Wednesday, February 19, 2014

SECRETARY'S MEETING WITH STAFF,FAMILIES OF TUNIS EMBASSY

FROM:  U.S. STATE DEPARTMENT 
Meeting With Staff and Families of Embassy Tunis
Remarks
John Kerry
Secretary of State
U.S. Embassy
Tunis, Tunisia
February 18, 2014

Let me just say to everybody that I hate the fact that I’m just coming here the one day, I really do. I haven’t done a visit like this, the three hours somewhere, since I’ve been Secretary of State. But I really thought it was important to come here, since I had the opportunity flying from Abu Dhabi and heading to France, to impress on Tunisians and the world how important what has happened is to all of us. And so I just wanted to come and say thank you to you.

This is a monumental struggle we are all engaged in. There is a tectonic shift taking place between people who want to resist and hold on to just one way of thinking, one idea, and force people to accept it no matter what, sometimes at risk of losing their lives, versus the modern world, the world that is changing, where people’s rights need to be respected, where the right that we have enjoyed so much in the United States of America and so many other people have fought for and enjoyed in other parts of the world are shared by everybody who wants them. We’re not forcing this on anybody. But when a Tunisian fruit vendor decided to self-immolate because he was so frustrated by the lack of opportunity and by the corruption, nobody from the outside did anything. The people of Tunisia said we can’t have this anymore, we want something different. And the people of Tunisia rose up and tried to reach for what a lot people take for granted in many parts of the world.

It’s taken three years of this struggle, of this transition, to get where we are today. And because they were struggling sort of in gridlock for a period of time, and they looked over and they saw this abyss on the other side, they came together and compromised and came up with this constitution, a terrific constitution that respects people’s rights, respects the rights of minorities, of women, of people to be able to have their voice heard.

And so Tunisia is this country in the middle of all of this other turmoil going on that has an opportunity to show the path, to point the way. And I thought it was important to come here today to emphasize to people how important all of us investing in that and helping that to come to fruition is. This is the business of diplomacy. This is what America is about. This is why people look to us and look up to us, and why our values have special meaning all over the world and have for a long period of time.

So what we’re defending here is the right of Tunisians to be able to be free from abuse, free from corruption, free from terrorism, and to be able to choose their path and live a decent life in stability and peace. That’s what people want everywhere.

I’m proud that as Americans and all of you who are local staff, who are working with us, who have chosen to be a part of this effort – we admire so much the fact that you are part of this journey with us, and we thank you for that. But we all together have to work to try to complete this journey.

Remember, in America – we just had the French president come and visit America. And it reminded all of us of the incredible period of time when we were fighting for our independence and a country came to our aid, a country called France. And we probably wouldn’t have made it without their help.

And what happened during that period of time was risky. Those guys who went to Philadelphia – read that wonderful book on John Adams and you read about the history of that period of time – if they failed, they were going to hang at the end of a British rope. That’s the risk they took. And today we are a country that can help a lot of other people through those risks to a place where they achieve their goals.

We’re hopeful that Tunisia is going to succeed, and we’re going to help. We’re going to work with Tunisia. We’re going to try to do all we can in this age of constrained budgets and difficult choices. We’re going to do what we can to help Tunisians to be able to finish the job that was begun here three years ago.


So I say thank you to every single one of you. There isn’t one of you here who isn’t an ambassador. He may get the rank and the deal here and the office – (laughter) – but every one of you is an ambassador. And every day that you interact with anybody on behalf of this Embassy, you are bringing our values and our hopes and our aspirations with you. So thank you. (Applause.)

U.S. WELCOMES SIGNING OF BORDER TREATY BY ESTONIA-RUSSIA

FROM:  U.S. STATE DEPARTMENT 
Estonia-Russia Border Treaty
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
February 18, 2014
  Share

The United States welcomes the signing of an agreement between the Republic of Estonia and the Russian Federation to demarcate the border between their two nations. We view the agreement as a positive development and a sign of a productive relationship between the two countries. We look forward to the treaty’s ratification and implementation. The United States has recognized Estonia continuously since 1922, and we remain committed to Estonia's freedom, security, and independence. The U.S. and Estonia are bound in a close bilateral relationship by shared economic and security interests including membership in NATO, a shared dedication to human rights and democratic values, and a common cultural heritage.

U.S. STATEMENT ON EXPULSION OF U.S. OFFICIALS IN VENEZUELA

FROM:  U.S. STATE DEPARTMENT  
Updated - Reports Regarding Expulsion of U.S. Officials in Venezuela
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
February 18, 2014
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The Venezuelan Government has notified us on the afternoon of February 17 that they have declared three of our consular officers personae non gratae. They were given 48 hours to leave the country. In accordance with Article 9 of the Vienna Convention on Diplomatic Relations and Article 23 of the Vienna Convention on Consular Relations, the United States is considering what actions to take.

We have seen many times that the Venezuelan Government tries to distract from its own actions by blaming the United States or other members of the international community for events inside Venezuela. These efforts reflect a lack of seriousness on the part of the Venezuelan Government to deal with the grave situation it faces.

The allegations against our diplomats by the Venezuelan government are baseless and false. Our Consular Officers were conducting normal outreach activities at universities on student visas, which is something we do around the world as a way to improve the accessibility and transparency of the visa process.

Venezuela’s political future is for the Venezuelan people to decide. We urge Venezuela's government to work to address its people’s grievances forthrightly through real, meaningful dialogue. The United States values its strong historic and cultural ties with the Venezuelan people, and remains committed to our relationship with them. With the OAS and our regional partners, we are working to urge calm and encourage a genuine dialogue among all Venezuelans. There is no room for violence by either side.

FORMER PRISON GUARD SENTENCED FOR ATTEMPTING TO SMUGGLE HEROIN

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, February 18, 2014
Former Puerto Rico Correctional Officer Sentenced for Scheme to Smuggle Heroin into State Prison

A former correctional officer at the Puerto Rico Department of Corrections was sentenced to serve 37 months in prison for attempting to smuggle heroin into the prison where he worked, Bayamón State Penitentiary, in exchange for a $3,000 payment.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement.

Luis Lebron-Lebron, 38, of Maunabo, Puerto Rico, pleaded guilty on Oct. 29, 2013, to a one-count indictment charging him with attempt to distribute a controlled substance.   Lebron-Lebron was sentenced by U.S. District Judge José A. Fusté .

On Sept. 9 and 10, 2010, Lebron agreed to introduce 1/8 of a kilogram of heroin to an inmate at the Bayamón State Penitentiary, where Lebron worked as a correctional officer.    Lebron was paid $3,000 to make that delivery.   On Sept. 10, 2010, Lebron met with an undercover agent, who he believed was a drug dealer, and was given what he believed to be 1/8 of a kilogram of heroin.   He delivered the purported heroin to an inmate in the prison that same day.

The case was investigated by the FBI’s San Juan Division.   The case was prosecuted by Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico.

$73 MILLION AVAILABLE IN YOUTHBUILD JOB AND LEADERSHIP SKILL DEVELOPMENT GRANTS

FROM:  U.S. LABOR DEPARTMENT 

Approximately $73M in YouthBuild grants to help disadvantaged youth 
develop job and leadership skills made available by US Labor Department
Grant applications are now being accepted for latest round of funding

WASHINGTON — The U.S. Department of Labor today announced the availability of approximately $73 million in YouthBuild grant funds to develop programs that will help out-of-school youth complete high school or General Educational Development programs, as well as learn critical occupational skills in construction, health care, information technology and other in-demand fields.
"Too many of our young men and women face challenges that prevent them from reaching their full potential," said U.S. Secretary of Labor Thomas E. Perez. "The YouthBuild program helps them overcome these challenges by providing participants with the resources they need to develop the life and job skills that lead to a place in the middle class."

The department will award approximately 75 grants with a maximum funding of up to $1.1 million each. The grants will be awarded to organizations that oversee education and employment services for disadvantaged youths in their communities. The department anticipates serving approximately 4,950 young people in this grant cycle.

YouthBuild serves as an alternative education program that provides classroom instruction, case managers and occupational skills training for 16- to 24-year-olds at risk of falling out of the labor force. Participants are often those who have been in the juvenile justice system, are aging out of foster care, dropped out of high school or are at risk of failing to reach key educational milestones.

Successful grantees have historically provided construction skills training to participating students and must continue to offer that training. However, new guidelines issued in February 2012 expanded the list of eligible industries that grantees are allowed to offer skills training opportunities for to include training in high-demand occupations, such as health care and information technology. Students in YouthBuild also receive leadership development training and access to community service activities to ensure that they maintain a connection to their communities through volunteerism.

The solicitation for grant applications, which includes information about how to apply for a grant, is available to view at http://www.grants.gov.

