SECRETARY OF DEFENSE HAGEL AND CHINA'S MINISTER OF NATIONAL DEFENSE GENERAL WANQUAN

FROM:  U.S. DEFENSE DEPARTMENT 
Presenter: : Secretary of Defense Chuck Hagel and China's Minister of National Defence General Chang Wanquan
Department of Defense Press Briefing with Secretary Hagel and Gen. Chang from the Pentagon

           SECRETARY OF DEFENSE CHUCK HAGEL:  Good afternoon.  Today, I'm pleased to welcome Minister of Defence General Chang to the Pentagon.  We just finished a very productive meeting, where I restated that the United States is committed to building a positive and constructive relationship with China.  The China-U.S. relationship is important for stability and security in the Asia Pacific and achieving security and prosperity for our two nations in the 21st century.

            One of the themes we emphasized today was that a sustained, substantive military-to-military relationship is an important pillar for this strong bilateral relationship.  The United States welcomes and supports the rise of a prosperous and responsible China that help solve regional and global problems.

            Our goal is to build trust between our militaries through cooperation.  The United States has invited for the first time the PLA navy to join our largest multilateral naval exercise, RIMPAC, that will take place next year.  This morning, General Chang and I have affirmed that we will continue expanding our defense exchanges and joint exercises.  Earlier this summer, for the first time, Chinese midshipmen joined in a multinational exchange program at the U.S. Naval Academy in Annapolis.

            Today, our Military Maritime Consultative Agreement Working Group is meeting in Hawaii to discuss humanitarian assistance and disaster relief.  And this weekend, our navies will conduct another counter-piracy exercise in the Gulf of Aden, building on the first-ever joint counter-piracy exercise we held last year.

            General Chang brought up two of the initiatives that President Xi proposed to President Obama at their summit in June, one, a way to notify each other of major military activities, and, two, rules of behavior for military air and naval activities.

            I welcomed this discussion and noticed that the transparency that we've had is important to reducing the risk of miscalculation and avoiding unintended tensions or conflicts.  Our staffs are exploring those initiatives and will continue discussing them.

            General Chang and I have also both welcomed this recent establishment of the new U.S.-China cyber working group as a venue for addressing issues of mutual concern in the area of cyber.  We discussed a number of regional security issues, as well, including North Korea, the East China Sea, the South China Sea, and I reaffirmed longstanding U.S. policies on these issues.

            With respect to competing maritime claims, I noted that while the United States does not take a position on sovereignty in these cases, we do have an interest in these claims being resolved peacefully, without coercion.  The general and I affirmed the importance of maintaining open channels of communication, and we agreed that it's important to continue high-level visits, such as, as you all are aware, General Dempsey's visit to China earlier this year.

            General Odierno and General Welsh will visit China later this year, and PLA Navy Commander Admiral Wu will visit the United States.  Today, General Dempsey also offered to host his counterpart, PLA General Fang, for a visit to the United States next year.

            In our meeting this morning, General Chang invited me to visit China next year, and I enthusiastically accepted.  I look forward to seeing him again at next week's ASEAN defense ministers meeting in Brunei, as part of my trip to Southeast Asia.  I'll also visit Malaysia, Indonesia, and the Philippines on this trip.

            Now I'll ask General Chang for his comments before we take questions from all of you.  Thank you very much.  Thank you.

            GENERAL CHANG WANQUAN (through translator):  Friends from the press, good afternoon.  At the invitation of Secretary Hagel, I am leading this senior military delegation from the People's Liberation Army to visit the United States, bringing the friendship from the Chinese people and the Chinese military.  The purpose of my visit is to implement the important consensus reached by President Xi Jinping and President Obama of building a new model of major country relationship based on mutual respect and win-win cooperation, to further increase mutual understanding, to enhance mutual trust, to promote mutual cooperation, and to push forward the sound and stable development of our national and military relations.

            In the -- in the past few days, we visited U.S. PACOM, U.S. NORTHCOM, and NORAD.  We were well received and experienced warm hospitality from the American people and from the officers and soldiers of the U.S. military.  Here let me say thank you on behalf of all my colleagues.

            This morning, Secretary Hagel and I had a candid and deepened exchange of views over our national and military relations, international and regional security issues, and other issues of common concerns.  We reached five agreements.

            Firstly, we both agreed that our military-to-military relationship is an important component of our overall bilateral relations and that the current military relationship is gaining a good momentum.  We both agreed to earnestly implement the important consensus reached by the two presidents during their Sunnylands summit to work together to strengthen our military relationship and attempt to elevate it to a new height.

            Secondly, we both agreed to continue to strengthen our high-level visits, deepen our consultations and dialogues in order to increase our mutual trust.  Specifically, the U.S. welcomes the visit by the PLA chief of general staff in 2014.  China welcomes the visit by U.S. secretary of defense and chief of naval operations in 2014.

            Secretary Hagel and I agreed to set up an exchange mechanism between the PLA Strategic Planning Department and J5 Strategic, Plans and Policy, U.S. Joint Chiefs of Staff.  We also agreed to take use of mechanisms, such as defense consultative talks, military maritime consultative agreements, to actively explore a notification mechanism for major military activities and continue to study the rules of behavior on military air and maritime activities.

            Thirdly, we both believe that the Chinese and the U.S. militaries are carrying an increasingly important responsibility in maintaining peace and stability in the Asia Pacific region.  Both sides agreed to play a constructive role in regional affairs, promoting the positive interaction between the two militaries in this region.  We also agreed to strengthen coordination and cooperation under Asia Pacific multilateral security dialogues, mechanisms, and frameworks.  China will participate in the Ring of Pacific exercise in 2014, as invited.

