U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 14, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

DEFENSE LOGISTICS AGENCY

Fisher Scientific Company LLC, Pittsburgh, Pennsylvania, has been awarded a maximum $120,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for the selection of distributor who will use the electronic catalog program to make laboratory supplies and wares available for purchase. This contract was a competitive acquisition with five offers received. This is a one-year base contract with four one-year option periods. Locations of performance are Pennsylvania, Massachusetts, Illinois, California, Kentucky, Colorado, Texas, Puerto Rico, North Carolina, Hawaii, Washington, and Georgia, with a May 13, 2015 performance completion date. Using services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPM2DE-14-D-7351).

AIR FORCE

Jacobs Technology Inc., Bedford, Massachusetts, has been awarded a $60,430,781 cost-plus-fixed-fee and cost-reimbursable contract to provide engineering and technology acquisition support services which consists of disciplined systems/specialty engineering and technical/information assurance services, support, and products using established government, contractor, and industry processes. Work will be performed at Hanscom Air Force Base, Massachusetts, Peterson AFB, Colorado, Langley AFB, Virginia, Tinker AFB, Oklahoma, and Seattle, Washington, and is expected to be complete by Jan. 31, 2015. This award is the result of a sole-source acquisition. Fiscal year 2013 and 2014 research and development, procurement, operations and maintenance and foreign military sales (Saudi Arabia, Iraq, Jordan, Australia and Taiwan) funds in the amount of $39,988,406 will be obligated at time of award. Air Force Life Cycle Management Center/PZM, Hanscom AFB, Massachusetts, is the contracting activity (FA8721-14-C-0018).

Matrix Research Corp., Dayton, Ohio, has been awarded an indefinite-delivery/indefinite-quantity contract in the amount of $36,027,000 for research and development. The contractor will perform research and development to address problems of concurrent detection, tracking, imaging, and classification/identification of targets within contested and challenging environments. This will include the development of models, hardware, software, algorithms and techniques spanning basic, applied and advanced research for both active and passive sensing. Work will be performed in Dayton, Ohio, and is expected to be completed by May 16, 2021. This award is the result of a competitive acquisition and multiple offers were solicited through a Broad Agency Announcement, six offers were received. Fiscal 2014 research and development funds in the amount of $1,100,000 are being obligated at time of award. Air Force Research Laboratory/RQKSR, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-14-D-1722).

Raytheon Co., El Segundo, California, has been awarded a $22,000,000 modification (P00015) to FA8807-12-C-0012 for software coding and security on the military global positioning system user equipment contract. The total cumulative face value of the contract is $51,836,354. The contract modification is to mature the software coding of the GPS receiver cards being developed and perform security certification to enable faster fielding of M-code capable GPS receivers to the warfighter. Work will be performed at El Segundo, California, and is expected to be completed by Aug. 31, 2015. Fiscal 2014 research, development, testing and evaluation funds in the amount of $7,000,000 are being obligated at time of award. The Space and Missile Systems Center Contracting Directorate, El Segundo, California, is the contracting activity.

DRS-Sustainment Systems Inc., St. Louis, Missouri, has been awarded a $19,574,481 firm-fixed-price, fixed-price-incentive-firm-target, cost-reimbursable-no fee (travel only), requirements-type contract for the Halvorsen 25K aircraft cargo loader contractor logistics support program. This requirement is for Level 1 performance based logistics (PBL) support for 443 Tunner aircraft cargo loaders at over 166 worldwide locations. The Level 1 PBL metric ensures maximum cargo velocity support is provided to Air Mobility Command. There are six elements of support that comprise this requirement: material management-parts, material management-infrastructure, program engineering support, overhaul, unscheduled depot level maintenance and modifications. Work will be performed at West Plains, Missouri, and is expected to be complete by May 14, 2016. This award is the result of a competitive acquisition and unlimited offers were solicited and two offers were received. Fiscal 2014 working capital funds, centralized asset management, Air Force Reserve Command and Air National Guard funds will be obligated upon availability for task orders. Air Force Life Cycle Management Center/WNKBBA, Robins Air Force Base, Georgia, is the contracting activity (FA8519-14-D-0007).

Textron Systems Corp., Textron Defense Systems, Wilmington, Massachusetts, has been awarded a $17,283,970 modification (P00022) to FA8682-11-C-0044 for the completion of mission control unit software development and aircraft integration for the sensor fuzed weapon. The total cumulative face value of the contract is $310,983,586. The contract modification is for the final phase of sensor fuzed weapon integration to the Indian Jaguar aircraft. This contract involves 100 percent of foreign military sales for India. FMS funding in the amount of $17,283,970 will be obligated at time of award. Work will be performed at Wilmington, Massachusetts, and is expected to be completed by Sept. 30, 2015. Air Force Life Cycle Management Center, Long Range Systems Division, Eglin Air Force Base, Florida, is the contracting activity.

The Boeing Co., Defense, Space & Security-Network & Space Systems, Newark, Ohio, has been awarded an estimated $7,300,000 firm-fixed-price, requirements contract for remanufacture of 77 air launched cruise missile warhead arming devices. The work performed under this contract is to remanufacture and perform acceptance testing of the items specified in the performance work statement, per the warhead arming devices remanufacture procedures. The remanufactured WADs will be delivered as the 76560-11 configuration. Work will be performed in Newark, Ohio, and is expected to complete the basic one year ordering period by May 31, 2015 (estimated), and delivery dates will be cited on each order. This award is the result of a sole source acquisition. Fiscal 2012 and 2013 missile procurement funds will be obligated with each individual task order. Air Force Sustainment Center/PZABC, Tinker Air Force Base, Oklahoma, is the contracting activity. (FA8119-14-D-0003)

NAVY

Martin Baker Aircraft Co., Ltd., Higher Denham, Near Uxbridge, Middlesex, England, is being awarded a $26,408,026 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0066) to exercise an option for the procurement of 89 Navy aircrew common ejection seats for F/A-18 series and EA-18G aircraft for the U.S. Navy (65) and the government of Australia (24). In addition, this option provides for associated hardware, equipment, technical data, and production support services for the U.S. Navy, the National Aeronautics and Space Administration (NASA), and the governments of Australia, Switzerland, Malaysia, and Canada. Work will be performed in Johnstown, Pennsylvania (60 percent) and Higher Denham, Near Uxbridge, Middlesex, England (40 percent), and is expected to be completed in May 2016. Fiscal 2013 and 2014 aircraft procurement, Navy; fiscal 2014 procurement of ammunition, Marine Corps, fiscal 2013 National Guard and Reserve equipment, Defense; working capital fund, Defense, and foreign military sales funds in the amount of $26,408,026 will be obligated at time of awarded, none of which will expire at the end of the current fiscal year. This contract combines purchase for the U.S. Navy and Marine Corps ($18,803,335; 71 percent), NASA ($4,985; 0.2 percent) and the governments of Australia ($6,866,956; 26 percent); Canada ($538,347; 2 percent); Switzerland ($154,525; .6 percent); and Malaysia ($39,878; .2 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

General Dynamics Electric Boat Corp., Groton, Connecticut, is being awarded a $9,048,214 cost-plus-fixed-fee modification to the previously awarded contract (N00024-13-C-4308) to incrementally fund previously exercised options to provide non-nuclear submarine repair work on Groton-based submarines under the New England Maintenance Manpower Initiative (NEMMI). Under the terms of the contract, Electric Boat Corp., will provide NEMMI tasks in support of non-nuclear maintenance, modernization and repair of operational nuclear powered submarines, floating dry docks, support and service craft, and plant equipment assigned to the Naval Submarine Support Facility New London. Work will be performed in New London, Connecticut, and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $9,048,214 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1). The Naval Sea Systems Command, Washington, Distric of Columbia, is the contracting activity.
ARMY

ICF Inc., LLC, Fairfax, Virginia $49,983,761 was awarded a cost-plus-fixed-fee contract for support to the Army Research Laboratory Cyber Network Defense Research and Services. Work will be performed in Adelphi, Maryland with an estimated completion date of May 15, 2017. Bids were solicited via the Internet with one received. Fiscal 2014 research, development, testing and evaluation funds in the amount of $6,125,690 are being obligated at the time of the award. Army Contracting Command, Adelphi, Maryland is the contracting activity (W911QX-14-F-0020).

BAE Systems Land & Armaments L.P., York, Pennsylvania, was awarded a $16,098,318 modification (P00003) to W56HZV-14-C-0002 for the advance purchase of V903 engines for Paladin integrated management low rate initial production vehicles. Work will be performed in Columbus, Indiana (77 percent), and York, Pennsylvania (23 percent), with an estimated completion date of Dec. 31, 2018. Fiscal 2014 other appropriations in the amount of $16,098,318 are being obligated at award. U.S. Army Contracting Command-Tank and Automotive, Warren, Michigan, is the contracting activity.

