FROM: FEDERAL TRADE COMMISSION
FTC Shuts Down Fraudulent Debt Relief Operation
The defendants behind an alleged credit card interest rate reduction scam are banned from selling debt relief services and from telemarketing any goods or services.
A federal court judge in Florida approved and signed a stipulated order against Innovative Wealth Builders, Inc., (IWB) and its three Florida-based principals: Carly Janene Pelland (also known as Carly Zurita), Sheryl Leigh Lopez, and Tamara Dawn Johnson. The defendants agreed to settle Federal Trade Commission allegations that they falsely promised to substantially reduce consumers’ credit card interest rates and save them thousands of dollars on their credit card debts.
The FTC will continue to move forward with litigation against Independant Resources Network Corp. (IRN), the payment processor that allegedly assisted and facilitated the scam. In June, the FTC amended its original complaint to name IRN as a defendant in the case.
According to the FTC’s complaint, the settling defendants, IWB and its three principals, violated the FTC Act by misrepresenting credit card interest rate reduction services, misrepresenting refund policies, and billing consumers without authorization. The complaint also alleges the defendants violated the FTC’s Telemarketing Sales Rule by misrepresenting the debt relief services they were selling, charging a fee before providing these services, and billing consumers without their express informed consent.
The stipulated order also prohibits the settling defendants from making any material misrepresentations in connection with advertising, marketing, promotion, offering for sale, or sale of any financial related product or service. The order includes a $9.9 million judgment against IWB and its three principals.
The Commission’s vote authorizing staff to file the stipulated final order was 4-0. The FTC filed the stipulated final order for permanent injunction in the U.S. District Court for the Middle District of Florida, Tampa Division. The District Court judge signed and approved the order on Sept. 10, 2013.
NOTE: Stipulated orders have the force of law when signed and approved by the District Court judge.
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. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
Tuesday, September 17, 2013
GUARDSMEN, FIRST RESPONDERS EVACUATED IN COLORADO
FROM: U.S. DEFENSE DEPARTMENT
Army Evacuates Guardsmen, First Responders in Colorado
From a Colorado National Guard News Release
CENTENNIAL, Colo., Sept. 16, 2013 - As rain and cloud cover hampered military aviation operations in Colorado yesterday, the rising waters added Colorado National Guardsmen and first responders to the list of flood evacuees.
At about 4:20 p.m., a mix of 51 Colorado National Guardsmen, first responders and civilians, along with five pets, were reported to be stopped by rising waters in Lyons, Colo. Flood waters rose so high that even the half-dozen Light Medium Tactical Vehicles deployed with the group -- the "go-to" high-mobility trucks that have become the staple of the military's ground search-and-rescue efforts -- couldn't ford them, officials said.
In the meantime, the weather in Boulder County broke, so U.S. Army aviators from the 4th Infantry Division from Fort Carson resumed flight operations from the Boulder Municipal Airport. Among their priority missions was to evacuate the 51 people stranded in Lyons.
Aviators flying two helicopters -- a CH-47 Chinook and a UH-60 Black Hawk -- were able to evacuate all 10 civilians and their pets, along with a number of first responders and Guardsmen, before weather took another bad turn and aviation operations were suspended again.
"It's great to provide support to our neighbors and work with such great professionals," said Army Col. Robert Ault, commander of the 4th Combat Aviation Brigade. "The first responders have the desire, we have the capabilities and it's great when we can all come together to help make a difference."
Of the original 51, 15 first responders and Guardsmen, along with the high-mobility vehicles, are waiting out the flood on higher ground until flight operations resume or the waters become passable, officials said.
Twenty military helicopters and crews were scheduled to conduct evacuation operations yesterday, but most were grounded for much of the day as heavy rain and low ceilings hampered visibility, causing flight safety issues for much of the day.
Army Evacuates Guardsmen, First Responders in Colorado
From a Colorado National Guard News Release
CENTENNIAL, Colo., Sept. 16, 2013 - As rain and cloud cover hampered military aviation operations in Colorado yesterday, the rising waters added Colorado National Guardsmen and first responders to the list of flood evacuees.
At about 4:20 p.m., a mix of 51 Colorado National Guardsmen, first responders and civilians, along with five pets, were reported to be stopped by rising waters in Lyons, Colo. Flood waters rose so high that even the half-dozen Light Medium Tactical Vehicles deployed with the group -- the "go-to" high-mobility trucks that have become the staple of the military's ground search-and-rescue efforts -- couldn't ford them, officials said.
In the meantime, the weather in Boulder County broke, so U.S. Army aviators from the 4th Infantry Division from Fort Carson resumed flight operations from the Boulder Municipal Airport. Among their priority missions was to evacuate the 51 people stranded in Lyons.
Aviators flying two helicopters -- a CH-47 Chinook and a UH-60 Black Hawk -- were able to evacuate all 10 civilians and their pets, along with a number of first responders and Guardsmen, before weather took another bad turn and aviation operations were suspended again.
"It's great to provide support to our neighbors and work with such great professionals," said Army Col. Robert Ault, commander of the 4th Combat Aviation Brigade. "The first responders have the desire, we have the capabilities and it's great when we can all come together to help make a difference."
Of the original 51, 15 first responders and Guardsmen, along with the high-mobility vehicles, are waiting out the flood on higher ground until flight operations resume or the waters become passable, officials said.
Twenty military helicopters and crews were scheduled to conduct evacuation operations yesterday, but most were grounded for much of the day as heavy rain and low ceilings hampered visibility, causing flight safety issues for much of the day.
MAN SENTENCED IN BLACK MARKET PESO EXCHANGE SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, September 11, 2013
Houston Man Sentenced for $20 Million ‘Black Market Peso Exchange’ Scheme
One of the leaders of a criminal conspiracy that laundered more than $20 million through “shell” business bank accounts was sentenced today to 151 months in prison.
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 made the announcement.
Willie Whitehurst, 45, of Houston, was sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. In January and February 2013, Whitehurst and co-conspirators Enrique Morales, Fulton Smith and Anthony Foster pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. Another co-conspirator, Sarah Combs, also pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the names of the organization’s “shell” companies. The money was then transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.
Morales was previously sentenced to 188 months in prison, and Foster received a sentence of 121 months in prison. Smith was sentenced to 30 months, while Combs was sentenced to 24 months in prison.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation Division. Assistant U.S. Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section prosecuted the case.
Wednesday, September 11, 2013
Houston Man Sentenced for $20 Million ‘Black Market Peso Exchange’ Scheme
One of the leaders of a criminal conspiracy that laundered more than $20 million through “shell” business bank accounts was sentenced today to 151 months in prison.
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 made the announcement.
Willie Whitehurst, 45, of Houston, was sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. In January and February 2013, Whitehurst and co-conspirators Enrique Morales, Fulton Smith and Anthony Foster pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. Another co-conspirator, Sarah Combs, also pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the names of the organization’s “shell” companies. The money was then transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.
Morales was previously sentenced to 188 months in prison, and Foster received a sentence of 121 months in prison. Smith was sentenced to 30 months, while Combs was sentenced to 24 months in prison.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation Division. Assistant U.S. Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section prosecuted the case.
Monday, September 16, 2013
READOUT: CARTER'S TRAVEL TO PAKISTAN
FROM: U.S. DEFENSE DEPARTMENT
Readout of Deputy Secretary of Defense Carter's Travel to Pakistan
Deputy Secretary of Defense Ashton B. Carter traveled to Pakistan on Sept. 16 where he met with senior Pakistani government and defense officials.
In Pakistan Deputy Secretary Carter met with Sartaj Aziz, Advisor to the Prime Minister for Foreign Affairs and National Security; General Khalid Shameem Wynn, Chairman of the Joint Chiefs of Staff Committee; and General Ashfaq Parvez Kayani, Chief of Army Staff.
During his meetings with the senior Pakistani officials, Deputy Secretary Carter expressed his condolences for the recent killing by extremists of three Pakistan military personnel, including Maj. Gen. Sanaullaha, commander of Swat Division. He also discussed the significantly improved bilateral defense relationship between the United States and Pakistan, which has made important contributions to the security interests of both countries.
Deputy Secretary Carter also met with U.S. Ambassador to Pakistan Richard Olson and Commander of the Office of the Defense Representative Pakistan (ODRP) Lt. Gen. Greg Biscone at the U.S. Embassy. While at the embassy, Carter thanked U.S. personnel serving in ODRP and the embassy Marine Security Guard Detachment for their service and continued dedication.
Readout of Deputy Secretary of Defense Carter's Travel to Pakistan
Deputy Secretary of Defense Ashton B. Carter traveled to Pakistan on Sept. 16 where he met with senior Pakistani government and defense officials.
In Pakistan Deputy Secretary Carter met with Sartaj Aziz, Advisor to the Prime Minister for Foreign Affairs and National Security; General Khalid Shameem Wynn, Chairman of the Joint Chiefs of Staff Committee; and General Ashfaq Parvez Kayani, Chief of Army Staff.