            Fourthly, we're in agreement that the two militaries share wide common interests and foundation for cooperation in nontraditional security areas.  We both agreed to further enhance exchanges and cooperation in humanitarian assistance and disaster relief, counterterrorism, anti-piracy, and peacekeeping.  We both confirmed to conduct the first China-U.S. humanitarian assistance and disaster relief exercise with active force in Hawaii this November.  We also agreed to have an exploratory discussion on logistics issues in support of nontraditional security missions later this year.

            Fifthly, we both agreed to further deepen military archives cooperation, setting up a military archives cooperation mechanism in which both sides can build upon the existing cooperation of the PLA assist in U.S. to search those missing in actions and strengthen a two-way exchange of related military archives and materials.

            At present, the China-U.S. relationship is in a new historical era.  Building a new model of China-U.S. military relationship can help us to increase strategic trust to reduce strategic risks and to maintain world peace and regional stability.  China is ready to work with the U.S. to seriously implemented our presidents' important consensus, to -- to raise our military-to-military relationship to a new height by strengthening our dialogue, communication, and practical cooperation, and by properly handle our disputes and differences.

            Thank you.

            SEC. HAGEL:  Thanks.

            GEORGE LITTLE:  We'll now move to questions.  There will be two per side.  And we'll pause for translation after each question.  And we'll start with Bob Burns of the Associated Press.

            Q:  Thank you.  General Chang, a question for you.  The U.S. has spoken quite a lot recently about pivoting to Asia.  I'm wondering if you see justification for a larger U.S. military presence in the Asia Pacific.  Do you see evidence of that yet?  And do you think it's helpful or harmful that the U.S. is trying to increase its influence in the region?

            A question for Secretary Hagel on Egypt, in light of the violence there in recent days.  You had quite a series of contacts with General Al-Sisi in recent days.  Given what transpired over the last several days, do you feel that your message fell on deaf ears?  And also, what's the way ahead, in your view?  Do you need to cut off military-to-military relations?  Do you stop arms transfers?  And do you -- are you concerned about the safety of U.S. military personnel in the Sinai, where there's been a lot of violence lately?  Thank you.

            GEN. CHANG (through translator):  Regarding the U.S.-Asia Pacific rebalancing strategy, I would like to first make a point by quoting the chairman of the People's Republic of China.  President Xi used to say that the Pacific is wide enough to accommodate both two great countries, China and United States.

            It's always the Chinese position to welcome the U.S. to play a constructive role in the Asia Pacific.  And we also noted the U.S. statement many times, that the U.S. rebalancing strategy is a comprehensive one, incorporating areas such as economics and social and also including military.

            It is also worth to be noted that certain Asia Pacific nations have noted that the military aspect has been highlighted in this comprehensive strategy, including to strengthen the military deployment in the region, enhancing the U.S. alignments in this region by conducting military cooperations and military -- joint military exercises.

            We also noticed that the frequency and intensity of such kind of joint military exercises are increasing upon the recent time.  From certain degree, this kind of intensified military activities further complicated the situation in the region.

            China is a peace-loving nation.  And we hope that this strategy does not target a specific country in the region.  And the development of China is not only conducive to our own country, to the entire region, but also to United States.  Being together with all the Asia Pacific countries, regional countries, including United States, it is a common aspiration of all of the countries that we wish to have peace in the region.  Therefore, it is our hope that this rebalancing strategy is a constructive one that could help the peace and stability in the region.

            And on the other hand, we would like to have this rebalancing strategy balanced on different countries, as well, because the essence of rebalancing is -- is balance.  It would be a -- it would be a balancing strategy if such kind of factors are taken into consideration.  What is the most important is China is ready to work with the United States to maintain the regional peace and stability.

            Thank you.

            SEC. HAGEL:  Bob, yes, I have had many phone calls with General Al-Sisi over the last five weeks, but so has all of our national security team been involved in working with the Egyptians on dealing with this -- this issue.  I say that because we've all consistently framed the same message.

            As President Obama said last week, the violence must end, national emergency lifted.  The interim government of Egypt must get back to an inclusive approach to reconciliation in Egypt.  All of us have consistently said that.

            The United States has a longstanding relationship with Egypt that's based on our respect for the people of Egypt, the country of Egypt.  We have interests, clearly, in the Middle East, interests that include hopefully a development of some progress toward an Israeli-Palestinian settlement.  So we continue to work with the Egyptian interim government, as well as the Egyptian military.

            Yes, we are concerned about our people, Americans, all Americans in Egypt.  Protection of Americans in Egypt, not just only our diplomats, but all Americans, is of the highest priority.  And we all -- all the American government officials, including American military, have been working very closely with the Egyptian military and police to assure the security and protection of Americans in Egypt, and we'll continue to do that.

            Q:  Are you concerning reducing that -- the peacekeeping force?

            SEC. HAGEL:  As President Obama has said, we're reviewing every aspect of our relationship with Egypt.  Thank you.

            (UNKNOWN):  Now Xinhua News Agency, please.

            Q (through translator):  My question goes to General Chang.  General Chang, you just mentioned for many times about the meeting between President Xi Jinping and President Obama and that the two presidents agreed to build a new model of bilateral relationship.  And at the same time, President Xi proposed to build a new model of military relationship in accordance to the new model bilateral relationship.  So my question is, what is actually the concept of this new model of military relationship?

            GEN. CHANG (through translator):  Thank you for your question.  As we all know that President Xi summarized in three points the new model of this major country relationship between China and the United States, no confrontation, no antagonism, and respect each other towards win-win cooperation.