Conrad Shipyard LLC*, Morgan City, Louisiana, was awarded an $8,537,720 modification (0001) to W912BU-14-G-0002 for performance alterations to lengthen the National Aeronautics and Space Administration barge Pegasus. Performance location is Amelia, Louisiana, with an estimated completion date of Feb. 1, 2015. Fiscal 2014 other appropriations in the amount of $8,537,720 are being obligated at award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity.
*Small Business

READOUT: NSA ADVISOR RICE'S MEETING WITH SYRIAN OPPOSITION PRESIDENT JARBA

FROM:  THE WHITE HOUSE NATIONAL SECURITY 

May 13, 2014

Readout of National Security Advisor Susan E. Rice's Meeting with Syrian Opposition Coalition President Ahmad Jarba

This afternoon, President Obama joined National Security Advisor Susan Rice’s meeting with Syrian Opposition Coalition President Ahmad Jarba and the Coalition delegation.  President Obama and Ambassador Rice reaffirmed that Bashar al-Assad has lost all legitimacy to rule Syria and has no place in Syria’s future.  Both sides reaffirmed their commitment to a political solution to the conflict that includes a transition to a new governing authority.  President Obama welcomed the Coalition’s leadership and constructive approach to dialogue, and encouraged the Coalition to further its vision for an inclusive government that represents all of the people of Syria.  President Jarba thanked President Obama for U.S. non-lethal assistance, which totals $287 million and supports the Coalition, local communities inside Syria, and the moderate armed opposition.  He also thanked the United States for being the largest donor of humanitarian assistance.  The $1.7 billion committed by the United States goes to those in need inside of Syria and in neighboring countries.

The President and Ambassador Rice condemned the Assad regime’s deliberate targeting of Syrian civilians through aerial bombardments—including the use of barrel bombs—and the denial of food and humanitarian assistance to civilians located in areas under siege by the regime.  They emphasized the responsibility of the Syrian regime to provide rapid, safe, and unhindered humanitarian assistance.  The delegations also discussed the risks posed by growing extremism in Syria and agreed on the need to counter terrorist groups on all sides of the conflict.

President Obama and Ambassador Rice emphasized the illegitimacy of the regime’s plans to hold elections and underscored that the United States stands with the moderate opposition and the Syrian people in their efforts to end the conflict and facilitate a political transition.

WHITE HOUSE STATEMENT REGARDING ATROCITIES IN CENTRAL AFRICAN REPUBLIC

May 13, 2014

FROM:  THE WHITE HOUSE 

Statement by the Press Secretary on the Central African Republic

In late 2012, armed groups began a rebellion that sparked a period of devastating instability, lawlessness, and anarchy in the Central African Republic (CAR) that led to the overthrow of its government in early 2013.  Escalating violence and human rights abuses set the stage for the eruption of sectarian conflict by December 2013.  Communities that have lived together peacefully for generations are being torn apart along sectarian lines.  More than 2.5 million of the country’s 4.6 million people need humanitarian assistance.  Approximately one million people have been displaced.  Growing attacks perpetrated by both Muslim and Christian militias have brought CAR to a crisis of disastrous proportions.   

That is why today President Obama issued a new Executive Order declaring a national emergency and authorizing the imposition of sanctions to deal with the threat posed by the situation in the CAR.  The Executive Order also imposes sanctions on five individuals – sending a powerful message that impunity will not be tolerated and that those who threaten the stability of the CAR will face consequences.  Today's actions follows the UN Security Council's unanimous vote in January to establish a sanctions regime against those responsible for instability and atrocities in the CAR, and the listing of three individuals by the UN Security Council CAR Sanctions Committee on May 9.

The United States continues to work with the international community, regional partners, and CAR’s transitional authorities to help set the country on a path toward recovery.  We strongly support the African Union, French, and European Union forces who have been working to reestablish security for the people of the CAR, and the UN peacekeepers who will continue their heroic work.  We stand with the courageous individuals who continue to call for peace and reconciliation.  We will continue to provide support to the Transitional Government as it works to restore governance and pave the way for a return to an elected government, and to deliver humanitarian assistance to those affected by the conflict.  We urge all parties to end the violence, to ensure justice and accountability for perpetrators of human rights abuses, and to work together to forge a brighter and more prosperous future for all Central Africans.

SECRETARY KERRY, ITALIAN FOREIGN MINISTER MOGHERINI MAKE REMARKS AFTER MEETING

FROM:  U.S. STATE DEPARTMENT 

Remarks With Italian Foreign Minister Federica Mogherini After Their Meeting

Remarks

John Kerry
Secretary of State

Treaty Room

Washington, DC

May 13, 2014

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SECRETARY KERRY: Good afternoon, everybody, I guess almost good evening. Federica,benvenuta a Washington. We’re happy to have you here. I’m very delighted to welcome Foreign Minister Mogherini to Washington. We met in Rome about two months ago, I think it was, and in the best Italian-American tradition, we bonded over food as well as good discussions.

At the time, we were co-hosting an event that I might mention here which we consider important, which is support for the USA Pavilion at the Milan Expo 2015, which is focused on the challenge of feeding the planet, of food security and energy for life. And we believe it’s important to participate in this. We look forward to it. And I think when we consider the huge numbers of young people growing the populations of countries throughout the world, but particularly in Africa, South Central Asia, and elsewhere, the challenge of food security is critical, and we’re very grateful to Italy for hosting this affair and for highlighting the importance of this challenge.

I think everybody here knows, and if they don’t, I will restate it clearly – Italy is one of the United States’ most important allies. We, I think, can safely say that our alliance has never been stronger than it is at this moment. And today, we spoke about some of the most difficult challenges that we face at this moment of time – from Ukraine to Syria to Libya, and always the challenge of Iran and the nuclear program, and the potential of peace – still a concern for peace in the Middle East.

May 25^th, we believe, we are convinced, is a real opportunity for the people of Ukraine to express their will through the ballot box. And Ukraine’s future absolutely should not be determined at the barrel of a gun. We all stand together, united for the independence and sovereignty of Ukraine, and we don’t believe that ballots that are marked in Moscow or referenda directed from there should decide Ukraine’s future.

We deplore today’s violence and senseless killings, and the separatists who are very busy spreading fear and violence in Donetsk and Luhansk really need to answer the real call of the people of Ukraine, which is under the banner of “Let us vote.” And that vote, the real vote, will take place in the election on May 25^th.

The other key step in the path to heal the tensions politically are the Ukrainian-led, OSCE-supported national dialogue and the roundtables that are to take place across Ukraine. These will focus on decentralization and constitutional reform. And the United States very strongly supports this process. We’re in constant touch with the OSCE itself, with Foreign Minister Steinmeier and others, and with Foreign Minister Lavrov of Russia, in efforts to try to encourage this process to take hold as fully as possible, as fast as possible. And we also welcome the OSCE’s appointment of a veteran diplomat, Walter Ischinger, Ambassador Ischinger, in order to serve as a mediator in that process.

So let me be clear: We expect to see, want to see, and will work to achieve real de-escalation, disarmament, evacuation of occupied buildings in exchange for amnesty and dialogue. And that is what is called for in the Geneva statement of the 17^th last month, and also the OSCE roadmap. We hope that the OSCE will support the Government of Ukraine in facilitating these steps as rapidly as possible.

Finally, I want to welcome the news that our friends in the European Union have applied additional sanctions on Russia – Russians, Russian individuals and Russian companies involved in the occupation of Crimea. The EU has made it clear that should the May 25^th elections be disrupted in Ukraine, then there will be additional sanctions. So Russia, we would say – and we don’t say this punitively, but Russia really does face a choice, and the choice is to allow the people of Ukraine to determine their own future without interference from outside and with efforts by all of us to try to assist in de-escalating the tension, removing people from buildings, pulling back security forces, counterterrorism initiatives – all of those things – in order to give the people of Ukraine the ability to breathe through the democratic process.
We also want to be clear: There are still threats to a Europe whole, free and at peace. And because of that, our commitment to Article 5 of the NATO Charter remains ironclad. NATO territory is inviolable, and we will defend every piece of it. That’s why we are deploying United States military assets to the region and that’s why the United States is encouraging our allies both to contribute to the reassurance effort that is currently underway as well as to meet their NATO commitments with respect to defense spending and planning.

The foreign minister and I also discussed briefly the efforts to eliminate serious chemical weapons. We greatly appreciate Italy’s assistance in eliminating the Syrian chemical weapons, including offering the port of Gioia Tauro for loading the materials onto the vessel Cape Bay – Cape Ray. And I want to emphasize this really underscores Italy’s very strong commitment to this initiative, to help us destroy these weapons in the most secure and safe environment possible.

I might underscore, we are currently slightly over 92 percent – 92 percent – of all of the chemical weapons of Syria declared being removed. There are still challenges with respect to some knowledge about undeclared, but at the moment we need to insist that the Syrian regime fully comply with its obligations under the Chemical Weapons Convention and the UN Security Council Resolution 2118. And we will remain vigilant until this is achieved.

The last issue we discussed was the issue of Libya. I again thank Italy for hosting the donor conference in March, the ministerial conference that we held on Libya. The United States and Italy are very committed to the transitional process that needs to take hold even more in Libya, and we will continue to support the Libyan Government as it works overtime to be able to provide a democratic process and to deliver both good governance and security to the people of Libya.

So, Federica, thank you for taking time to be with us today. I know you have to fly back to join all of us at the meeting in London, and then fly back again, so we appreciate enormously your efforts to be here today. And more especially, we appreciate the good work we’re doing together. Thank you.

