U.S. DEFENSE DEPARTMENT CONTRACTS FOR SEPTEMBER 2, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

ARMY

Science Application International Corporation,* McLean, Virginia (W91CRB-11-D-0001); Battelle Memorial Institute,* Columbus, Ohio (W91CRB-11-D-0002); Booz Allen Hamilton, McLean,Virginia (W91CRB-11-D-0003); Exelis Inc., Alexandria, Virginia (W91CRB-11-D-0004); Northrop Grumman Systems Corporation, Herndon, Virginia (W91CRB-11-D-0005); Wintec Arrowmaker, Inc.,* Washington, Maryland (W91CRB-11-D-0006); and Technical and Project Engineering, LLC, Alexandria, Virginia (W91CRB-11-D-0007), were awarded a $150,000,000 cost-plus-fixed-fee modification to increase the contract ceiling for a previously awarded multiple award, indefinite-delivery/indefinite-quantity contract to support the Army Research Lab’s increased mission requirements; this is the third award and raises the contract ceiling to $630,000,000. Work and funding will be determined with each order, with an estimated completion date of Dec. 6, 2015. Army Contracting Command, Triangle Park, North Carolina, is the contracting activity.

Watts Constructors, LLC., Honolulu, Hawaii, was awarded a $38,914,500 firm-fixed-price contract for a satellite communications earth terminal station facility. Fiscal 2014 military construction (Army) funds in the amount of $38,914,500 were obligated at the time of the award. Work will be performed in San Miguel, California, with an estimated completion date of June 27, 2016. Bids were solicited via the Internet with six received. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W9128-14-C-0040).

The University of Alabama in Huntsville, Alabama, was awarded a $12,102,856 modification (P00013) for engineering services to support the engineering directorate on the work statement Advanced Weapon System and Manufacturing Technologies. Work and funding will be determined with each order, with an estimated completion date of Jan. 8, 2015. Bids were solicited and one received. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-12-D-0011).

HDR Engineering, Inc., Claremont, California, was awarded a $9,999,900 indefinite-delivery/indefinite-quantity contract for cathodic protection and corrosion control, at various locations worldwide. This contract awards a one year cathodic protection plan with options for up to two additional periods. Work and funding will be determined with each order, with an estimated completion date of Sept. 1, 2017. Bids were solicited via the Internet with six received. U.S. Army Corps of Engineers, Charleston, South Carolina, is the contracting activity (W912HP-14-D-0023).

Bristol Engineering Services Corporation,* Anchorage, Alaska (W912DW-13-D-1015); Cherokee General Corporation,* Federal Way, Washington (W912DW-13-D-1016); CKY, Inc.,* San Pedro, California (W912DW-13-D-1017); Macro-Z-Technology,* Santa Ana, California (W912DW-13-D-1018); and Nordic Industries, Inc.,* Olivehurst, California (W912DW-13-D-1019), were awarded a $9,800,000 modification number (P0001) to exercise option period one on a multiple award task order contract for design-build and horizontal construction work. This work will be performed for the U.S. Army Corps of Engineers, Seattle district, including Washington, Oregon, Idaho, Montana and Northwestern division boundaries. Work and funding will be determined with each order, with an estimated completion date of Sept. 4, 2015. U.S. Army Corps of Engineers Seattle, Washington, is the contracting activity.

BAE Systems Ordnance Systems Inc., Kingsport, Tennessee, was awarded a $9,653,246 modification (P00547) to contract DAAA09-98-E-0006 for a facility use contract requirement for installation of additional anoxic treatment capacity in Building 221, Phase 1. Fiscal 2014 (other) Army funds in the amount of $9,653,246 were obligated at the time of the award. Work will be performed in Kingsport, Tennessee, with an estimated completion date of May 31, 2017. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.

Heeter*, Spencer, West Virginia was awarded $9,620,766 modification (P00004) to contract W91237-12-C-0006 to exercise option seven for Bluestone Dam safety assurance- Phase 4, anchors, Hinton, West Virginia. This contract will involve the installation of 278 anchors in Bluestone Dam. Fiscal 2014 (other) Army funds in the amount of $9,620,766 were obligated at the time of the award. Work will be performed in Hinton, West Virginia, with an estimated completion of Oct. 16, 2019. Bids were solicited via the Internet with three received. U.S. Army Corps of Engineers, Huntington, West Virginia, is the contracting activity.

A-T Solutions, Inc, Fredericksburg, Virginia, was awarded a $9,016,253 modification (P00005) to contract W911QX-12-C-0174 for freedom of maneuver for the Afghan national security forces programs. These programs will develop and assess a spiral development and prototyping approach to expedite integration of technical and operational information. These programs will also integrate tactical training and technologies for host nation forces that support counter-improvised explosive devices operations in Afghanistan. Fiscal 2013 (other) Army funds in the amount of $9,016,253 were obligated at the time of the award. Work will be performed in Afghanistan ($7,573,652; 84 percent) and Fredericksburg, Virginia ($1,442,600; 16 percent), with an estimated completion date of March 29, 2015. Army Contracting Command, Adelphi, Maryland, is the contracting activity. 