            We believe as a new model of military relationship in accordance with the new model of bilateral relations, there are some is and some isn't in this concept.  Firstly, it is a relationship in which both sides respect the other side.  It is not a relationship dominated by either side alone.

            Both sides respect the others' vital interests and major concerns, pay attention to the others' comfort level, not forcefully imposing one's will onto the other, or not gaining one's own interests at the expense of interests of the other.

            Secondly, it is a relationship of cooperation and win-win.  It is not a relationship of zero-sum game or antagonism.  Both sides work hard to expand our mutual interests and areas of cooperation to take measures to effectively manage our fractions and risks towards the ultimate goal of cooperation and win-win to avoid the recidivist trap.

            Thirdly, it's a relationship of mutual trust.  It is not a relationship of mutual suspicion.  Both sides view each other's strategic intention in objective manner to push forward those mechanisms that help mutual trust to refrain from words and actions that could pose negative effect upon mutual trust, not to make unwarranted accusations and to reduce misperception and miscalculations.

            Fourthly, it is a relationship featuring exchanges and cooperation in many areas.  It is not a relationship that is imbalanced and only focused on few areas for cooperation.  A healthy and mature military-to-military relationship should be a comprehensive one, instead of an imbalanced one.  In order to build a new model of military relationship, we need more substantive exchanges in wider areas and more practical cooperation in more diversified forms.

            Finally, it is a relationship of openness and inclusiveness.  It is not a relationship of exclusiveness or selfishness.  While working to ensure the stability of China-U.S. relationship, it is imperative to work with other international community members to strengthen communication, coordination and cooperation, to maintain strategic balance and stability of the world, and in particular of Asia Pacific region.

            I'm not sure if I've made my point clear or not.  Thank you.

            MR. LITTLE:  We'll turn now to Jim Miklaszewski of NBC News.

            (LAUGHTER)

            Q:  It easily translates.  For General Chang, you spoke today of mutual trust, yet there are persistent reports that the Chinese government and military have launched cyber attacks against U.S. government targets and interests.  What -- what is your response to those reports?

            And given the fact that this cyber working group has been put together, what steps are the Chinese willing to take to restore the kind of faith and confidence between the Chinese and the U.S. on that front and reduce the potential threat for any cyber warfare?

            And for you, Mr. Secretary, despite the persistent pleas from the U.S. government, your own personal efforts, the bloodshed today in Egypt continues.  In what appears to be a further blow to democracy, there are reports the government is prepared to release the convicted former president Hosni Mubarak from prison and additional reports that the Saudis have pledged to make up any shortfalls that the Egyptians may run into if the U.S. cuts back any further aid.

            And -- and one housekeeping measure.  Is the U.S. prepared to cancel or at least postpone the shipment of Apache attack helicopters to Egypt?

            GEN. CHANG (through translator):  Actually, complete -- trying to complete our extra missions regarding answering questions.  As we all know that cyber is a completely new domain, and cyber security has been a worldwide difficulty.

            It is always the Chinese government's position to take peaceful use of cyberspace.  We oppose of having any kind of arms race in the cyber domain, and we oppose of taking use of information and technology to conduct any kind of operation and hostility towards another party in the cyber domain.  And we oppose of taking advantage of the information -- the technological advantage to weaken other parties' sovereign control in this -- in this domain.  And we are opposed of taking any kind of double standard in this domain.

            China is one of the primary victims from hacker attacks in the world.  We are faced to severe threats coming from those cyber attacks.  The Chinese government consistently oppose and cracks down the cyber crimes according to our laws.  And the Chinese military has never supported any form of hacker activities.

            Regarding how to solve the cyber security issue, I believe it requires the common exploration and cooperation between China and United States, rather than ungrounded accusation or suspicion.  I believe that Secretary Hagel touched upon this issue in his -- in his remarks that we will work to cooperate to try to solve this issue.

            Thank you.

            SEC. HAGEL:  Jim, three parts to the question.  I don't know about a Mubarak report.  I'm not aware of it.  I can't help you.

            Saudi Arabia.  As you know, Saudi Arabia, UAE, Kuwait announced a couple weeks ago that they committed to a considerable amount of assistance to Egypt.  The specifics of your question regarding Saudi Arabia, I -- I don't know about those specifics.

            Your question regarding cancellation of Apache helicopters or other parts, as I said to Bob, we're reviewing all aspects of our relationship.

            Q:  But given all that, Mr. Secretary, is the U.S. powerless to effect any change, to bring an end to the bloodshed in Egypt right now  And why not answer the calls from Capitol Hill in particular now, just pull all the aid out, if they're not cooperating or don't appear to be cooperating at any level?

            SEC. HAGEL:  Well, first, there's not a consistent call from Capitol Hill one way or the other, as you know, on this issue.  But more to the point, we have serious interests in Egypt and that part of the world.  This is a very complicated problem.  We continue to work with all the parties to try to help as much as we can facilitate a reconciliation, a stop of the violence.

            Our ability to influence the outcome in Egypt is limited.  It's up to the Egyptian people.  And they are a large, great, sovereign nation.  And it will be their responsibility to sort -- to sort this out.  All nations are limited in their influence in another nation's internal issues.  I don't think the United States is without influence, but that has to be a collaborative effort focused on what the Egyptian people want, supporting the Egyptian people.  And we believe, as I've said, the president's said, Secretary Kerry has said, Ambassador Patterson, Deputy Secretary of State Burns, that should come as an inclusive, open, democratic process, allowing all people to have a role in the future of their country.  Thank you.