FOREIGN MINISTER MOGHERINI: Thank you, John. Thank you for welcoming me here in my first official visit abroad – and that was not by chance. That was a clear sign of showing how strong our – how good, how excellent our relation is, both bilaterally and in the international organizations we are in together. Actually, you visited Rome, I think, twice in the last couple of months. We were extremely happy to have you in the conference on Libya in the beginning of March, as we were extremely happy to host you during the visit of President Obama last month in Rome. I felt it was the most natural thing to do to pay my first visit in Washington to show how strong and excellent our work together is in all fields.

Let me start by saying that I have been flying here directly from Brussels, where yesterday we had the foreign council on – whose main concern was Ukraine; how important it is that we speak with one voice, and we act in the same way. I want to thank you because I have experienced in this first month of my mandate good – extremely good coordination whenever it comes to facing a difficult situation.

I think that part of the important response that we’ve given to the crisis in Ukraine has been in – speaking with one voice, both in Europe, across the Atlantic, in the G7, in the UN. And I think that has to stay our first priority, to speak with one voice when it comes to dealing with the crisis in Ukraine.

At the council yesterday in Brussels, we decided exactly on the same line as you described – a mix of instruments for making sure that a solution to the crisis is found in the most effective and quick way. First priority is to stop the violence on the ground, to de-escalate, as was stated in the Geneva agreement of the 17^th, and as we should make sure that it is implemented on the ground.

We all agree and we’ve always all agreed on the fact that there is no military solution to the crisis that is extremely concerning for all of us. And the political answer to this crisis is a mix of creating the conditions for internal and external dialogue, the national dialogue that is going to start tomorrow, and that the leadership of the Ukrainian Government with the full support of the U.S.A., with the full support of the European Union, and following your words also on the United States and the international community, and on the other side, sanctions that always say it’s a way putting political pressure to get the result, which is a political solution to the crisis.
But now the first objective for us is decreasing tensions, stopping the violence, making the elections of the 25^th happen, and making them a success, and at the same time, supporting the Ukrainian Government to follow up the process of additional reforms in the inclusive way in which they have committed to do.

As you said, we discussed also all the other crises that are open around us. Ukraine is extremely important, especially for us Europeans, but I know also for you how deep the concern is. Still, it should not shadow other crises that are extremely dramatic around us. Starting from Syria, three years of war, the need for re-launching a way of finding a political stop to the conflict, finding ways of giving humanitarian assistance, because there are people dying, children dying, and fleeing from the country. The surrounding countries that are by miracle sustaining this conflict – I think of Lebanon – and the process of dismantling the chemical arsenal that we are – happy is not the appropriate word, I guess, to describe that, but probably proud to contribute to by offering the Port of Gioia Tauro for the – for this operation. And again, it’s extremely important that at least this path is at least partially a successful one.

As you said, we discussed Libya, shared the concern for a situation that in terms of security on the ground, in terms of control of the territory and of the borders of the country, is extremely worrying and unstable. The way is trying to support the internal democratic dynamics, political dynamics in the country, so that they manage to get to forming a government able to deal with the control of the country and of the territory itself. For us, it’s a priority, and I know that we have you and all the international community at our side in trying to find the most useful way on that.
Thank you again for your commitment to Expo. We appreciate it very much, and we are willing to host you next year, but for sure before that in Milan for Expo 2015. It’s a great occasion for us to underline how much we can do together to fight one of the most dramatic elements of our time. On one side over-nutrition; on the other side, people dying, for hunger. There’s a contradiction there that we have to face and try to solve, and Expo is going to be a great chance for the international community to face this problem together and try to solve it and to move it forward.

So thank you very much.

SECRETARY KERRY: Thank you. Thank you very much, Federica. We appreciate it very, very much. And let me – we are honored that you selected to come here first. We really appreciate that. And it is a sign of the special relationship and the way we work together, so I’m very grateful. We all are.

FOREIGN MINISTER MOGHERINI: Thank you, but it’s natural. That’s natural.

MS. PSAKI: The first question will be from Roz Jordan of Al-Jazeera.

QUESTION: Thank you, Madam Minister. Welcome to Washington. And Mr. Secretary, three brief questions. First, regarding Syria: As we all know, Lakhdar Brahimi has stepped aside as the special envoy for Syria. He is the second person to fail in this job after Kofi Annan. Can a third special envoy succeed where he and Annan have failed? The SNC, for its part, is adamant that a political calculation cannot be brought about unless its armed component does receive weapons from the West, and it says it will be making that request when all of you gather in London on Thursday. Will the U.S. support the SNC’s request? Does the U.S. believe that the SNC is mistaken in this regard?

Regarding Nigeria, the U.S. coordination team led by the State Department is now on the ground; surveillance planes are in the air. Does the U.S. have a better sense of where these kidnapped girls and their kidnappers are? Will the Nigerian army have the capability of rescuing them, if indeed they are located via intelligence and surveillance methods? And is the U.S. prepared to offer its own troops to assist the Nigerian army? Is Abuja willing to have that sort of assistance?

And finally, the Saudi Government has invited the Iranian foreign minister, Mr. Zarif, to Riyadh for meetings. Does the U.S. welcome this? Is this the first sign of a rapprochement? Did the U.S. have anything to do with this invitation extended by the Saudi foreign minister? Thank you.

SECRETARY KERRY: I think there were about 9 or 10 questions there. (Laughter.)

FOREIGN MINISTER MOGHERINI: All yours. (Laughter.) I’m not kidding.

QUESTION: She already spoke on Syria.

SECRETARY KERRY: First of all, Mr. Brahimi did not fail. It’s a great mistake here to place on a peacemaking effort the notion that the failure of an envoy or a special envoy, or the inability to be able to reach agreement is the fault of the envoy. It’s not. It’s the fault of a party – Assad – who will not negotiate, who absolutely refused to negotiate at every single session.
Now, when this was announced in – I think it was March, April of a year ago, when I went to Moscow and Sergei Lavrov joined in the announcement with President Putin’s support, it was because at that point in time, there was a sense that there was a need to negotiate. And the Russians supported that negotiation with the belief that that was the only way to settle this.
Regrettably in the intervening months after that, as everybody knows, there was a growth in the number of extremist groups who were trying to remove Assad, and then an increasing fight between the extremists and the moderate opposition. So whether it was Ahrar al-Sham or al-Nusra or al-Qaida or the Iraqi State Levant and so forth, those groups began to detract, and frankly that detracted from the effort. In addition to that, the intervening time also saw Hezbollah, a terrorist organization, cross international lines to go in and actively fight on the ground, in addition to which there are IRGC forces – Iranian forces – on the ground in Syria.
So the dynamics shifted on the ground between the time of the announcement and Mr. Brahimi’s efforts, and I applaud his efforts. He patiently and diligently worked to give the parties an opportunity to be able to negotiate in good faith in pursuance of the Geneva agreement, which was to have a transition government that could move to a peaceful resolution. The opposition showed up; the opposition did a better job than the regime of making its case. And the opposition consistently tried to adhere to the rules of talking about the future with respect to a transition.

The Assad regime never did. And so this represents a continuation of the stubborn clinging to power of a man who is willing to drop barrel bombs on his people, to gas them, to shell artillery on innocent civilians, to starve people in their homes, and somehow claim a right to be able to run a country. I don’t think the civilized world is going to stand for that, and so there will be a continuation of an effort to put pressure on Mr. Assad.

President Obama is continuing to support the moderate opposition. He has increased the support to the moderate opposition, as have others, with a belief that we need to get to a negotiation at some point in time. And when the parties are ready to negotiate, then a mediator will have a chance to be able to help them do so, and everyone can succeed by giving the people of Syria an opportunity to reclaim their future.

With respect to Nigeria, our people are on the ground. We are proud to be contributing to the effort in order to help find these young women. And as everybody knows, there was recent evidence demonstrating that at least a certain group of them were together and in one place at a certain period of time. We don’t know exactly when. What I can guarantee you is that we will make every effort possible in order to help free those young women, and we are there helping to do that now. I’m not going to discuss what mechanism or methodology may or may not be used in order to do so, except to say that we are committed to this effort together with, I think, decent, civilized people all around the world who think this is a barbaric, horrendous act against the conscience of people everywhere. And so the President has all options with respect to the future. We’re dealing with the government of another country. That’s always got its diplomatic requirements.

With respect to the Saudi invite, no, the United States did not have anything to do with this invitation, but we’re delighted to see our good friends, the Saudis, engaged in diplomacy that may or may not be able to add to any number of different possibilities in the region. They have a longstanding difficulty in that relationship, but it is completely in keeping with their prerogatives to be able to reach out and engage. And we encourage it, we welcome it, and we hope that it might be able to produce something with respect to one of several conflicts in which the Iranians could perhaps have an impact.

MS. PSAKI: The next question will be from Paolo Valentino.

QUESTION: Thank you. I have only one question for each of you. Mr. Secretary, I’m afraid my question will be a bit out of context, but the subject has been vividly discussed in the last 24 hours in Italy and in Europe. In his recently released book, former Treasury Secretary Tim Geithner claims that in 2011, some European officials approached him asking for help in a scheme to force Silvio Berlusconi out of power, and that the answer was no.

Now, despite the fact – I quote – “that it would have been desirable to have better leadership in Europe,” as a member of the cabinet, do you have anything to say on behalf of the Administration? And as then-chairman of the Senate Foreign Relations Committee, do you have any recollection of having any hint or echo of this subject at the time?