COULD MT. HOOD GO BOOM

FROM:  NATIONAL SCIENCE FOUNDATION 
Volcanoes, including Mount Hood in the US, can quickly become active
Magma stored for thousands of years can erupt in as little as two months

New research results suggest that magma sitting 4-5 kilometers beneath the surface of Oregon's Mount Hood has been stored in near-solid conditions for thousands of years.

The time it takes to liquefy and potentially erupt, however, is surprisingly short--perhaps as little as a couple of months.

The key to an eruption, geoscientists say, is to elevate the temperature of the rock to more than 750 degrees Celsius, which can happen when hot magma from deep within the Earth's crust rises to the surface.

It was the mixing of hot liquid lava with cooler solid magma that triggered Mount Hood's last two eruptions about 220 and 1,500 years ago, said Adam Kent, an Oregon State University (OSU) geologist and co-author of a paper reporting the new findings.

Results of the research, which was funded by the National Science Foundation (NSF), are in this week's journal Nature.

"These scientists have used a clever new approach to timing the inner workings of Mount Hood, an important step in assessing volcanic hazards in the Cascades," said Sonia Esperanca, a program director in NSF's Division of Earth Sciences.

"If the temperature of the rock is too cold, the magma is like peanut butter in a refrigerator," Kent said. "It isn't very mobile.

"For Mount Hood, the threshold seems to be about 750 degrees (C)--if it warms up just 50 to 75 degrees above that, it greatly decreases the viscosity of the magma and makes it easier to mobilize."

The scientists are interested in the temperature at which magma resides in the crust, since it's likely to have important influence over the timing and types of eruptions that could occur.

The hotter magma from deeper down warms the cooler magma stored at a 4-5 kilometer depth, making it possible for both magmas to mix and be transported to the surface to produce an eruption.

The good news, Kent said, is that Mount Hood's eruptions are not particularly violent. Instead of exploding, the magma tends to ooze out the top of the peak.

A previous study by Kent and OSU researcher Alison Koleszar found that the mixing of the two magma sources, which have different compositions, is both a trigger to an eruption and a constraining factor on how violent it can be.

"What happens when they mix is what happens when you squeeze a tube of toothpaste in the middle," said Kent. "Some comes out the top, but in the case of Mount Hood it doesn't blow the mountain to pieces."

The study involved scientists at OSU and the University of California, Davis. The results are important, they say, because little was known about the physical conditions of magma storage and what it takes to mobilize that magma.

Kent and UC-Davis colleague Kari Cooper, also a co-author of the Nature paper, set out to discover whether they could determine how long Mount Hood's magma chamber has been there, and in what condition.

When Mount Hood's magma first rose up through the crust into its present-day chamber, it cooled and formed crystals.

The researchers were able to document the age of the crystals by the rate of decay of naturally occurring radioactive elements. However, the growth of the crystals is also dictated by temperature: if the rock is too cold, they don't grow as fast.

The combination of the crystals' age and apparent growth rate provides a geologic fingerprint for determining the approximate threshold for making the near-solid rock viscous enough to cause an eruption.

"What we found was that the magma has been stored beneath Mount Hood for at least 20,000 years--and probably more like 100,000 years," Kent said.

"During the time it's been there, it's been in cold storage--like peanut butter in the fridge--a minimum of 88 percent of the time, and likely more than 99 percent of the time."

Although hot magma from below can quickly mobilize the magma chamber at 4-5 kilometers below the surface, most of the time magma is held under conditions that make it difficult for it to erupt.

"What's encouraging is that modern technology should be able to detect when the magma is beginning to liquefy or mobilize," Kent said, "and that may give us warning of a potential eruption.

"Monitoring gases and seismic waves, and studying ground deformation through GPS, are a few of the techniques that could tell us that things are warming."

The researchers hope to apply these techniques to other, larger volcanoes to see if they can determine the potential for shifting from cold storage to potential eruption--a development that might bring scientists a step closer to being able to forecast volcanic activity.

-NSF-

Tuesday, February 18, 2014

FORMER CEO OF OIL SERVICES COMPANY PLEADS GUILTY TO BRIBERY CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, February 18, 2014
Former Chief Executive Officer of Oil Services Company Pleads Guilty to Foreign Bribery Charges

The former chief executive officer of PetroTiger Ltd., a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey, pleaded guilty today for his role in a scheme to pay bribes to foreign government officials and to defraud PetroTiger.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.

Knut Hammarskjold, 42, of Greenville, S.C., the former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Josephy E. Irenas in Camden, N.J., to an information charging one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud and is scheduled for sentencing on May 16, 2014.   Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty to the same charges on Nov. 8, 2013.   Charges remain pending against Joseph Sigelman, 42, of Miami and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.

According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million.   To conceal the bribes, the defendants allegedly first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform.   The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information.   The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.

In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of several of PetroTiger’s board members.   According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition.   In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price.   According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.

Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013.   Hammarskjold was arrested on Nov. 20, 2013, at Newark Liberty International Airport.   Sigelman was arrested on Jan. 3, 2014, in the Philippines.   The charges against Sigelman, Hammarskjold and Weisman were unsealed on Jan. 6, 2014.

The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.   The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost.

As to the charges in the complaint pending against Sigelman, they are merely accusations and the defendant is presumed innocent unless and until proven guilty.

The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter.    The department also thanks the Republic of the Philippines, including the Bureau of Immigration, and the Republic of Panama for their assistance in this matter.   Significant assistance was also provided by the Criminal Division’s Office of International Affairs.

The case is being investigated by the FBI’s Newark Division.   The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey.

PRESIDENT OBAMA'S REMARKS AT SAFEWAY DISTRIBUTION CENTER

FROM:  THE WHITE HOUSE 
Remarks by the President on Fuel Efficiency Standards of Medium and Heavy-Duty Vehicles
Safeway Distribution Center
Upper Marlboro, Maryland

11:30 A.M. EST

THE PRESIDENT:  Well, good morning, everybody.  (Applause.)  It is good to be here.  And I want to thank Jack Jacobs and all the folks at Safeway for having us here today, at this busy distribution center where delivery trucks get everything from Doritos to diapers where they need to go.  And by the way, I have a little soft spot for Safeway in my heart because some of you know I went to high school in Hawaii and I was living with my grandparents, and our main grocery store was Safeway.  It was right down the way.  (Applause.)  And so my grandmother would send me out to go shopping at Safeway, and everybody there always treated me very well.  So I very much appreciate the good work you guys do.

And I want to thank all the workers and businesspeople and labor leaders and environmental leaders who are here today as we take another big step to grow our economy and reduce America’s dependence on foreign oil.

In my State of the Union address, I said that this would be a year of action, and I meant it.  So over the past three weeks, I’ve acted to require federal contractors to pay their employees a fair wage of at least $10.10 an hour, because we believe in a higher minimum wage.  (Applause.)  I’ve ordered an across-the-board reform of job training programs so we can train workers with the skills that employers actually need and match them to the good jobs that are out there right now needing to be filled.  I directed the Treasury Secretary to create something we're calling “myRA” -- it's a new way to help working Americans start saving for retirement.  And we've brought together business leaders who’ve committed to helping more unemployed Americans find work, no matter how long they’ve been looking.

So the point is I’m eager to work with Congress wherever I can -- but whenever I can act on my own to expand opportunity for more Americans and help build our middle class, I'm going to do that.

And all of you I think understand that although the economy has been doing better, we've spent the past five years fighting our way back from the worst recession of our lifetimes.  Now, the economy is growing.  Our businesses have created over 8.5 million new jobs over the past four years.  The unemployment rate is actually the lowest it’s been in over five years.  But the trends, the long-term trends that have hurt middle-class families for decades have continued -- folks at the top doing better than ever before; average wages and incomes have barely budged.  Too many Americans are working harder than ever just to keep up.

So our job is to not only get the economy growing but also to reverse these trends and make sure that everybody can succeed.  We’ve got to build an economy that works for everybody, not just the fortunate few.  Opportunity for all -- that's the essence of America.  No matter who you are, no matter where you come from, no matter how you start out, if you're willing to work hard and take responsibility, you can succeed.

So I’ve laid out an opportunity agenda to help us do that.  Part one is create more new jobs that pay good wages -- jobs in manufacturing, energy, exports, innovation.  Part two, we've got to train folks with the skills they need to fill those jobs.  Part three, we've got to guarantee every child access to a world-class education.  Part four is making sure that the economy rewards hard work with equal pay for equal work and wages you can live on, savings you can retire on, health insurance you can count on that's there when you need it.

Now, there are very few factors that are helping grow our economy more, bringing more good jobs back to America than our commitment to American manufacturing and American energy.  And that’s why we’re here today.