            TRANSLATOR:  Do want that translated, sir, for the benefit of the Chinese minister?

            SEC. HAGEL:  He did that exactly right.

            (LAUGHTER)

            Thank you.  I didn't realize I spoke that long.  I'm sorry, Jim.

            (UNKNOWN) (through translator):  Now last question from (inaudible)

            Q (through translator):  I have two questions respectively for General Chang and Secretary Hagel.  For General Chang, how do you see the current Asia Pacific security situation?  And how do you see the interaction between PLA and the U.S. military in the Asia Pacific?

            And to Secretary Hagel, would you like to elaborate a little bit on how -- what substantive steps should the U.S. take in building such kind of new model of relationship?

            GEN. CHANG (through translator):  I understand our friends from the -- press friends' concern about the Asia Pacific security situation.  It is also one of our major concerns, because the regional security situation is closely linked to the overall peace and stability -- stability in the world.

            And I have several points to make.  Firstly, the current situation in Asia Pacific is generally stable, but there remains some hot spots and sensitive issues.  Some hot issues are heating, while some other sensitive issues are getting more even sensitive.  Improper handling of these issues could lead to a severe impact on the overall security situation in the region.

            Secondly, the Chinese people always have their love on peace.  China always is a staunch defender of the peace and stability in the Asia Pacific.  We always insist that related disputes be solved through dialogue and negotiation.  However, no one should fantasize that China would barter away our core interests.  And no one should underestimate our will and determination in defending our territory, sovereignty, and maritime rights.

            Thirdly, the Asia Pacific is our common homeland.  Nations big or small, strong or weak, should make positive and constructive efforts for promoting regional peace and stability.  Any action that leads to trouble or provocation, any action -- unwanted action out of the self-interest or further complicates or magnifies the situation would be highly irresponsible and will not lead to a favorable result.

            And as just as I mentioned before, that we believe peace is the essence of Pacific, which means the Ocean of Peace in Chinese, or the essence of rebalance is balance.  For any country to make a strategic readjustment, it is imperative to take regional peace and stability in mind and is important to balance the security concerns of different -- different regional countries.

            The Asia Pacific is a region where the interests of China and United States intertwine the most and where China and United States interact most frequently.  The two countries enjoy huge space and potential for cooperation in this region.  The People's Liberation Army is ready to work with the U.S. military by strengthening our communication, coordination, and cooperation to pay more concerted contribution to the regional peace, stability, and prosperity.  Thank you.

            SEC. HAGEL:  As to your question regarding new models for our two countries, specifically military-to-military relationships, let me begin this way.  I think it's fundamental to the efforts that are underway, as General Chang and I have both noted, and President Xi and President Obama noted, to develop relationships, avenues of opportunity for transparency, for understanding each other's intentions far better than we have in the past.

            To carry forward the facilitation of those efforts require institutions, institutions of common interests, like what General Chang talked about this morning in his opening statement, as well as some of the specific items that I addressed, working groups for every general area of challenge, senior-level leadership exchanges, which I noted a number in my remarks, as did General Chang, those are the forms that you build in order to address the great challenges and issues and differences between our countries.  And that's what we're doing.

            Thank you.

            GEN. CHANG (through translator):  Thank you.

            SEC. HAGEL:  Thank you all.

            MR. LITTLE:  Thank you, everyone.

SECRETARY OF STATE KERRY'S REMARKS ON WORLD HUMANITARIAN DAY 2013

FROM:   U.S. STATE DEPARTMENT
World Humanitarian Day 2013
Press Statement
John Kerry
Secretary of State
Washington, DC
August 19, 2013

This is an important day for all of us to pause and join with our colleagues in honoring the committed staff who work to save the lives of others, often at great risk to their own. World Humanitarian Day is a commemoration of their sacrifice and a sober reminder that our work is far from done.

My family is a foreign service family. We saw what my Dad committed his life to doing in dangerous places and we saw what my mother did to fill in for two parents the times when he was away. I’ve had sisters work at the United Nations and go off to faraway places to help kids in desperate situations. So I know a little on a personal level about the unsung heroes, the humanitarian workers who volunteer to serve on the front lines of some of the world’s most dangerous places. From Algeria to Afghanistan, from Somalia to South Sudan, many have been killed or kidnapped in the line of duty. They show up in places no one else wants to go and they save lives. They literally build safer cities, help children get an education, provide health care in rural communities. The needs are truly global in scale, and so too is our response. Just think about what these incredible people are doing today. For over two years, the brave people of Syria have endured tremendous hardship in one of the largest humanitarian crises in decades. More than 100,000 men, women and children have been killed and 6 million displaced both within and across Syria’s borders. Through these dark days, more than 20 first responders from the Syrian Arab Red Crescent, 11 UN staff and others from our NGO partners have been killed while providing much-needed aid in Syria.

In the Sahel, the United States supports the distribution of food and water to the insecure, vulnerable and displaced as a result of regional drought and the crisis in Northern Mali. In Sudan and South Sudan, we provide healthcare, sanitation and protection to millions uprooted from their homes by violence. And in Colombia, Haiti and Ecuador, aid workers deliver emergency assistance to internally displaced persons and refugees.

In a world growing more—not less—interconnected, when our common humanity is threatened, aid workers will be there—this day and every day the world over.