For Minister Mogherini, Ukraine: Today, you sounded a note of cautious optimism about the possibility of launching a national dialogue based on the apparent acceptance from both Kyiv and Moscow of the OSCE roadmap. Now, how does this square with the growing violence which, even today, claimed some victims? And did you, in your talks, discuss the eventual possibility of floating the idea of a UN-sponsored interposition force in Ukraine? Thank you.

FOREIGN MINISTER MOGHERINI: I got the easier question. No, we didn’t discuss that option. It is not on the ground so far. As concerns the first part of the question, it is exactly because violence on the ground is not diminishing that we need to support a national dialogue effort. Tomorrow, as far as I know, the first national dialogue exercise will start in Ukraine. Obviously, it is an extremely difficult process. It is not easy. It is not to be given for granted that it works. But still, we are putting all of our political pressure on all sides, including, obviously, Russia, to be coherent – words and actions – and allow, first, violence on the ground to stop, and second, Ukrainians to talk to each other and to find their way of ruling the country as one country. We have said from the beginning territorial integrity, unity, sovereignty of Ukraine is our goal. For doing that, for achieving that, we need internal dialogue and the dialogue with all the regional actors relevant.

I’m sorry, I guess I have to repeat something in Italian for the Italian press. That’s right. If I
manage to say the same things. (Laughter.) I’ll try. (In Italian.)

SECRETARY KERRY: Io non so niente.

FOREIGN MINISTER MOGHERINI: I said the same. I said the same. I said the same. Exactly the same.

QUESTION: Did you read the book?

SECRETARY KERRY: No. No, I was not – I – absolutely, this is the first I’ve ever heard of it. Thank you. Grazie tanto.

FOREIGN MINISTER MOGHERINI: And can I --

SECRETARY KERRY: Honestly, I hadn’t – I knew nothing as Chairman of the Foreign Relations Committee, and I know nothing about it now. You have to ask somebody else.

FOREIGN MINISTER MOGHERINI: Can I add just one thing that I forgot to say – two small things that I forgot to say --

SECRETARY KERRY: Oh, yes
.
FOREIGN MINISTER MOGHERINI: -- in those remarks? Sorry, it’s a little bit of jetlag coming in. One is the dimension that we discussed and I wanted to say publicly how much we appreciate the efforts that John has been putting and is still putting on the Middle East peace talks that are now facing a difficult time, but his efforts and his commitment to that are precious. There are all – not only us Italians, but all Europeans supporting this effort very much, and hope and think that this work is an excellent opportunity for the Middle East to finally find a way out of the conflict.

And second, we also discussed Afghanistan and to recommit ourselves, once the election phase is over and there’s a new leadership in Afghanistan, to accompany their democratic transition furthermore.

MS. PSAKI: Thank you everyone.

SECRETARY KERRY: Is that it? Thank you very much, everybody. Thank you.

NASA SCIENTISTS RETURN FROM ANTARTICA

FROM:  NASA 

NASA aircraft and scientists have returned to the United States after a short ice-surveying mission to Antarctica. Despite having only a week of flying time, the team returned with crucial scientific data and a trove of spectacular aerial photographs.

The flights over Antarctica were part of Operation IceBridge, a multi-year mission to monitor conditions in Antarctica and the Arctic until a new ice-monitoring satellite, ICESat-2, launches in 2016. ICESat-1 was decommissioned in 2009, and IceBridge aircraft have been flying ever since.

Previous Antarctic IceBridge flights took off from Punta Arenas, Chile, but this time NASA’s P-3 took off from the sea ice runway at McMurdo Station, a first for the team. Operated by the National Science Foundation, the station is located on Antarctica’s Ross Island. Flying from McMurdo meant the IceBridge team was able to survey some areas that were unreachable from Chile.

In 43 hours across five science flights in late November, the P-3 collected more than 20,000 kilometers (12,000 miles) worth of science data. Instruments gathered information about the thickness of the ice over subglacial lakes, mountains, coasts, and frozen seas.

Laser altimeter and radar data are the primary products of the mission, but IceBridge project scientist Michael Studinger almost always has his digital camera ready as well. On November 24, 2013, he took the top photograph of a multi-layered lenticular cloud hovering near Mount Discovery, a volcano about 70 kilometers (44 miles) southwest of McMurdo. The Operational Land Imager (OLI) on Landsat 8 captured a wider satellite view (second image) of McMurdo and New Zealand’s nearby Scott Base on November 30, 2013.

Lenticular clouds are a type of wave cloud. They usually form when a layer of air near the surface encounters a topographic barrier, gets pushed upward, and flows over it as a series of atmospheric gravity waves. Lenticular clouds form at the crest of the waves, where the air is coolest and water vapor is most likely to condense into cloud droplets. The bulging sea ice in the foreground is a pressure ridge, which formed when separate ice flows collided and piled up on each other.  Image Credit: Michael Studinger Caption: Adam Voiland.

ACTING ASSISTANT AG O'NEIL'S REMARKS ON MEDICARE FRAUD STRIKE FORCE ARRESTS OF 90 DEFENDANTS

FROM:  U.S. JUSTICE DEPARTMENT 

Remarks by Acting Assistant Attorney General David A. O’Neil for the Medicare Fraud Strike Force Takedown

WASHINGTON ~ Tuesday, May 13, 2014

In today’s nationwide takedown, scores of defendants were arrested across the country for engaging in health care fraud – to the tune of hundreds of millions of dollars in fraudulent bills to Medicare.   Among the defendants charged today were doctors, home health care providers, doctor’s assistants, pharmacy owners and medical supply company executives.   The crimes charged represent the face of health care fraud today – doctors billing for services that were never rendered, supply companies providing motorized wheelchairs that were never needed, recruiters paying kickbacks to get Medicare billing numbers of patients.   The fraud was rampant, it was brazen, and it permeated every part of the Medicare system.

But law enforcement is striking back.   In Brooklyn, Tampa, Detroit, Houston, Los Angeles, and right here in Miami, 90 defendants were charged today with having submitted over $260 million in fraudulent claims to Medicare.   Using cutting-edge, data-driven investigative techniques to find fraud, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars.   Overall, since its inception, the Department of Justice’s Medicare Strike Force has charged nearly 1,900 individuals involved in approximately $6 billion of fraud.

Today’s defendants played a variety of key roles in the schemes alleged in this takedown.   But most strikingly, at the center of this takedown are the 27 medical professionals, including 15 physicians, who we allege breached the public trust and their professional duties of care, selling out their medical licenses for the lure of easy money.
 
For example, in Houston, we are announcing charges against five doctors employed by a health care clinic who were paid to provide $1.4 million worth of referrals for home health treatments that were not necessary and often not even provided.

In Los Angeles, we have charged a physician with false billings for medically unnecessary home health and medical equipment orders that cost Medicare over $23 million -- including hundreds of expensive power wheelchairs for people who did not need or want them.

In some of these schemes, we saw doctors going to extravagant lengths to conceal their fraud.   In Detroit, we charged a doctor who allegedly conspired with his billing company to conceal his false billings through a complex web of sham partnerships with other health care companies.

In other schemes, we seized extravagant fruits of the crimes, including bank accounts, jewelry, and luxury vehicles tied to the scheme.

The foundation for the success of the Medicare Fraud Strike Force is data.   Cold, hard data.   Medicare recently made physician billing data public for the first time, which has prompted reporters and researchers to take a close look at who is billing Medicare for what.   Our agents and prosecutors have used those numbers and other real-time data for years.   We take that data, provided to us by CMS, and we use sophisticated analytic tools to identify billing patterns that stand out compared to other health care providers in their communities.   The result?   We have identified billions of dollars in Medicare fraud, spread across the country.   This real-time data helps us pinpoint new schemes as they arise so we can stay one step ahead of the fraudsters.

But it is not just data.   We are also using traditional law enforcement techniques used in other types of investigations, like those used in corruption or organized crime cases, to develop evidence.   Undercover officers, Title III wiretaps, hidden cameras, GPS trackers. And I also want to highlight the role that Medicare beneficiaries can play in rooting out fraud.   In many of the schemes charged today, powerful evidence of fraud came from Medicare beneficiaries finding out what was billed to Medicare using their numbers and coming forward to tell law enforcement what they were seeing.

We are investigating and prosecuting all levels of these schemes - from the recruiters to the medical professionals to the owners of these clinics.   We will bring to justice those who steal from Medicare.   With an overall conviction rate of 95%, the Medicare Fraud Strike Force has sent that message to over 1,400 Medicare fraudsters who have been convicted since the Strike Force began operations in 2007.   In fact, just yesterday, a jury convicted a Dallas doctor who took cash in exchange for falsely certifying that Medicare beneficiaries qualified for home health services.

Make no mistake, together with our partners in the U.S. Attorneys’ Offices, the FBI, and the Department of Health and Human Services, the Criminal Division of the Department of Justice will continue to aggressively investigate health care fraud using every tool available to us.   We are committed to the fight against Medicare fraud.   We will bring to justice those who loot our nation’s health care funds, and we will recover what has been stolen.

