Sunday, September 15, 2013
FTC FORWARDS REFUNDS TO DIETARY SUPPLEMENTS CUSTOMERS
FROM: FEDERAL TRADE COMMISSION
FTC Sends Refund Checks to Consumers Who Bought Dietary Supplements
Agency Challenged Marketers’ Claims that Products could Cause Weight Loss; Treat and Prevent Colds, Flu, and Allergies
An administrator working for the Federal Trade Commission is mailing 2,546 checks averaging $71.71 each to consumers who bought Accelis, nanoSLIM, and any Cold MD, Germ MD, or Allergy MD dietary supplements between January 2006 and July 2010.
The FTC charged Iovate Health Sciences U.S.A. and two affiliated Canadian
companies with deceptively advertising that their supplements could help consumers lose weight and treat or prevent colds, flu, and allergies.
The checks, which total $182,573.43, must be cashed within 60 days after they are issued. The amount consumers receive depends upon the amount of claims they submitted that were approved. Consumers were eligible to claim up to five of a single product and up to 10 purchases total.
The deadline for filing a refund request has expired. Consumers who have questions should call 1-877-576-9978 or visit the Iovate Refunds page. For more general information, see www.FTC.gov/refunds. The FTC never requires consumers to pay money or provide information before redress checks can be cashed.
Consumers should carefully evaluate advertising claims for dietary supplements. For more information see: Dietary Supplements.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.
FTC Sends Refund Checks to Consumers Who Bought Dietary Supplements
Agency Challenged Marketers’ Claims that Products could Cause Weight Loss; Treat and Prevent Colds, Flu, and Allergies
An administrator working for the Federal Trade Commission is mailing 2,546 checks averaging $71.71 each to consumers who bought Accelis, nanoSLIM, and any Cold MD, Germ MD, or Allergy MD dietary supplements between January 2006 and July 2010.
The FTC charged Iovate Health Sciences U.S.A. and two affiliated Canadian
companies with deceptively advertising that their supplements could help consumers lose weight and treat or prevent colds, flu, and allergies.
The checks, which total $182,573.43, must be cashed within 60 days after they are issued. The amount consumers receive depends upon the amount of claims they submitted that were approved. Consumers were eligible to claim up to five of a single product and up to 10 purchases total.
The deadline for filing a refund request has expired. Consumers who have questions should call 1-877-576-9978 or visit the Iovate Refunds page. For more general information, see www.FTC.gov/refunds. The FTC never requires consumers to pay money or provide information before redress checks can be cashed.
Consumers should carefully evaluate advertising claims for dietary supplements. For more information see: Dietary Supplements.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.
Saturday, September 14, 2013
READOUT SECRETARY HAGEL'S CALL TI U.K. SECRETARY HAMMOND REGARDING SYRIAN CHEMICAL WEAPONS
FROM: U.S. DEFENSE DEPARTMENT
Readout of Secretary Hagel's Call to U.K. Secretary of State for Defense Philip Hammond
Pentagon Press Secretary George Little provided the following readout:
"This morning Secretary Hagel spoke by phone with the United Kingdom's Defense Secretary Philip Hammond to discuss the ongoing crisis in Syria. Secretary Hagel provided an update on U.S. activities in the eastern Mediterranean in response to the Syrian chemical weapons attack on Aug. 21.
"Secretary Hagel thanked Secretary Hammond for the ongoing close coordination in diplomatic channels to address the Syrian civil war and the regime's use of chemical weapons. They exchanged perspectives on Russia's offer on securing these weapons.
"Secretary Hagel reiterated the United States' appreciation for its strong and unshakeable alliance with Great Britain and committed to remaining in close consultation with Secretary Hammond."
Readout of Secretary Hagel's Call to U.K. Secretary of State for Defense Philip Hammond
Pentagon Press Secretary George Little provided the following readout:
"This morning Secretary Hagel spoke by phone with the United Kingdom's Defense Secretary Philip Hammond to discuss the ongoing crisis in Syria. Secretary Hagel provided an update on U.S. activities in the eastern Mediterranean in response to the Syrian chemical weapons attack on Aug. 21.
"Secretary Hagel thanked Secretary Hammond for the ongoing close coordination in diplomatic channels to address the Syrian civil war and the regime's use of chemical weapons. They exchanged perspectives on Russia's offer on securing these weapons.
"Secretary Hagel reiterated the United States' appreciation for its strong and unshakeable alliance with Great Britain and committed to remaining in close consultation with Secretary Hammond."
GUARDSMEN MOBILIZED TO ASSIST SEARCH-AND-RESCUE EFFORTS FOLLOWING COLORADO FLOODING
FROM: U.S. DEFENSE DEPARTMENT
Guardsmen Mobilize to Assist With Colorado Flooding
From a Colorado National Guard News Release
CENTENNIAL, Colo., Sept. 13, 2013 - Nearly 100 Colorado National Guard soldiers and airmen, along with high-mobility vehicles and helicopters, have been mobilized to assist local authorities in search-and-rescue operations in the midst of historic flooding in the state.
At least three people have lost their lives in the flooding, according to news reports.
Guard members and equipment were assigned to assist in search-and-rescue missions and to deliver supplies, among other missions, officials said. Additionally, the Colorado National Guard has been requested to start provide traffic control points in and around the affected area today.
The soldiers and airmen are assigned to the Windsor Readiness Center; the Boulder, Fort Collins, and Denver armories; and Buckley Air Force Base.
"Supporting our neighbors in their time of need is one of the most rewarding missions the military has to offer," said Air Force Maj. Gen. H. Michael Edwards, Colorado's adjutant general. "Having readiness centers in communities such as these ensures we provide rapid for our communities."
Guardsmen Mobilize to Assist With Colorado Flooding
From a Colorado National Guard News Release
CENTENNIAL, Colo., Sept. 13, 2013 - Nearly 100 Colorado National Guard soldiers and airmen, along with high-mobility vehicles and helicopters, have been mobilized to assist local authorities in search-and-rescue operations in the midst of historic flooding in the state.
At least three people have lost their lives in the flooding, according to news reports.
Guard members and equipment were assigned to assist in search-and-rescue missions and to deliver supplies, among other missions, officials said. Additionally, the Colorado National Guard has been requested to start provide traffic control points in and around the affected area today.
The soldiers and airmen are assigned to the Windsor Readiness Center; the Boulder, Fort Collins, and Denver armories; and Buckley Air Force Base.
"Supporting our neighbors in their time of need is one of the most rewarding missions the military has to offer," said Air Force Maj. Gen. H. Michael Edwards, Colorado's adjutant general. "Having readiness centers in communities such as these ensures we provide rapid for our communities."
'INVISIBLE WOUNDS' TREATMENT
FROM: U.S. DEFENSE DEPARTMENT
Director Discusses Innovations in 'Invisible Wounds' Treatment
By Terri Moon Cronk
American Forces Press Service
WASHINGTON, Sept. 13, 2013 - The Military Health System acknowledges that U.S. troops in previous conflicts haven't been subjected to the circumstances that surround 12 years of war in Iraq and Afghanistan, a senior Defense Department physician said here yesterday during a panel discussion at a warrior-family symposium.
Dr. James Kelly, director of the Defense Department's National Intrepid Center of Excellence, talked about his center's advancements in post-traumatic stress disorder and traumatic brain injury – signature wounds from the wars - in a panel discussion titled, "Innovative Mental Health Solutions – Today and Tomorrow."
The annual symposium is sponsored by the Military Officers Association of America and the National Defense Industrial Association.
Kelly cited problems that stem from the pattern of repeated deployments and training between deployments, combined with an all-volunteer force composed of members put themselves in harm's way time and time again. "It is not the pattern we've previously had in our military," he said.
The idea that the younger generation is somehow softer or in some ways more vulnerable doesn't hold water, Kelly said. "These people are tough as nails," he said to a round of applause from hundreds of audience members.
"What we need to do is innovate, look more in depth, and understand them as people and individuals that have been engaged in ways [for which] we simply have no good track record to point to and say, 'Here's what this is about, and here's what to do about it,'" he said.
Kelly said he and his staff learn as they go at the center, conducting research and treating service members in an intensive four-week program.
In a previous interview with American Forces Press Service, Kelly explained that when service members with severe traumatic brain injury do not respond to conventional medical treatment, they can be referred to the National Intrepid Center of Excellence, but they must also have a co-existing psychological health issue, such as post-traumatic stress disorder, depression or anxiety.