During his meetings with the senior Pakistani officials, Deputy Secretary Carter expressed his condolences for the recent killing by extremists of three Pakistan military personnel, including Maj. Gen. Sanaullaha, commander of Swat Division. He also discussed the significantly improved bilateral defense relationship between the United States and Pakistan, which has made important contributions to the security interests of both countries.
Deputy Secretary Carter also met with U.S. Ambassador to Pakistan Richard Olson and Commander of the Office of the Defense Representative Pakistan (ODRP) Lt. Gen. Greg Biscone at the U.S. Embassy. While at the embassy, Carter thanked U.S. personnel serving in ODRP and the embassy Marine Security Guard Detachment for their service and continued dedication.
TREASURY SECRETARY LEW'S STATEMENT ON ANNIVERSARY OF FINANCIAL CRISIS
FROM: U.S. DEPARTMENT OF TREASURY
Statement from Secretary Lew on the Five-Year Anniversary of the Financial Crisis
“Five years ago, a devastating crisis hit our financial system. The ensuing economic recession, unlike anything we had seen since the Great Depression, was not caused by a single firm or a single event. It was the culmination of many factors, including excessive risk taking, the accumulation of too much debt, and an outdated regulatory structure.
“The swift emergency response that began on a bipartisan basis helped the financial system to stabilize and our economy start growing again. Today, taxpayers will be repaid for the extraordinary investments we made in the financial system, but we are still healing from the deep damage the crisis did to our economy. Because President Obama took up the mantle of reform and made Dodd-Frank the law of the land, our financial system is now safer, stronger, and more resilient than it was before the crisis. In fact, financial markets are more transparent, we have new tools to monitor risk and wind down companies whose failure would threaten the entire financial system and Americans have a dedicated consumer watchdog looking out for them. In addition, because of these efforts and other policies to strengthen the recovery, private employers have added 7 and a half million jobs over the past 42 months.
“As we finish the remaining elements of Wall Street reform this year, we must remember that financial reform is not about writing a set of rules and then walking off the field. We must remain vigilant and respond immediately to new risk in the financial system. Reforming Wall Street is ultimately about an enduring commitment to making our financial system a model of stability and safety that contributes to job creation and economic growth.”
Statement from Secretary Lew on the Five-Year Anniversary of the Financial Crisis
“Five years ago, a devastating crisis hit our financial system. The ensuing economic recession, unlike anything we had seen since the Great Depression, was not caused by a single firm or a single event. It was the culmination of many factors, including excessive risk taking, the accumulation of too much debt, and an outdated regulatory structure.
“The swift emergency response that began on a bipartisan basis helped the financial system to stabilize and our economy start growing again. Today, taxpayers will be repaid for the extraordinary investments we made in the financial system, but we are still healing from the deep damage the crisis did to our economy. Because President Obama took up the mantle of reform and made Dodd-Frank the law of the land, our financial system is now safer, stronger, and more resilient than it was before the crisis. In fact, financial markets are more transparent, we have new tools to monitor risk and wind down companies whose failure would threaten the entire financial system and Americans have a dedicated consumer watchdog looking out for them. In addition, because of these efforts and other policies to strengthen the recovery, private employers have added 7 and a half million jobs over the past 42 months.
“As we finish the remaining elements of Wall Street reform this year, we must remember that financial reform is not about writing a set of rules and then walking off the field. We must remain vigilant and respond immediately to new risk in the financial system. Reforming Wall Street is ultimately about an enduring commitment to making our financial system a model of stability and safety that contributes to job creation and economic growth.”
CHUCK HAGEL'S STATEMENT ON WASHINGTON NAVY YARD SHOOTINGS
FROM: U.S. DEFENSE DEPARTMENT
Statement from Secretary of Defense Chuck Hagel on the Incident at Washington Navy Yard
I have been receiving regular updates on the shooting at the Washington Navy Yard, and continue to monitor the situation closely. This is a tragic day for the Department of Defense, the national capital area, and the nation. My thoughts and prayers are with the victims of this outrageous act of violence, their families, and all those affected by today's events. I am grateful for the swift response of federal and local law enforcement, and for the professionalism of DoD personnel at the Navy Yard complex. The Department of Defense will continue to offer its full assistance in the investigation of this terrible and senseless violence.
Statement from Secretary of Defense Chuck Hagel on the Incident at Washington Navy Yard
I have been receiving regular updates on the shooting at the Washington Navy Yard, and continue to monitor the situation closely. This is a tragic day for the Department of Defense, the national capital area, and the nation. My thoughts and prayers are with the victims of this outrageous act of violence, their families, and all those affected by today's events. I am grateful for the swift response of federal and local law enforcement, and for the professionalism of DoD personnel at the Navy Yard complex. The Department of Defense will continue to offer its full assistance in the investigation of this terrible and senseless violence.
PEST CONTROL COMPANY CHARGED WITH UNLAWFUL APPLICATION OF PESTICIDES
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, September 11, 2013
Pest Control Company and Its Owner Charged with Unlawful Application of Pesticides and Falsification
A pest control services company and its owner have been charged today in the U.S. District Court for the Middle District of Georgia with conspiracy, unlawful use of pesticides, false statements, falsification of records and mail fraud, announced Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and Michael J. Moore, U.S. Attorney for the Middle District of Georgia.
Steven A. Murray, 54, of Pelham, Ala., and his company, Bio-Tech Management Inc., were charged in a felony indictment with one count of conspiracy, 10 counts of making false statements, 20 counts of falsifying records, 10 counts of mail fraud and 10 counts of unlawful use of a pesticide.
The indictment alleges that from October 2005 to June 2009, Steven Murray and Bio-Tech repeatedly misapplied the registered pesticide Termidor SC in nursing homes in the state of Georgia and falsified documents to conceal the unlawful use. The indictment further alleges that Murray and Bio-Tech sent invoices through the U.S. Mail to their nursing home clients to solicit payment for the unlawful pesticide applications.
According to the indictment, Steve Murray and Bio-Tech provided monthly pest control services to nursing homes in Georgia by spraying pesticides in and around their clients’ facilities. The indictment alleges that, at the direction of Murray, Bio-Tech employees routinely applied the pesticide Termidor indoors more than twice a year, contrary to the manufacturer’s label instructions. The indictment further alleges that after the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s misuse of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct an investigation.
U.S. Environmental Protection Agency (EPA) regulations require that all pesticides be registered, properly labeled, and applied as specified by manufacturer’s labeling to protect public health and the environment.
A criminal indictment is not a finding of guilt. An individual or company charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The falsifying records and mail fraud charge carry a maximum sentence of 20 years in prison and $250,000 fine per count. The false statements charges each carry a maximum sentence of five years in prison and a $250,000 fine.
These cases are being investigated by Special Agents of the EPA’s Criminal Investigations Division in Atlanta and prosecuted by Trial Attorneys Richard J. Powers and Adam C. Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.
Wednesday, September 11, 2013
Pest Control Company and Its Owner Charged with Unlawful Application of Pesticides and Falsification
A pest control services company and its owner have been charged today in the U.S. District Court for the Middle District of Georgia with conspiracy, unlawful use of pesticides, false statements, falsification of records and mail fraud, announced Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and Michael J. Moore, U.S. Attorney for the Middle District of Georgia.
Steven A. Murray, 54, of Pelham, Ala., and his company, Bio-Tech Management Inc., were charged in a felony indictment with one count of conspiracy, 10 counts of making false statements, 20 counts of falsifying records, 10 counts of mail fraud and 10 counts of unlawful use of a pesticide.
The indictment alleges that from October 2005 to June 2009, Steven Murray and Bio-Tech repeatedly misapplied the registered pesticide Termidor SC in nursing homes in the state of Georgia and falsified documents to conceal the unlawful use. The indictment further alleges that Murray and Bio-Tech sent invoices through the U.S. Mail to their nursing home clients to solicit payment for the unlawful pesticide applications.
According to the indictment, Steve Murray and Bio-Tech provided monthly pest control services to nursing homes in Georgia by spraying pesticides in and around their clients’ facilities. The indictment alleges that, at the direction of Murray, Bio-Tech employees routinely applied the pesticide Termidor indoors more than twice a year, contrary to the manufacturer’s label instructions. The indictment further alleges that after the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s misuse of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct an investigation.
U.S. Environmental Protection Agency (EPA) regulations require that all pesticides be registered, properly labeled, and applied as specified by manufacturer’s labeling to protect public health and the environment.
A criminal indictment is not a finding of guilt. An individual or company charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The falsifying records and mail fraud charge carry a maximum sentence of 20 years in prison and $250,000 fine per count. The false statements charges each carry a maximum sentence of five years in prison and a $250,000 fine.
These cases are being investigated by Special Agents of the EPA’s Criminal Investigations Division in Atlanta and prosecuted by Trial Attorneys Richard J. Powers and Adam C. Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.