ONE ARRESTED, ANOTHER SOUGHT AS A FUGITIVE FOR ROLES IN PYRAMID SCHEME

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Criminal Charges Filed Against Two Principals of Massachusetts-Based Telexfree

On Friday, May 9, 2014, the U.S. Attorney for the District of Massachusetts charged James M. Merrill, of Ashland, Massachusetts, and Carlos N. Wanzeler, of Northborough, Massachusetts, with conspiracy to commit wire fraud in connection with the alleged TelexFree pyramid scheme previously charged by the Securities and Exchange Commission. Federal authorities arrested Merrill on Friday, and an arrest warrant was issued for Wanzeler, who the Department of Justice announced is a fugitive. The Department of Justice also announced it has executed 37 seizure warrants seizing assets relating to the fraudulent pyramid scheme.

The criminal charges against Merrill and Wanzeler related to the same conduct charged in a civil enforcement action filed by the SEC on Tuesday, April 15, 2014, against Merrill, Wanzeler, and others. Those charges were filed under seal, in connection with the Commission's request for an immediate asset freeze. That asset freeze, which the U.S. District Court in Boston ordered on Wednesday, April 16, secured millions of dollars of funds and prevented the potential dissipation of investor assets. After the SEC staff implemented the asset freeze, at the SEC's request the Court lifted the seal on April 17. On April 30, 2014, the Court entered preliminary injunctions extending the asset freeze as to defendants Santiago De La Rosa, of Lynn, Massachusetts, and Randy N. Crosby, of Alpharetta, Georgia. On May 8 and 9, the Court entered preliminary injunctions extending the asset freeze as to all the remaining defendants (Merrill, Wanzeler, TelexFree, Inc., TelexFree, LLC, Joseph H. Craft, of Boonville, Indiana, Steve Labriola, of Northbridge, Massachusetts, Faith R. Sloan, of Chicago, Illinois, and relief defendants (TelexFree Financial, Inc., TelexElectric, LLLP, and Telex Mobile Holdings, Inc.).

 The SEC alleges that TelexFree, Inc. and TelexFree, LLC claim to run a multilevel marketing company that sells telephone service based on “voice over Internet” (VoIP) technology but actually are operating an elaborate pyramid scheme. In addition to charging the company, the SEC charged several TelexFree officers and promoters, and named several entities related to TelexFree as relief defendants based on their receipt of investor funds. According to the SEC's complaint filed in federal court in Massachusetts, the defendants sold securities in the form of TelexFree “memberships” that promised annual returns of 200 percent or more for those who promoted TelexFree by recruiting new members and placing TelexFree advertisements on free Internet ad sites. The SEC complaint alleges that TelexFree's VoIP sales revenues of approximately $1.3 million from August 2012 through March 2014 are barely one percent of the more than $1.1 billion needed to cover its promised payments to its promoters. As a result, in classic pyramid scheme fashion, TelexFree was paying earlier investors, not with revenue from selling its VoIP product but with money received from newer investors.

In related proceedings, on May 6, 2014, the U.S. Bankruptcy Court in the District of Nevada granted the SEC's motion to transfer venue of those proceedings from Nevada to Massachusetts. The SEC had contended that the TelexFree entities hastily filed for bankruptcy in Nevada on Sunday night, April 13, 2014, in a transparent attempt to avoid Massachusetts. The SEC had noted that TelexFree does virtually no business in Nevada but rather was headquartered in Marlborough, Massachusetts. The SEC also argued that TelexFree did not have a legitimate business capable of reorganization under the bankruptcy code. The bankruptcy case will be transferred to Massachusetts for all further proceedings.

DOJ RELEASES CIVIL RIGHTS DIVISION'S ACCOMPLISHMENTS 2013 REPORT

FROM:  U.S. JUSTICE DEPARTMENT

Monday, May 12, 2014

Civil Rights Division Highlights Accomplishments and New Records for 2013
The Department of Justice Civil Rights Division today released its accomplishments report for 2013.  This report supplements the division’s first accomplishments report , issued last year, on the division’s work during the first four years of Attorney General Eric Holder’s leadership.  In the division’s 57th year, its substantial caseload reflects the persistence of civil rights challenges that create barriers to equality and freedom.  But in 2013, the division continued to set new records for numbers of cases and to reach first-of-their-kind agreements in a number of areas.  Through its enforcement efforts, the division works to fight discrimination and protect the civil and constitutional rights of people across the country.

The division’s 2013 accomplishments report highlights its work to advance three core principles: expanding opportunity for all, safeguarding the fundamental infrastructure of democracy and protecting the most vulnerable among us.

“Last year, the Civil Rights Division worked to safeguard the most fundamental rights of American democracy, to extend the promise of equality and opportunity, and to advance the cause of justice that has defined this country since its earliest days,” said Attorney General Holder.  “I commend the dedicated men and women of the Civil Rights Division for their leadership on these critical efforts.  Their work is exemplary and in many cases groundbreaking.  It goes to the heart of who we are as a nation and as a people.  And that’s why it continues to be a top priority for this Department of Justice: because we are, and will always be, firmly committed to overcoming persistent threats as well as new challenges in order to ensure equal justice under law.”

“Over the course of 2013, the Civil Rights Division continued the impressive track record it initiated during the first four years of Attorney General Holder’s leadership,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “But for all that the division has accomplished, much work remains.  The division remains committed to meeting the next generation of civil rights challenges and to combating discrimination in all its forms.  We look forward to an even more productive 2014.”
 
Expanding opportunity for all

The division’s efforts to ensure equal access to education, housing, consumer credit and employment continue to set new records and to pioneer new models for bringing equal opportunity to all.  For example, working with the Consumer Finance Protection Bureau, the division reached its largest ever auto lending settlement when Ally Bank and Financial Inc. agreed to pay $98 million for pricing discrimination in its automobile lending practices.  The settlement provided $80 million in direct relief to African-American, Hispanic and Asian/Pacific Islander borrowers who were charged higher interest rate markups on auto loans than white borrowers.  The division has obtained more than $800 million in monetary relief in fair lending settlements since the unit was founded in 2010.

Ahead of this year’s 60th anniversary of the landmark Supreme Court decision Brown v. Board of Education, in 2013, the division launched new tools and entered into agreements to address racial disparities in education systems across the country.  After an investigation into disciplinary practices in the Meridian, Mississippi, public school system, the division found that black students frequently received far harsher disciplinary consequences, including arrests and incarceration, than white students for comparable and often minor misbehavior.  The department entered into a landmark settlement with the Meridian school system that will create a discipline system that treats all students equally regardless of race.  Also, to help all school districts administer discipline fairly and consistently, the division, along with the Department of Education, issued a groundbreaking joint discipline guidance for schools to prevent and address racial discrimination in school discipline.  This guidance, along with its additional technical assistance material, provides important information on the means by which schools can act to dismantle the school-to-prison pipeline.

The division continues its efforts to eliminate unnecessary segregation of persons with disabilities and to ensure that individuals with intellectual and developmental disabilities are given the opportunity to participate fully in their communities, in accordance with the Supreme Court’s decision in Olmstead v. L.C.  In 2013, the division investigated Training Thru Placement (TTP), one of the largest facility-based employment service providers in Rhode Island, and a sheltered workshop in a Providence high school.  The division found that workers with intellectual and developmental disabilities typically remained at TTP for decades, earning sub-minimum wages, and that the high school workshop acted as a pipeline to TTP.  The department’s investigation found that the workers with disabilities at TTP were not in the most integrated setting appropriate for them; rather, they were capable of working in real jobs with supports and participating in activities in the community.  The division entered into an interim agreement with the state of Rhode Island and the Providence Public School District regarding TTP and the school-based workshop and expanded its investigation to all state-funded employment and day facilities to address the rights of people with disabilities to receive state employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs.  Since 2009, the division’s Olmstead enforcement work has helped protect the rights of more than 46,000 people with disabilities.

T he division also continues to aggressively enforce the Uniformed Services Employment and Reemployment Rights Act (USERRA), ensuring that servicemembers returning from active duty are not penalized by their civilian employers.  The division’s USERRA program is critically important because USERRA cases typically involve small amounts of back pay; without the division’s help, many servicemembers would not be able to find or afford private attorneys to take their cases.  In Forsyth County, North Carolina, for example, the division reached an agreement to vindicate the employment rights of an Army National Guard soldier who was discharged from his job as a sheriff without cause less than a year after completing a deployment to Iraq.

Finally, the division collected a record in civil penalties, nearly $900,000, through its enforcement of the Immigration and Nationality Act (INA), which prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, document abuse and retaliation or intimidation.  The division also collected more in back pay than in any year in the past 10 years and settled major cases involving discriminatory documentary practices by Macy’s and Centerplate.

Safeguarding the fundamental infrastructure of democracy  

In the wake of the Supreme Court’s decision in Shelby County v. Holder, the division continues to use all of the tools still available in the Voting Rights Act (VRA) to ensure that all Americans can cast a ballot free from racial discrimination.  In 2013, the department filed three complaints under the VRA to protect the rights of minority voters in Texas and North Carolina to challenge discriminatory voting laws; each of these challenges alleges that these state laws were enacted with discriminatory intent.

The division also expanded its record number of agreements with law enforcement agencies by entering into model agreements with the University of Montana Office of Public Safety and the Missoula Police Department to ensure that police services are delivered without discrimination, that sex crimes are fully and adequately investigated and that victims are treated fairly and with respect after an investigation found systemic failures to protect women victims of sexual assault.