Kelly became NICoE's director five years ago. The center got underway when Defense Department officials invited him -- a former neurology consultant for the Chicago Bears football team -- to join a group of doctors to examine how to treat service members who were exposed to blast injuries and other head trauma.
He and the other doctors were "willing volunteers" drawn to military health care and working with service members coming back from both wars because of blast-related injuries and a variety of other causes of concussions, Kelly said.
The need for innovation in research and in treating service members led to a concept of using "virtual reality war," with service members are immersed in a setting with a vision of what happens when they're inside a Humvee going down a road. The seat begins to vibrate as a bomb goes off, and the smell of burning rubber wafts into the vehicle. The hope, Kelly explained, is that while the service members are in a safe clinic setting, the experience can help them get past the traumatic events they brought back from deployments.
This use of virtual reality shows quantifiable metabolic changes deep inside the brain when it's dealing with stress, Kelly said.
"That's just one of the examples of the kinds of things that we're engaged in that is really novel, innovative," he added. "[It] bridges into areas of the mind ... in ways that traditional medicine -- certainly traditional neurology -- hadn't previously."
Director Discusses Innovations in 'Invisible Wounds' Treatment
By Terri Moon Cronk
American Forces Press Service
WASHINGTON, Sept. 13, 2013 - The Military Health System acknowledges that U.S. troops in previous conflicts haven't been subjected to the circumstances that surround 12 years of war in Iraq and Afghanistan, a senior Defense Department physician said here yesterday during a panel discussion at a warrior-family symposium.
Dr. James Kelly, director of the Defense Department's National Intrepid Center of Excellence, talked about his center's advancements in post-traumatic stress disorder and traumatic brain injury – signature wounds from the wars - in a panel discussion titled, "Innovative Mental Health Solutions – Today and Tomorrow."
The annual symposium is sponsored by the Military Officers Association of America and the National Defense Industrial Association.
Kelly cited problems that stem from the pattern of repeated deployments and training between deployments, combined with an all-volunteer force composed of members put themselves in harm's way time and time again. "It is not the pattern we've previously had in our military," he said.
The idea that the younger generation is somehow softer or in some ways more vulnerable doesn't hold water, Kelly said. "These people are tough as nails," he said to a round of applause from hundreds of audience members.
"What we need to do is innovate, look more in depth, and understand them as people and individuals that have been engaged in ways [for which] we simply have no good track record to point to and say, 'Here's what this is about, and here's what to do about it,'" he said.
Kelly said he and his staff learn as they go at the center, conducting research and treating service members in an intensive four-week program.
In a previous interview with American Forces Press Service, Kelly explained that when service members with severe traumatic brain injury do not respond to conventional medical treatment, they can be referred to the National Intrepid Center of Excellence, but they must also have a co-existing psychological health issue, such as post-traumatic stress disorder, depression or anxiety.
Kelly became NICoE's director five years ago. The center got underway when Defense Department officials invited him -- a former neurology consultant for the Chicago Bears football team -- to join a group of doctors to examine how to treat service members who were exposed to blast injuries and other head trauma.
He and the other doctors were "willing volunteers" drawn to military health care and working with service members coming back from both wars because of blast-related injuries and a variety of other causes of concussions, Kelly said.
The need for innovation in research and in treating service members led to a concept of using "virtual reality war," with service members are immersed in a setting with a vision of what happens when they're inside a Humvee going down a road. The seat begins to vibrate as a bomb goes off, and the smell of burning rubber wafts into the vehicle. The hope, Kelly explained, is that while the service members are in a safe clinic setting, the experience can help them get past the traumatic events they brought back from deployments.
This use of virtual reality shows quantifiable metabolic changes deep inside the brain when it's dealing with stress, Kelly said.
"That's just one of the examples of the kinds of things that we're engaged in that is really novel, innovative," he added. "[It] bridges into areas of the mind ... in ways that traditional medicine -- certainly traditional neurology -- hadn't previously."
BOTOX COSMETIC APPROVED BY FDA FOR CROW'S FEET LINES
FROM: U.S. FOOD AND DRUG ADMINISTRATION
FDA approves Botox Cosmetic to improve the appearance of crow’s feet lines
The U.S. Food and Drug Administration today approved a new use for Botox Cosmetic (onabotulinumtoxinA) for the temporary improvement in the appearance of moderate to severe lateral canthal lines, known as crow’s feet, in adults. Botox Cosmetic is the only FDA approved drug treatment option for lateral canthal lines.
The FDA approved Botox Cosmetic in 2002 for the temporary improvement of glabellar lines (wrinkles between the eyebrows, known as frown lines), in adults. Botox Cosmetic works by keeping muscles from tightening so wrinkles are less prominent.
“This additional indication will provide people with a new FDA approved treatment option for those seeking a smoother appearance by temporarily minimizing the appearance of crow’s feet at the sides of the eyes,” said Susan Walker, M.D., director of the Division of Dermatology and Dental Products in the FDA’s Center for Drug Evaluation and Research.
Botox Cosmetic is administered via intramuscular injections. Treatment for both frown lines and crow’s feet can be given at the same time.
Botox Cosmetic’s safety and effectiveness for treating lateral canthal lines were established in two clinical efficacy and safety studies. The studies enrolled 833 adult participants with moderate to severe lateral canthal lines who were randomly assigned to receive Botox or placebo. Results showed that those treated with Botox had greater improvement compared to placebo in the appearance of lateral canthal lines.
The most common adverse reaction associated with the use of Botox Cosmetic for treatment of lateral canthal lines is eyelid edema, a condition in which the eyelids are swollen and contain excessive fluid.
OnabotulinumtoxinA is marketed as Botox and Botox Cosmetic. The FDA approved Botox for the treatment of chronic migraine, severe underarm sweating, blepharospasm (eyelid spasm) and strabismus (misalignment of the eyes when one or both eyes turn inward or outward). Botox and Botox Cosmetic have a boxed warning that says the effects of the botulinum toxin may spread from the area of injection to other areas of the body, causing symptoms similar to those of botulism. Those symptoms include swallowing and breathing difficulties that can be life-threatening. There has not been a confirmed serious case of toxin spread when Botox or Botox Cosmetic has been used at the recommended dose for the approved indications.
Consumers and health care professionals are encouraged to report adverse reactions from the use of Botox Cosmetic to the FDA’s MedWatch Adverse Event Reporting program at www.fda.gov/MedWatch or by calling 800-FDA-1088.
Botox Cosmetic is manufactured by Allergan Inc. based in Irvine, Calif.
FDA approves Botox Cosmetic to improve the appearance of crow’s feet lines
The U.S. Food and Drug Administration today approved a new use for Botox Cosmetic (onabotulinumtoxinA) for the temporary improvement in the appearance of moderate to severe lateral canthal lines, known as crow’s feet, in adults. Botox Cosmetic is the only FDA approved drug treatment option for lateral canthal lines.
The FDA approved Botox Cosmetic in 2002 for the temporary improvement of glabellar lines (wrinkles between the eyebrows, known as frown lines), in adults. Botox Cosmetic works by keeping muscles from tightening so wrinkles are less prominent.
“This additional indication will provide people with a new FDA approved treatment option for those seeking a smoother appearance by temporarily minimizing the appearance of crow’s feet at the sides of the eyes,” said Susan Walker, M.D., director of the Division of Dermatology and Dental Products in the FDA’s Center for Drug Evaluation and Research.
Botox Cosmetic is administered via intramuscular injections. Treatment for both frown lines and crow’s feet can be given at the same time.
Botox Cosmetic’s safety and effectiveness for treating lateral canthal lines were established in two clinical efficacy and safety studies. The studies enrolled 833 adult participants with moderate to severe lateral canthal lines who were randomly assigned to receive Botox or placebo. Results showed that those treated with Botox had greater improvement compared to placebo in the appearance of lateral canthal lines.
The most common adverse reaction associated with the use of Botox Cosmetic for treatment of lateral canthal lines is eyelid edema, a condition in which the eyelids are swollen and contain excessive fluid.