Five years ago, we set out to break our dependence on foreign oil.  And today, America is closer to energy independence than we’ve been in decades.  For the first time in nearly 20 years, America produces more oil here at home than we buy from other countries.  Our levels of dangerous carbon pollution that contributes to climate change has actually gone down even as our production has gone up.  And one of the reasons why is because we dedicated ourselves to manufacturing new cars and new trucks that go farther on a gallon of gas -- and that saves families money, it cuts down harmful pollution, and it creates new advances in American technology.

So for decades, the fuel efficiency standards of our cars and trucks was stuck in neutral even as other kinds of technology leapt forward.  And that left families and businesses and our economy vulnerable to fluctuations in oil prices.  Every time oil prices shot up the economy got hurt.  Our automakers were in danger of being left in the dust by foreign automakers.  Carbon pollution was going unchecked, which was having severe impacts on our weather.

And that’s why, after taking office, my administration worked with automakers, autoworkers, environmental advocates, and states across the country, and we set in motion the first-ever national policy aimed at both increasing gas mileage and decreasing greenhouse gas pollution for all new cars and trucks sold in the United States.  And as our automakers retooled and prepared to start making the world’s best cars again, we aimed to raise fuel economy standards to 35.5 miles per gallon for a new vehicle by 2016.

AUDIENCE MEMBER:  Wow!

THE PRESIDENT:  Yeah, wow.  (Laughter and applause.)

That was an increase of more than eight miles per gallon over what cars had averaged at the time.  And what we were clear about was if you set a rule, if you set a clear goal, we would give our companies the certainty that they needed to innovate and out-build the rest of the world.  They could figure it out if they had a goal that they were trying to reach.  And thanks to their ingenuity and hard work, we’re going to meet that goal.

Two years later, we’ve already seen enormous progress, and we’re building on that progress by setting an even more ambitious target:  We’re going to double the distance our cars and light trucks can go on a gallon of gas by 2025.  We’re going to double it.  And that means -- (applause) -- that’s big news.  Because what it means is you’ve got to fill up every two weeks instead of every week, and that saves the typical family more than $8,000 at the pump over time.  I’m assuming you can use $8,000 -- (laughter and applause) -- that you’re not paying at the gas station.  And, in the process, it cuts American oil consumption by 12 billion barrels.

So we let the automakers decide how they were going to do it.  We set the goal and we said, go figure it out.  And they invested in innovative and cost-effective technologies.  And some are already making cars that beat the target of nearly 55 miles per gallon.  They’ve got plug-in hybrids.  They’ve got electric vehicles.  They’re taking advantage of the investments that the Recovery Act made in American advances in battery technology.  So cars are getting better and they’re getting more fuel-efficient all the time.

And for anybody who said this couldn’t be done or that it would hurt the American auto industry, the American auto industry sold more cars last year than any time since 2007.  (Applause.)  And since we stepped in to help the automakers retool, the American auto industry has created almost 425,000 new jobs.

So we raised fuel efficiency, helped consumers, helped improve air quality, and we’re making better cars than ever and the automakers are hiring more folks again for good jobs all across the country.  (Applause.)  More plants are running at full capacity -- some are even running three shifts, 24 hours a day -- churning out some of the most high-tech, fuel-efficient, high-performance cars in the world.

And that’s a story of American ingenuity, American grit, and everybody has a right to be proud of it.  But today we’re taking the next step.

Heavy-duty trucks account for just 4 percent of all the vehicles on the highway.  I know when you’re driving sometimes it feels like it’s more -- (laughter) -- but they’re only 4 percent of all the vehicles.  But they’re responsible for about 20 percent of carbon pollution in the transportation sector.  So trucks like these are responsible for about 20 percent of our on-road fuel consumption.  And because they haul about 70 percent of all domestic freight -- 70 percent of the stuff we use, everything from flat-screen TVs to diapers to produce to you name it -- every mile that we gain in fuel efficiency is worth thousands of dollars of savings every year.

So that’s why we’re investing in research to get more fuel economy gains.  And thanks to a partnership between industry and my administration, the truck behind me was able to achieve a 75 percent improvement in fuel economy over the last year -- 75 percent.  That’s why we call this “SuperTruck.”  (Laughter.)  It’s impressive, this one right here, as well.  I mean, these are -- first of all, they’re really big.  (Laughter.)  But you can see how they’ve redesigned the truck in order for us to save fuel economy.

And improving gas mileage for these trucks are going to drive down our oil imports even further.  That reduces carbon pollution even more, cuts down on businesses’ fuel costs, which should pay off in lower prices for consumers.  So it’s not just a win-win, it’s a win-win-win.  You’ve got three wins.

AUDIENCE:  Right!

THE PRESIDENT:  In 2011, we set new standards for medium- and heavy-duty trucks that take effect this year and last until 2018.  Three weeks ago, in my State of the Union address, I said we’d build on that success.  Today, I’m directing the Secretary of Transportation, Anthony Foxx, who is right here -- former mayor of Charlotte -- (applause) -- and Gina McCarthy, the Administrator of EPA -- (applause) -- two outstanding public servants -- their charge, their goal is to develop fuel economy standards for heavy-duty trucks that will take us well into the next decade, just like our cars.  And they’re going to partner with manufacturers and autoworkers and states and other stakeholders, truckers, to come up with a proposal by March of next year, and they’ll complete the rule a year after that.

And businesses that buy these types of trucks have sent a clear message to the nearly 30,000 workers who build them:  We want trucks that use less oil, save more money, cut pollution.  So far, 23 companies have joined our National Clean Fleets Partnership to reduce their oil consumption or replace their old fleets of trucks with more fuel-efficient models.  And, collectively, they operate about 1 million commercial vehicles nationwide.

So this is a lot of companies, and some of them are competitors.  And if rivals like PepsiCo and Coca-Cola, or UPS and FedEx, or AT&T and Verizon -- if they can join together on this, then maybe Democrats and Republicans can do the same.  (Applause.)  Maybe Democrats and Republicans can get together.  (Applause.)

So when you see these companies’ new electric or natural gas-powered delivery or garbage trucks, it’s due to this partnership.  And the reason we’re here is because Safeway was an early leader on this issue.  By improving the aerodynamics of its trucks, investing in larger trailers, more efficient tires, Safeway has improved its own fuel efficiency.  And the results are so solid that Safeway now encourages all the companies it hires to ship its products to do the same.

So to help our businesses and manufacturers meet this new goal, we’re offering new tax credits -- both for companies that manufacture heavy-duty alternative-fuel vehicles and those that build fuel infrastructure so that trucks running on biodiesel or natural gas or hybrid electric technology, they’ll have more places to fill up.

Let me say this.  The goal we’re setting is ambitious, but these are areas where ambition has worked out really well for us so far.  Don’t make small plans, make big plans.  And anybody who had dire predictions for the auto industry, said we couldn’t do it, manufacturers couldn’t bring jobs back to America -- every time they say that they’re proven wrong.  Every time somebody says you can’t grow the economy while bringing down pollution, it’s turned out they’ve been wrong.  (Applause.)  Anybody who says we can’t compete when it comes to clean energy technologies like solar and wind, they’ve had to eat those words.  You can’t bet against American workers or American industry.  You can’t bet against America.  Otherwise you’re going to lose money every time, because we know how to do this when we set broad, ambitious goals for ourselves.  (Applause.)

So from day one, we’ve known we had to rebuild our economy and transition to a clean-energy future, and we knew it wouldn’t be easy or quick, and we’ve got a lot of work to do on both counts.  But the economy is growing.  We’re creating jobs.  We’re generating more clean energy.  We’re cutting our dependence on foreign oil.  We’re pumping out less dangerous carbon pollution.  If we keep going down this road, then we’re going to have a future full of good-paying jobs.

We’ve got assembly lines that are humming with the components of a clean energy age.  We got more of the best trucks and cars in the world designed and engineered and made in America.

If we keep on going, we’re going to leave a better future for our children.  And I’m proud of Safeway and all its workers for helping to show us the way.  If it can be done here, it can be done all across the country.

So congratulations to all of you.  Thank you and God bless you.  God bless America.  (Applause.)

END

NEW MALWARE PROGRAM HOLDS FILES FOR RANSOM

FROM:  FEDERAL TRADE COMMISSION
FTC, FBI Warn Consumers About ‘Cryptolocker,’ A New Breed of Computer Malware

How much is everything on your computer worth to you?  About $300?  The criminals behind a new malware program are betting on it.

The Federal Trade Commission, the FBI and other federal agencies are warning consumers and businesses about “Cryptolocker,” a malware program that holds the files on your computer for ransom, and doesn’t allow you to access them until you pay up. Even then, there’s no guarantee. It’s essentially extortion, with all your personal documents, photos, and files at risk.