During Fiscal Year 2013, the division’s Courts Language Access Initiative worked with the court systems in 17 states to ensure that individuals are not denied access to important court proceedings because of their national origin and their limited English proficiency.  Access to state courts is critically important.  Whether cases involve child custody, domestic violence, foreclosure, wage claims or criminal prosecution, the stakes are too high in the courtroom context for parties or witnesses to be effectively excluded from participation.                                                  
Protecting the most vulnerable among us

The division prosecutes crimes to ensure protections for some of the most vulnerable populations in the country: those who are abused and trafficked for sex work or labor; those who are attacked out of hate due to the color of their skin, where they worship or who they love.  The division and its partners in the U.S. Attorneys’ Offices across the country filed 141 federal criminal civil rights cases, obtaining convictions of 166 defendants, in Fiscal Year 2013 –more than in any previous year in the division’s history.

For example, the division convicted 23 defendants on federal hate crimes charges – building on the division’s record in Fiscal Years 2009-2012, in which the division convicted 74 percent more individuals than in the preceding four years.  The division’s Appellate Section also defended the constitutionality of the Matthew Shepard and James Byrd Jr. Hate Crime Prevention Act in court.  Through its Human Trafficking Prosecution Unit, the division and its partners in the U.S. Attorneys’ Offices also brought 71 human trafficking cases, the most in the history of the division.  The division also brought 53 cases involving sex trafficking, a 55 percent increase over the previous year, and obtained convictions of 90 individuals for trafficking crimes.

The division also works to develop policy and legislative proposals to close the gaps in our nation’s civil rights protections.  This year, the division provided technical assistance on numerous legislative initiatives, including the reauthorization of the Violence Against Women Act and the Employment Non-Discrimination Act.

PRESIDENT OBAMA'S LAW ENFORCEMENT BRIEFING ON IMMIGRATION REFORM

FROM:  THE WHITE HOUSE 

Remarks by the President at Law Enforcement Briefing on Immigration

Room 350
Eisenhower Executive Office Building

May 13, 2014

12:01 P.M. EDT

THE PRESIDENT:  Thank you, everybody.  (Applause.)  Have a seat.  Have a seat.  Well, it's wonderful to see all of you.  Some of you I've had the chance to get to know working on law enforcement issues and criminal justice issues.  But I cannot thank you enough for participating today on an issue that I think is important to our economic future, to our cultural future, to our standing in the world and to our safety and security, and that's the issue of immigration.

I’m here with some of the leaders of America’s law enforcement agencies who recognize that fixing a broken immigration system isn’t just the right thing to do -- it’s also the right thing to do for safety and security in communities all across America. 

The immigration system that we have right now makes it harder, not easier, for law enforcement agencies to do their jobs.  It makes it harder for law enforcement to know when dangerous people cross our borders.  It makes it harder for business owners who play by the rules to compete when they’re undercut by those who would exploit workers in a shadow economy. And it makes it harder for law enforcement to do their jobs when large segments of the community are afraid to report crimes or serve as witnesses because they fear the consequences for themselves or their families. 

This system is not fair.  It’s not fair to workers; it's not fair to businesses who are trying to do the right thing; it’s not fair to law enforcement agencies that are already stretched thin.

Now, the good news is the Senate has already passed a bill with a wide, bipartisan majority that would go a long way towards fixing a broken system.  It would strengthen our borders even further.  And I'm sure Jeh has talked to you about the work that's been done over the last five years -- we have put unprecedented resources at the borders, and you’ve seen the results.  We have fewer folks coming in than ever before.  And the personnel that is arrayed along our borders is well beyond anything that we saw five years ago, 10 years ago, 20 years ago. So we take border enforcement seriously. 

But what this reform package would also do is create a firm but fair pathway to earned citizenship for those who live in the shadows -- and as a consequence, would give law enforcement a better idea of who’s in the country.  It would also help build trust between local communities and law enforcement and immigrant communities.  It would undermine criminal enterprises that prey on undocumented immigrants.  And it would allow law enforcement to focus on its primary mission, which is keeping our communities safe.

And these are some of the reasons why a broad, bipartisan coalition -- including law enforcement agencies like the ones who are represented today -- is pushing Congress to go ahead and get the job done, get us over the finish line and do it this year. 

I hope all of you keep it up because it’s making a difference.  A number of Republicans are realizing that blocking immigration reform is not an option, and that's the good news.  And most Americans, the majority of Americans, know this is the right thing to do.  Public opinion is on our side on this.  Unfortunately, we've got a handful of House Republicans right now who are blocking going ahead and letting legislation get to the floor. 

To their credit, I think Speaker Boehner and some of the other leaders there do believe that immigration reform is the right thing, but they’ve got to have a political space that allows them to go ahead and get it through their caucus and get it done.  I've said to them, if they’ve got ideas I'm happy to talk to them.  We're not hell-bent on making sure that every letter of what’s in the Senate bill is exactly what ultimately lands on my desk for signature, but there are some core principles that we've got to get done.  We've got to have stronger border security.  We've got to make sure that we are dealing with companies that are not doing the right thing by workers.  We've got to make sure that we've got an improved legal immigration system, because a lot of folks are getting pushed into the illegal system because the waits are so long through the legal process.  And we've got to make sure that there’s a way for people to earn some pathway to citizenship.

And keep in mind, some of these statistics you may have already heard -- it's estimated that over 80 percent of the folks who are here on an undocumented basis have been here 10 years or longer.  These are folks who are woven into the fabrics of our communities.  Their kids are going to school with our kids.  Most of them are not making trouble; most of them are not causing crimes.  And yet, we put them in this tenuous position and it creates a situation in which your personnel, who have got to go after gang-bangers and need to be going after violent criminals and deal with the whole range of challenges, and who have to cooperate with DHS around our counterterrorism activities -- you’ve got to spend time dealing with somebody who is not causing any other trouble other than the fact that they were trying to make a living for their families.  That's just not a good use of our resources.  It's not smart.  It doesn’t make sense. 

So I know I'm preaching to the choir here.  You wouldn't be here if you didn’t agree with us that this is time for us to go ahead and get moving.  But I just want all of you to know your voices, particularly over the next couple of months, are going to be critical.  I think people have come to expect that I'm in favor of comprehensive immigration reform.  I think that people anticipate that the Congressional Hispanic Caucus is going to be in favor of comprehensive immigration reform.  I think people understand that there are a lot of agricultural enterprises that know how important their immigrant workers are to them.  But it's more important in some ways to get over the hump when they hear from unexpected voices. 

I think the evangelical Christian community has shown itself to be foursquare behind immigration reform, and that's a powerful voice.  I think portions of the business community that people may not anticipate know that this is the key to our economic future.  It would lower our deficits; it would grow our economy; it would bring in some of the most skilled people around the world.  We want them to continue to come here.  That's part of our competitive advantage relative to the rest of the world.  Our population is not aging the way some other populations are because it's constantly replenished with folks who are go-getters.  And hearing from law enforcement is important and I think it lends this overall effort great credibility.

So I just want to say thank you to all of you.  But we've got this narrow window.  The closer we get to the midterm elections the harder it is to get things done around here.  Now, I know it's hard to believe that things could get harder -- (laughter) -- that this place could get a little more dysfunctional.  But it's just very hard right before an election. So we've got maybe a window of two, three months to get the ball rolling in the House of Representatives.  And your voices are going to be absolutely critical to that effort.

So I just want to say thank you to all of you.  And while I'm here, I want to thank you for a wide range of issues that we've had a chance to cooperate with you on.  Whether it's dealing with counterterrorism issues and the preparations that ensure that if and when an event happens that we're prepared, and more importantly, that we're able to prevent such activities from taking place in the first place, or dealing with natural disasters where our first responders are always right there on the scene, day in and day out your teams, your personnel are doing heroic work on behalf of America.  And we're very, very grateful for that.

So thank you, everybody.  Let’s make this happen.  (Applause.)

END              
12:10 P.M. EDT

DEFENSE SECRETARY HAGEL, SAUDI CROWN PRINCE SALMAN DISCUSS STRATEGIC AND DEFENSE PARTNERSHIP

FROM:  U.S. DEFENSE DEPARTMENT 

Hagel, Saudi Crown Prince Discuss Threat, Challenges
U.S. Defense Secretary Chuck Hagel meets with Saudi Crown Prince Salman bin Abdulaziz Al Saud, who also serves as first deputy prime minister and defense minister, in Jeddah, Saudi Arabia, May 13, 2014. DOD photo by Erin A. Kirk-Cuomo.

Hagel Thanks Saudi Crown Prince for Hosting Conference
American Forces Press Service

WASHINGTON, May 13, 2014 – Defense Secretary Chuck Hagel met with Saudi Crown Prince Salman this evening in Jeddah, Saudi Arabia, Pentagon Press Secretary Navy Rear Adm. John Kirby said.

In a statement, Kirby said this is the third meeting Hagel has had with the crown prince and noted that it follows President Barack Obama's visit in March.
Hagel expressed his appreciation for Saudi Arabia hosting the first U.S.-Gulf Cooperation Council defense ministerial conference since 2008, Kirby said, and noted the significance of such a gathering of these leaders at this time.
“Secretary Hagel congratulated the crown prince on Saudi Arabia's successful completion of the Sword of Abdullah military exercise,” the press secretary added. “The two leaders reaffirmed the importance of the U.S.-Saudi strategic and defense partnership and shared challenges, including Iran and Syria. They pledged to continue to work together to deepen U.S.-Saudi defense cooperation.”

