodriguez, 40, of Mission, Texas, with two counts of falsification of records in federal investigations, two counts of obstructing an agency proceeding and one count of conspiracy.
DHS-OIG is the principal component within DHS with the responsibility to investigate alleged criminal activity by DHS employees, including corruption affecting the integrity of U.S. borders.
According to the indictment, in September 2011, DHS-OIG conducted an internal inspection of its McAllen Field Office to evaluate whether its internal investigative standards and policies were being followed. At that time, Pedraza was the special agent in charge of the McAllen Field Office, and Rodriguez was a special agent stationed there. According to the indictment, in anticipation of the inspection, Pedraza allegedly directed Rodriguez and other DHS-OIG employees to engage in a scheme to falsify documents in open criminal investigative case files, including numerous investigations in which DHS employees were suspected of participating in the unlawful smuggling of undocumented aliens and/or narcotics into the United States.
More specifically, the indictment charges that at Pedraza’s direction, DHS-OIG employees allegedly created and placed into these investigative files backdated memoranda of activity that falsely reflected investigative activity by agents that had not occurred; backdated case review worksheets that falsely reflected supervisory case reviews that Pedraza had not conducted with his subordinate agents; and backdated, unsent letters that were signed by Pedraza and purported to inform the FBI of the opening of a DHS-OIG investigation.
According to the indictment, the scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards from individuals conducting an internal field office inspection. The scheme was allegedly devised to conceal Pedraza’s failure to ensure that investigations were being conducted promptly and thoroughly, his failure to provide his subordinates with adequate training and supervision, and his failure to ensure that the FBI was being timely notified of DHS-OIG’s investigations.
The indictment also charges Pedraza with allegedly directing two DHS-OIG employees to falsify memoranda of activity on additional occasions, and with obstructing justice by removing the falsified supervisory case review sheets that he had created from DHS-OIG files after becoming aware of the FBI and grand jury investigation into his conduct.
In a related case, on Jan. 17, 2013, Wayne Ball, a former DHS-OIG special agent, pleaded guilty in U.S. District Court for the Southern District of Texas before U.S. District Judge Randy Crane to one count of a multi-object conspiracy to falsify records in federal investigations and to obstruct an agency proceeding for his participation in the scheme. Ball is scheduled to be sentenced on July 31, 2013.
The charge of falsification of records in federal investigations carries a maximum penalty of 20 years in prison. The charge of obstructing an agency proceeding carries a maximum penalty of five years in prison. The charge of obstruction of justice carries a maximum penalty of 20 years in prison. The charge of conspiracy carries a maximum penalty of five years in prison. Each of these charges carry a maximum fine of $250,000.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Trial Attorneys Eric L. Gibson and Timothy J. Kelly of the Criminal Division’s Public Integrity Section. The case is being investigated by agents of the FBI, San Antonio Division.
Tuesday, April 9, 2013
Former Department of Homeland Security Office of Inspector General Special Agent in Charge Indicted in Texas for Role in Records Falsification Scheme
A former U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) special agent in charge and another special agent were indicted in the Southern District of Texas late yesterday for their roles in a scheme to falsify records and to obstruct an internal field office inspection, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Armando Fernandez of the FBI San Antonio Field Office.
The indictment returned by a federal grand jury in Brownsville, Texas, charges Eugenio Pedraza, 49, of McAllen, Texas, with six counts of falsification of records in federal investigations, five counts of obstructing an agency proceeding, one count of obstruction of justice and one count of conspiracy. The indictment also charges Marco Rodriguez, 40, of Mission, Texas, with two counts of falsification of records in federal investigations, two counts of obstructing an agency proceeding and one count of conspiracy.
DHS-OIG is the principal component within DHS with the responsibility to investigate alleged criminal activity by DHS employees, including corruption affecting the integrity of U.S. borders.