FORMER EXECUTIVE SENTENCED TO 87 MONTHS IN PRISON FOR ROLE IN KICKBACK SCHEMES
FROM: U.S. JUSTICE DEPARTMENT
Thursday, September 12, 2013
Former Airline Executive Sentenced to Prison for Schemes to Defraud Illinois-Based Ryan International Airlines
Executive Sentenced to Serve 87 Months in Prison
A former executive of Ryan International Airlines, a charter airline company located in Rockford, Ill., was sentenced today to serve 87 months in prison and to pay restitution for participating in kickback schemes to defraud Ryan, the Department of Justice announced.
Wayne E. Kepple, the former vice president of ground operations for Ryan, was sentenced to serve 87 months in prison and to pay $529,998 in restitution. On Nov. 4, 2011, Kepple pleaded guilty in U.S. District Court in West Palm Beach, Fla., to three counts of conspiracy to commit wire fraud and honest services fraud and three counts of wire fraud. The charges against Kepple stem from a kickback scheme involving Robert A. Riddell, the former owner and operator of an airline security and ground service company, as well as separate kickback schemes involving David A. Chaisson, the former owner and operator of an Indiana flight management services company, James E. Murphy, the former owner and operator of a Florida aviation fuel supply company, and others.
Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.
“Today’s sentence should serve as a stiff deterrent to executives who might be tempted to solicit a kickback from their supplies in exchange for their honest services,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “The Antitrust Division is committed to ensuring that contracts are won based on competition and not collusion.”
According to court documents, Kepple was in charge of contracting with providers of goods and services on behalf of Ryan and approving the invoices submitted by the providers to Ryan for payment. From October 2005 through at least August 2009, Kepple participated in three separate conspiracies in which he received kickback payments of more than $520,000 from Riddell, Murphy, Chaisson and others in exchange for Kepple awarding them Ryan airline services and fuel contracts. According to court documents, the payments from Chaisson and Riddell included the proceeds of fabricated invoices submitted by their companies to Ryan.
As a result of the ongoing investigation, four individuals, including Kepple, have pleaded guilty and been sentenced to prison. On Oct. 28, 2011, Murphy was sentenced to serve 23 months in prison and to pay $42,500 in restitution and Chaisson was sentenced to serve 16 months in prison and to pay $50,742 in restitution. On Jan. 27, 2012, Riddell was sentenced to serve 24 months in prison and to pay $131,540 in restitution. Kepple’s 87-month sentence reflects his central role in multiple kickback schemes.
On Aug. 13, 2013, a fifth individual, Sean E. Wagner, and his company, Aviation Fuel International Inc. (AFI), a Florida-based airline fuel supply company, were indicted for participating in a conspiracy to defraud Ryan by making kickback payments to Kepple in exchange for awarding business to AFI. That case is ongoing.
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Thursday, September 12, 2013
Former Airline Executive Sentenced to Prison for Schemes to Defraud Illinois-Based Ryan International Airlines
Executive Sentenced to Serve 87 Months in Prison
A former executive of Ryan International Airlines, a charter airline company located in Rockford, Ill., was sentenced today to serve 87 months in prison and to pay restitution for participating in kickback schemes to defraud Ryan, the Department of Justice announced.
Wayne E. Kepple, the former vice president of ground operations for Ryan, was sentenced to serve 87 months in prison and to pay $529,998 in restitution. On Nov. 4, 2011, Kepple pleaded guilty in U.S. District Court in West Palm Beach, Fla., to three counts of conspiracy to commit wire fraud and honest services fraud and three counts of wire fraud. The charges against Kepple stem from a kickback scheme involving Robert A. Riddell, the former owner and operator of an airline security and ground service company, as well as separate kickback schemes involving David A. Chaisson, the former owner and operator of an Indiana flight management services company, James E. Murphy, the former owner and operator of a Florida aviation fuel supply company, and others.
Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.
“Today’s sentence should serve as a stiff deterrent to executives who might be tempted to solicit a kickback from their supplies in exchange for their honest services,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “The Antitrust Division is committed to ensuring that contracts are won based on competition and not collusion.”
According to court documents, Kepple was in charge of contracting with providers of goods and services on behalf of Ryan and approving the invoices submitted by the providers to Ryan for payment. From October 2005 through at least August 2009, Kepple participated in three separate conspiracies in which he received kickback payments of more than $520,000 from Riddell, Murphy, Chaisson and others in exchange for Kepple awarding them Ryan airline services and fuel contracts. According to court documents, the payments from Chaisson and Riddell included the proceeds of fabricated invoices submitted by their companies to Ryan.
As a result of the ongoing investigation, four individuals, including Kepple, have pleaded guilty and been sentenced to prison. On Oct. 28, 2011, Murphy was sentenced to serve 23 months in prison and to pay $42,500 in restitution and Chaisson was sentenced to serve 16 months in prison and to pay $50,742 in restitution. On Jan. 27, 2012, Riddell was sentenced to serve 24 months in prison and to pay $131,540 in restitution. Kepple’s 87-month sentence reflects his central role in multiple kickback schemes.
On Aug. 13, 2013, a fifth individual, Sean E. Wagner, and his company, Aviation Fuel International Inc. (AFI), a Florida-based airline fuel supply company, were indicted for participating in a conspiracy to defraud Ryan by making kickback payments to Kepple in exchange for awarding business to AFI. That case is ongoing.
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
DHS AND NASA WORK TOGETHER TO SAVE VICTIMS OF DISASTER
FROM: U.S. DEPARTMENT OF HOMELAND SECURITY
Detecting Heartbeats in Rubble: DHS and NASA Team up to Save Victims of Disasters
In June 2013, Urban Search and Rescue team tested the FINDER’s human-finding abilities at the Fairfax County Fire Department training center.
When natural disasters or man-made catastrophes topple buildings, search and rescue teams immediately set out to recover victims trapped beneath the wreckage. During these missions, time is imperative, and quickly detecting living victims greatly increases chances for rescue and survival.
A new radar-based technology named Finding Individuals for Disaster and Emergency Response (FINDER) has been developed by the Department of Homeland Security’s Science and Technology Directorate (S&T) and the National Aeronautics Space Administration’s Jet Propulsion Laboratory (JPL) to detect a human heartbeat buried beneath 30 feet of crushed materials, hidden behind 20 feet of solid concrete, and from a distance of 100 feet in open spaces. In the past several months, S&T and JPL have been testing and developing several FINDER prototypes. Last June, DHS and first responders used the prototype to conduct more than 65 test searches with two Urban Search and Rescue (US&R) teams: the Virginia Task Force One (VA-TF1) at the Fairfax County Fire Department training center and Virginia Task Force Two (VA-TF2) in Virginia Beach, Va.
“Testing proved successful in locating a VA-TF1 member buried in 30 feet of mixed concrete, rebar, and gravel rubble from a distance of over 30 feet,” said John Price, S&T program manager. “This capability will complement the current Urban Search and Rescue tools such as canines, listening devices, and video cameras to detect the presence of living victims in rubble.”
Detecting Heartbeats in Rubble: DHS and NASA Team up to Save Victims of Disasters
In June 2013, Urban Search and Rescue team tested the FINDER’s human-finding abilities at the Fairfax County Fire Department training center.
When natural disasters or man-made catastrophes topple buildings, search and rescue teams immediately set out to recover victims trapped beneath the wreckage. During these missions, time is imperative, and quickly detecting living victims greatly increases chances for rescue and survival.
A new radar-based technology named Finding Individuals for Disaster and Emergency Response (FINDER) has been developed by the Department of Homeland Security’s Science and Technology Directorate (S&T) and the National Aeronautics Space Administration’s Jet Propulsion Laboratory (JPL) to detect a human heartbeat buried beneath 30 feet of crushed materials, hidden behind 20 feet of solid concrete, and from a distance of 100 feet in open spaces. In the past several months, S&T and JPL have been testing and developing several FINDER prototypes. Last June, DHS and first responders used the prototype to conduct more than 65 test searches with two Urban Search and Rescue (US&R) teams: the Virginia Task Force One (VA-TF1) at the Fairfax County Fire Department training center and Virginia Task Force Two (VA-TF2) in Virginia Beach, Va.
“Testing proved successful in locating a VA-TF1 member buried in 30 feet of mixed concrete, rebar, and gravel rubble from a distance of over 30 feet,” said John Price, S&T program manager. “This capability will complement the current Urban Search and Rescue tools such as canines, listening devices, and video cameras to detect the presence of living victims in rubble.”
MAN INDICTED IN $30 MILLION PONZI SCHEME THAT TARGETED HAITIAN-AMERICANS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Defendant Indicted in $30 Million Ponzi Scheme and Affinity Fraud Targeting Haitian-American Investors
On July 2, 2013, the United States Attorney’s Office for the Southern District of Florida filed criminal charges against George Louis Theodule, a defendant in a now settled SEC action. The 40-count indictment charges Theodule with securities fraud, wire fraud, and money laundering. According to the indictment, Theodule, among other things, falsely presented himself as a financial expert who would double investors’ funds within three months by placing trades through their investment accounts. The indictment also alleges that Theodule operated a Ponzi scheme that raised more than $30 million from thousands of investors. Theodule allegedly perpetrated the fraud through Creative Capital Consortium, LLC and Creative Capital Concept$, LLC (the “Creative Capital entities”), among other entities he controlled.