OnabotulinumtoxinA is marketed as Botox and Botox Cosmetic. The FDA approved Botox for the treatment of chronic migraine, severe underarm sweating, blepharospasm (eyelid spasm) and strabismus (misalignment of the eyes when one or both eyes turn inward or outward). Botox and Botox Cosmetic have a boxed warning that says the effects of the botulinum toxin may spread from the area of injection to other areas of the body, causing symptoms similar to those of botulism. Those symptoms include swallowing and breathing difficulties that can be life-threatening. There has not been a confirmed serious case of toxin spread when Botox or Botox Cosmetic has been used at the recommended dose for the approved indications.
Consumers and health care professionals are encouraged to report adverse reactions from the use of Botox Cosmetic to the FDA’s MedWatch Adverse Event Reporting program at www.fda.gov/MedWatch or by calling 800-FDA-1088.
Botox Cosmetic is manufactured by Allergan Inc. based in Irvine, Calif.
DEFENDANTS TO PAY OVER $2.4 MILLION FOR ROLES IN FRAUDULENT FOREIGN CURRENCY SCHEME
FROM: COMMODITY FUTURES TRADING COMMISSION
Federal Court Orders Alex Ekdeshman and Paramount Management, LLC, to Pay over $2.4 million in Restitution and a Fine for Fraudulent Foreign Currency Scheme
Court Order Stems from a CFTC Complaint that Charged Defendants with Solicitation Fraud and Misappropriation of Customer Funds
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent Order against Defendants Alex Ekdeshman of Holmdel, New Jersey, and Paramount Management, LLC (Paramount), requiring them to pay $1,146,000 in restitution to their defrauded customers and a $1,337,000 civil monetary penalty. The Consent Order of Permanent Injunction also imposes permanent trading and registration bans against the Defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
The Order was entered on September 9, 2013, by U.S. District Judge Colleen McMahon of the Southern District of New York and stems from a CFTC Complaint filed against the Defendants on June 26, 2013. The CFTC’s Complaint charged Ekdeshman, individually and as the agent of Paramount, with solicitation fraud and misappropriating “the vast majority” of customer funds for business expenses. Specifically, the Complaint charged the Defendants with operating a fraudulent scheme that solicited more than $1.3 million from approximately 110 retail customers to engage in leveraged or margined foreign currency (forex) transactions with unregistered off-shore counterparties. The Defendants allegedly advised customers that forex trading accounts would be opened in the customer’s name and would be traded by the Defendants on behalf of the customer.
Furthermore, the Defendants, through a telemarketing sales force and a “Performance Record” linked to their website, touted Paramount’s successful trading record as having yielded an average monthly return of 4.6% over a 20-month period, based on the performance of Paramount’s proprietary trading software system, according to the Complaint.
However, the court’s Order finds that, contrary to the claims made during the solicitations, the Defendants did not manage or trade any customer account, and thus Paramount’s customers neither made actual purchases of any forex nor received delivery of forex. The Order also finds that the Defendants misappropriated all customer funds for Ekdeshman’s personal benefit and failed to disclose to actual or prospective customers that they were misappropriating customer funds. To conceal their fraud, the Order finds that, during all phases of the scheme, the Defendants issued false account statements to their customers, as no individual customer accounts were ever created and no profits were ever generated.
The CFTC appreciates the assistance of the United Kingdom Financial Conduct Authority, the Financial Services Commission Mauritius, and the Financial Services Board of the Republic of South Africa.
Further, the CFTC appreciates the assistance of the Wisconsin Department of Financial Institutions, the National Futures Association, and the Federal Trade Commission.
CFTC Division of Enforcement staff members responsible for this matter are Thomas Kelly, Michael Amakor, Michael Geiser, Melanie Devoe, George Malas, Timothy J. Mulreany, Paul Hayeck, and Joan Manley.
Federal Court Orders Alex Ekdeshman and Paramount Management, LLC, to Pay over $2.4 million in Restitution and a Fine for Fraudulent Foreign Currency Scheme
Court Order Stems from a CFTC Complaint that Charged Defendants with Solicitation Fraud and Misappropriation of Customer Funds
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent Order against Defendants Alex Ekdeshman of Holmdel, New Jersey, and Paramount Management, LLC (Paramount), requiring them to pay $1,146,000 in restitution to their defrauded customers and a $1,337,000 civil monetary penalty. The Consent Order of Permanent Injunction also imposes permanent trading and registration bans against the Defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
The Order was entered on September 9, 2013, by U.S. District Judge Colleen McMahon of the Southern District of New York and stems from a CFTC Complaint filed against the Defendants on June 26, 2013. The CFTC’s Complaint charged Ekdeshman, individually and as the agent of Paramount, with solicitation fraud and misappropriating “the vast majority” of customer funds for business expenses. Specifically, the Complaint charged the Defendants with operating a fraudulent scheme that solicited more than $1.3 million from approximately 110 retail customers to engage in leveraged or margined foreign currency (forex) transactions with unregistered off-shore counterparties. The Defendants allegedly advised customers that forex trading accounts would be opened in the customer’s name and would be traded by the Defendants on behalf of the customer.
Furthermore, the Defendants, through a telemarketing sales force and a “Performance Record” linked to their website, touted Paramount’s successful trading record as having yielded an average monthly return of 4.6% over a 20-month period, based on the performance of Paramount’s proprietary trading software system, according to the Complaint.
However, the court’s Order finds that, contrary to the claims made during the solicitations, the Defendants did not manage or trade any customer account, and thus Paramount’s customers neither made actual purchases of any forex nor received delivery of forex. The Order also finds that the Defendants misappropriated all customer funds for Ekdeshman’s personal benefit and failed to disclose to actual or prospective customers that they were misappropriating customer funds. To conceal their fraud, the Order finds that, during all phases of the scheme, the Defendants issued false account statements to their customers, as no individual customer accounts were ever created and no profits were ever generated.
The CFTC appreciates the assistance of the United Kingdom Financial Conduct Authority, the Financial Services Commission Mauritius, and the Financial Services Board of the Republic of South Africa.
Further, the CFTC appreciates the assistance of the Wisconsin Department of Financial Institutions, the National Futures Association, and the Federal Trade Commission.
CFTC Division of Enforcement staff members responsible for this matter are Thomas Kelly, Michael Amakor, Michael Geiser, Melanie Devoe, George Malas, Timothy J. Mulreany, Paul Hayeck, and Joan Manley.
MEDICAL COMPANY OFFICER AND A PHYSICIAN SENTENCED FOR ROLES IN $1.5 MILLION MEDICARE FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, September 10, 2013
Medical Supply Company Officer and Southern California Physician Sentenced for $1.5 Million Medicare Fraud
A former officer of Fendih Medical Supply Inc. was sentenced to serve 51 months in prison yesterday in Los Angeles for his role in a fraud scheme that resulted in $1.5 million in fraudulent claims to Medicare. In addition, a physician was sentenced to 27 months in prison for his role in the scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Godwin Onyeabor, 49, of San Bernandino, Calif., was sentenced on Sept. 9, 2013, by U.S. District Judge Manuel L. Real in the Central District of California to 51 months in prison. In addition to his prison term, Onyeabor was sentenced to three years of supervised release. Restitution will be determined at a later date. Dr. Sri J. Wijegunaratne, 58, of Anaheim, Calif., was sentenced to 27 months in prison by Judge Real. In addition to his prison term, Wijegunaratne was sentenced to three years of supervised release and ordered to pay restitution in the amount of $87,846.
On April 24, 2013, a jury in Los Angeles federal court found Wijegunaratne, Onyeabor and Heidi Morishita, 48, guilty of one count of conspiracy to pay and receive kickbacks. In addition, Wijegunaratne and Onyeabor were found guilty of conspiracy to commit health care fraud. Wijegunaratne was found guilty of seven counts of health care fraud, and Onyeabor was found guilty of eleven counts of health care fraud.
During trial, the evidence showed that Onyeabor, as the former officer of a durable medical equipment (DME) supply company, fraudulently billed more than $1 million to Medicare for DME that was either never provided to its Medicare beneficiaries or was not medically necessary. Wijegunaratne provided Onyeabor and others with medically unnecessary power wheelchair prescriptions, and both Wijegunaratne and Morishita sold power wheelchair prescriptions to Onyeabor and others.
The evidence showed that Onyeabor and others paid Wijegunaratne and Morishita cash kickbacks for fraudulent prescriptions for DME, and Onyeabor and others used these prescriptions to bill Medicare for the power wheelchairs and other DME. Several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs which they did not need and did not want, and were unsuccessful in their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company.