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 13, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

DEFENSE LOGISTICS AGENCY

Henry Schein Inc., Melville, New York, has been awarded a maximum $348,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for the distribution of a wide range of general dental supplies to all contiguous United States and outside contiguous United States facilities that participate in the electronic catalog program. This contract was a competitive acquisition with six offers received. This is a 15-month base contract with three one-year options and one eight-month option. Location of performance is New York, with an Oct. 31, 2015 performance completion date. Using services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPM2DE-14-D-7469).

Produce Source Partners,* Ashland, Virginia, has been awarded a maximum $36,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for fresh fruit and vegetable support. This contract was a competitive acquisition with three offers received. This is an 18-month base contract with two 18-month option periods. Location of performance is Virginia, with a Nov. 12, 2015 performance completion date. Using services are Army, Navy, Air Force, Marine Corps, and Department of Agriculture school customers. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-14-D-P257).

Kyrish Government Group,* Kileen, Texas, has been awarded a maximum $16,421,974 firm-fixed-price, indefinite-quantity contract for automotive parts and maintenance hardware items. This contract was a competitive acquisition with four offers received. This is a two-year base contract with one one-year option period. Location of performance is Texas, with a May 12, 2016 performance completion date. Using services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7L1-14-D-0001).

NAVY

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $101,900,000 not-to-exceed modification to a previously awarded cost-reimbursement contract (N00019-12-C-0070). This modification provides for non-recurring engineering and sustainment tasks for mission systems software and autonomic logistics development of the F-35A Conventional Take Off and Landing Air System for the government of Israel under the Foreign Military Sales Program. In addition, this modification provides for the procurement of autonomic logistics hardware to support Israel pilot training. Work will be performed in Fort Worth, Texas, and is expected to be completed in April 2015. Foreign military sales funds in the amount of $37,900,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Long Wave Inc.*, Oklahoma City, Oklahoma (N39430-14-D-1422); SiteMaster Inc.*, Tulsa, Oklahoma (N39430-14-D-1423); and Shape Construction Inc.*, Bremerton, Washington (N39430-14-D-1424), are each being awarded an indefinite-delivery/indefinite-quantity multiple award contract for construction services for specialized antennas, towers, and communication facilities at Navy installations worldwide. The maximum dollar value including the base period and two option periods for all three contracts combined is $45,000,000. The work to be performed provides for the maintenance, repair, or new construction of telecommunication towers and supporting communications and electrical equipment for Navy telecommunication towers. These requirements may include project development, concept development, design, engineering analysis, preparation of plans, writing of specifications, estimation of construction costs, fabrication, construction, and controlling quality, troubleshooting, overhauling old equipment, procuring new components, equipment installation and testing. SiteMaster, Inc. is being awarded task order 0001 at $669,794 for the extension of top-load radials at the Naval Radio Transmitting Facility, Aguada, Puerto Rico. Work for this task order is expected to be completed by November 2014. All work on this contract will be performed at various Navy installations worldwide. The term of the contract is not to exceed 36 months, with an expected completion date of May 2017. Fiscal 2013 other procurement, Navy and fiscal year 2014 Navy working capital funds in the amount of $669,794 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website with eight proposals received. These three contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity.

Raytheon Missile Systems, Tucson, Arizona, is being awarded a $38,401,383 modification to previously awarded contract (N00024 13 C-5403) for Standard Missile-2 (SM-2) and Standard Missile-6 (SM-6) engineering and technical services to ensure continuity in production, design integrity, and total systems integration of the missile round and its components. This contract provides support to both the U.S. Navy (92.3 percent) and the following SM-2 foreign military sales (FMS) customers: the governments of The Netherlands (1.7 percent), Taiwan (1.7 percent), Japan (1.4 percent), Germany (1 percent), Korea (1 percent), Australia (.7 percent), and Spain (.2 percent) under the FMS program. Work will be performed in Tucson, Arizona (99 percent), and Portsmouth, Rhode Island (1 percent), and is expected to be completed by December 2015. Fiscal 2013 and 2014 research, development, test and evaluation; FMS and fiscal 2014 operations and maintenance, Navy funding in the amount of $25,495,322 will be obligated at time of award. Contract funds in the amount of $30,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

HART Technologies,* Manassas, Virginia, is being awarded a $32,182,700 indefinite-delivery/indefinite-quantity contract with cost-plus-fixed-fee completion and firm-fixed-price delivery orders to provide for rapid prototype development, hardware fabrication, hardware and software for prototype or prototype pre-production units and kits in support of the Battle Management Systems, Dragon Spear, and Littoral Combat Ship programs. Work will be performed in Manassas, Virginia, and is expected completed by August 2018. Fiscal 2013 aircraft procurement, Navy contract funds in the amount of $64,434 are being obligated for the first delivery. Contract funds will not expire at the end of the current fiscal year. This contract was competitively via the Federal Business Opportunities website, with two offers received. The Naval Surface Warfare Center Dahlgren Division, Dahlgren, Virginia, is the contracting activity (N00178-14-D-1009).

Huntington Ingalls Industries, Huntington Ingalls Inc., Pascagoula, Mississippi, is being awarded a $12,168,588 modification to previously awarded contract (N00024-12-C-2312) to exercise options for DDG 51 class follow yard services (FYS). The FYS provides necessary engineering, technical, material procurement and production support; configuration; class flight upgrades and new technology support; data and logistics management; lessons learned analysis; post-delivery tests and trials; post-shakedown availability support; reliability and maintainability; system safety program support; material and fleet turnover support; shipyard engineering team; turnkey; crew indoctrination, design tool/design standardization, detail design development, and other technical and engineering analyses for the purpose of supporting DDG 51 class ship construction and tests and trials. Work will be performed in Pascagoula, Mississippi (97 percent), and Washington, D.C. (3 percent), and is expected to be completed by May 2015. Fiscal 2010 and 2013 shipbuilding and conversion, Navy and fiscal 2014 research, development, test & evaluation contract funds in the amount of $12,168,588 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

M. A. Mortenson Co., Minneapolis, Minnesota, is being awarded a $7,262,015 firm-fixed-price modification to a previously awarded contract (N40085-12-C-7722) to increase the maximum dollar value of a firm-fixed-price contract for increasing the apron for aircraft maintenance hangar/apron/classrooms and combat aircraft loading area addition at Marine Corps Air Station New River. The work to be performed provides for the expansion of the parking apron and relocation of the wash rack for the parking apron. After award of this modification, the total cumulative contract value will be $66,111,686. Work will be performed in Jacksonville, North Carolina, and is expected to be completed by February 2015. Fiscal 2012 military construction, Navy contract funds in the amount of $7,262,015 are being obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity.

ARMY

Kipper Tool Co., Gainesville, Georgia, was awarded an $85,010,115 firm-fixed-price contract to procure 401 hydraulic electric pneumatic petroleum operated equipment tools and special application tools for engineering tasks. The estimated completion date is March 13, 2019. Bids were solicited via the Internet with one received. Funding and work location will be determined with each order. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-14-D-0069).

NAN-Samsung LLC, Honolulu, Hawaii, was awarded a $69,749,203 firm-fixed-price competitive contract for construction of the Combat Aviation Brigade Complex, Phase 2, Wheeler Army Airfield, Oahu, Hawaii, with an estimated completion date of Jan. 10, 2017. Bids were solicited via the Internet with nineteen received. Fiscal 2013 military construction funds in the amount of $69,749,203 were being obligated at the time of the award. U.S. Army Corps of Engineers, Fort Shafter, Hawaii, is the contracting activity (W9128A-14-C-0002).
Leonie Industries LLC, Pacific Palisades, California, was awarded a $55,449,092 firm-fixed-price competitive contract for the Military Information Support Task Force-Afghanistan. Work will be performed in Afghanistan, with an estimated completion date of May 21, 2019. Bids were solicited via the Internet with six received. Fiscal 2014 operations and maintenance, Army funds in the amount of $21,398,953 are being obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W560MY-14-C-0002).

CDG Engineers, St. Louis, Missouri, was awarded a $9,000,000 firm-fixed-price competitive contract for architectural and engineering services for civil works and support for other agencies for the St. Louis, Rock Island, and St. Paul Districts, the Mississippi Valley Division, U.S. Army Corps of Engineers, or in other areas of continental United States as needed. Funding and work location will be determined with each order. The estimated completion date is May 12, 2019. Fourteen bids were solicited and fourteen received. U.S. Army Corps of Engineers, St. Louis, Missouri, is the contracting activity (W912P9-14-D-0517).

AIR FORCE

Rockwell Collins Inc., Cedar Rapids, Iowa, has been awarded a $20,022,313 modification (P00017) to FA8807-12-C-0013 for software coding and security on the military global positioning system user equipment contract. The total cumulative face value of the contract is $50,916,525. The contract modification is to mature the software coding of the GPS receiver cards being developed and perform security certification to enable faster fielding of M-code capable GPS receivers to the warfighter. Work will be performed at Cedar Rapids, Iowa, and is expected to be completed by Aug. 31, 2015. Fiscal 2014 research, development, testing and evaluation funds in the amount of $7,000,000 are being obligated at time of award. The Space and Missile Systems Center Contracting Directorate, El Segundo, California, is the contracting activity.