Cryptolocker is spread mostly through email and “drive-by” downloads. The email might look like a routine message from a legitimate company, like a tracking notice from a shipping company. If you click on the hyperlink in the email, Cryptolocker encrypts everything on your hard drive and in your shared folders. When the job is done, you get a “ransom note” demanding payment via Bitcoin or some other anonymous payment method. The criminals behind this malware say they’ll give you the encryption key if you pay, but they’re hardly trustworthy. And there’s no other way to unlock your files. For tips about how to protect your business from Cryptolocker, read Lock, stock, and peril.

Computer security experts say the best way to minimize the damage Cryptolocker can do is to back up your computer files often.

SUBCONTRACTOR PLEADS GUILTY TO BRIBING 2 MILITARY SEALIFT COMMAND OFFICIALS

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, February 18, 2014
Former Virginia Subcontractor Pleads Guilty to Bribery

Dwayne Allen Hardman, 44, of Charleston, W.V., pleaded guilty today to paying bribes to public officials.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service   Mid-Atlantic Field Office (DCIS), Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.

Hardman was charged by criminal information on Feb. 12, 2014, with paying a bribe to public officials.  Hardman faces a maximum penalty of 15 years in prison when he is sentenced on June 6, 2014.

According to a statement of facts filed with the plea agreement, in November 2004, Hardman and another businessman established a government contracting corporation in Chesapeake, Va., to provide support to the Military Sealift Command (MSC) on various telecommunications projects.   Shortly thereafter, in early 2005, Hardman and his business partner agreed to pay cash bribes to two MSC officials in exchange for official action to steer government contracts to Hardman’s corporation.   From March 2005 and until 2007, Hardman, his business partner and others paid the MSC officials approximately $3,000 each month in cash bribes.   During this time, Hardman and his business partner withdrew approximately $144,000 in cash, which was then provided to the two MSC officials in exchange for their assistance in securing MSC contracting and subcontracting business for Hardman’s company.

According to court documents, in February 2009, Hardman left his former business and formed another government contracting company in Chesapeake with another businessman.   The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for receiving bribes from Hardman and his new business partner.   In May 2009, Hardman and his new business partner paid each of the two MSC officials $25,000 in cash bribes.

On Feb. 12, 2014, one of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme.

This case was investigated by Special Agents of the FBI, the Naval Criminal Investigative Service, and the Defense Criminal Investigative Service.   Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie are prosecuting the case.

SECRETARY KERRY'S REMARKS AT U.S. EMBASSY IN TUNIS, TUNISIA

FROM:  U.S. JUSTICE DEPARTMENT 
Remarks at a Solo Press Availability
Remarks
John Kerry
Secretary of State
U.S. Embassy Tunis
Tunis, Tunisia
February 18, 2014

SECRETARY KERRY: I’m very pleased to be here in Tunis at what is obviously a very important time for the country. On behalf of the United States of America and President Obama, I want to extend our congratulations to Prime Minister Jomaa and to the country, to the citizens who have all invested in the future of this country. And we congratulate them on the very difficult transition but vital transition to democratic rule.

The transition that has taken place here and, in fact, the series of uprisings that became known as the Arab Spring began, as many of you know better than me even, 200 miles – less than 200 miles from here with an act of courage and an act of desperation by a Tunisian man who refused to live one day longer in a country that was plagued by corruption and absent opportunity. Three years later, the Tunisian people have ratified a new constitution, a constitution that is rooted in democratic principles – equality, freedom, security, economic opportunity, and the rule of law. It is a constitution that underscores Tunisia’s long tradition of respect for the rights of women and minorities. It is a constitution that will allow the people of Tunisia to realize the aspirations of Mohamed Bouazizi and millions of others. And it is a constitution that can serve as a model for others in the region and around the world.

Getting to this moment has not been easy. There have been countless debates, discussions, and disagreements. But these things are exactly what is central to democracy. That is true of a democracy that is young or old. The fact is that the road to a full democracy is long and difficult, and it is a road that in many ways never really ends, as we see even in old democracies like ours: we’re always working and we’re always working to perfect it.

As I told the president and the prime minister in our meetings earlier today, President Obama and the United States will continue to stand beside Tunisia throughout its democratic transition. And we intend to do everything that is possible to help in the electoral process to make certain that Tunisians have an opportunity to be able to exercise the rights they had fought for hard and be able to vote for their future government soon. Our support is not just words. Since the revolution began, the United States has committed more than 400 million in foreign assistance for the transition. That includes more than 24 million for equipment and training for Tunisia’s ministry of interior security forces. It includes 100 million in direct budget support and debt relief. It includes more than 20 million in a USAID competitiveness program to create jobs in the information technology sector, and a $30 million loan guarantee supporting $485 million in new financing for the Tunisian Government. In the time ahead, we will continue to support Tunisia’s security, stability, economic growth, and political reform as we strengthen our bilateral engagement. And I will be going back to Washington with additional ideas about ways in which the United States may able to help. President Obama has invited Prime Minister Jomaa to Washington, and we look forward to fixing the date for that visit soon.

Today, Prime Minister Jomaa and I agreed that during his visit to our capital, we will hold the inaugural meeting, the first meeting of the U.S.-Tunisia Strategic Dialogue, and this dialogue is aimed at strengthening our bilateral relations. The joint strategic dialogue will focus on cooperation in security matters and on promoting closer economic ties between our two nations.

And let me emphasize that I also look forward soon to meeting nearby in Algeria and Morocco for our important strategic dialogue discussions as well, and that will happen in the coming months.

I’m pleased to say that the United States and Tunisia are also taking steps to strengthen our people-to-people programs. Educational exchanges are a very important way of promoting understanding and friendship between the peoples of different nations, and we’ve seen that work effectively all around the globe. That’s why I’m pleased to announce today to confirm that pending congressional approval, the United States plans to provide an additional $10 million to the Thomas Jefferson Scholarship program. This program gives Tunisian students the opportunity to spend a year studying at a college or university in the United States. There are currently 65 Tunisian Jefferson Scholars who are studying on our campuses, and we really hope to welcome many more in the years to come.

I’m also pleased to announce another indicator of our commitment to Tunisia’s future. Tomorrow, as part of our joint security cooperation – and there are many other things we are doing besides this – but tomorrow United States will turn over the keys to both a state-of-the-art mobile command post vehicle for conducting terrorism investigations and a mobile crime lab for use by forensic police in order to gather evidence effectively for prosecution.

Both the President and the prime minister emphasized to me the importance of security at this moment in time. No democracy can survive or prosper in the absence of security, and we hope with this new equipment, but also with other initiatives that we are prepared to engage in, that Tunisians will be better prepared to address the violence and terrorism that threatens everybody in many parts of the world.

Let me just say that I know this is a quick visit, and I wish it was longer. But I thought it was important, even though it was brief, to come here in order to make clear to the people of Tunisia that there are many, many countries and many people in the world who admire what people have been engaged in here, and I wanted to come here on behalf of President Obama to express our support for this courageous path that Tunisia is on.

The work of building democracy is hard work. The work of making sure people have rule of law and security and protections for everybody – all minorities, all religions, all walks of life – this is vital to the definition of any modern country.

I know that Tunisia is an educated, thoughtful country that respects rule of law and respects the rights of others, and I know this is a path that Tunisia wants to go down and wants to be successful at. So I wanted to come here today to confirm on behalf of the American people and President Obama our commitment to stand with Tunisia, with the people of Tunisia, and to help move down this road to democracy with hopes that this constitution that you have achieved will become a model for other countries in other places.

We look forward to working with you in this critical year ahead as you come to elections and hopefully to the goal that you want to achieve.

Shukran.

MS. PSAKI: The first question – I’ll be calling on the questions. I wish we had more time, but we just have limited time. The first question is going to be from Adam Entous of The Wall Street Journal.

QUESTION: Thank you very much. Mr. Secretary --

QUESTION: (In French.)

QUESTION: Yeah, sure.

MS. PSAKI: Go ahead, Adam.

QUESTION: Yeah, sure. You mentioned that you would be returning to Washington to explore ideas to help Tunisia in its counterterrorism efforts. Do you think the government today is up to this challenge? What specific steps do you envisage down the road in terms of maybe training and equipment? And separately, what lessons do you think General Sisi in Egypt should take away from Tunisia’s approach?

SECRETARY KERRY: Most of the requests were focused on equipment, although there is some thought about training and assistance in other ways. But that has to be discussed thoroughly in Washington and elsewhere.