According to the indictment, in September 2011, DHS-OIG conducted an internal inspection of its McAllen Field Office to evaluate whether its internal investigative standards and policies were being followed. At that time, Pedraza was the special agent in charge of the McAllen Field Office, and Rodriguez was a special agent stationed there. According to the indictment, in anticipation of the inspection, Pedraza allegedly directed Rodriguez and other DHS-OIG employees to engage in a scheme to falsify documents in open criminal investigative case files, including numerous investigations in which DHS employees were suspected of participating in the unlawful smuggling of undocumented aliens and/or narcotics into the United States.
More specifically, the indictment charges that at Pedraza’s direction, DHS-OIG employees allegedly created and placed into these investigative files backdated memoranda of activity that falsely reflected investigative activity by agents that had not occurred; backdated case review worksheets that falsely reflected supervisory case reviews that Pedraza had not conducted with his subordinate agents; and backdated, unsent letters that were signed by Pedraza and purported to inform the FBI of the opening of a DHS-OIG investigation.
According to the indictment, the scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards from individuals conducting an internal field office inspection. The scheme was allegedly devised to conceal Pedraza’s failure to ensure that investigations were being conducted promptly and thoroughly, his failure to provide his subordinates with adequate training and supervision, and his failure to ensure that the FBI was being timely notified of DHS-OIG’s investigations.
The indictment also charges Pedraza with allegedly directing two DHS-OIG employees to falsify memoranda of activity on additional occasions, and with obstructing justice by removing the falsified supervisory case review sheets that he had created from DHS-OIG files after becoming aware of the FBI and grand jury investigation into his conduct.
In a related case, on Jan. 17, 2013, Wayne Ball, a former DHS-OIG special agent, pleaded guilty in U.S. District Court for the Southern District of Texas before U.S. District Judge Randy Crane to one count of a multi-object conspiracy to falsify records in federal investigations and to obstruct an agency proceeding for his participation in the scheme. Ball is scheduled to be sentenced on July 31, 2013.
The charge of falsification of records in federal investigations carries a maximum penalty of 20 years in prison. The charge of obstructing an agency proceeding carries a maximum penalty of five years in prison. The charge of obstruction of justice carries a maximum penalty of 20 years in prison. The charge of conspiracy carries a maximum penalty of five years in prison. Each of these charges carry a maximum fine of $250,000.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Trial Attorneys Eric L. Gibson and Timothy J. Kelly of the Criminal Division’s Public Integrity Section. The case is being investigated by agents of the FBI, San Antonio Division.
Wednesday, April 10, 2013
NEW SECURITIES AND EXCHANGE CHAIRMAN TAKES OVER
FROM: SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., April 10, 2013 — The Securities and Exchange Commission today announced that Mary Jo White was sworn in this morning as the 31st Chair of the SEC.
Chairman White comes to the SEC with decades of experience as a federal prosecutor and securities lawyer. She was nominated to be SEC Chair by President Barack Obama on Feb. 7, 2013, and confirmed by the U.S. Senate on April 8.
"It is an honor to lead the talented and dedicated SEC staff on behalf of America's investors and markets," said Chairman White. "Our markets are the envy of the world precisely because of the SEC's work effectively regulating the markets, requiring comprehensive disclosure, and vigorously enforcing the securities laws."
Chairman White specialized in prosecuting complex securities and financial institution frauds and international terrorism cases when she served as the U.S. Attorney for the Southern District of New York from 1993 to 2002. Under her leadership, the office earned convictions against the terrorists responsible for the 1993 bombing of the World Trade Center and the bombings of American embassies in Africa. She is the only woman to hold the top position in the 200-year-plus history of that office.
Prior to becoming the U.S. Attorney for the Southern District of New York, Chairman White served as the First Assistant U.S. Attorney and later Acting U.S. Attorney for the Eastern District of New York from 1990 to 1993. She previously served as an Assistant U.S. Attorney for the Southern District of New York from 1978 to 1981 and became Chief Appellate Attorney of the Criminal Division.