*Small Business

FDIC, SALLIE MAE SETTLE DECEPTIVE PRACTICES ALLEGATIONS RELATED TO STUDENT LOANS

FROM:  U.S. FEDERAL DEPOSIT INSURANCE CORPORATION 

The Federal Deposit Insurance Corporation (FDIC) today announced a settlement with Sallie Mae Bank, Salt Lake City, Utah, and Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), subsidiaries of SLM Corporation and Navient Corporation, respectively, and herein collectively referred to as Sallie Mae, for unfair and deceptive practices related to student loans in violation of Section 5 of the Federal Trade Commission Act (Section 5) and for violations of the Servicemembers Civil Relief Act (SCRA).

This action results from an examination of Sallie Mae by the FDIC regarding Sallie Mae's compliance with federal consumer protection statutes, including Section 5 and SCRA, and a companion investigation by the Department of Justice (DOJ) related to the treatment of servicemembers. As part of the settlement, Sallie Mae stipulated to the issuance of Consent Orders, Orders for Restitution, and Orders to Pay Civil Money Penalty (collectively, FDIC orders). The FDIC orders require these entities to pay civil money penalties totaling $6.6 million, to pay restitution of approximately $30 million to harmed borrowers and to fund a $60 million settlement fund with the DOJ to provide remediation to servicemembers. The DOJ has also taken separate action against the entities with regard to violations of the SCRA.

The FDIC determined that Sallie Mae violated federal law prohibiting unfair and deceptive practices in regards to student loan borrowers through the following actions:

Inadequately disclosing its payment allocation methodologies to borrowers while allocating borrowers' payments across multiple loans in a manner that maximizes late fees; and Misrepresenting and inadequately disclosing in its billing statements how borrowers could avoid late fees. The FDIC determined that Sallie Mae violated federal laws regarding the treatment of servicemembers (SCRA and Section 5) through the following actions:

Unfairly conditioning receipt of benefits under the SCRA upon requirements not found in the Act;
Improperly advising servicemembers that they must be deployed to receive benefits under the SCRA;
Failing to provide complete SCRA relief to servicemembers after having been put on notice of these borrowers' active duty status.

In addition to the payment of restitution to harmed borrowers and a civil money penalty, the FDIC orders require Sallie Mae to take affirmative steps to ensure that disclosures regarding payment allocation and late fee avoidance are clear and conspicuous, that servicemembers are properly treated under the SCRA, and that all residual violations be remedied to ensure compliance with applicable laws.

DOJ ANNOUNCES DOZENS OF ARRESTS FOR MEDICARE FRAUD SCHEMES TOTALING OVER $260 MILLION

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, May 13, 2014

Medicare Fraud Strike Force Charges 90 Individuals for Approximately $260 Million in False Billing

27 Medical Professionals, Including 15 Doctors, Charged with Health Care Fraud

Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in six cities has resulted in charges against 90 individuals, including 27 doctors, nurses and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings.

Attorney General Holder and Secretary Sebelius were joined in the announcement by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, FBI Assistant Director Joseph Campbell, U.S. Department of Health and Human Services (HHS) Inspector General Daniel R. Levinson and Deputy Administrator and Director of the Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity Shantanu Agrawal.

This coordinated takedown is the seventh national Medicare fraud takedown in Strike Force history.   The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

Since their inception in March 2007, Strike Force operations in nine locations have charged almost 1,900 defendants who collectively have falsely billed the Medicare program for almost $6 billion.  In addition, CMS, working in conjunction with HHS-OIG, has suspended enrollments of high-risk providers in five Strike force locations and has removed over 17,000 providers from the Medicare program since 2011.

The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing.   Almost 400 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units and other federal, state and local law enforcement agencies participated in the takedown.

“Medicare is a sacred compact with our nation’s seniors, and to protect it, we must remain aggressive in combating fraud,” said Attorney General Holder.   “This nationwide Medicare Strike Force takedown represents another important step forward in our ongoing fight to safeguard taxpayer resources and to ensure the integrity of essential health care programs.   Department of Justice will not tolerate these activities.  And we will continue working alongside the Department of Health and Human Services – as well as federal, state, and local partners – to use every appropriate tool and available resource to find, stop, and punish those who seek to take advantage of their fellow citizens.”

“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius.  “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars.  Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price.  We will protect a sacred trust and an earned guarantee.”

The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes and money laundering.   The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, mental health services, psychotherapy, physical and occupational therapy, durable medical equipment and pharmacy fraud.

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided.   In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit approximately $260 million in fraudulent billings.

“Today, across the nation, scores of defendants were arrested for engaging in hundreds of millions of dollars in health care fraud,” said Acting Assistant Attorney General O’Neil.  “Among the defendants charged were 27 medical professionals, including 16 doctors.   The crimes charged represent the face of health care fraud today – doctors billing for services that were never rendered, supply companies providing motorized wheelchairs that were never needed, recruiters paying kickbacks to get Medicare billing numbers of patients.  The fraud was rampant, it was brazen, and it permeated every part of the Medicare system.  But law enforcement continues to strike back.  Using cutting-edge, data-driven investigative techniques, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars.  Overall, since its inception, the Department of Justice’s Medicare Fraud Strike Force has charged nearly 1,900 individuals involved in approximately $6 billion of fraud.  We are committed to using every tool at our disposal to prevent, deter, and prosecute health care fraud.”

“We all feel the effects of health care fraud,” said FBI Assistant Director Campbell.  “It leads to higher health care costs and makes it harder for seniors and those who are ill to get the care they need.  The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels.  But we need the public’s help.  Take the time to be aware of fraud and call law enforcement if you see anything suspicious included in the billings to your insurance, Medicare, or Medicaid or have any unusual encounters with health care providers.  We can work together to ensure your hard-earned dollars are used to care for the sick and not to line the pockets of criminals.”

“ Today's arrests demonstrate the effectiveness of our Strike Forces in combating Medicare and Medicaid fraud,” said HHS Inspector General Levinson.  “Through seamless teamwork, our agents and law enforcement partners bring lawbreakers to justice, protect beneficiaries and recover stolen taxpayer funds.”

“ Fraud can inflict real harm on Medicare beneficiaries and CMS is committed to working with our law enforcement partners to get criminals behind bars and out of the Medicare program as swiftly as possible,” said CMS Program Integrity Deputy Administrator Agrawal.  “Today’s actions represent further consequences for bad actors, many of whom CMS had already stopped paying, or even kicked out of the program. Fundamentally, this is about protecting the well-being of our beneficiaries and the investment of taxpayer dollars.”

In Miami, a total of 50 defendants were charged today and yesterday for their alleged participation in various fraud schemes involving approximately $65.5 million in false billings for home health care and mental health services, and pharmacy fraud.   In one case, two defendants were charged in connection with a $23 million pharmacy kickback and laundering scheme.   Court documents allege that the defendants solicited kickbacks from a pharmacy owner for Medicare beneficiary information, which was used to bill for drugs that were never dispensed.   The kickbacks were concealed as bi-weekly payments under a sham services contract and were laundered through shell entities owned by the defendants.

Eleven individuals were charged by the Houston Medicare Strike Force.   Five Houston-area physicians were charged with conspiring to bill Medicare for medically unnecessary home health services.   According to court documents, the defendant doctors were paid by two co-conspirators to sign off on home health care services that were not necessary and often never provided.

Eight defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $32 million.   In one case, a doctor was charged for causing almost $24 million in losses to Medicare through his own fraudulent billing and referrals for durable medical equipment, including over 1,000 expensive power wheelchairs, and home health services that were not medically necessary and frequently not provided.

In Detroit, seven defendants were charged for their roles in fraud schemes involving approximately $30 million in false claims for medically unnecessary services, including home health services, psychotherapy and infusion therapy.   In one case, four individuals, including a doctor, were charged in a sophisticated $28 million fraud scheme, where the physician billed for expensive tests, physical therapy and injections that were not necessary and not provided.   Court documents allege that when the physician’s billings raised red flags, he was put on payment review by Medicare.   He was allegedly able to continue his scheme and evade detection by continuing to bill using the billing information of other Medicare providers, sometimes without their knowledge.

In Tampa, Florida, seven individuals were charged in a variety of schemes, ranging from fraudulent physical therapy billings to a scheme involving millions of dollars in physician services and tests that never occurred .  In one case, five individuals were charged for their alleged roles in a $12 million health care fraud and money laundering scheme that involved billing Medicare using names of beneficiaries from Miami-Dade County for services purportedly provided in Tampa area clinics, 280 miles away.  The defendants then allegedly laundered the proceeds through a number of transactions involving several shell entities.

In Brooklyn, New York, the Strike Force announced an indictment against Syed Imran Ahmed, M.D., in connection with his alleged $85 million scheme involving billings for surgeries that never occurred; Dr. Ahmed had been arrested last month and charged by complaint.   Dr. Ahmed has charged with health care fraud and making false statements.   In addition, the Brooklyn Strike Force charged six other individuals, including a physician and two billers who allegedly concocted a $14.4 million scheme in which they recruited elderly Medicare beneficiaries and billed Medicare for medically unnecessary vitamin infusions, diagnostic tests and physical and occupational therapy supposedly provided to these patients.

The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprised of attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of Michigan, the Eastern District of New York, the Southern District of Texas, the Central District of California, the Middle District of Louisiana, the Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.

A complaint or indictment is merely an accusation, and defendants are presumed innocent unless and until proven guilty.