In December 2008, the Commission halted Theodule’s on-going fraud at Creative Capital when it filed an emergency civil enforcement action against him and his companies. The SEC’s complaint alleged that the defendants had raised more than $23 million from thousands of mostly Haitian-American investors through a fraudulent, unregistered offering of securities nationwide, and operated a Ponzi scheme, having lost at least $18 million trading stocks and options through a network of purported investment clubs. The SEC obtained a restraining order to halt the fraudulent activity, and thereafter a receiver was appointed by the United States District Court for the Southern District of Florida to identify and trace assets. In October 2009, the Court entered a Judgment of Permanent Injunction and Other Relief against Theodule. The Judgment entered by consent, enjoined Theodule from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and also ordered Theodule to pay disgorgement with prejudgment interest and a civil penalty. In March 2010, the Court entered a Final Judgment ordering him to pay disgorgement in the amount of $5,099,512, prejudgment interest of $202,638 and imposed a civil penalty of $250,000.
The SEC's investigation was conducted by Linda S. Schmidt and Kathleen Strandell of the Miami Regional Office. The litigation was led by Amie Riggle Berlin and Robert K. Levenson. The SEC acknowledges the work of the United States Attorney’s Office for the Southern District of Florida, the Federal Bureau of Investigation, Miami Field Office, and the State of Florida’s Office of Financial Regulation this matter.
SEC Defendant Indicted in $30 Million Ponzi Scheme and Affinity Fraud Targeting Haitian-American Investors
On July 2, 2013, the United States Attorney’s Office for the Southern District of Florida filed criminal charges against George Louis Theodule, a defendant in a now settled SEC action. The 40-count indictment charges Theodule with securities fraud, wire fraud, and money laundering. According to the indictment, Theodule, among other things, falsely presented himself as a financial expert who would double investors’ funds within three months by placing trades through their investment accounts. The indictment also alleges that Theodule operated a Ponzi scheme that raised more than $30 million from thousands of investors. Theodule allegedly perpetrated the fraud through Creative Capital Consortium, LLC and Creative Capital Concept$, LLC (the “Creative Capital entities”), among other entities he controlled.
In December 2008, the Commission halted Theodule’s on-going fraud at Creative Capital when it filed an emergency civil enforcement action against him and his companies. The SEC’s complaint alleged that the defendants had raised more than $23 million from thousands of mostly Haitian-American investors through a fraudulent, unregistered offering of securities nationwide, and operated a Ponzi scheme, having lost at least $18 million trading stocks and options through a network of purported investment clubs. The SEC obtained a restraining order to halt the fraudulent activity, and thereafter a receiver was appointed by the United States District Court for the Southern District of Florida to identify and trace assets. In October 2009, the Court entered a Judgment of Permanent Injunction and Other Relief against Theodule. The Judgment entered by consent, enjoined Theodule from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and also ordered Theodule to pay disgorgement with prejudgment interest and a civil penalty. In March 2010, the Court entered a Final Judgment ordering him to pay disgorgement in the amount of $5,099,512, prejudgment interest of $202,638 and imposed a civil penalty of $250,000.
The SEC's investigation was conducted by Linda S. Schmidt and Kathleen Strandell of the Miami Regional Office. The litigation was led by Amie Riggle Berlin and Robert K. Levenson. The SEC acknowledges the work of the United States Attorney’s Office for the Southern District of Florida, the Federal Bureau of Investigation, Miami Field Office, and the State of Florida’s Office of Financial Regulation this matter.
Sunday, September 15, 2013
SECRETARY OF STATE KERRY AND ISRAELI PRIME MINISTER NETANYAHU MAKE REMARKS AFTER MEETING
FROM: U.S. STATE DEPARTMENT
Remarks With Israeli Prime Minister Benjamin Netanyahu After Their Meeting
Remarks
John Kerry
Secretary of State
Israeli Prime Minister Benjamin Netanyahu
Prime Minister's Office
Jerusalem
September 15, 2013
PRIME MINISTER NETANYAHU: Mr. Secretary, John, a pleasure to welcome you again in Jerusalem. I very much appreciate the fact that you’re here today. You’ve got a lot on your plate. Despite that busy schedule of yours, you took the time to come to Jerusalem. It’s deeply appreciated. I appreciate the fact that you’re making a great personal effort on matters of vital strategic importance for all of us.
We have been closely following and support your ongoing efforts to rid Syria of its chemical weapons. The Syrian regime must be stripped all its chemical weapons, and that would make our entire region a lot safer. The world needs to ensure that radical regimes don’t have weapons of mass destruction, because as we’ve learned once again in Syria, if rogue regimes have weapons of mass destruction, they will use them. The determination the international community shows regarding Syria will have a direct impact on the Syrian regime’s patron, Iran.
Iran must understand the consequences of its continual defiance of the international community by its pursuit towards nuclear weapons. What the past few days have showed is something that I’ve been saying for quite some time, that if diplomacy has any chance to work, it must be coupled with a credible military threat. What is true of Iran – or what is true of Syria is true of Iran, and by the way, vice versa.
John, I appreciate the opportunity we’ve had to discuss at some length our quest for peace with the Palestinians and the ongoing talks. We both know that this road is not an easy one, but we’ve embarked on this effort with you in order to succeed, to bring about a historic reconciliation between Israelis and Palestinians that ends the conflict once and for all. I want to welcome you once again to Jerusalem. I want to promise all of those who are seeing us now that this will not be our last long meeting.
SECRETARY KERRY: No. (Laughter.) Not by any means.
Mr. Prime Minister, my friend Bibi, thank you very much for one of your generous welcomes here again. I’m very appreciative, very happy to be back here in Israel, and only sorry that it’s a short time and a short visit. I thank you for your generous hospitality and I pick up on your comments that the road ahead is not easy. If it were easy, peace would have been achieved a long time ago. But what is clearer than ever today is that this is a road worth traveling. And so I’m delighted to have spent a good period of time – (clears throat) – excuse me, folks, the benefits of a lot of travel. (Laughter.)
I’m really happy to have spent a serious amount of time with the Prime Minister this afternoon talking in some depth about the challenges of the particular road that we are on. This is a follow-up to a very productive meeting that I had in London last week with President Abbas, so I am talking to both presidents directly as we agreed --
PRIME MINISTER NETANYAHU: Don’t elevate me to the role of president.
SECRETARY KERRY: President – Prime Minister and President, I apologize.
PRIME MINISTER NETANYAHU: I can’t reach those heights --
SECRETARY KERRY: (Laughter.) Both leaders.
PRIME MINISTER NETANYAHU: -- and I respect Mr. Peres greatly and --
SECRETARY KERRY: I am talking to both leaders directly. And everybody, I think, understands the goal that we are working for. It is two states living side by side in peace and in security. Two states because there are two proud peoples, both of whom deserve to fulfill their legitimate national aspirations in a homeland of their own, and two states because today, as we commemorate the 40th anniversary of the Yom Kippur War, I think everybody is reminded significantly of the costs of conflict and the price, certainly, that Israelis have paid in the quest for their security and identity.
The Prime Minister and I and all of the parties involved have agreed that we will not discuss details at any point in time. We are convinced that the best way to try to work through the difficult choices that have to be made is to do so privately with confidence that everybody will respect that process. And since I have asked for that from all the parties, I’m not going to break it now or at any other time. We will not discuss the substance of what we are working on.
I do want to comment, however, as the Prime Minister has, on the challenge of the region and what we have just been doing in the last few days of negotiations in Geneva. And that is, as the Prime Minister has said, an issue that directly affects the stability of this entire region, and ultimately, weapons of mass destruction, which are at stake in this issue, are a challenge to everybody on this planet. So this is a global issue, and that is the focus that we have tried to give it in the talks in Geneva in the last days, but we want to make sure people understand exactly what we are trying to achieve and how.
The ongoing conflict in Syria has enormous implications for all of the neighbors – the press of refugees, the fact of weapons of mass destruction having been used against the people of their own state. These are crimes against humanity, and they cannot be tolerated, and they are a threat to the capacity of the global community to be able to live by standards of rules of law and the highest standards of human behavior.
So I want people to understand the key elements of what we agreed to in Geneva. It is a framework, not a final agreement. It is a framework that must be put into effect by the United Nations now. But it is a framework that, with the Russian and U.S. agreement, it has the full ability to be able to, as the Prime Minister said, strip all of the chemical weapons from Syria. The Russians have agreed, they state, that the Assad regime has agreed to make its declaration within one week of the location and the amount of those weapons. And then we will put in place what we hope to put in place through the United Nations, what Russia and the United States agreed on, which is the most far-reaching chemical weapons removal effort well beyond the CWC that has been designed.
Now this will only be as effective as its implementation will be, and President Obama has made it clear that to accomplish that, the threat of force remains. The threat of force is real, and the Assad regime and all those taking part need to understand that President Obama and the United States are committed to achieve this goal. We cannot have hollow words in the conduct of international affairs because that affects all other issues, whether Iran or North Korea or any other.