As a result of this fraud scheme, Onyeabor, Wijegunaratne and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare and received almost $1 million on those claims.
Morishita’s sentencing is scheduled for Sept. 30, 2013.
The case is being investigated by the FBI and the Los Angeles Region of the HHS-Office of Inspector General (HHS-OIG) 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 Central District of California. The case is being prosecuted by Assistant Chief Benton Curtis, Trial Attorneys Fred Medick and Alexander Porter 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, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, September 10, 2013
Medical Supply Company Officer and Southern California Physician Sentenced for $1.5 Million Medicare Fraud
A former officer of Fendih Medical Supply Inc. was sentenced to serve 51 months in prison yesterday in Los Angeles for his role in a fraud scheme that resulted in $1.5 million in fraudulent claims to Medicare. In addition, a physician was sentenced to 27 months in prison for his role in the scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Godwin Onyeabor, 49, of San Bernandino, Calif., was sentenced on Sept. 9, 2013, by U.S. District Judge Manuel L. Real in the Central District of California to 51 months in prison. In addition to his prison term, Onyeabor was sentenced to three years of supervised release. Restitution will be determined at a later date. Dr. Sri J. Wijegunaratne, 58, of Anaheim, Calif., was sentenced to 27 months in prison by Judge Real. In addition to his prison term, Wijegunaratne was sentenced to three years of supervised release and ordered to pay restitution in the amount of $87,846.
On April 24, 2013, a jury in Los Angeles federal court found Wijegunaratne, Onyeabor and Heidi Morishita, 48, guilty of one count of conspiracy to pay and receive kickbacks. In addition, Wijegunaratne and Onyeabor were found guilty of conspiracy to commit health care fraud. Wijegunaratne was found guilty of seven counts of health care fraud, and Onyeabor was found guilty of eleven counts of health care fraud.
During trial, the evidence showed that Onyeabor, as the former officer of a durable medical equipment (DME) supply company, fraudulently billed more than $1 million to Medicare for DME that was either never provided to its Medicare beneficiaries or was not medically necessary. Wijegunaratne provided Onyeabor and others with medically unnecessary power wheelchair prescriptions, and both Wijegunaratne and Morishita sold power wheelchair prescriptions to Onyeabor and others.
The evidence showed that Onyeabor and others paid Wijegunaratne and Morishita cash kickbacks for fraudulent prescriptions for DME, and Onyeabor and others used these prescriptions to bill Medicare for the power wheelchairs and other DME. Several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs which they did not need and did not want, and were unsuccessful in their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company.
As a result of this fraud scheme, Onyeabor, Wijegunaratne and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare and received almost $1 million on those claims.
Morishita’s sentencing is scheduled for Sept. 30, 2013.
The case is being investigated by the FBI and the Los Angeles Region of the HHS-Office of Inspector General (HHS-OIG) 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 Central District of California. The case is being prosecuted by Assistant Chief Benton Curtis, Trial Attorneys Fred Medick and Alexander Porter 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, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Friday, September 13, 2013
ATTORNEY GENERAL ERIC HOLDER'S REMARKS ON 9-11 ANNIVERSARY
FROM: U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Delivers Remarks at the Department of Justice Ceremony Commemorating the Twelfth Anniversary of September 11, 2001
~ Wednesday, September 11, 2013
Good morning – and thank you all for being here.
It is an honor to join so many friends and colleagues for today’s observance – as we mark the twelfth anniversary of the deadliest terrorist attacks ever carried out against the United States; remember the nearly 3,000 innocent people whose lives were lost; and pay tribute to the 72 brave law enforcement officers who were called, on that beautiful autumn morning, to make the ultimate sacrifice.
The events of September 11th, 2001, transformed our entire nation – and touched each of our lives. I know many of you experienced the human cost of these attacks in a deeply personal, and painful, way.
Especially this morning – here at the Department of Justice – as we lift up the memories of those who were taken from us so suddenly, we must also renew our shared commitment to the uniquely American values that have always defined this great nation – and must guide this Department’s work every single day.
This is the only fitting legacy we can build for the innocent victims of that terrible morning – the public servants and military personnel who lost their lives at the Pentagon; the workers who were struck down in their offices at the World Trade Center; the heroic passengers who brought down a hijacked airliner in a field in Pennsylvania; and so many first responders and ordinary citizens who ran toward burning buildings – and saved countless lives – as so many others were racing away.
We pay tribute to each of them, and to many others who have given their lives in the service of their country since 9/11 – from the soldiers, sailors, airmen, and Marines who have fought on the battlefields of Iraq and Afghanistan; to patriots like Glen Doherty, Tyrone Woods, Sean Smith, and Ambassador Chris Stevens, who were taken from us just one year ago, in Libya.
Their valor reminds us of the quiet power of compassion. And their inspiring stories, and selfless actions, reaffirm the fact that this annual observance has always been about much more than the pain that was inflicted – and the buildings that were destroyed – twelve years ago today.
It’s about the extraordinary life that binds us together. It’s about the work that remains before us as we strive to make this nation not only safer – but stronger and more just – in the face of evolving global threats.
Most importantly, it’s about the commitment of Americans across the country who gather every year on this day – driven by both remembrance and resolve. Determined to honor the memories of those taken from us. And inspired by the heroism, the patriotism, and the bravery that shone through the smoke and wreckage of September 11th.
It was at 8:46 AM that morning that the first airliner crashed into the North Tower of the World Trade Center in New York City. In remembrance of all who were lost in that moment, and in the hours that followed, I ask you to join me in a moment of silence.
Attorney General Eric Holder Delivers Remarks at the Department of Justice Ceremony Commemorating the Twelfth Anniversary of September 11, 2001
~ Wednesday, September 11, 2013
Good morning – and thank you all for being here.
It is an honor to join so many friends and colleagues for today’s observance – as we mark the twelfth anniversary of the deadliest terrorist attacks ever carried out against the United States; remember the nearly 3,000 innocent people whose lives were lost; and pay tribute to the 72 brave law enforcement officers who were called, on that beautiful autumn morning, to make the ultimate sacrifice.
The events of September 11th, 2001, transformed our entire nation – and touched each of our lives. I know many of you experienced the human cost of these attacks in a deeply personal, and painful, way.
Especially this morning – here at the Department of Justice – as we lift up the memories of those who were taken from us so suddenly, we must also renew our shared commitment to the uniquely American values that have always defined this great nation – and must guide this Department’s work every single day.
This is the only fitting legacy we can build for the innocent victims of that terrible morning – the public servants and military personnel who lost their lives at the Pentagon; the workers who were struck down in their offices at the World Trade Center; the heroic passengers who brought down a hijacked airliner in a field in Pennsylvania; and so many first responders and ordinary citizens who ran toward burning buildings – and saved countless lives – as so many others were racing away.
We pay tribute to each of them, and to many others who have given their lives in the service of their country since 9/11 – from the soldiers, sailors, airmen, and Marines who have fought on the battlefields of Iraq and Afghanistan; to patriots like Glen Doherty, Tyrone Woods, Sean Smith, and Ambassador Chris Stevens, who were taken from us just one year ago, in Libya.
Their valor reminds us of the quiet power of compassion. And their inspiring stories, and selfless actions, reaffirm the fact that this annual observance has always been about much more than the pain that was inflicted – and the buildings that were destroyed – twelve years ago today.
It’s about the extraordinary life that binds us together. It’s about the work that remains before us as we strive to make this nation not only safer – but stronger and more just – in the face of evolving global threats.
Most importantly, it’s about the commitment of Americans across the country who gather every year on this day – driven by both remembrance and resolve. Determined to honor the memories of those taken from us. And inspired by the heroism, the patriotism, and the bravery that shone through the smoke and wreckage of September 11th.
It was at 8:46 AM that morning that the first airliner crashed into the North Tower of the World Trade Center in New York City. In remembrance of all who were lost in that moment, and in the hours that followed, I ask you to join me in a moment of silence.
USDA WORKS TO REDUCE SUGAR SURPLUS, MAINTAIN PRICES
FROM: U.S. DEPARTMENT OF AGRICULTURE
USDA Announces Third Exchange Actions to Address the Domestic Sugar Surplus
WASHINGTON, Sept. 12, 2013 - The U.S. Department of Agriculture today announced that the Commodity Credit Corporation (CCC) is offering to exchange its recently acquired sugar inventory for credits held by refiners holding licenses under the Refined Sugar Re-export Program. This exchange offer will be administered in a similar manner as the exchange portion of the sugar actions announced by news release on June 17, 2013, and July 23, 2013.