14 MORE CHARGED IN ONGOING BRIBERY AND FRAUD INVESTIGATIONS INVOLVING THE MILITARY

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, August 16, 2013
Fourteen More Army National Guard Recruiters and Soldiers Charged in Ongoing Bribery and Fraud Investigation

To Date, 25 Individuals Charged in San Antonio and Houston Areas
Fourteen current and former recruiters and soldiers of the U.S. Army National Guard have been charged in the Southern District of Texas for engaging in a multi-year scheme to defraud the U.S. Army National Guard Bureau, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

The cases against all 14 defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses.  To date, the investigation has led to charges against 25 individuals, 11 of whom have pleaded guilty.

According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP).  The G-RAP was a recruiting program that offered monetary incentives to Army National Guard soldiers who referred others to join the Army National Guard.  Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join.  Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account.  To participate in the program, soldiers were required to create online recruiting assistant accounts.

In an indictment unsealed today in its entirety, Michael Rambaran, 50, of Pearland, Texas; and Edia Antoine, 27, Ernest A. Millien III, 49, and Christopher D. Renfro, 25, all of Houston, were charged with conspiracy, bribery, wire fraud and aggravated identity theft.  According to court documents, between February 2008 and August 2011, Rambaran was a National Guard recruiter and Antoine, Millien and Renfro were recruiting assistants in G-RAP.  Rambaran allegedly provided the names, addresses and Social Security numbers of potential soldiers to Antoine, Millien and Renfro so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring those potential soldiers to join the military.  The indictment alleges Antoine, Millien and Renfro paid kickbacks to Rambaran by providing a portion of the fraudulent bonus payments.

In a separate indictment unsealed on Aug. 9, 2013, Zaunmine O. Duncan, 37, of Austin, Texas, was charged with conspiracy, bribery, wire fraud, aggravated identity theft and witness tampering.  According to court documents, between February 2008 and August 2010, Duncan, an Army National Guard recruiter, allegedly provided the personal identifiers of potential soldiers to four co-conspirators, identified as Recruiting Assistants 1 through 4, who used the personal identifiers to claim fraudulent recruiting referral bonuses through their G-RAP accounts.  According to the indictment, Recruiting Assistants 1 through 4 paid kickbacks to Duncan by providing a portion of the fraudulent proceeds.  The indictment also alleges Duncan and Recruiting Assistant 1, without permission or lawful authority, used the identity of a potential soldier to set up a G-RAP account through which Duncan and Recruiting Assistant 1 received additional fraudulent bonus payments.  The indictment also charges Duncan with witness tampering, alleging Duncan instructed a witness, identified in the indictment as Recruiting Assistant 1, to make certain false exculpatory statements to federal law enforcement officers.

In another related but separate indictment also unsealed on Aug. 9, 2013, Jammie T. Martin, 36, and Michelle H. Davis, 32, both of Katy, Texas; and Danielle V. Applin, 27, of Harker Heights, Texas, were charged with conspiracy, bribery, wire fraud and aggravated identity theft.  According to the indictment, from February 2009 through April 2011, Martin served as an Army National Guard recruiter and Applin and Davis served as recruiting assistants with the G-RAP.  According to court documents, Martin allegedly provided the personal identifiers of potential soldiers to Applin and Davis so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring the potential soldiers to join the military.  The indictment alleges Applin and Davis paid kickbacks to Martin by providing a portion of the fraudulent bonus payments.

In addition, in the last three weeks, Melanie D. Moraida, 33, of Pearland, Texas; Elisha M. Ceja, 26, of Barboursville, W.Va.; Kimberly N. Hartgraves, 28, of League City, Texas; Lashae C. Hawkins, 27, of San Antonio; Annika S. Chambers, 27, of Houston; and Vanessa Phillips, 35, of Houston, were all charged in separate criminal informations with one count of conspiracy and one count of bribery.

A conviction for bribery carries as possible punishment a maximum penalty of 15 years in federal prison.  Witness tampering and wire fraud, upon conviction, could each result in a maximum of 20 years imprisonment, while a conviction for the conspiracy charge carries a five-year maximum sentence.  If convicted of aggravated identity theft, a defendant will also have to serve a mandatory penalty of two years in prison, which must be served consecutively to any other sentence imposed.  All charges also carry a possible $250,000 maximum fine or twice the pecuniary gain or loss.

A criminal indictment or information is a formal accusation of criminal conduct, not evidence.  A defendant is presumed innocent unless convicted through due process of law.

The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas are prosecuting the case.

HEALTH CARE COMPANY OWNERS SENTENCED FOR ROLES IN $17.1 MILLION FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
 Thursday, August 15, 2013
Operators of Louisiana Home Health Company Sentenced for $17.1 Million Health Care Fraud Scheme

The owner of South Louisiana Home Health Care Inc. and the director of nursing for the Louisiana home health agency were sentenced today for their roles in a Medicare fraud scheme involving the payment of kickbacks and the falsification of documents.

Acting Assistant Attorney General Mythili Raman of the Criminal Division; Acting U.S. Attorney Walt Green of the Middle District of Louisiana; Special Agent in Charge Mike Fields of the Dallas Region of the HHS Office of the Inspector General (HHS-OIG); Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell made the announcement.

Louis T. Age Jr., 64, owned and operated South Louisiana Home Health Care and operated this company along with his former wife, Verna Age, 60, who served as the company’s director of nursing. Louis Age and Verna Age, both of Slidell, La., were sentenced today by U.S. District Judge James J. Brady of the Middle District of Louisiana to 180 months and 60 months in prison, respectively, and ordered to forfeit $9.2 million and pay $17.1 in restitution.

After a jury trial in March 2013, Louis Age and Verna Age each were convicted of one count of conspiracy to commit health care fraud, and Louis Age also was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks.  Verna Age previously was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks after a jury trial in October 2012.