The core principles with respect to the removal of these weapons and the containment of these weapons, which we want to achieve, as we said in the document, in the soonest, fastest, most effective way possible – if we achieve that, we will have set a marker for the standard of behavior with respect to Iran and with respect to North Korea and any other state, rogue state, group that decide to try to reach for these kinds of weapons.
The core principles will have the full backing of the international community through the UN Security Council. And Russia agreed that any breach of compliance, according to standards already set out in the CWC, any breach of the specifics of this agreement or any use of chemical weapons by anyone in Syria will result in immediate referral and action by the Security Council for measures under Chapter 7, which means what they select, up to and including the possibility of the use of force.
So again, I reiterate diplomacy has always been the preferred path of the President of the United States, and I think is any peace-loving nation’s preferred choice. But make no mistake, we’ve taken no options off the table. President Obama’s been absolutely clear about the remainder of the potential of use of force if there is noncompliance or refusal to take part, because the egregious use of chemical weapons by the Assad regime against innocent men, women, children, their own citizens all indiscriminately murdered in the dead of night, is unacceptable. And we have said in no uncertain terms that this should never happen again. This country understands the words, “Never again,” perhaps better than any other.
I’ve been in contact with many of my counterparts, with Foreign Secretary Hague of the United Kingdom, Foreign Minister Laurent Fabius. Their partnership on these issues has been essential. And I will see both of them tomorrow and Foreign Minister Davutoglu of Turkey in Paris, where I’ll also meet Foreign Minister Saud Faisal of Saudi Arabia in order to talk about the road ahead to achieve our goals.
Our attention and our efforts will now shift to the Organization of the Prohibition of Chemical Weapons and the UN Security Council, and the international community expects the Assad regime to live up to its commitments, and we expect Russia to join with us in holding them accountable.
I also want to make clear this effort is not just about securing chemical weapons in Syria. We are not just standing up for a redline that the world drew some 100 years ago, and which is worth standing up for. Our focus now must remain on ending the violence, ending the indiscriminate killing, ending the creation of more and more refugees that is not only tearing Syria apart, but threatens the region itself.
As President Obama has said, and I have said many times, there is no military solution to this conflict. We don’t want to create more and more extremist elements and we don’t want to see the implosion of the state of Syria. So our overall objective is to find a political solution through diplomacy, and that needs to happen at the negotiating table, and we will stay engaged with a sense of urgency. And I say to the Syrian opposition and all those in Syria who recognize that just removing the chemical weapons doesn’t do the job, we understand that, and that is not all we are going to seek to do. But it is one step forward, and it eliminates that weapon from the arsenal of a man who has proven willing to do anything to his own people to hold onto power.
Foreign Minister Lavrov and I met with Special Envoy Brahimi yesterday. We will meet again in New York. We are committed to continue to work towards the Geneva 2. And we have made clear that our support to the opposition in an effort to get there will continue unabated.
So, Mr. Prime Minister, I know you and I are both clear-eyed about the challenges ahead. We have to summon the grit and the determination to stay at this, to make the tough decisions – tough decisions about eliminating weapons of mass destruction and tough decisions about making peace between Israel and the Palestinians. We will not lose sight of the end game. I know that from talking with the Prime Minister today. And I think both of us remain deeply committed, and we hope very much with our partners in the region, to doing our best to try to make this journey towards peace get to its destination.
Thank you, Mr. Prime Minister.
PRIME MINISTER NETANYAHU: John, another sound bite. (Laughter.)
Remarks With Israeli Prime Minister Benjamin Netanyahu After Their Meeting
Remarks
John Kerry
Secretary of State
Israeli Prime Minister Benjamin Netanyahu
Prime Minister's Office
Jerusalem
September 15, 2013
PRIME MINISTER NETANYAHU: Mr. Secretary, John, a pleasure to welcome you again in Jerusalem. I very much appreciate the fact that you’re here today. You’ve got a lot on your plate. Despite that busy schedule of yours, you took the time to come to Jerusalem. It’s deeply appreciated. I appreciate the fact that you’re making a great personal effort on matters of vital strategic importance for all of us.
We have been closely following and support your ongoing efforts to rid Syria of its chemical weapons. The Syrian regime must be stripped all its chemical weapons, and that would make our entire region a lot safer. The world needs to ensure that radical regimes don’t have weapons of mass destruction, because as we’ve learned once again in Syria, if rogue regimes have weapons of mass destruction, they will use them. The determination the international community shows regarding Syria will have a direct impact on the Syrian regime’s patron, Iran.
Iran must understand the consequences of its continual defiance of the international community by its pursuit towards nuclear weapons. What the past few days have showed is something that I’ve been saying for quite some time, that if diplomacy has any chance to work, it must be coupled with a credible military threat. What is true of Iran – or what is true of Syria is true of Iran, and by the way, vice versa.
John, I appreciate the opportunity we’ve had to discuss at some length our quest for peace with the Palestinians and the ongoing talks. We both know that this road is not an easy one, but we’ve embarked on this effort with you in order to succeed, to bring about a historic reconciliation between Israelis and Palestinians that ends the conflict once and for all. I want to welcome you once again to Jerusalem. I want to promise all of those who are seeing us now that this will not be our last long meeting.
SECRETARY KERRY: No. (Laughter.) Not by any means.
Mr. Prime Minister, my friend Bibi, thank you very much for one of your generous welcomes here again. I’m very appreciative, very happy to be back here in Israel, and only sorry that it’s a short time and a short visit. I thank you for your generous hospitality and I pick up on your comments that the road ahead is not easy. If it were easy, peace would have been achieved a long time ago. But what is clearer than ever today is that this is a road worth traveling. And so I’m delighted to have spent a good period of time – (clears throat) – excuse me, folks, the benefits of a lot of travel. (Laughter.)
I’m really happy to have spent a serious amount of time with the Prime Minister this afternoon talking in some depth about the challenges of the particular road that we are on. This is a follow-up to a very productive meeting that I had in London last week with President Abbas, so I am talking to both presidents directly as we agreed --
PRIME MINISTER NETANYAHU: Don’t elevate me to the role of president.
SECRETARY KERRY: President – Prime Minister and President, I apologize.
PRIME MINISTER NETANYAHU: I can’t reach those heights --
SECRETARY KERRY: (Laughter.) Both leaders.
PRIME MINISTER NETANYAHU: -- and I respect Mr. Peres greatly and --
SECRETARY KERRY: I am talking to both leaders directly. And everybody, I think, understands the goal that we are working for. It is two states living side by side in peace and in security. Two states because there are two proud peoples, both of whom deserve to fulfill their legitimate national aspirations in a homeland of their own, and two states because today, as we commemorate the 40th anniversary of the Yom Kippur War, I think everybody is reminded significantly of the costs of conflict and the price, certainly, that Israelis have paid in the quest for their security and identity.
The Prime Minister and I and all of the parties involved have agreed that we will not discuss details at any point in time. We are convinced that the best way to try to work through the difficult choices that have to be made is to do so privately with confidence that everybody will respect that process. And since I have asked for that from all the parties, I’m not going to break it now or at any other time. We will not discuss the substance of what we are working on.
I do want to comment, however, as the Prime Minister has, on the challenge of the region and what we have just been doing in the last few days of negotiations in Geneva. And that is, as the Prime Minister has said, an issue that directly affects the stability of this entire region, and ultimately, weapons of mass destruction, which are at stake in this issue, are a challenge to everybody on this planet. So this is a global issue, and that is the focus that we have tried to give it in the talks in Geneva in the last days, but we want to make sure people understand exactly what we are trying to achieve and how.
The ongoing conflict in Syria has enormous implications for all of the neighbors – the press of refugees, the fact of weapons of mass destruction having been used against the people of their own state. These are crimes against humanity, and they cannot be tolerated, and they are a threat to the capacity of the global community to be able to live by standards of rules of law and the highest standards of human behavior.
So I want people to understand the key elements of what we agreed to in Geneva. It is a framework, not a final agreement. It is a framework that must be put into effect by the United Nations now. But it is a framework that, with the Russian and U.S. agreement, it has the full ability to be able to, as the Prime Minister said, strip all of the chemical weapons from Syria. The Russians have agreed, they state, that the Assad regime has agreed to make its declaration within one week of the location and the amount of those weapons. And then we will put in place what we hope to put in place through the United Nations, what Russia and the United States agreed on, which is the most far-reaching chemical weapons removal effort well beyond the CWC that has been designed.
Now this will only be as effective as its implementation will be, and President Obama has made it clear that to accomplish that, the threat of force remains. The threat of force is real, and the Assad regime and all those taking part need to understand that President Obama and the United States are committed to achieve this goal. We cannot have hollow words in the conduct of international affairs because that affects all other issues, whether Iran or North Korea or any other.
The core principles with respect to the removal of these weapons and the containment of these weapons, which we want to achieve, as we said in the document, in the soonest, fastest, most effective way possible – if we achieve that, we will have set a marker for the standard of behavior with respect to Iran and with respect to North Korea and any other state, rogue state, group that decide to try to reach for these kinds of weapons.