USDA is taking this action based upon the success of the earlier actions that removed 345,712 metric tons of import supply in exchange for 106,742 metric tons of CCC inventory. The earlier actions have resulted in U.S. raw sugar prices approaching Congressionally-mandated sugar price support levels. The purchase of credits held by refiners holding licenses under the Refined Sugar Re-export Program is preferable at this time to other available inventory management options because it minimizes the cost of the sugar program. This exchange will reduce the sugar surplus by more than the CCC sugar exchanged, which will reduce the incidence of future CCC sugar loan collateral forfeitures.
USDA Announces Third Exchange Actions to Address the Domestic Sugar Surplus
WASHINGTON, Sept. 12, 2013 - The U.S. Department of Agriculture today announced that the Commodity Credit Corporation (CCC) is offering to exchange its recently acquired sugar inventory for credits held by refiners holding licenses under the Refined Sugar Re-export Program. This exchange offer will be administered in a similar manner as the exchange portion of the sugar actions announced by news release on June 17, 2013, and July 23, 2013.
USDA is taking this action based upon the success of the earlier actions that removed 345,712 metric tons of import supply in exchange for 106,742 metric tons of CCC inventory. The earlier actions have resulted in U.S. raw sugar prices approaching Congressionally-mandated sugar price support levels. The purchase of credits held by refiners holding licenses under the Refined Sugar Re-export Program is preferable at this time to other available inventory management options because it minimizes the cost of the sugar program. This exchange will reduce the sugar surplus by more than the CCC sugar exchanged, which will reduce the incidence of future CCC sugar loan collateral forfeitures.
DEPUTY DEFENSE SECRETARY CARTER ARRIVES IN AFGHANISTAN TO ASSESS U.S. DRAWDOWN
FROM: U.S. DEFENSE DEPARTMENT
Carter Arrives in Afghanistan to Review Retrograde Progress
By Claudette Roulo
American Forces Press Service
KABUL, Afghanistan, Sept. 13, 2013 - Deputy Defense Secretary Ash Carter arrived at the International Security Forces Joint Command Headquarters here today for meetings with senior U.S., NATO and Afghan officials to review the progress of the drawdown.
The Afghanistan retrograde is on schedule to meet the December 2014 deadline, a senior defense official said Sept. 10 during a background briefing for Pentagon reporters. The official added that Carter would use the trip as an opportunity to get a boots-on-the-ground perspective of the retrograde process.
About 24,000 vehicles and 20,000 container equivalent sets are still to be shipped back to the United States, the official said, noting that the movement of material is expected to pick up again following a slowdown for the Muslim observances of Ramadan and Eid al-Fitr.
Today, Carter will meet with Army Lt. Gen. Mark Milley, commander of the International Security Assistance Force Joint Command; U.S. Ambassador to Afghanistan James Cunningham; Army Maj. Gen. James Richardson, commander of the U.S. National Support Element Command; and Dutch Ambassador Maurits Jochems, NATO's senior civilian representative.
The deputy secretary also will hold a meeting with senior leaders from Combined Security Transition Command Afghanistan and NATO Training Mission Afghanistan.
The discussions are intended as an affirmation that things are moving and to ensure that the retrograde process continues to work smoothly, the defense official said.
Carter Arrives in Afghanistan to Review Retrograde Progress
By Claudette Roulo
American Forces Press Service
KABUL, Afghanistan, Sept. 13, 2013 - Deputy Defense Secretary Ash Carter arrived at the International Security Forces Joint Command Headquarters here today for meetings with senior U.S., NATO and Afghan officials to review the progress of the drawdown.
The Afghanistan retrograde is on schedule to meet the December 2014 deadline, a senior defense official said Sept. 10 during a background briefing for Pentagon reporters. The official added that Carter would use the trip as an opportunity to get a boots-on-the-ground perspective of the retrograde process.
About 24,000 vehicles and 20,000 container equivalent sets are still to be shipped back to the United States, the official said, noting that the movement of material is expected to pick up again following a slowdown for the Muslim observances of Ramadan and Eid al-Fitr.
Today, Carter will meet with Army Lt. Gen. Mark Milley, commander of the International Security Assistance Force Joint Command; U.S. Ambassador to Afghanistan James Cunningham; Army Maj. Gen. James Richardson, commander of the U.S. National Support Element Command; and Dutch Ambassador Maurits Jochems, NATO's senior civilian representative.
The deputy secretary also will hold a meeting with senior leaders from Combined Security Transition Command Afghanistan and NATO Training Mission Afghanistan.
The discussions are intended as an affirmation that things are moving and to ensure that the retrograde process continues to work smoothly, the defense official said.
JOINT STATEMENT REGARDING SYRIAN TALKS FROM GENEVA, SWITZERLAND
FROM: U.S. STATE DEPARTMENT
Joint Statements After Trilat
Remarks
John Kerry
Secretary of State
Russian Foreign Minister Sergey Lavrov, and UN Special Envoy Lakhdar Brahimi
UN Offices
Geneva, Switzerland
September 13, 2013
SECRETARY KERRY: Let me just say to everybody that we will not – we will each make a very brief statement. We’ll not be taking questions at this time. And we apologize for that, but we need to get back to the conversations that we’re having on the issue of chemical weapons.
First of all, Foreign Minister Lavrov and I both want to thank Lakhdar Brahimi and the United Nations for their invitation to have a discussion today about the question of the Geneva 2 conference. As everybody knows, the principal reason that Foreign Minister Lavrov and I are here are to have discussions with respect to the initiative to gain control of and remove and destroy the chemical weapons in Syria. That is our principal mission here in Geneva. And I think we would both agree that we had constructive conversations regarding that, but those conversations are continuing and both of us want to get back to them now.
We came here this morning at the invitation of the Special Representative for the Geneva 2 and Syria negotiations in order to discuss where those negotiations are and how we can advance them. I will say on behalf of the United States that President Obama is deeply committed to a negotiated solution with respect to Syria, and we know that Russia is likewise. We are working hard to find the common ground to be able to make that happen and we discussed some of the homework that we both need to do. I’m not going to go into it in any detail today. We both agreed to do that homework and meet again in New York around the time of the UN General Assembly, around the 28th, in order to see if it is possible then to find a date for that conference, much of which will obviously depend on the capacity to have success here in the next day, hours, days, on the subject of the chemical weapons.
Both of us – Sergey Lavrov and I, our countries, our presidents – are deeply concerned about the death toll and destruction, the acts on both sides, all sides that are creating more and more refugees, more and more of the humanitarian catastrophe. And we are committed to try to work together, beginning with this initiative on the chemical weapons, in hopes that those efforts could pay off and bring peace and stability to a war-torn part of the world. And we’re very appreciative for Lakhdar Brahimi hosting us today in an effort to try to advance this initiative.
Sergey.
FOREIGN MINISTER LAVROV: Thank you very much. Ladies and gentlemen, we had a very useful meeting with Lakhdar Brahimi. As you know, as John said just now, we are here basically to discuss the issue of chemical weapons in Syria. Now that the Assad government joined the Chemical Weapons Convention, we have to engage our professionals together with the Chemical Weapons Prohibition Organization, as we agreed with the United Nations, to design a road which would make sure that this issue is resolved quickly, professionally, as soon as practical.
But we are very glad to Lakhdar Brahimi for inviting us on this occasion to discuss a longer-term goal for Syria, namely the preparation for the conference which is called Geneva 2. Russia, the Russian President from very beginning of the Syrian conflict, have been promoting a peaceful resolution. We have firmly supported the Arab League initiative, their being observers, and we supported Kofi Annan’s initiative, the UN observers, and we were one of the initiators of convening Geneva 1. Last year here, we adopted the Geneva communique, resolved major – almost all major players, including all P-5 countries for the region, Arab League, Turkey, European Union, United Nations. And it is very unfortunate that for a long period the Geneva communique was basically abandoned and we were not able to have endorsement of this very important document in the Security Council, as is as adopted.