According to evidence presented at trial, Louis Age and Verna Age paid kickbacks to patient recruiters to obtain Medicare beneficiary information.  Nurses, including registered nurse Verna Age, then falsified qualification documents to make it appear that these beneficiaries qualified for home health services.  The evidence also showed that Louis Age hired and paid kickbacks to medical doctors to sign fraudulent referrals and certifications for home health services that were not medically necessary.  Louis Age and Verna Age then used the Medicare beneficiary information and false documents to bill Medicare for the medically unnecessary home health services.  From 2005 through 2011, Medicare paid South Louisiana Home Health Care approximately $17.1 million based on these fraudulent home health care claims.
 
This case was investigated by the FBI, HHS-OIG and Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case was prosecuted by Trial Attorneys David M. Maria and Abigail B. Taylor of the Fraud Section, with assistance from Trial Attorney Arunabha Bhoumik.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

NSF SAYS SEA LEVEL AFFECTED BY FLOODS IN AUSTRALIA

The city of Rockhampton, Queensland, Australia, shown in a satellite photo, was completely inundated by the floods.

FROM:  NATIONAL SCIENCE FOUNDATION
Global sea level rise temporarily dampened by 2010-11 Australia floods
Three atmospheric patterns came together above the Indian and Pacific Oceans in 2010 and 2011.  When they did, they drove so much precipitation over Australia that the world's ocean levels dropped measurably.

Unlike other continents, the soils and topography of Australia prevent almost all its precipitation from flowing into the ocean.

The 2010-11 event temporarily halted a long-term trend of rising sea levels caused by higher temperatures and melting ice sheets, according to a team of researchers at the National Center for Atmospheric Research (NCAR) in Boulder, Colo., and other institutions.

Now that the atmosphere's circulation has returned to its previous patterns, the seas are again rising.

These results will appear next month in the journal Geophysical Research Letters, published by the American Geophysical Union.

Co-authors of the paper are affiliated with NASA's Jet Propulsion Laboratory and the University of Colorado at Boulder.

The research was funded by the National Science Foundation (NSF), which sponsors NCAR, and by NASA.

"The scientists conclude that the Outback region in Australia played a crucial role in trapping a large amount of rainfall when widespread floods occurred over the continent," says Anjuli Bamzai, program director in NSF's Division of Atmospheric and Geospace Sciences, which funded the research.

"It's a beautiful illustration of how complicated our climate system is," says NCAR scientist John Fasullo, lead scientist on the project.

"The smallest continent in the world can affect sea level worldwide.  Its influence is so strong that it can temporarily overcome the background trend of rising sea levels we see with climate change."

As the climate warms, the world's oceans have been rising in recent decades by just over three millimeters annually.

This is partly because heat causes water to expand, and partly because runoff from retreating glaciers and ice sheets is making its way into the oceans.

But for an 18-month period beginning in 2010, the oceans mysteriously dropped by about seven millimeters, more than offsetting the annual rise.

Fasullo and co-authors published research results last year demonstrating that the reason was related to the increased rainfall over tropical continents.

They also showed that the drop coincided with the atmospheric oscillation known as La Niña, which cooled tropical surface waters in the eastern Pacific and suppressed rainfall there--while enhancing it over portions of the tropical Pacific, Africa, South America and Australia.

However, an analysis of the historical record showed that past La Niña events only rarely accompanied such a pronounced drop in sea level.

Using a combination of satellite instruments and other tools, the new study finds that the picture in 2010-11 was uniquely complex.

In addition to La Nina, a rare combination of two other semi-cyclic climate modes came together.  They drove such large amounts of rain over Australia that the continent received almost one foot (300 millimeters) of rain more than average.

The initial effects of La Niña were to cool surface waters in the eastern Pacific Ocean and push moisture to the west.

A climate pattern known as the Southern Annular Mode then coaxed the moisture into Australia's interior, causing widespread flooding across the continent.

Later in the event, high levels of moisture from the Indian Ocean driven by what's known as the Indian Ocean Dipole collided with La Niña-borne moisture in the Pacific, pushing even more moisture into the continent's interior.

These influences spurred one of the wettest periods in Australia's recorded history.

Australia's vast interior, called the Outback, is ringed by coastal mountains and is often quite dry.

Because of the low-lying nature of the continent's eastern interior, and the lack of river runoff in its western dry environment, most of the heavy rainfall of 2010-11 remained inland rather than flowing to the oceans.

While some of it evaporated in the desert sun, much of it sank into the dry, granular soil of the Western Plateau or filled the Lake Eyre basin in the east.

"No other continent has this combination of atmospheric set-up and topography," Fasullo says.  "Only in Australia could the atmosphere carry such heavy tropical rains to such a large area, only to have those rains fail to make their way to the ocean."

For example, the Great Basin in the southwestern United States could trap water much like Australia--but atmospheric patterns don't transport such a large amount of moisture from the ocean to that arid region.

To conduct the research, the scientists turned to three observing instrument systems:

· NASA's Gravity Recovery and Climate Experiment satellites, which make detailed measurements of Earth's gravity field.  The satellites enable scientists to monitor changes in the mass of continents.

· The Argo global array of 3,000 free-drifting floats that measure the temperature and salinity of the upper 6,000 feet of the world's oceans.

· Satellite-based altimeters that are continuously calibrated against a network of tide gauges. Scientists subtract seasonal and other variations to closely estimate global sea level changes.

Using these instruments, the researchers found that the land mass in Australia and, to a lesser extent, South America began to increase in 2010 as the continents experienced heavy and persistent rain.