The core principles will have the full backing of the international community through the UN Security Council. And Russia agreed that any breach of compliance, according to standards already set out in the CWC, any breach of the specifics of this agreement or any use of chemical weapons by anyone in Syria will result in immediate referral and action by the Security Council for measures under Chapter 7, which means what they select, up to and including the possibility of the use of force.
So again, I reiterate diplomacy has always been the preferred path of the President of the United States, and I think is any peace-loving nation’s preferred choice. But make no mistake, we’ve taken no options off the table. President Obama’s been absolutely clear about the remainder of the potential of use of force if there is noncompliance or refusal to take part, because the egregious use of chemical weapons by the Assad regime against innocent men, women, children, their own citizens all indiscriminately murdered in the dead of night, is unacceptable. And we have said in no uncertain terms that this should never happen again. This country understands the words, “Never again,” perhaps better than any other.
I’ve been in contact with many of my counterparts, with Foreign Secretary Hague of the United Kingdom, Foreign Minister Laurent Fabius. Their partnership on these issues has been essential. And I will see both of them tomorrow and Foreign Minister Davutoglu of Turkey in Paris, where I’ll also meet Foreign Minister Saud Faisal of Saudi Arabia in order to talk about the road ahead to achieve our goals.
Our attention and our efforts will now shift to the Organization of the Prohibition of Chemical Weapons and the UN Security Council, and the international community expects the Assad regime to live up to its commitments, and we expect Russia to join with us in holding them accountable.
I also want to make clear this effort is not just about securing chemical weapons in Syria. We are not just standing up for a redline that the world drew some 100 years ago, and which is worth standing up for. Our focus now must remain on ending the violence, ending the indiscriminate killing, ending the creation of more and more refugees that is not only tearing Syria apart, but threatens the region itself.
As President Obama has said, and I have said many times, there is no military solution to this conflict. We don’t want to create more and more extremist elements and we don’t want to see the implosion of the state of Syria. So our overall objective is to find a political solution through diplomacy, and that needs to happen at the negotiating table, and we will stay engaged with a sense of urgency. And I say to the Syrian opposition and all those in Syria who recognize that just removing the chemical weapons doesn’t do the job, we understand that, and that is not all we are going to seek to do. But it is one step forward, and it eliminates that weapon from the arsenal of a man who has proven willing to do anything to his own people to hold onto power.
Foreign Minister Lavrov and I met with Special Envoy Brahimi yesterday. We will meet again in New York. We are committed to continue to work towards the Geneva 2. And we have made clear that our support to the opposition in an effort to get there will continue unabated.
So, Mr. Prime Minister, I know you and I are both clear-eyed about the challenges ahead. We have to summon the grit and the determination to stay at this, to make the tough decisions – tough decisions about eliminating weapons of mass destruction and tough decisions about making peace between Israel and the Palestinians. We will not lose sight of the end game. I know that from talking with the Prime Minister today. And I think both of us remain deeply committed, and we hope very much with our partners in the region, to doing our best to try to make this journey towards peace get to its destination.
Thank you, Mr. Prime Minister.
PRIME MINISTER NETANYAHU: John, another sound bite. (Laughter.)
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged the operator of the largest hospital in Miami-Dade County with misleading investors about the extent of its deteriorating financial condition prior to an $83 million bond offering.
An SEC investigation found that the Public Health Trust, which is the governing authority for Jackson Health System, misstated present and future revenues due to breakdowns in a new billing system that inaccurately recorded revenue and patient accounts receivable. The Public Health Trust projected a non-operating loss in the official statement accompanying the bond offering in August 2009, but reported a figure that was more than four times lower than what was ultimately reported at the end of the 2009 fiscal year. The Public Health Trust also failed to properly account for an adverse arbitration award, and misrepresented that its financial statements were prepared according to U.S. Generally Accepted Accounting Principles (GAAP).
The Public Health Trust has agreed to settle the SEC’s charges.
“The Public Health Trust fell short in its obligation to maintain adequate accounting systems and controls that ensure truthful disclosures to investors about its financial condition,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “The Public Health Trust used stale numbers to calculate its revenue figures and lacked any reasonable basis for projecting losses that were far less than reality.”
Mark Zehner, Deputy Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit, added, “Investors must be able to rely on the financial information accompanying municipal bond offerings. We will continue to scrutinize financial statements provided to investors and pursue municipal issuers who aren’t providing accurate information to the public.”
According to the SEC’s order instituting settled administrative proceedings, the official statement accompanying the bond offering represented that the Public Health Trust (PHT) projected a $56 million non-operating loss for its fiscal year ending Sept. 30, 2009. Several months after the bonds were sold, external auditors discovered problems with the PHT’s patient accounts receivable valuation. This discovery required a large accounting adjustment to the reported net income, and the PHT ultimately reported a non-operating loss of $244 million for fiscal year 2009 – more than four times the projection made to bond investors.
The SEC’s order found that the PHT was aware of the rising level of patient accounts receivable and declining cash-on-hand prior to the bond offering, which caused concern among trustees and executive management. They raised questions about the accounts receivable amounts and collection rates that were used to calculate the PHT’s revenue figures. The $56 million non-operating loss amount included in the bond offering’s official statement was generated by the budget department using stale cash collection numbers amid the known problems with the new billing system. The budget department was not updating its collection rates in a timely fashion due to a lack of adequate communication among departments. Therefore, the PHT lacked a reasonable basis for its loss projection, and the official statement was materially misleading.
The SEC’s order also found that the PHT failed to properly account for a December 2008 arbitration award that negatively impacted patient accounts receivable in its 2008 audited financial statements that were attached to the bond offering’s official statement. The arbitration award required the PHT to pay a third-party receivables company $3.9 million in cash, and transfer to the company $360 million face amount of existing accounts receivable and $250 million face amount of future accounts receivable. The PHT failed to perform an analysis to determine the value of the replacement accounts receivable awarded to the third-party company. The analysis is required under the relevant accounting standards in order to evaluate whether to accrue an expense related to the arbitration award or disclose the arbitration award in the notes to its financial statements. Without the proper analysis, the PHT failed to accurately account for the arbitration award in the audited financial statements.
The SEC’s order directs the PHT to cease and desist from committing or causing any violations of Sections 17(a)(2) and (3) of the Securities Act of 1933. The PHT neither admitted nor denied the SEC’s findings. The Commission determined not to impose a monetary penalty due to the PHT’s current financial condition. The Commission also considered the PHT’s cooperation with the investigation and the remedial measures undertaken.
The SEC’s investigation, which is continuing, has been conducted in the Miami office by members of the Municipal Securities and Public Pensions Unit, including Brian P. Knight, Sean M. O’Neill, and Fernando Torres under the supervision of Jason R. Berkowitz. The investigation followed an examination conducted by Paul Anderson under the supervision of Nicholas A. Monaco and the oversight of John C. Mattimore.
The Securities and Exchange Commission today charged the operator of the largest hospital in Miami-Dade County with misleading investors about the extent of its deteriorating financial condition prior to an $83 million bond offering.
An SEC investigation found that the Public Health Trust, which is the governing authority for Jackson Health System, misstated present and future revenues due to breakdowns in a new billing system that inaccurately recorded revenue and patient accounts receivable. The Public Health Trust projected a non-operating loss in the official statement accompanying the bond offering in August 2009, but reported a figure that was more than four times lower than what was ultimately reported at the end of the 2009 fiscal year. The Public Health Trust also failed to properly account for an adverse arbitration award, and misrepresented that its financial statements were prepared according to U.S. Generally Accepted Accounting Principles (GAAP).
The Public Health Trust has agreed to settle the SEC’s charges.
“The Public Health Trust fell short in its obligation to maintain adequate accounting systems and controls that ensure truthful disclosures to investors about its financial condition,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “The Public Health Trust used stale numbers to calculate its revenue figures and lacked any reasonable basis for projecting losses that were far less than reality.”
Mark Zehner, Deputy Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit, added, “Investors must be able to rely on the financial information accompanying municipal bond offerings. We will continue to scrutinize financial statements provided to investors and pursue municipal issuers who aren’t providing accurate information to the public.”
According to the SEC’s order instituting settled administrative proceedings, the official statement accompanying the bond offering represented that the Public Health Trust (PHT) projected a $56 million non-operating loss for its fiscal year ending Sept. 30, 2009. Several months after the bonds were sold, external auditors discovered problems with the PHT’s patient accounts receivable valuation. This discovery required a large accounting adjustment to the reported net income, and the PHT ultimately reported a non-operating loss of $244 million for fiscal year 2009 – more than four times the projection made to bond investors.
The SEC’s order found that the PHT was aware of the rising level of patient accounts receivable and declining cash-on-hand prior to the bond offering, which caused concern among trustees and executive management. They raised questions about the accounts receivable amounts and collection rates that were used to calculate the PHT’s revenue figures. The $56 million non-operating loss amount included in the bond offering’s official statement was generated by the budget department using stale cash collection numbers amid the known problems with the new billing system. The budget department was not updating its collection rates in a timely fashion due to a lack of adequate communication among departments. Therefore, the PHT lacked a reasonable basis for its loss projection, and the official statement was materially misleading.