Thanks to John, who after becoming Secretary of State in spite of his huge workload on Arab-Israeli conflict understood the importance of moving on Syria and doing something about this. And I am very grateful for him for coming to Moscow on May 7th this year when we launched the Russian-American initiative to convene a Geneva conference to implement fully the Geneva communique, which means that the Syrian parties must reach mutual consent on the transitional governing organ which would command full executive authority. And the communique also says that all groups of Syrian society must be represented.
And we discussed these aspects and other aspects of the preparatory work today with Lakhdar Brahimi and his team. We are very grateful to Lakhdar for his insight, for the suggestions which he made and which we will be entertaining as we move forward parallel with the work on chemical weapons. We agreed to meet in New York in the margins of the General Assembly and see where we are and what the Syrian parties think about it and do about it. And we hope that we will be able to be a bit more specific when we meet with you in New York.
SPECIAL ENVOY BRAHIMI: Thank you very much indeed, both of you, first of all, for coming to talk to us in the Palais de Nation in Geneva. We look forward to the work you are doing on chemical weapons in Syria. It is extremely important in itself and for itself, but it is also extremely important for us who are working with you on trying to bring together the Geneva 2 conference successfully.
Our discussions today, as you have both said now, have been useful. And we are not going to retain you much longer; you have other business to do. Thank you again very, very much indeed for being here.
SECRETARY KERRY: Thanks, Lakhdar.
FOREIGN MINISTER LAVROV: Thank you.
SECRETARY KERRY: Thank you, sir.
SPECIAL ENVOY BRAHIMI: Thank you very much.
Joint Statements After Trilat
Remarks
John Kerry
Secretary of State
Russian Foreign Minister Sergey Lavrov, and UN Special Envoy Lakhdar Brahimi
UN Offices
Geneva, Switzerland
September 13, 2013
SECRETARY KERRY: Let me just say to everybody that we will not – we will each make a very brief statement. We’ll not be taking questions at this time. And we apologize for that, but we need to get back to the conversations that we’re having on the issue of chemical weapons.
First of all, Foreign Minister Lavrov and I both want to thank Lakhdar Brahimi and the United Nations for their invitation to have a discussion today about the question of the Geneva 2 conference. As everybody knows, the principal reason that Foreign Minister Lavrov and I are here are to have discussions with respect to the initiative to gain control of and remove and destroy the chemical weapons in Syria. That is our principal mission here in Geneva. And I think we would both agree that we had constructive conversations regarding that, but those conversations are continuing and both of us want to get back to them now.
We came here this morning at the invitation of the Special Representative for the Geneva 2 and Syria negotiations in order to discuss where those negotiations are and how we can advance them. I will say on behalf of the United States that President Obama is deeply committed to a negotiated solution with respect to Syria, and we know that Russia is likewise. We are working hard to find the common ground to be able to make that happen and we discussed some of the homework that we both need to do. I’m not going to go into it in any detail today. We both agreed to do that homework and meet again in New York around the time of the UN General Assembly, around the 28th, in order to see if it is possible then to find a date for that conference, much of which will obviously depend on the capacity to have success here in the next day, hours, days, on the subject of the chemical weapons.
Both of us – Sergey Lavrov and I, our countries, our presidents – are deeply concerned about the death toll and destruction, the acts on both sides, all sides that are creating more and more refugees, more and more of the humanitarian catastrophe. And we are committed to try to work together, beginning with this initiative on the chemical weapons, in hopes that those efforts could pay off and bring peace and stability to a war-torn part of the world. And we’re very appreciative for Lakhdar Brahimi hosting us today in an effort to try to advance this initiative.
Sergey.
FOREIGN MINISTER LAVROV: Thank you very much. Ladies and gentlemen, we had a very useful meeting with Lakhdar Brahimi. As you know, as John said just now, we are here basically to discuss the issue of chemical weapons in Syria. Now that the Assad government joined the Chemical Weapons Convention, we have to engage our professionals together with the Chemical Weapons Prohibition Organization, as we agreed with the United Nations, to design a road which would make sure that this issue is resolved quickly, professionally, as soon as practical.
But we are very glad to Lakhdar Brahimi for inviting us on this occasion to discuss a longer-term goal for Syria, namely the preparation for the conference which is called Geneva 2. Russia, the Russian President from very beginning of the Syrian conflict, have been promoting a peaceful resolution. We have firmly supported the Arab League initiative, their being observers, and we supported Kofi Annan’s initiative, the UN observers, and we were one of the initiators of convening Geneva 1. Last year here, we adopted the Geneva communique, resolved major – almost all major players, including all P-5 countries for the region, Arab League, Turkey, European Union, United Nations. And it is very unfortunate that for a long period the Geneva communique was basically abandoned and we were not able to have endorsement of this very important document in the Security Council, as is as adopted.
Thanks to John, who after becoming Secretary of State in spite of his huge workload on Arab-Israeli conflict understood the importance of moving on Syria and doing something about this. And I am very grateful for him for coming to Moscow on May 7th this year when we launched the Russian-American initiative to convene a Geneva conference to implement fully the Geneva communique, which means that the Syrian parties must reach mutual consent on the transitional governing organ which would command full executive authority. And the communique also says that all groups of Syrian society must be represented.
And we discussed these aspects and other aspects of the preparatory work today with Lakhdar Brahimi and his team. We are very grateful to Lakhdar for his insight, for the suggestions which he made and which we will be entertaining as we move forward parallel with the work on chemical weapons. We agreed to meet in New York in the margins of the General Assembly and see where we are and what the Syrian parties think about it and do about it. And we hope that we will be able to be a bit more specific when we meet with you in New York.
SPECIAL ENVOY BRAHIMI: Thank you very much indeed, both of you, first of all, for coming to talk to us in the Palais de Nation in Geneva. We look forward to the work you are doing on chemical weapons in Syria. It is extremely important in itself and for itself, but it is also extremely important for us who are working with you on trying to bring together the Geneva 2 conference successfully.
Our discussions today, as you have both said now, have been useful. And we are not going to retain you much longer; you have other business to do. Thank you again very, very much indeed for being here.
SECRETARY KERRY: Thanks, Lakhdar.
FOREIGN MINISTER LAVROV: Thank you.
SECRETARY KERRY: Thank you, sir.
SPECIAL ENVOY BRAHIMI: Thank you very much.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING SEPTEMBER 7, 2013
FROM: U.S. DEPARTMENT OF LABOR,
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending September 7, the advance figure for seasonally adjusted initial claims was 292,000, a decrease of 31,000 from the previous week's unrevised figure of 323,000. The 4-week moving average was 321,250, a decrease of 7,500 from the previous week's revised average of 328,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending August 31, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending August 31 was 2,871,000, a decrease of 73,000 from the preceding week's revised level of 2,944,000. The 4-week moving average was 2,953,000, a decrease of 24,750 from the preceding week's revised average of 2,977,750.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 228,399 in the week ending September 7, a decrease of 40,250 from the previous week. There were 299,729 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.0 percent during the week ending August 31, 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 2,569,200, a decrease of 174,830 from the preceding week's revised level of 2,744,030. A year earlier, the rate was 2.3 percent and the volume was 2,930,825.
The total number of people claiming benefits in all programs for the week ending August 24 was 4,272,741, a decrease of 122,971 from the previous week. There were 5,391,420 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending August 24.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,442 in the week ending August 31, an increase of 193 from the prior week. There were 2,188 initial claims filed by newly discharged veterans, a decrease of 115 from the preceding week.
There were 19,952 former Federal civilian employees claiming UI benefits for the week ending August 24, a decrease of 879 from the previous week. Newly discharged veterans claiming benefits totaled 33,285, a decrease of 469 from the prior week.
States reported 1,454,824 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending August 24, a decrease of 39,918 from the prior week. There were 2,223,071 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 August 31 were in Puerto Rico (4.3), New Jersey (3.6), Connecticut (3.4), Alaska (3.3), Pennsylvania (3.1), New Mexico (3.0), California (2.9), Rhode Island (2.9), Virgin Islands (2.9), and New York (2.8).
The largest increases in initial claims for the week ending August 31 were in Oregon (+1,085), Pennsylvania (+725), Nebraska (+609), New Jersey (+537), and Kansas (+394), while the largest decreases were in California (-4,988), Nevada (-2,125), New York (-1,259), Georgia (-1,221), and Florida (-884).