But, as you know, I announced today the beginning of our strategic dialogue, and we will be holding that strategic dialogue very soon to follow up on a broader strategy for success. And with respect to the question of our – of can the government manage this, I believe yes, absolutely. And the evidence of that is the very significant arrests that were made and breakup of Ansar al-Sharia’s several cells recently, in the last weeks, which was well carried out, well planned and executed. And I think it’s an indicator that with more capacity, they have a great ability to do what is necessary.

And on the second question, I’m not going to – I’m not going to advise General al-Sisi or President Mansour or Foreign Minister Fahmy or others at a press conference. I’m going to talk to them personally and be engaged, as we have been, and I think that’s the appropriate way to deal with lessons or differences between how countries may approach a particular issue. My hope is to be able to meet with General al-Sisi somewhere in the next days or weeks to be able to talk about Egypt, as I have in the past. I’ve met with him. I’ve met with President Mansour and others. That’s a continuing dialogue and I look forward to continuing that dialogue.

MS. PSAKI: The next question – oh. The next question is from Tayib Busidi (ph) from Al Wataniya TV.

QUESTION: (Inaudible.)

MS. PSAKI: Wataniya.

QUESTION: He never asked --

QUESTION: (In French.)

MS. PSAKI: Okay. Al Wataniya is not here? Okay.

QUESTION: (In French.)

MS. PSAKI: All right. I’ll call on you right there. Go ahead.

QUESTION: So first, I’ll ask in English and then translate. You come in critical time here in Tunisia. We fight terrorism. When you talk about 25 millions, there are (inaudible) of (inaudible). Do you – include – will be include weapons? So will help us with weapons? And my second part, when you talk about your tour, which will be in Algeria and Morocco, why don’t mention Libya? And what is your position what happened – about what happened there right now? Thank you.

SECRETARY KERRY: On the issue of – okay.

QUESTION: I don’t understand you have released the – please.

MS. PSAKI: They’re going to translate.

QUESTION: (In French.)

MS. PSAKI: They’re going to translate it.

QUESTION: (In French.)

SECRETARY KERRY: (In French.)

MS. PSAKI: Can you translate?

SECRETARY KERRY: (In French.)

QUESTION: (In French.)

QUESTION: (In Arabic.)

SECRETARY KERRY: (In French.) So, and your question regarding the terrorism assistance --

QUESTION: Yes.

SECRETARY KERRY: -- is specifically what?

QUESTION: Yes. Should they include weapons? Your help.

SECRETARY KERRY: Again, no decision has been made with respect to what they will be. I think you need to ask the government officials what it is that they’ve asked for. It’s not for me to be announcing that here. I will tell you they’ve given us a list, and we need to go back and evaluate it, and we will evaluate it thoroughly with respect to effectiveness and capacity and appropriateness. So those decisions will be made in the way they ought to be made – not the day that it’s asked for, but over the course of the next weeks.

QUESTION: Okay. And as far as Libya, please?

SECRETARY KERRY: Libya – yeah. With respect to Libya, we are deeply concerned about Libya and deeply involved in helping Libya in its transition. I have talked with Prime Minister Zeidan several times, many times. I’ve met with him personally. And we are frequently engaged not only in conversations with him and his government, but with our Embassy and our personnel and other countries about how we can do more to help Libya.

We are also very well aware that there are a large number of Libyans living in Tunisia, and we are very aware that what happens in Libya has a profound impact on Tunisia. And I think it’s fair to say that we have been, we are increasing our efforts in Libya and we’ll continue to do so over the course of these next months.

MS. PSAKI: Thank you, everyone. Unfortunately, we need to --

SECRETARY KERRY: No, no, no, I’m going to take – I want to --

QUESTION: We’ve been waiting for more than an hour, so we deserve more time, please.

SECRETARY KERRY: Guys, let’s not use the time complaining. Let’s ask a question, s’il vous plait. Go ahead.

QUESTION: (Via interpreter) So, thank you very much, Secretary Kerry. (Inaudible) so the first question is concerning the Rand --

QUESTION: Corporation.

QUESTION: -- Corporation, which made a study 10 years ago, a report 10 years ago, speaking about a political Islam, which should go back to the eastern countries and must be eradicated from those same countries. And this is the case for Egypt and Tunisia. So my question is: What’s the second phase of this plan or strategy? And what do you want exactly from the region – this means Algeria, Morocco, Tunisia, Libya, and Egypt? And what do you expect – and Syria – and what do you expect from these countries?

And also the second part of my first question is about the military bases which is located in the southern part of Spain. So what can you say about this military bases? An explanation – and its relationship with Spain?

SECRETARY KERRY: Well, yeah, look – in fairness, folks, if everybody asks two questions, we’re not going to have a very fair afternoon here. And I’m being informed I have to leave shortly because I have to get to other meetings in yet another country, and I apologize for that. But I want to try to be fair in this process.

I haven’t read the Rand Corporation study. I don’t know what it says, and I can guarantee you it doesn’t – it’s not a policy of the United States of America.

So with respect to the countries in the region, what do we want? We want something that radical extreme Islam – not Islam as a whole, but radical extreme Islam – doesn’t tolerate. And it’s called tolerance. It’s called acceptance, pluralism, of all people, not just one form of thinking which people get killed for or punished for if they don’t adhere to it. We want a democratic process by which people’s rights are protected – human rights, the rights of worship, the rights of assembly, the rights of speech, and we believe that the right to petition your government without going to prison. There are a whole host of rights, and that’s what the United States wants, and we admire those countries like Tunisia that are trying to embrace those rights.

I have time for one more and then I have to go. So I’m going to leave it up to translation. Let the translation finish.

All right, this has to be the last question.

QUESTION: (Inaudible.)

SECRETARY KERRY: I’m sorry. It has to be the last question.

QUESTION: Thank you. I’d like to mention that we have been waiting more than an hour now, so we deserve (inaudible). My question is that you did not mention anything about your meetings with (inaudible) this country. What’s behind this visit that comes after (inaudible) in Tunisia? What message do you bring to the Tunisian people, to (inaudible), and to this government? The last one is: Do you consider that the failure of the --

SECRETARY KERRY: No, no, no.

QUESTION: (In French.)

QUESTION: Do you think that the failure of the Geneva talks are considered a failure for the U.S. policy?

SECRETARY KERRY: I don’t know if I understood your first question. I think you asked me what was my message?

QUESTION: Yes, your message. Will you continue meeting with the civil society to support them?

SECRETARY KERRY: Yes, let me – all right. I understand. As I explained to you, I had an opening in my schedule between my meetings, and we thought it was important to come to this country which is struggling with this transition, in order to lend our support – the support of President Obama and the American people to the people of Tunisia. And I think that’s valuable. I would rather come here and share that we are bringing an invitation for your prime minister to come to Washington to help build this cooperation. We are providing additional assistance, and we are engaging in a strategic dialogue, and those are important announcements. And we thought it was important to come and make those and to congratulate the people of Tunisia for this constitution that has been created.

QUESTION: Secretary --

SECRETARY KERRY: And finally, let me just end – and I apologize. I really do have to go because I have to still fly and get somewhere. But let me just say on Geneva talks – this is very important: The Geneva talks are an ongoing process. Nobody expected in two meetings or three meetings that this was going to be resolved. What we’re doing is sharpening what the differences are. And in the recess that is now being taken, it is important for people to come to a resolution of what strategy they can pursue to come back to the table in order to be more effective.

I talked this morning to Foreign Minister Lavrov. We talked about the ways that we can try to move the process. We talked about the UN where we are currently negotiating a resolution, and my hope is that we will try to find common ground still as to how we can bring this tragedy to a close.

And let me emphasize, there is no military solution. We all agree on that. So you have to continue to pursue a political path if you’re going to find a way to solve the problem. We’re going to continue to do that, tough as it is.

I’m sure I will be back. I apologize. Thank you very, very much.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR FEBRUARY 18, 2014

FROM:  U.S. STATE DEPARTMENT 
CONTRACTS

ARMY

EADS-NA, Herndon, Va., was awarded a $22,856,085 modification (P00766) to contract W58RGZ-06-C-0194 to acquire four UH-72A Lakota helicopters with engine inlet barrier filters and ARC-231 radios.  Fiscal 2014 other procurement, Army funds in the amount of $22,856,085 were obligated at the time of the award.  Estimated completion date is March 31, 2015.  Work will be performed in Columbia, Miss.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

Jacobs/Stantec, Fort Worth, Texas, was awarded a $9,500,000 firm-fixed-price contract for architectural and engineering services for Army, Air Force, and other military and civil works projects primarily within the Great Lakes and Ohio River Division boundaries.  Funding and performance location will be determined with each order.  Estimated completion date is Feb. 17, 2019.  One bid was solicited with one received.  Army Corps of Engineers, Louisville, Ky., is the contracting activity (W912QR-14-D-0005).