The SEC’s order also found that the PHT failed to properly account for a December 2008 arbitration award that negatively impacted patient accounts receivable in its 2008 audited financial statements that were attached to the bond offering’s official statement. The arbitration award required the PHT to pay a third-party receivables company $3.9 million in cash, and transfer to the company $360 million face amount of existing accounts receivable and $250 million face amount of future accounts receivable. The PHT failed to perform an analysis to determine the value of the replacement accounts receivable awarded to the third-party company. The analysis is required under the relevant accounting standards in order to evaluate whether to accrue an expense related to the arbitration award or disclose the arbitration award in the notes to its financial statements. Without the proper analysis, the PHT failed to accurately account for the arbitration award in the audited financial statements.
The SEC’s order directs the PHT to cease and desist from committing or causing any violations of Sections 17(a)(2) and (3) of the Securities Act of 1933. The PHT neither admitted nor denied the SEC’s findings. The Commission determined not to impose a monetary penalty due to the PHT’s current financial condition. The Commission also considered the PHT’s cooperation with the investigation and the remedial measures undertaken.
The SEC’s investigation, which is continuing, has been conducted in the Miami office by members of the Municipal Securities and Public Pensions Unit, including Brian P. Knight, Sean M. O’Neill, and Fernando Torres under the supervision of Jason R. Berkowitz. The investigation followed an examination conducted by Paul Anderson under the supervision of Nicholas A. Monaco and the oversight of John C. Mattimore.
DEPUTY SECRETARY CARTER VISITS HERAT, AFGHANISTAN CONSULATE TWO DAYS AFTER ATTACK
 |
| Deputy Defense Secretary Ash Carter addresses service members as he surveys the damage to the U.S. Consulate in Herat, Afghanistan, Sept. 14, 2013. A day earlier, troops fought off a Taliban attack. DOD photo by Glenn Fawcett |
Carter Visits Herat Consulate, Praises Defeat of Attackers
By Claudette Roulo
American Forces Press Service
KABUL, Afghanistan, Sept. 14, 2013 - On the second day of his trip to Afghanistan to assess the progress of the retrograde, Deputy Defense Secretary Ash Carter visited the U.S. Consulate in Herat, which was attacked yesterday morning.
Following a stop at Camp Leatherneck for a briefing by Marine Corps Maj. Gen. Lee Miller, commander of Regional Command Southwest, Miller and Carter flew to Herat aboard a V-22 Osprey.
Two Afghan police officers and a security guard were killed in a complex early morning assault that involved armed Taliban fighters and a vehicle bomb. About 20 people were injured and the consulate building was damaged, and all seven of the Taliban attackers were killed.
"Now, the individuals that attacked here yesterday did what they did because they wanted to get headlines," Carter told the U.S., Afghan and coalition forces at Herat. But they didn't get the headlines they expected, the deputy defense secretary added.
"The headline they're getting is that they were defeated," he said. "They were defeated in just a few minutes. And not only were they defeated, but there was an overwhelming and incredibly confident American, Afghan and coalition response ... ready to deal with the situation."
Carter told the troops that he and Defense Secretary Chuck Hagel were incredibly impressed with their efforts. "You should be very proud," he added.
After a brief stop at the Shindand air base, where Afghan air force pilots and aircraft maintainers are trained, Carter returned to Kabul for meetings with Afghan Defense Minister Bismullah Khan Mohammadi and Interior Minister Umar Daudzai.
EXECUTIVE INDICTED IN AUTO PARTS PRICE FIXING AND BID RIGGING CASE
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, September 11, 2013
G.S. Electech Inc. Executive Indicted for Role in Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. Cars
A federal grand jury in Covington, Ky., has returned an indictment against G.S. Electech Inc. executive, Shingo Okuda for his role in an international conspiracy to fix prices and rig bids of auto parts used on antilock brake systems installed in U.S. cars, the Department of Justice announced today. Today’s charge is the first to be filed in Kentucky in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry.
The indictment, filed today in the U.S. District Court for the Eastern District of Kentucky, charges Okuda, a Japanese national, with engaging in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of speed sensor wire assemblies, which are installed in automobiles with an antilock brake system (ABS), sold to Toyota Motor Corp. and Toyota Motor Engineering and Manufacturing North America Inc. (collectively Toyota) in the United States and elsewhere.
G.S. Electech Inc. manufactures, assembles and sells a variety of automotive electrical parts, including speed sensor wire assemblies. The speed sensor wire assemblies connect a sensor on each wheel to the ABS to instruct it when to engage.
According to the charge, Okuda and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota. According to the charge, Okuda’s involvement in the conspiracy lasted from at least as early as January 2003 until at least February 2010.
“ Today’s indictment marks the 16th executive to be charged in the Antitrust Division’s continuing investigation of price fixing in the auto parts industry,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “Holding individuals accountable for their actions is the surest way to deter executives from choosing to collude rather than to compete for business.”
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
Okuda is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years in prison and a criminal fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Okuda, 11 companies and 16 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.
In May 2012, G.S. Electech Inc. pleaded guilty and was sentenced to pay a $2.75 million criminal fine for its role in the conspiracy related to speed sensor wire assemblies.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.
Wednesday, September 11, 2013
G.S. Electech Inc. Executive Indicted for Role in Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. Cars
A federal grand jury in Covington, Ky., has returned an indictment against G.S. Electech Inc. executive, Shingo Okuda for his role in an international conspiracy to fix prices and rig bids of auto parts used on antilock brake systems installed in U.S. cars, the Department of Justice announced today. Today’s charge is the first to be filed in Kentucky in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry.
The indictment, filed today in the U.S. District Court for the Eastern District of Kentucky, charges Okuda, a Japanese national, with engaging in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of speed sensor wire assemblies, which are installed in automobiles with an antilock brake system (ABS), sold to Toyota Motor Corp. and Toyota Motor Engineering and Manufacturing North America Inc. (collectively Toyota) in the United States and elsewhere.
G.S. Electech Inc. manufactures, assembles and sells a variety of automotive electrical parts, including speed sensor wire assemblies. The speed sensor wire assemblies connect a sensor on each wheel to the ABS to instruct it when to engage.
According to the charge, Okuda and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota. According to the charge, Okuda’s involvement in the conspiracy lasted from at least as early as January 2003 until at least February 2010.
“ Today’s indictment marks the 16th executive to be charged in the Antitrust Division’s continuing investigation of price fixing in the auto parts industry,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “Holding individuals accountable for their actions is the surest way to deter executives from choosing to collude rather than to compete for business.”
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
Okuda is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years in prison and a criminal fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Okuda, 11 companies and 16 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.
In May 2012, G.S. Electech Inc. pleaded guilty and was sentenced to pay a $2.75 million criminal fine for its role in the conspiracy related to speed sensor wire assemblies.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.
HHS CLAIMS AFFORDABLE CARE ACT SAVES CONSUMERS $1.2 BILLION
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health care law saves consumers $1.2 billion nationwide
A new report released today by the Department of Health and Human Services (HHS) shows that 6.8 million consumers saved an estimated $1.2 billion on health insurance premiums in 2012, due to the “rate review” provision of the Affordable Care Act, which brought unprecedented accountability to slow the growth of health insurance premiums. The Affordable Care Act, along with state efforts, continues to bring scrutiny to proposed health insurance rate increases and is saving consumers real money as a result.
“Thanks to the health care law, we are seeing that holding insurance companies accountable is leading to increased competition and saving billions of dollars for consumers across the country,” said Kathleen Sebelius, Secretary of HHS. “This type of competition and transparency will continue in the Health Insurance Marketplace, or Exchanges, where Americans will be able to shop for and compare plans side-by-side to find the one that fits their needs and budget.”
Beginning on Sept. 1, 2011, the federal rate review rules under the health care law were implemented. These rules ensure that, in every state, insurance companies are required to submit for review and justify any proposed health insurance premium increase of 10 percent or more.
To assist states in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process. Forty-six states, the District of Columbia, and five territories have been awarded rate review grant funds to make the rate review process stronger and more transparent.
These provisions have put an end to the days when insurance companies could raise health insurance premiums by double digit percentages with little oversight. Because of rate review, the report released today shows that consumers have saved approximately $1.2 billion over the past year in the individual and small group markets.
This initiative is one of many in the health care law aimed at saving money for consumers and specifically works in conjunction with the 80/20 rule, which requires insurance companies to spend at least 80 percent of premiums on health care or provide rebates to their customers, instead of overhead, administrative expenses. Thanks to the 80/20 rule, last year 77.8 million consumers saved an estimated $3.4 billion up front on their premiums as insurance companies operated more efficiently. Insurance companies that did not meet the 80/20 rule provided nearly 8.5 million Americans with $500 million in rebates.