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending September 7, the advance figure for seasonally adjusted initial claims was 292,000, a decrease of 31,000 from the previous week's unrevised figure of 323,000. The 4-week moving average was 321,250, a decrease of 7,500 from the previous week's revised average of 328,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending August 31, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending August 31 was 2,871,000, a decrease of 73,000 from the preceding week's revised level of 2,944,000. The 4-week moving average was 2,953,000, a decrease of 24,750 from the preceding week's revised average of 2,977,750.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 228,399 in the week ending September 7, a decrease of 40,250 from the previous week. There were 299,729 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.0 percent during the week ending August 31, 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 2,569,200, a decrease of 174,830 from the preceding week's revised level of 2,744,030. A year earlier, the rate was 2.3 percent and the volume was 2,930,825.
The total number of people claiming benefits in all programs for the week ending August 24 was 4,272,741, a decrease of 122,971 from the previous week. There were 5,391,420 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending August 24.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,442 in the week ending August 31, an increase of 193 from the prior week. There were 2,188 initial claims filed by newly discharged veterans, a decrease of 115 from the preceding week.
There were 19,952 former Federal civilian employees claiming UI benefits for the week ending August 24, a decrease of 879 from the previous week. Newly discharged veterans claiming benefits totaled 33,285, a decrease of 469 from the prior week.
States reported 1,454,824 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending August 24, a decrease of 39,918 from the prior week. There were 2,223,071 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 August 31 were in Puerto Rico (4.3), New Jersey (3.6), Connecticut (3.4), Alaska (3.3), Pennsylvania (3.1), New Mexico (3.0), California (2.9), Rhode Island (2.9), Virgin Islands (2.9), and New York (2.8).
The largest increases in initial claims for the week ending August 31 were in Oregon (+1,085), Pennsylvania (+725), Nebraska (+609), New Jersey (+537), and Kansas (+394), while the largest decreases were in California (-4,988), Nevada (-2,125), New York (-1,259), Georgia (-1,221), and Florida (-884).
U.S. STATE DEPARTMENT OFFICIAL'S REMARKS ON REGIONAL SHALE OIL AND GAS TRANSITIONING
FROM: U.S. STATE DEPARTMENT
World Shale Oil & Gas
Remarks
Robert F. Cekuta
Principal Deputy Assistant Secretary, Bureau of Energy Resources
Latin America Summit
Buenos Aires, Argentina
Session One: The Bigger Picture
“A Game-Changer for Latin America? Defining the Region’s Shale Potential by Global Comparison”
Good morning. Fellow panelists and distinguished guests, it is a pleasure to be here at the Latin America Summit of the World Shale Series. We are here today to examine the potential impact of gas resources in the region and globally. Unconventional gas, and shale gas in particular, have dramatically changed the energy landscape in the United States, and there is no reason to think that the United States is the only place where this resource can be developed safely and responsibly. This tremendous sea change in accessible energy resources has strong implications not only for our geopolitical relationships and economy, but also for our ability to address shared environmental goals.
I would like to talk a bit about what we have learned and in particular, highlight the political and policy challenges which exist as the United States transitions from being a net importer of energy resources.
Our dialogue this week in Buenos Aires represents one of a number of elements in the ongoing, close cooperation between the United States and Latin America on energy sector issues – whether it is the creation of complimentary energy efficiency standards for appliances throughout North and Central America or the promotion of electrical grid interconnections through the hemispheric Connecting the Americas 2022, we look forward to building strong and long-lasting partnerships in the Americas.
It is extremely appropriate that we are meeting here in Buenos Aires to discuss unconventional oil and gas development in Latin America. The U.S. Energy Information Administration’s 2013 World Shale Report notes Argentina has the world’s second-largest estimate of technologically recoverable shale gas resources. Other Latin American countries, such as Mexico, Colombia and Brazil, also hold potentially significant amounts of unconventional hydrocarbon resources. These resources will contribute profoundly to countries' economic growth as well as to world energy supplies and global energy security – if developed in a responsible and environmentally sustainable manner.
Changes At Home
I would like to discuss some of the changes which have propelled the United States into becoming a net exporter of natural gas. Over the past five years there has been a surprising transformation in the energy landscape of the United States. A few years ago, experts projected the United States would have to import approximately 64 percent of our natural gas needs by 2035. However, we have now initially begun to export some LNG, due in no small part to the “shale gas revolution” in the United States. Current projections estimate that unconventional gas – including shale gas, tight gas, and coal-bed methane – could make up more than 75 percent of U.S. natural gas production and that U.S. gas production could reach 33.14 trillion cubic feet in 2040.
Industry in the United States – and some foreign firms – have seen expanding supplies and lower prices as another positive factor for future economic growth in my country. The shale gas boom is attracting interest in industries such as steel, glass, and cement production, supporting the contention of a number of studies that low-priced natural gas can be a feedstock catalyzing a renaissance in American manufacturing, or what European Union Commissioner for Energy, Günther Oettinger called the “re-industrialization of the United States.” Unconventional oil and gas development is currently projected to create, directly or indirectly, almost 2.5 million jobs and add $350 billion to the U.S. GDP by 2015.[1]
The question many people are asking is can the experience of the United States be duplicated elsewhere? We think it can. Technological breakthroughs in horizontal drilling and multi-stage hydraulic fracturing have been essential in tapping and developing unconventional gas. But new technology is only one part of this success story.
Producers in the United States are able to capitalize on factors like a well-functioning market, attractive investment frameworks, extensive pipeline networks and other infrastructure, and an experienced and capable workforce from the conventional upstream side of the industry.
We would be remiss in discussing the shale gas revolution if we didn’t also mention the financial requirements and climate necessary for unconventional oil and gas development to flourish. Single unconventional wells can cost twice as much or more than conventional wells. Up-front exploration and initial production costs are high relative to conventional costs, and high depletion rates after initial production require continuing capital expenditures to maintain and increase target levels of shale gas or oil production. An attractive fiscal regime has been essential to the success of unconventional resource development in the United States.
Global Potential for Unconventional Gas and Oil Development
These developments are not confined to the United States, but have significant ripple effects on third party gas markets. We have seen this in terms of LNG from Qatar and Trinidad and Tobago once destined for the United States now going to other markets. As these imported LNG supplies were diverted from the United States and provided European markets with lower priced gas and meaningful competition to more expensive pipeline gas from Russia.
Looking forward, we anticipate that growing global supplies of gas could result in gas prices being de-linked from oil, as has already happened already in the United States. One possible outcome could be further reducing the power of gas transportation monopolies to use natural gas exports as a political lever.
Unconventional resource development is also changing the tenor of our engagement with major energy exporters. A few years ago, our dialogue with OPEC and other major producers was based almost exclusively on our oil import needs as the world’s largest importer. Discussions in international meetings now look at the declining import needs of the Americas, the rising import needs of Asian and non-OECD markets, and the growing number of new oil and gas producers. Patterns in the global energy trade are already changing, and the implications of these changes are important for energy producers and consumers alike.
Other countries have been watching these developments and wondering if they can replicate the U.S. experience. Numerous countries have reached out to the United States and have participated in international meetings on the subject sponsored by academic institutions or international organizations like the International Energy Agency. We welcome these discussions and see it as important to share what we have learned, what we are learning, and the things we wished we had known earlier on.
Challenges to Unconventional Gas and Oil Development
While recognizing the energy security benefits and the economic gains from unconventional gas and oil development in the United States, it is important to also note that there are many challenges as well. It is essential to develop these resources in an environmentally, socially, and economically sustainable manner. For this reason, we have taken an “all of government” approach to working with the range of stakeholders, including Civil Society – citizens groups, academia and non-governmental organizations on best practices. To that end, the Bureau of Energy Resources in the State Department manages the Unconventional Gas Technical Engagement Program (UGTEP), which brings together experts in policy and regulatory affairs from the United States to disseminate best practices based on the lessons learned in the United States over the past 40+ years in the environmental, social, health and safety, and commercial application of unconventional gas development.
Federal, state, and local officials in the United States are paying close attention to protecting water resources. The United States is adhering to or strengthening best practices to address fugitive methane emissions during the production and distribution processes. In tight oil development, gas flaring is a challenge, especially where the gas pipeline infrastructure is scarce. We are also looking at ways to help others reduce flaring just as we are looking to share our experiences and lessons-learned in developing unconventional oil and gas.