DEFENSE LOGISTICS AGENCY

Combat Medical Systems LLC*, Fayetteville, N.C., has been awarded a maximum $36,396,530 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various medical and surgical surge, re-supply, and sustainment materials.  This contract is a competitive acquisition, and four offers were received.  This is a one-year base contract with nine one-year option year periods.  Location of performance is North Carolina with a Feb. 17, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 war-stopper funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D0-14-D-0001).

Eye Safety Systems Inc., Ketchum, Idaho, has been awarded a maximum $9,804,328 modification (P00004) exercising the third option year on a one-year base contract (SPM2DE-11-D-7549) with four one-year option periods for prescription lens carriers.  This is a fixed-price, indefinite-delivery/indefinite-quantity contract.  Location of performance is Idaho with a March 2, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

CORRECTION:  The contract announced Feb 12, 2014 to Honeywell International, Inc., Minneapolis, Minn., had an incorrect contract number. The correct contract number is SPM4A1-11-G-0010 W5A0

*Small Business

AG HOLDER'S REMARKS AT HUMAN RIGHTS CAMPAIGN GREATER NEW YORK GALA

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Eric Holder Delivers Remarks at the Human Rights Campaign Greater New York Gala
~ Monday, February 10, 2014

Thank you, Chad [Griffin], for those kind words; for your visionary leadership of this organization; and for the indelible – and truly historic – role that you and your colleagues have played in advancing the fight for civil rights and LGBT equality – in our courts, on our city streets, and in the halls of Congress.

It’s a privilege to share the stage with you today. It’s a pleasure – as always – to be back home in New York City. And it’s a tremendous honor to be among so many dedicated leaders, passionate advocates, strong allies, and committed public servants – including state legislators, city officials, and members of New York’s outstanding Congressional delegation.

Since the founding of the Human Rights Campaign more than three decades ago, this organization has brought people together to make a profound, positive difference in the lives of millions of Americans. Especially in recent years, your committed efforts – and the hard work of countless allies across this country – have helped to bring about remarkable, once-unimaginable progress. Thanks to leaders and activists in, and far beyond, this room, our nation has made great strides on the road to LGBT equality – a cause that, I believe, is a defining civil rights challenge of our time.

You’ve stepped to the forefront of our national discourse, helping to mobilize millions to raise awareness about issues of concern to the LGBT community. You’ve spoken out for the rights and opportunities that have too often been denied to lesbian, gay, bisexual, and transgender individuals. You’re calling for policies that stabilize families and expand individual liberty. And you’re doing it all in a manner that is enduring; that is predicated on an understanding of our common humanity; and that is founded on the singular ideal that has defined this country since its earliest days: the notion that all are created equal – and that all are entitled to opportunity and equal justice under law.

For President Obama, for me, and for our colleagues at every level of the Administration, this work is a top priority. And I’m pleased to note that – together – we have brought about historic, meaningful, lasting change.

We can all be proud that, today, those who courageously serve their country in uniform – those who sacrifice so that we can all enjoy the freedoms we cherish – need no longer hide their sexual orientation. With the repeal of the “Don’t Ask, Don’t Tell” law in 2010 – an achievement that the Human Rights Campaign helped make possible – we celebrated the beginning of a new era for many brave servicemen and women. And we ensured that, here at home and around the world, lesbian, gay, and bisexual Americans can serve proudly, honestly, and openly – without fear of being fired for who they are.

We also can be encouraged that the newly-reauthorized Violence Against Women Act includes robust new provisions that ensure LGBT survivors of domestic abuse can access the same services as other survivors of partner violence. This will empower them to seek the help that they desperately need. And it will enable more and more Americans to find hope and healing in moments of great difficulty.

And we can be invigorated by the Justice Department’s efforts to enforce critical civil rights protections – including the landmark Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act – which the Human Rights Campaign helped to pass, and which President Obama signed in 2009. Under this important law, we are strengthening the Department’s ability to achieve justice on behalf of those who are victimized simply because of their sexual orientation or gender identity. Today, we are more prepared – and better equipped – than ever before to pursue allegations of federal hate crimes wherever they arise; to bring charges whenever they are warranted; and to support our state and local law enforcement partners in enforcing their own hate crimes laws. And I pledge to you tonight that we will never stop working to ensure that equality under the law is protected by the law.

After all, this is the principle that drove the President and me to decide – in early 2011 – that Justice Department attorneys would no longer defend the constitutionality of Section 3 of the Defense of Marriage Act. We shared a strong belief that all measures that distinguish among people based on their sexual orientation must be subjected to a higher standard of scrutiny – and therefore that this measure was unconstitutional discrimination. And as a result, last summer – on an extraordinary day that was made possible by so many of this organization’s members – the Supreme Court issued a historic decision striking down the federal government’s ban on recognizing gay and lesbian couples who are legally married.

This marked a critical step forward. And it constituted a resounding victory for committed and loving couples throughout the country who fought for equal treatment under the law; for children whose parents had been denied the recognition that they deserved; and for millions of family, friends, and supporters who wanted to see their loved ones treated fairly, and who worked tirelessly to make that a reality.

Thanks to the opinions handed down on that day – and the efforts of this organization and many others – there’s no question that this country stands at a new frontier in the fight for civil rights. And I am pleased to report that the dedicated men and women of the Justice Department – under the outstanding leadership of Assistant Attorney General for the Civil Division Stuart Delery, who is here with us tonight – are leading national efforts to implement, and make real, the full promise of the Supreme Court’s ruling in the Windsor case.

Already, my colleagues and I have announced the extension of significant benefits to Americans in same-sex marriages – including health insurance and other key benefits for federal employees and their families; a uniform policy ensuring that all same-sex married couples are recognized for federal tax purposes; and a policy dictating that – for purposes of immigration law – same-sex and opposite-sex marriages are treated exactly the same.

We also worked with the Department of Defense to determine that members of the military who are in same-sex marriages will receive the same benefits available to opposite-sex married couples. Just last month, the Justice Department affirmed that – for purposes of federal law – same-sex marriages performed in the State of Utah will be recognized as lawful and considered eligible for all relevant federal benefits. These marriages were valid when they were celebrated, and the federal government will acknowledge them as such. And we will continue to coordinate with others across the government to ensure that those in lawful same-sex marriages across the country will receive every benefit to which they are entitled.

These initial changes will positively impact the lives of so many throughout the nation. All of these steps forward are worth celebrating. But I also want to make one thing very clear: for my colleagues, for me – and I know for all of you – they are only the beginning.

This is no time to rest on our laurels. This is no time to back down, to give up, or to give in to the unjust and unequal status quo. Neither tradition nor fear of change can absolve us of the obligation we share to combat discrimination in all its forms. And, despite everything that’s been achieved, each of us has much more work to do.

We come together this evening at an exciting moment in history – one that is defined by challenge as well as opportunity. As President Obama has said, “The laws of our land are catching up to the fundamental truth that millions of Americans hold in our hearts: that when all Americans are treated as equal…we are all more free.”

Tonight, I am proud to announce that the Justice Department is taking additional steps to further advance this “fundamental truth” – and to give real meaning to the Windsor decision. On Monday, I will issue a new policy memorandum that will – for the first time in history – formally instruct all Justice Department employees to give lawful same-sex marriages full and equal recognition, to the greatest extent possible under the law.

This means that, in every courthouse, in every proceeding, and in every place where a member of the Department of Justice stands on behalf of the United States – they will strive to ensure that same-sex marriages receive the same privileges, protections, and rights as opposite-sex marriages under federal law. And this policy has important, real-world implications for same-sex married couples that interact with the criminal justice system. For instance, as a result of this policy:

• The Department will recognize that same-sex spouses of individuals involved in civil and criminal cases should have the same legal rights as all other married couples – including the right to decline to give testimony that might violate the marital privilege. Under this policy, even in states where same-sex marriages are not recognized, the federal government will not use state views as a basis to object to someone in a same-sex marriage invoking this right.

• In bankruptcy cases, the United States Trustee Program will take the position that same-sex married couples should be treated in the same manner as opposite-sex married couples. This means that, among other things, same-sex married couples should be eligible to file for bankruptcy jointly, that certain debts to same-sex spouses or former spouses should be excepted from discharge, and that domestic support obligations should include debts, such as alimony, owed to a former same-sex spouse.

• Federal inmates in same-sex marriages will also be entitled to the same rights and privileges as inmates in opposite-sex marriages. This includes visitation by a spouse, inmate furloughs to be present during a crisis involving a spouse, escorted trips to attend a spouse’s funeral, correspondence with a spouse, and compassionate release or reduction in sentence based on the incapacitation of an inmate’s spouse.