After leaving her U.S. Attorney post, Chairman White became chair of the litigation department at Debevoise & Plimpton in New York, where she led a team of more than 200 lawyers. Chairman White previously was a litigation partner at the firm from 1983 to 1990 and worked as an associate from 1976 to 1978.
Chairman White earned her undergraduate degree, Phi Beta Kappa, from William & Mary in 1970, and her master's degree in psychology from The New School for Social Research in 1971. She earned her law degree in 1974 at Columbia Law School, where she was an officer of the Law Review. She served as a law clerk to the Honorable Marvin E. Frankel of the U.S. District Court for the Southern District of New York.
Chairman White has won numerous awards in recognition of her outstanding work both as a prosecutor and a securities lawyer. The 2012 Chambers USA Women in Law Awards named her Regulatory Lawyer of the Year. Among other honors she has received are the Margaret Brent Women Lawyers of Achievement Award, the George W. Bush Award for Excellence in Counterterrorism, the Sandra Day O’Connor Award for Distinction in Public Service, and the "Women of Power and Influence Award" given by the National Organization for Women.
Chairman White is a fellow in the American College of Trial Lawyers and the International College of Trial Lawyers. She also has served as a director of The NASDAQ Stock Exchange and on its executive, audit and policy committees. Chairman White is a member of the Council on Foreign Relations.
Washington, D.C., April 10, 2013 — The Securities and Exchange Commission today announced that Mary Jo White was sworn in this morning as the 31st Chair of the SEC.
Chairman White comes to the SEC with decades of experience as a federal prosecutor and securities lawyer. She was nominated to be SEC Chair by President Barack Obama on Feb. 7, 2013, and confirmed by the U.S. Senate on April 8.
"It is an honor to lead the talented and dedicated SEC staff on behalf of America's investors and markets," said Chairman White. "Our markets are the envy of the world precisely because of the SEC's work effectively regulating the markets, requiring comprehensive disclosure, and vigorously enforcing the securities laws."
Chairman White specialized in prosecuting complex securities and financial institution frauds and international terrorism cases when she served as the U.S. Attorney for the Southern District of New York from 1993 to 2002. Under her leadership, the office earned convictions against the terrorists responsible for the 1993 bombing of the World Trade Center and the bombings of American embassies in Africa. She is the only woman to hold the top position in the 200-year-plus history of that office.
Prior to becoming the U.S. Attorney for the Southern District of New York, Chairman White served as the First Assistant U.S. Attorney and later Acting U.S. Attorney for the Eastern District of New York from 1990 to 1993. She previously served as an Assistant U.S. Attorney for the Southern District of New York from 1978 to 1981 and became Chief Appellate Attorney of the Criminal Division.
After leaving her U.S. Attorney post, Chairman White became chair of the litigation department at Debevoise & Plimpton in New York, where she led a team of more than 200 lawyers. Chairman White previously was a litigation partner at the firm from 1983 to 1990 and worked as an associate from 1976 to 1978.
Chairman White earned her undergraduate degree, Phi Beta Kappa, from William & Mary in 1970, and her master's degree in psychology from The New School for Social Research in 1971. She earned her law degree in 1974 at Columbia Law School, where she was an officer of the Law Review. She served as a law clerk to the Honorable Marvin E. Frankel of the U.S. District Court for the Southern District of New York.
Chairman White has won numerous awards in recognition of her outstanding work both as a prosecutor and a securities lawyer. The 2012 Chambers USA Women in Law Awards named her Regulatory Lawyer of the Year. Among other honors she has received are the Margaret Brent Women Lawyers of Achievement Award, the George W. Bush Award for Excellence in Counterterrorism, the Sandra Day O’Connor Award for Distinction in Public Service, and the "Women of Power and Influence Award" given by the National Organization for Women.
Chairman White is a fellow in the American College of Trial Lawyers and the International College of Trial Lawyers. She also has served as a director of The NASDAQ Stock Exchange and on its executive, audit and policy committees. Chairman White is a member of the Council on Foreign Relations.
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