At the same time, sea levels began to drop.

Since 2011, when the atmospheric patterns shifted out of their unusual combination, sea levels have been rising at a faster pace of about 10 millimeters per year.

Scientists are uncertain how often the three atmospheric events come together to cause such heavy rains over Australia.

Fasullo believes there may have been a similar event in 1973-74, which was another time of record flooding.

But modern observing instruments did not exist then, making it impossible to determine what took place in the atmosphere and whether it affected sea level rise.

"Luckily we've got great observations now," Fasullo says. "We need to maintain these observing platforms to understand our climate system."

-NSF-

NASA: OREGON BURNING

Oregon Burning

MICHIGAN HOME HEALTH AGENCY OWNER PLEADS GUILTY IN MEDICARE FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, August 15, 2013
Michigan Physical Therapist and Home Health Agency Owner Pleads Guilty for Role in Medicare Fraud Scheme

A greater Detroit-area physical therapist who was also an owner of a home health agency pleaded guilty yesterday for his role in a $22 million home health care fraud scheme.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Erick Martinez of Internal Revenue Service Criminal Investigation made the announcement.

Hemal Bhagat, 32, of Troy, Mich., pleaded guilty on Aug. 14, 2013, before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, scheduled for Nov. 12, 2013, Bhagat faces a maximum penalty of 10 years in prison and a $250,000 fine.

According to information contained in plea documents, Bhagat admitted that from approximately May 2009 through October 2011, he conspired with others to commit health care fraud through billing Medicare for home health care services that were not actually rendered and/or not medically necessary.  A licensed physical therapist, Bhagat began working in June 2009 for Troy-based Prestige Home Health Services Inc., a home health agency owned by alleged co-conspirators.   In approximately August 2009, he and other co-conspirators became owners of Royal Home Health Care Inc., a home health agency also located in Troy.

Bhagat admitted that his co-conspirators at Prestige and Royal paid kickbacks to patient recruiters to obtain the information of Medicare beneficiaries, which the co-conspirators then used to bill Medicare for services that were not provided to these beneficiaries and/or were not medically necessary.   He and his co-conspirators then created fictitious therapy files appearing to document physical therapy services provided to Medicare beneficiaries, when in fact no such services had been provided and/or were not medically necessary.   Bhagat’s role in creating the fictitious therapy files was to sign documents – including physical therapy evaluations, supervisory patient visits, and patient discharge forms – indicating that he and others had provided physical therapy services to particular Medicare beneficiaries, when in fact they had not.   Bhagat admitted to knowing that the documents he falsified would be used to support false claims to Medicare by his co-conspirators at Prestige and Royal.   He submitted or caused the submission of claims to Medicare for services that were not medically necessary and/or not provided, which in turn caused Medicare to pay approximately $4,767,359.03.

This case was investigated by the FBI, HHS-OIG and IRS Criminal Investigation and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  This case is being prosecuted by Trial Attorney Niall M. O’Donnell, Deputy Chief Charles E. Duross, and Trial Attorney James McDonald of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

U.S. SENDS BEST WISHES TO PEOPLE ON AFGHANISTAN ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 
Afghanistan's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
August 18, 2013

On behalf of President Obama and the people of the United States, I send best wishes to the government and people of Afghanistan as you celebrate your Independence Day on August 19.

I have been to Afghanistan many times and seen firsthand the enduring partnership between our countries, which is founded on mutual respect and common interests. I have seen the people of Afghanistan work to build a peaceful, prosperous and unified nation that respects the rights of women and minorities in every fabric of society. The United States is committed to working with you and supporting the efforts necessary to achieve this goal and sustaining the gains that have been made.

There has been inspiring progress across Afghanistan in many sectors, including health care, media, education, women’s rights, trade and commerce. During the past year alone, the Afghan people have also taken significant steps to prepare for the coming security and political transitions, from the milestone event on June 18 that marked Afghan forces taking the lead for security across the country to the new electoral laws that set the stage for the coming 2014 elections. At the same time, Afghans continue to build their economy by working toward WTO accession, attracting private sector investment and developing their natural resources.

This progress is creating a better life for all Afghans. As you celebrate your independence, the United States shares your commitment to a strong and sovereign Afghanistan where Afghans enjoy security, peace, prosperity, and dignity for generations to come.

TWO SENTENCED TO PRISON IN ASBESTOS VIOLATIONS CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, August 14, 2013
Two Idaho Men Sentenced to Prison for Asbestos Violations

Waterline Renovation Project Led to $3,980,000 Cleanup
Bradley Eberhart, 51, of Garden Valley, Idaho, and Douglas Greiner, 53, of Eagle, Idaho, were sentenced this week in federal court for violating the asbestos work practice standards of the Clean Air Act, announced Robert G. Dreher, Acting Assistant Attorney General for Environment and Natural Resources Division, and Wendy J. Olson, U.S. Attorney for the District of Idaho.

U.S. District Judge Edward J. Lodge sentenced Eberhart on Monday to six months in prison plus six months of home confinement, followed by six months of supervised release, 200 hours of community service, and restitution of $3.98 million, in joint and several liability.  Greiner was also sentenced to six months in prison and six months of home confinement, to be followed by six months of supervised release.  The amount of restitution by Greiner will be the subject of further briefing by the parties.

Both defendants previously pleaded guilty on Feb. 26, 2013.