Health care law saves consumers $1.2 billion nationwide
A new report released today by the Department of Health and Human Services (HHS) shows that 6.8 million consumers saved an estimated $1.2 billion on health insurance premiums in 2012, due to the “rate review” provision of the Affordable Care Act, which brought unprecedented accountability to slow the growth of health insurance premiums. The Affordable Care Act, along with state efforts, continues to bring scrutiny to proposed health insurance rate increases and is saving consumers real money as a result.
“Thanks to the health care law, we are seeing that holding insurance companies accountable is leading to increased competition and saving billions of dollars for consumers across the country,” said Kathleen Sebelius, Secretary of HHS. “This type of competition and transparency will continue in the Health Insurance Marketplace, or Exchanges, where Americans will be able to shop for and compare plans side-by-side to find the one that fits their needs and budget.”
Beginning on Sept. 1, 2011, the federal rate review rules under the health care law were implemented. These rules ensure that, in every state, insurance companies are required to submit for review and justify any proposed health insurance premium increase of 10 percent or more.
To assist states in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process. Forty-six states, the District of Columbia, and five territories have been awarded rate review grant funds to make the rate review process stronger and more transparent.
These provisions have put an end to the days when insurance companies could raise health insurance premiums by double digit percentages with little oversight. Because of rate review, the report released today shows that consumers have saved approximately $1.2 billion over the past year in the individual and small group markets.
This initiative is one of many in the health care law aimed at saving money for consumers and specifically works in conjunction with the 80/20 rule, which requires insurance companies to spend at least 80 percent of premiums on health care or provide rebates to their customers, instead of overhead, administrative expenses. Thanks to the 80/20 rule, last year 77.8 million consumers saved an estimated $3.4 billion up front on their premiums as insurance companies operated more efficiently. Insurance companies that did not meet the 80/20 rule provided nearly 8.5 million Americans with $500 million in rebates.
FIRST INTREPID SPIRIT CENTER OPENS FOR TREATMENT OF TBI AND PTS
FROM: U.S. DEFENSE DEPARTMENT
First of 9 'Intrepid Spirit' Centers Opens at Fort Belvoir
By J.D. Leipold
Army News Service
FORT BELVOIR, Va., Sept. 12, 2013 - Since the 9/11 terrorist attacks 12 years ago, more than 2.5 million U.S. troops have deployed to Iraq and Afghanistan, and over that same period, more than 260,000 service members have been diagnosed with the invisible wounds of traumatic brain injury and post-traumatic stress as a result of combat-related injuries and accidents
To treat and care for those service members suffering from the most severe forms of traumatic brain injury, known as TBI, and post-traumatic stress, or PTS, the first of nine Intrepid Spirit Centers planned nationwide officially opened its doors here yesterday in a dedication ceremony sponsored by the Intrepid Fallen Heroes Fund, a $100-million campaign funded entirely with donations from public and private sources.
The center has actually been operating for two months and has treated some 80 patients thus far, said Martin Edelman, a trustee with the fund, who acted as master of ceremonies.
Edelman added that the ribbon-cutting ceremony also signified the transfer of the $11 million, 25,000-square-foot center to the Defense Department. A second satellite center will open at Camp Lejeune, N.C., in October, and a third at Fort Campbell, Ky., in mid-2014, he said.
David Winters, president of the nonprofit fund, said there are plans to build and equip satellite centers at Fort Bragg, N.C.; Fort Hood, Texas; Fort Carson, Colo.; and Fort Bliss, Texas; as well as at Marine Corps Base Camp Pendleton, Calif., and Joint Base Lewis-McChord, Wash. All will be built and equipped from donations, Winters said.
All Intrepid Spirit centers will be located at military bases and medical centers around the country to provide medical care for service members meaning they will not have to leave their units and families for extended treatment. The centers are designed to enhance rehabilitation, officials said.
The design and mission of the satellite centers was based on the original National Intrepid Center of Excellence, or NICoE, which opened at Walter Reed National Military Medical Center in Bethesda, Md., in 2010. It's the most advanced facility of its kind in the country and serves as the center of the military's efforts in researching, diagnosing and treating TBI, PTS and related injuries.
Speakers at yesterday's ceremony included Arnold Fisher, honorary chairman of the Intrepid Fallen Heroes Fund; Army Col. Charles Callahan, commander of Fort Belvoir Community Hospital; Dr. Heechin Chae, director of the Fort Belvoir Intrepid Spirit Center, and Intrepid Spirit patient Army Sgt. Maj. Robert Haemmerle, who told the story of his recovery from the extreme, invisible signature wounds he received in Iraq and Afghanistan.
Capping the event and speaking on behalf of senior leadership across all the services, Army Vice Chief of Staff Gen. John F. Campbell reminded the audience that there are still 50,000-plus soldiers, sailors, airmen, Marines, Coast Guardsmen and civilians who continue to be in harm's way in Afghanistan, and many will need the type of help the Intrepid Spirit Centers offer.
"In this short month of September, the Army has already faced close to 50 wounded and in the months of June and July, it was in the hundreds for wounded and that will continue and we seem to forget that," he said. "What makes this event here extra special is to have the opportunity to honor our warriors who have sacrificed so much on Patriot Day, a day of service and a day of remembrance 12 years [after the 9/11 attacks].
"We are succeeding in recruiting America's finest to serve in all of our military, and that is a direct result of our commitment to programs like this that care for injured soldiers and their families. If we lose that commitment, if we waiver in that commitment, we lose," Campbell said. "We thank all of you for enabling the loyal and experienced warriors and their families who want to continue to serve."
First Lady Michelle Obama later toured the Intrepid Spirit Center and nearby USO and visited with wounded warriors and their families.
First of 9 'Intrepid Spirit' Centers Opens at Fort Belvoir
By J.D. Leipold
Army News Service
FORT BELVOIR, Va., Sept. 12, 2013 - Since the 9/11 terrorist attacks 12 years ago, more than 2.5 million U.S. troops have deployed to Iraq and Afghanistan, and over that same period, more than 260,000 service members have been diagnosed with the invisible wounds of traumatic brain injury and post-traumatic stress as a result of combat-related injuries and accidents
To treat and care for those service members suffering from the most severe forms of traumatic brain injury, known as TBI, and post-traumatic stress, or PTS, the first of nine Intrepid Spirit Centers planned nationwide officially opened its doors here yesterday in a dedication ceremony sponsored by the Intrepid Fallen Heroes Fund, a $100-million campaign funded entirely with donations from public and private sources.
The center has actually been operating for two months and has treated some 80 patients thus far, said Martin Edelman, a trustee with the fund, who acted as master of ceremonies.
Edelman added that the ribbon-cutting ceremony also signified the transfer of the $11 million, 25,000-square-foot center to the Defense Department. A second satellite center will open at Camp Lejeune, N.C., in October, and a third at Fort Campbell, Ky., in mid-2014, he said.
David Winters, president of the nonprofit fund, said there are plans to build and equip satellite centers at Fort Bragg, N.C.; Fort Hood, Texas; Fort Carson, Colo.; and Fort Bliss, Texas; as well as at Marine Corps Base Camp Pendleton, Calif., and Joint Base Lewis-McChord, Wash. All will be built and equipped from donations, Winters said.
All Intrepid Spirit centers will be located at military bases and medical centers around the country to provide medical care for service members meaning they will not have to leave their units and families for extended treatment. The centers are designed to enhance rehabilitation, officials said.
The design and mission of the satellite centers was based on the original National Intrepid Center of Excellence, or NICoE, which opened at Walter Reed National Military Medical Center in Bethesda, Md., in 2010. It's the most advanced facility of its kind in the country and serves as the center of the military's efforts in researching, diagnosing and treating TBI, PTS and related injuries.
Speakers at yesterday's ceremony included Arnold Fisher, honorary chairman of the Intrepid Fallen Heroes Fund; Army Col. Charles Callahan, commander of Fort Belvoir Community Hospital; Dr. Heechin Chae, director of the Fort Belvoir Intrepid Spirit Center, and Intrepid Spirit patient Army Sgt. Maj. Robert Haemmerle, who told the story of his recovery from the extreme, invisible signature wounds he received in Iraq and Afghanistan.
Capping the event and speaking on behalf of senior leadership across all the services, Army Vice Chief of Staff Gen. John F. Campbell reminded the audience that there are still 50,000-plus soldiers, sailors, airmen, Marines, Coast Guardsmen and civilians who continue to be in harm's way in Afghanistan, and many will need the type of help the Intrepid Spirit Centers offer.
"In this short month of September, the Army has already faced close to 50 wounded and in the months of June and July, it was in the hundreds for wounded and that will continue and we seem to forget that," he said. "What makes this event here extra special is to have the opportunity to honor our warriors who have sacrificed so much on Patriot Day, a day of service and a day of remembrance 12 years [after the 9/11 attacks].
"We are succeeding in recruiting America's finest to serve in all of our military, and that is a direct result of our commitment to programs like this that care for injured soldiers and their families. If we lose that commitment, if we waiver in that commitment, we lose," Campbell said. "We thank all of you for enabling the loyal and experienced warriors and their families who want to continue to serve."
First Lady Michelle Obama later toured the Intrepid Spirit Center and nearby USO and visited with wounded warriors and their families.
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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