Beyond this, the Department will equally recognize same-sex couples for the purposes of a number of key benefits programs it administers, such as the Radiation Exposure Compensation Program and the September 11th Victim Compensation Fund.

Another key program is the Public Safety Officers’ Benefits Program. It provides death benefits and educational benefits to surviving spouses of public safety officers, such as law enforcement officers and firefighters, who suffer catastrophic or fatal injuries in the line-of-duty. This program is one way that we, as a country, stand by the families of those who put themselves in harm’s way to keep our communities safe, and we must never do so selectively. When any law enforcement officer falls in the line of duty or is gravely injured, the federal government should stand by that hero’s spouse – no matter whether that spouse is straight or gay. Our policy memo on Monday will reflect this principle.

After all, this nation was built – and it continues to be improved – by patriotic men and women with abiding faith in the bedrock principle of equality. From the suffragettes to the Freedom Riders – from Birmingham to Stonewall – America’s course has been determined, and our future defined, by those who act on the recognition that all are created equal. By those who understand that this country’s diversity has always been one of its greatest strengths. And by those who prove every day that we – as a people – are made greater, and wiser, and stronger when we value the contributions of every citizen – gay and straight, bisexual and transgender. Black and white. Young and old – whether they live in Washington or Wyoming; Massachusetts or Missouri. Whether they work in schools or restaurants – on Wall Street or Main Street. And whether they contribute to our nation as doctors or service members; as businesspeople or public servants; as scientists or as Olympic athletes.

In this great country, we move faster, we reach farther, and we climb higher whenever we stand together as one. That’s why this Administration, this Department of Justice – and this Attorney General – will never stop fighting to ensure equal protection. We will never rest in our efforts to safeguard the civil rights to which everyone in this country is entitled. And we will never waver in our determination to build on the progress we’ve seen – and bring about the changes our citizens deserve. But you must be our partners in this effort. Everyone in this room, and everyone in the LGBT community, must be committed to ending all discrimination – discrimination based not only on sexual orientation, but also on race, gender, ethnicity, and national origin. You must be active in those areas of the struggle as well.

We are, right now, in the middle of marking a number of 50-year anniversaries of key milestones in the Civil Rights Movement – from Dr. Martin Luther King, Jr.’s “I Have a Dream” speech, in 1963, to this summer’s anniversary of the passage of the Civil Rights Act of 1964. The gains made during that period continue to be a source of great pride – not just for our country, but also for the building where I work. At critical points along the way, the Justice Department played a leadership role in advancing that historic movement. This was never more evident than when Attorney General Robert F. Kennedy sent his top deputy, Nick Katzenbach – whose portrait hangs in my personal office – to literally stare down racial discrimination in the schoolhouse door in order to enforce the integration of the University of Alabama. It was my late sister-in-law, Vivian Malone, who walked through that University’s doors that day. Without the bravery shown by her – and so many others like her – during the Civil Rights movement, I would not be standing before you today as the nation’s first African-American Attorney General.

And yet, as all-important as the fight against racial discrimination was then, and remains today, know this: my commitment to confronting discrimination based on sexual orientation or gender identity runs just as deep. Just as was true during the civil rights movement of the 1960s, the stakes involved in this generation’s struggle for LGBT equality could not be higher. Then, as now, nothing less than our country’s founding commitment to the notion of equal protection under the law was at stake. And so the Justice Department’s role in confronting discrimination must be as aggressive today as it was in Robert Kennedy’s time. As Attorney General, I will never let this Department be simply a bystander during this important moment in history. We will act.

As we keep moving forward together, we will continue to rely on the passion, the expertise, and the steadfast commitment of groups like this one – and dedicated advocates like all of you. Important, life-changing work remains before us, and we know from our history that the road ahead will be anything but easy. Always remember that progress is not inevitable and that positive change occurs only through commitment and through struggle.

But as I look around this crowd tonight – at so many leaders who are helping to build, and taking part in, a movement that is truly historic – I cannot help but feel confident in our ability to keep moving forward together. And I am profoundly optimistic about the country – and the world – that we will imagine; that we will plan for; and that each of us will surely help to create. I welcome the opportunity to work with you in this endeavor.

Thank you.

MILITARY CONTRACTED MAP CO. PAYS $2.1 MILLION TO RESOLVE FALSE CLAIM ACT ALLEGATIONS

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, February 7, 2014

Sanborn Map Co. Pays $2.1 Million to Resolve Allegations of False Claims for Map Work Related to United States Military Convoy Routes in Iraq and Marine Corps Bases in United States

Sanborn Map Company Inc. has agreed to pay $2.1 million to the U.S. government to resolve allegations that it submitted false claims in connection with U. S. Army Corps of Engineers contracts, the Justice Department announced today.  Sanborn, headquartered in Colorado Springs, Colo., provides photogrammetric mapping and geographic information system services.  

“We are committed to defending the integrity of our public contracting process,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “ The Department of Justice will not hesitate to pursue companies that knowingly fail to comply with their contractual obligations, particularly obligations involving the protection of our national security interests.”

From 2005 to 2011, Sanborn contracted with the U.S. Army Corp of Engineers to produce maps for U.S. convoy routes in Iraq, Marine Corps bases in the U. S. and other military and civilian projects.  Allegedly, in an effort to save money, Sanborn used unapproved foreign subcontractors on three projects, which violated contractual obligations and caused delays on these projects.  Sanborn also allegedly used unapproved domestic subcontractors when Sanborn was required to complete all map work in-house and charged unrelated work to the government contracts.

"We applaud the hard work and dedication of our agents and partners at the Department of Justice and other fellow law enforcement agencies," said Director Frank Robey of the U. S. Army Criminal Investigation Command's Major Procurement Fraud Unit.  "Our specially trained agents will doggedly pursue all who would undermine the needs and resources of the military.”

The allegations arose from a lawsuit filed by a former Sanborn employee, James Peterson, in a federal court in St. Louis, Mo., under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private individuals known as “relators” to sue on behalf of the government and to share in the proceeds of any settlement or judgment.  Peterson’s share of today’s settlement has not been determined.  

The settlement was the result of a coordinated effort  among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the Eastern District of Missouri and the  U. S. Army Corps of Engineers.  The U.S. Army Criminal Investigation Command – Major Procurement Fraud Unit; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and Defense Contract Audit Agency assisted in the investigation.
           
The case is United States ex rel. James Peterson v. Sanborn Map Company Inc., 4:11CV000902 AGF (E.D. Mo.).  The claims settled by this agreement are allegations only, and there has been no determination of liability.

COMMITTEE EXAMINES PLIGHT OF AMERICAN INDIAN CHILDREN EXPOSED TO VIOLENCE

FROM: U.S. JUSTICE DEPARTMENT 

Tuesday, February 11, 2014

Federal Advisory Committee Examines Juvenile Courts and Justice System Programs for American Indian Children Exposed to Violence

More than 30 tribal leaders, juvenile court judges, child advocates, juvenile justice system experts and community members from the Salt River Pima-Maricopa Indian Community testified today in the second public hearing of the Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence.  The hearing focused on how juvenile courts and other programs within tribal juvenile justice systems address the impact of children’s exposure to violence.

“Too many native children encounter violence in their homes and communities that can disrupt a path to living healthy adult lives, and we must do all that we can to protect these young people,” said Associate Attorney General Tony West.  “By intervening early, we can help these children avoid a fate involving courts and the corrections system.”

During the hearing, experts explained how children entering tribal, state or federal justice systems are screened and treated for trauma from previous exposure to violence.   They also discussed a variety of issues facing Native children in juvenile justice systems, including the availability of legal representation, tribal court transfer of juvenile cases to adult courts, culturally sensitive programs and services that divert youth from entering the juvenile justice system.

“The long-term impact of a child’s exposure to violence depends heavily on how law enforcement officials, prosecutors, defenders, judges, and corrections professionals handle that child’s case,” said Assistant Attorney General of the Office of Justice Programs Karol V. Mason.  “Through the work of the task force, we hope to find ways to make the justice system a force for positive change in a young person’s life.”

The Attorney General’s Task Force on American Indian and Alaska Native Children exposed to violence is comprised of a federal working group that includes U.S. Attorneys and officials from the Departments of the Interior and Justice and an advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare and law.

The 13-member advisory committee is co-chaired by former U.S. Sen. Byron Dorgan and Iroquois composer and singer Joanne Shenandoah.  The advisory committee will draw upon research and information gathered through public hearings to draft a final report of policy recommendations that it will present to Attorney General Eric Holder by late 2014.

Attorney General  Holder created the task force in April 2013 as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses.  The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.

The advisory committee held its first public hearing Dec. 9, 2013, in Bismarck, N.D. and will hold additional public hearings, in Fort Lauderdale, Fla. and Anchorage, Alaska.

For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood.