These issues are at the forefront of our bilateral and multilateral discussions on unconventional gas development. One way we share our experience under the UGTEP program is through visits to and from the United States, technical workshops addressing the environmental, social, and economic ramifications of unconventional gas development, and regulator training courses. And it is through these implementing mechanisms that we are helping governments implement best practices based on “lessons learned” in the U.S. experience – and allowing them to benefit from that experience by creating their own regulatory frameworks with the hindsight of our experiences in the United States.
Countries must determine how best to meet their energy resource development needs. The United States remains open to sharing what we have learned – the good and the bad experiences – to promote global security of supply and economic growth.
Conclusion
As I close, let me reiterate that there remains a global need for energy to meet the needs of people, industry, and society. Energy is a necessity for people's well-being in addition to a key factor in economic growth. Moreover, we increasingly recognize due to climate change and other factors that we need to focus on sustainability.
The United States is transitioning from being a natural gas importer to an exporter. We are open to sharing our experience with other countries as they seek to develop their unconventional resources, should they want to do so. We look forward to a productive and rewarding collaborative partnership.
Thank you and I am happy to answer any questions you may have.
World Shale Oil & Gas
Remarks
Robert F. Cekuta
Principal Deputy Assistant Secretary, Bureau of Energy Resources
Latin America Summit
Buenos Aires, Argentina
Session One: The Bigger Picture
“A Game-Changer for Latin America? Defining the Region’s Shale Potential by Global Comparison”
Good morning. Fellow panelists and distinguished guests, it is a pleasure to be here at the Latin America Summit of the World Shale Series. We are here today to examine the potential impact of gas resources in the region and globally. Unconventional gas, and shale gas in particular, have dramatically changed the energy landscape in the United States, and there is no reason to think that the United States is the only place where this resource can be developed safely and responsibly. This tremendous sea change in accessible energy resources has strong implications not only for our geopolitical relationships and economy, but also for our ability to address shared environmental goals.
I would like to talk a bit about what we have learned and in particular, highlight the political and policy challenges which exist as the United States transitions from being a net importer of energy resources.
Our dialogue this week in Buenos Aires represents one of a number of elements in the ongoing, close cooperation between the United States and Latin America on energy sector issues – whether it is the creation of complimentary energy efficiency standards for appliances throughout North and Central America or the promotion of electrical grid interconnections through the hemispheric Connecting the Americas 2022, we look forward to building strong and long-lasting partnerships in the Americas.
It is extremely appropriate that we are meeting here in Buenos Aires to discuss unconventional oil and gas development in Latin America. The U.S. Energy Information Administration’s 2013 World Shale Report notes Argentina has the world’s second-largest estimate of technologically recoverable shale gas resources. Other Latin American countries, such as Mexico, Colombia and Brazil, also hold potentially significant amounts of unconventional hydrocarbon resources. These resources will contribute profoundly to countries' economic growth as well as to world energy supplies and global energy security – if developed in a responsible and environmentally sustainable manner.
Changes At Home
I would like to discuss some of the changes which have propelled the United States into becoming a net exporter of natural gas. Over the past five years there has been a surprising transformation in the energy landscape of the United States. A few years ago, experts projected the United States would have to import approximately 64 percent of our natural gas needs by 2035. However, we have now initially begun to export some LNG, due in no small part to the “shale gas revolution” in the United States. Current projections estimate that unconventional gas – including shale gas, tight gas, and coal-bed methane – could make up more than 75 percent of U.S. natural gas production and that U.S. gas production could reach 33.14 trillion cubic feet in 2040.
Industry in the United States – and some foreign firms – have seen expanding supplies and lower prices as another positive factor for future economic growth in my country. The shale gas boom is attracting interest in industries such as steel, glass, and cement production, supporting the contention of a number of studies that low-priced natural gas can be a feedstock catalyzing a renaissance in American manufacturing, or what European Union Commissioner for Energy, Günther Oettinger called the “re-industrialization of the United States.” Unconventional oil and gas development is currently projected to create, directly or indirectly, almost 2.5 million jobs and add $350 billion to the U.S. GDP by 2015.[1]
The question many people are asking is can the experience of the United States be duplicated elsewhere? We think it can. Technological breakthroughs in horizontal drilling and multi-stage hydraulic fracturing have been essential in tapping and developing unconventional gas. But new technology is only one part of this success story.
Producers in the United States are able to capitalize on factors like a well-functioning market, attractive investment frameworks, extensive pipeline networks and other infrastructure, and an experienced and capable workforce from the conventional upstream side of the industry.
We would be remiss in discussing the shale gas revolution if we didn’t also mention the financial requirements and climate necessary for unconventional oil and gas development to flourish. Single unconventional wells can cost twice as much or more than conventional wells. Up-front exploration and initial production costs are high relative to conventional costs, and high depletion rates after initial production require continuing capital expenditures to maintain and increase target levels of shale gas or oil production. An attractive fiscal regime has been essential to the success of unconventional resource development in the United States.
Global Potential for Unconventional Gas and Oil Development
These developments are not confined to the United States, but have significant ripple effects on third party gas markets. We have seen this in terms of LNG from Qatar and Trinidad and Tobago once destined for the United States now going to other markets. As these imported LNG supplies were diverted from the United States and provided European markets with lower priced gas and meaningful competition to more expensive pipeline gas from Russia.
Looking forward, we anticipate that growing global supplies of gas could result in gas prices being de-linked from oil, as has already happened already in the United States. One possible outcome could be further reducing the power of gas transportation monopolies to use natural gas exports as a political lever.
Unconventional resource development is also changing the tenor of our engagement with major energy exporters. A few years ago, our dialogue with OPEC and other major producers was based almost exclusively on our oil import needs as the world’s largest importer. Discussions in international meetings now look at the declining import needs of the Americas, the rising import needs of Asian and non-OECD markets, and the growing number of new oil and gas producers. Patterns in the global energy trade are already changing, and the implications of these changes are important for energy producers and consumers alike.
Other countries have been watching these developments and wondering if they can replicate the U.S. experience. Numerous countries have reached out to the United States and have participated in international meetings on the subject sponsored by academic institutions or international organizations like the International Energy Agency. We welcome these discussions and see it as important to share what we have learned, what we are learning, and the things we wished we had known earlier on.
Challenges to Unconventional Gas and Oil Development
While recognizing the energy security benefits and the economic gains from unconventional gas and oil development in the United States, it is important to also note that there are many challenges as well. It is essential to develop these resources in an environmentally, socially, and economically sustainable manner. For this reason, we have taken an “all of government” approach to working with the range of stakeholders, including Civil Society – citizens groups, academia and non-governmental organizations on best practices. To that end, the Bureau of Energy Resources in the State Department manages the Unconventional Gas Technical Engagement Program (UGTEP), which brings together experts in policy and regulatory affairs from the United States to disseminate best practices based on the lessons learned in the United States over the past 40+ years in the environmental, social, health and safety, and commercial application of unconventional gas development.
Federal, state, and local officials in the United States are paying close attention to protecting water resources. The United States is adhering to or strengthening best practices to address fugitive methane emissions during the production and distribution processes. In tight oil development, gas flaring is a challenge, especially where the gas pipeline infrastructure is scarce. We are also looking at ways to help others reduce flaring just as we are looking to share our experiences and lessons-learned in developing unconventional oil and gas.
These issues are at the forefront of our bilateral and multilateral discussions on unconventional gas development. One way we share our experience under the UGTEP program is through visits to and from the United States, technical workshops addressing the environmental, social, and economic ramifications of unconventional gas development, and regulator training courses. And it is through these implementing mechanisms that we are helping governments implement best practices based on “lessons learned” in the U.S. experience – and allowing them to benefit from that experience by creating their own regulatory frameworks with the hindsight of our experiences in the United States.
Countries must determine how best to meet their energy resource development needs. The United States remains open to sharing what we have learned – the good and the bad experiences – to promote global security of supply and economic growth.
Conclusion
As I close, let me reiterate that there remains a global need for energy to meet the needs of people, industry, and society. Energy is a necessity for people's well-being in addition to a key factor in economic growth. Moreover, we increasingly recognize due to climate change and other factors that we need to focus on sustainability.
The United States is transitioning from being a natural gas importer to an exporter. We are open to sharing our experience with other countries as they seek to develop their unconventional resources, should they want to do so. We look forward to a productive and rewarding collaborative partnership.
Thank you and I am happy to answer any questions you may have.
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