Boise-based Owyhee Construction Inc., was the successful bidder on a $2.1 million waterline renovation project in Orofino, Idaho, a rural community in north central Idaho.  Greiner was the project superintendent and Eberhart was the onsite supervisor of the project.  The contract documents warned Owyhee Construction that the company may encounter up to 5,000 linear feet of cement asbestos pipe (CAP) during the renovation.  CAP is a non-friable form of asbestos that is encapsulated in a cement matrix.  When the CAP is broken or crushed by heavy equipment or subjected to cutting and grinding by machinery it becomes subject to regulation because of the threat to public health from airborne fibers.

Eberhart and Greiner failed to properly supervise the renovation.  Eberhart supervised employees who were not properly trained in asbestos work and were not properly outfitted with protective gear while cutting CAP with saws.  While working in the trenches to replace pipe, workers would remove CAP from the trenches, crush it and then place it back in the trenches.  Large quantities of CAP were also removed from the trenches and ended up as fill material on sixteen properties around Orofino.  Greiner pleaded guilty to orchestrating one of the disposals.  The EPA cleanup cost just under $4 million.

“These prison sentences reflect the serious consequences of the failure of these defendants to comply with EPA’s regulations that protect public health from asbestos, a human carcinogen,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division.  “Such criminal acts endanger workers and the community and can, as demonstrated here, cost the federal government millions of dollars to cleanup.  The Justice Department will continue to vigorously prosecute these crimes.”

“This case demonstrates the commitment of law enforcement and the Department of Justice to ensure the health of our residents,” said U.S. Attorney Olson.  “Threats to the environment and to public health may not be readily apparent from a construction project.  Renovation projects like these often generate dust with fine asbestos particles that may have the potential to cause serious health and environmental problems if safety precautions are not taken.  The full extent of injury from airborne asbestos may not be noticed or diagnosed for years.  It is important that companies, their foremen and their operators comply with environmental laws to avoid serious harm.”

“These two Defendants carelessly subjected Orofino residents to asbestos exposure,” said Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in Seattle.  “In the course of their enterprise, they also created sixteen separate asbestos disposal sites that threatened the community, jeopardized workers and cost taxpayers $4 million to cleanup.  Today’s sentence sends a clear message: if you risk people’s lives to save time and money, you will pay the price.”

The case was investigated by the U.S. Environmental Protection Agency.  The case was prosecuted by Assistant U.S. Attorney D. Marc Haws from the District of Idaho and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

MAN INDICTED IN CONNECTION WITH JAMAICAN LOTTERY FRAUD

FROM:  U.S. DEPARTMENT OF JUSTICE 
Wednesday, August 14, 2013

Individual Arrested in Florida in Connection with a Lottery Scam in Jamaica
A Jamaican citizen charged in connection with the operation of a fraudulent lottery was arrested Tuesday in Orlando, Fla., following his indictment by a federal grand jury in Fort Lauderdale, Fla., on Aug. 9, 2012, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Marshals Service announced today.  Oneike Mickhale Barnett was arrested based on charges that he and his co-conspirators ran a lottery scam in Jamaica that fraudulently induced elderly victims in the United States to send them thousands of dollars to cover fees for lottery winnings that victims had not in fact won.  The indictment unsealed with Barnett’s arrest forms part of the government’s crackdown on fraudulent lottery scams based in Jamaica.

Beginning in October 2008, Barnett and his co-conspirators are alleged to have contacted victims in the U.S., announced that the victims had won cash and prizes and persuaded the victims to send them thousands of dollars in fees to release the money.  The victims never received cash or prizes.  The defendant and his co-conspirators allegedly made calls from Jamaica using Voice Over Internet Protocol technology that allowed them to use a telephone number with a U.S. area code.  According to the indictment, Barnett convinced victims to send money to middlemen in South Florida, who forwarded the money to Jamaica.

“Lottery scams that target older Americans, such as the one alleged here, are the most pernicious kind of fraud – often swindling seniors out of their life savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division.  “The Justice Department will continue to combat these schemes and bring those responsible to justice.”

 “The alleged lottery scheme in this case is most vile because it targeted the elderly, one of the most vulnerable members in our society,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida.  “While the scam was based in Jamaica, it targeted victims in the United States, including South Florida.  We will continue to pursue and prosecute those responsible for these illegal schemes in an effort to bring those responsible to justice and protect those in our society.”

Barnett was charged with conspiracy and 37 counts of wire fraud, and with committing these offenses via telemarketing.  If convicted, he faces a statutory maximum sentence of 30 years per count, a possible fine and mandatory restitution.
         
 “This arrest highlights the joint effort between U.S. and Jamaican law enforcement to prosecute those who prey on our nation’s senior citizens,” said U.S. Postal Inspector in Charge for the Miami Division Ronald Verrochio.  “The mission of the Postal Inspection Service is to protect consumers by ensuring the nation’s mail system is not used as a tool for fraud.”

Special Agent in Charge for Homeland Security Investigations in Miami Alysa D. Erichs added, “These individuals are preying on some of the most vulnerable members in our communities.  We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business.”

Acting U.S. Marshal Neil DeSousa said, “The U.S. Marshals Service in the Southern District of Florida, along with the Jamaica Foreign Field Office and the Organized Crime Drug Enforcement Task Force, remain committed to locating and apprehending criminals who defraud elderly Americans.  We will continue to work with the U.S. Postal Inspection Service and Department of Homeland Security on the JOLT task force in the ongoing effort to combat lottery fraud targeting some of our most vulnerable citizens.”

U.S. Attorney Ferrer and Assistant Attorney General Delery both commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Marshals Service and Jamaica’s Major Organized Crime and Anti-Corruption Task Force.  The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division attorneys Jeffrey Steger and Kathryn Drenning.

An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.