MACROSYSTEMS BIOLOGY DATA REQUIREMENTS

FROM:  NATIONAL SCIENCE FOUNDATION 

Data-intensive ecology needed to understand what makes the biosphere tick
Journal special issue reports new findings on macrosystems biology: biological sciences writ large.

Have you looked closely at a local pond, meadow or forest--or at nature in your suburb or city--and observed changes in it over time? That's exactly what scientists are trying to do on a larger, regional to continental scale--a macrosystems biology scale.

Macrosystems biology might be called "biological sciences writ large."

Scientists funded by the National Science Foundation's (NSF) MacroSystems Biology Program are working to better detect, understand and predict the effects of climate and land-use change on organisms and ecosystems at regional to continental scales.

The researchers have published new results in this month's special issue of the journal Frontiers in Ecology and the Environment, published by the Ecological Society of America.

The ecologists are asking questions such as: How are regional-scale processes in plant and animal invasions, and in disease transmission, shaped by continent-wide environmental and land-use patterns? How can continent-wide data lead to better forecasts of disease outbreaks? How do invasive species and infectious diseases arrive at new locations, sometimes across great distances?

"Scientists conducting macrosystems biology research are working to find answers to these complex questions," says John Wingfield, NSF assistant director for Biological Sciences.

"Current knowledge of the biosphere is largely based on research in small plots of land and on satellite-scale remote sensing," says Wingfield. "But the insights needed to answer critically important questions about the biosphere's future can't always be extrapolated from such studies. They require new approaches."

Now macrosystems biologists are entering a new realm: that of big data.

"Ecologists can no longer sample and study just one or even a handful of ecosystems," says Patricia Soranno, a scientist at Michigan State University and co-editor of the special issue with David Schimel of the California Institute of Technology's Jet Propulsion Lab.

"We also need to study lots of ecosystems and use lots of data to tackle many environmental problems--such as climate change, land-use change and invasive species--because such problems exist at larger scales than other problems we have faced in the past."

Soranno and Schimel worked with many researchers, all funded by NSF's MacroSystems Biology Program, to produce the special issue.

"Data-intensive science is being touted as a new way to do science of any kind, and we think it has a lot to offer ecology," says Soranno.

"Traditionally, ecologists are trained to study and take samples from the field in places like forests, grasslands or wetlands, and measure things in the lab.

"In the future, many ecologists will also need to be trained in advanced computational methods that will allow them to study complex systems using big datasets."

Researchers have accumulated decades and decades of data. The sources include small, individual projects by university biologists; government agency scientists monitoring natural resources; terabytes of data from new or existing field sensors and observation networks; and millions of high-definition satellite images.

Easier access to supercomputers is paired with a near-endless deluge of data. Analyses that once took months or years can now be conducted in hours or days. Scientists also have access to the latest statistical modeling and geographic information system tools, says Soranno.

"Ten years ago, it would have been much harder to take this approach," she says. "We didn't have the intersection we have today of great tools, volumes of data, sufficient computing power and a growing understanding of natural systems at broad scales."

The makeup of macrosystems biology research teams should reflect the demands of data-intensive ecology, these researchers believe. Groups should include database managers, data-mining experts, GIS professionals and others, they say.

"An important question we're facing is how ecologists can best solve many of today's top environmental problems, challenges that need a broad-scale approach," Soranno says.

"From the research that has already been conducted by macrosystems biologists, evidenced by the papers in this special issue, we think we're on the right path."

It's where science needs to go, say these papers' authors, to understand what makes Earth's biosphere tick.

The research papers in the special issue can be accessed online at the Frontiers in Ecology and the Environment website.

-NSF-

Monday, February 17, 2014

U.S. SENDS BEST WISHES TO PEOPLE OF GAMBIA ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 
On the Occasion of the Republic of The Gambia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 17, 2014

On behalf of the American people, I send best wishes to the government and people of The Gambia as they celebrate 49 years of independence on February 18.

We celebrate with you on this joyous occasion, and look forward to working with you to build a better future for all Gambians.

The United States wishes the government and people of The Gambia a festive celebration and prosperous year.

ARYAN BROTHERHOOD OF TEXAS GANG MEMBER PLEADS GUILTY TO RACKETEERING CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, February 14, 2014
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering Charges

A member of the Aryan Brotherhood of Texas gang (ABT) has pleaded guilty to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Ronald Lee Prince, aka “Big Show,” 44, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.

According to court documents, Prince and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.   Prince and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other activities.

By pleading guilty to racketeering charges, Prince admitted to being a member of the ABT criminal enterprise.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system.   The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.   According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy.  Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise.   Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member.   Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

At sentencing, scheduled for Oct. 9, 2014, Prince faces a maximum penalty of life in prison.

Prince is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise.   To date, 19 defendants have pleaded guilty, including the recent plea of Stephen Tobin Mullen, aka “Scuba Steve,” 44, of Dallas, who pleaded guilty to one count of conspiracy to participate in racketeering activity on Dec. 19, 2013.

This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.

COMMODITY POOL FRAUDSTER GETS $10 MILLION IN SANCTIONS

FROM:  COMMODITY FUTURES TRADING COMMISSION 
Federal Court in Nebraska Imposes More than $10 Million in Sanctions against Michael B. Kratville, Jonathan W. Arrington, Elite Management Holdings Corp., and MJM Enterprises LLC for Commodity Pool Fraud

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Chief Judge Laurie Smith Camp of the U.S. District Court for the District of Nebraska entered a summary judgment Order against Defendant Michael B. Kratville, a licensed attorney, and a default judgment Order against Defendants Jonathan W. Arrington, Elite Management Holdings Corp. (Elite), and MJM Enterprises LLC (MJM), all of Omaha, Nebraska, in a CFTC enforcement action charging the Defendants with commodity pool fraud in violation of the Commodity Exchange Act (CEA) and CFTC Regulations (see CFTC Press Release 6045-11, May 26, 2011).

The court’s Orders impose $4,368,368.71 in restitution and require that Kratville, Arrington, Elite, and MJM pay a total of $5,729,142.87 in civil monetary penalties. The Orders further impose permanent trading and registration bans on Kratville, Arrington, Elite, and MJM and prohibit them from violating the anti-fraud and disclosure provisions of the CEA and CFTC Regulations, as charged.

More than $700,000 of Pool Participant Funds Were Misappropriated for Country Club Memberships and Travel to Europe

Specifically, the default judgment Order finds that, from at least August 2005 until at least July 2008, Arrington, Elite, and MJM, through a variety of commodity pools, defrauded at least 130 pool participants of more than $4.7 million, of which they misappropriated more than $700,000 to, among other things, pay for country club memberships and travel to Europe. In soliciting for their pools that purported to trade in commodity futures contracts and off-exchange foreign currency contracts, Arrington, Elite, and MJM made fraudulent statements that their proprietary trading program consistently earned gains of up to six percent monthly and never risked more than 10 percent of principal at any one time. According to the summary judgment Order, Kratville made similar fraudulent statements. Both the default judgment and summary judgment Orders also find that Kratville, Arrington, Elite, and MJM fraudulently boasted to investors that they had received many multi-million dollar offers to buy their system.

In addition, the summary judgment Order finds that Kratville, personally and through his involvement with Elite and MJM, defrauded pool participants through fraudulent solicitations, false statements, efforts to hide investor losses, and his involvement with Elite and MJM. The court found that Kratville had “an intent to keep the scheme in place as long as possible and avoid detection as long possible.” For example, the court cited Kratville’s own email that stated, “Someone will find out we have been acting illegally too. If this thing blows up, I will lose by bar license . . . My other fear is . . . [the] state and feds finding out what we were doing.”

The court’s Orders also noted that when the Nebraska Department of Banking and Finance (NDBF) inquired about the operations of the pools, Kratville and Elite lied about the identity of the pools’ traders. Also, when the NDBF ordered the pools operated by Elite to be immediately shut down, Arrington and Kratville formed a new corporation, MJM, to continue their fraudulent scheme, told the NDBF that Elite was closed, and failed to disclose that a new operation similar to the Elite had begun, according to the Orders.

The court also found that because Kratville and Arrington controlled Elite and MJM and actively participated in Elite’s and MJM’s unlawful conduct, they were liable for all of Elite’s and MJM’s violations. Kratville, Arrington, Elite, and MJM were also liable for failing to register with the CFTC, as required.

A Related Criminal Action

In a related criminal action, on April 16, 2013, a federal grand jury in the District of Nebraska indicted Kratville, Arrington, and Defendant Michael J. Welke, with whom the CFTC previously settled (see CFTC Press Release 6516-13, February 13, 2013) on 14 counts arising from this fraud.

The CFTC thanks the NDBF for its assistance.

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