DEFENSE LOGISTICS AGENCY

Propper International, Inc., Mayaguez, Puerto Rico, has been awarded a maximum $124,470,982 modification (P00107) exercising the first option period on a one-year base contract (SPM1C1-13-D-1062), with two one-year option periods. This is a firm-fixed-price contract for modular lightweight load carrying equipment. Location of performance is Puerto Rico with a Sept. 5, 2015, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

NAVY

AH/BC NAVY JV, LLC, Newport News, Virginia, is being awarded a maximum amount $50,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for architectural and engineering services for Safe Drinking Water Act and Clean Water Act Environmental Compliance Engineering Support for Navy, Marine Corps and other Department of Defense installations and federal agencies within the Naval Facilities Engineering Command (NAVFAC) Atlantic area of responsibility (AOR) world-wide. Task order 0001 is being awarded at $116,802 for Water Purveyor Drinking Systems Source and Produced Water Surface Water Treatment Rules Monitoring Gap Analysis at Naval Support Activity Naples, Italy. Work on this task order is expected to be completed by December 2015. All work on this contract will be performed at various Navy and Marine Corps facilities and other defense installations and federal agencies within the NAVFAC Atlantic AOR world-wide including, but not limited to, California (25 percent), Europe (20 percent), Southwest Asia (10 percent), Virginia (10 percent), North Carolina (10 percent), Florida (10 percent), North Africa (5 percent), Washington, District of Columbia (5 percent), and Maryland (5 percent). The term of the contract is not to exceed 60 months, with an expected completion date of September 2019. Fiscal 2014 operation and maintenance (Navy) contract funds in the amount of $116,802 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity (N62470-14-D-9022).

Lockheed Martin Mission Systems & Training, Owego, New York, is being awarded $8,879,035 for delivery order 4001 against a previously issued Basic Ordering Agreement (N00019-14-G-0019) for non-recurring efforts for software modifications required for MH-60 Terrain Awareness Warning System (TAWS II) and Automatic Dependent Surveillance – Broadcast enhancements, including integration of the TAWS II software into the 2018 product line. These services are in support of the U.S. Navy and the governments of Australia and Denmark. Work will be performed in Owego, New York, and is expected to be completed in October 2017. Fiscal 2014 research, development, test and evaluation (Navy), 2014 aircraft procurement (Navy) and foreign military sales funds in the amount of $8,353,021 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract combines purchases for the U.S. Navy ($8,395,805; 95 percent); and the governments of Denmark ($392,585; 4 percent); and Australia ($90,645; 1 percent) under the Foreign Military Sales program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Total Concepts of Design Inc., Scottsburg, Indiana, is being awarded a $6,762,400 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for MK 3 MOD 0 and MK 12 MOD 1 metal material handling pallets used to transport different types of munitions in support of U.S. Navy and U.S. Army mission requirements. Work will be performed in Scottsburg, Indiana, and is expected to be completed by September 2019. Fiscal 2012 procurement of ammunition (Navy and Marine Corps) and fiscal 2014 ammunition procurement (Army) contract funds in the amount of $91,461 will be obligated at the time of contract 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 two offers received. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-14-D-JR05).

AIR FORCE

Lockheed Martin Aeronautics Company, Marietta, Georgia, has been awarded a $9,519,633 fixed-price modification (P00257) on existing contract FA8625-07-C-6471 for the C-5 Reliability Enhancement and Re-engining program. The contract modification is for the supply of the C-5 RERP Lot 7 readiness spares package. Fiscal 2012 aircraft procurement funds in the amount of $9,519,633 are being obligated at time of award. Work will be performed at Marietta, Georgia, and is expected to be completed by January 2017. The Air Force Life Cycle Management Center, Wright Patterson Air Force Base, Ohio is the contracting activity.

MISSILE DEFENSE AGENCY

Raytheon Integrated Defense Systems of Woburn, Massachusetts is being awarded a $53,252,500 contract modification (P00023) to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract (HQ0147-12-C-0006). This contract modification is for the production of an ANTPY-2 Float Cooling Equipment Unit #2, Float Electronic Equipment Unit #2, Spares, Reliability Improvements, and Mission Assurance. Work will be performed in Woburn, Massachusetts with an expected completion date of December 2016. Fiscal 2014 procurement funds in the amount of $53,252,500 are being obligated at time of award. The Missile Defense Agency, Huntsville, Alabama is the contracting activity.

*Small business
   

President Obama Delivers a Message to West Africans on Ebola

PRESIDENT OBAMA'S LETTER REGARDING WAR POWERS RESOLUTION

FROM:  THE WHITE HOUSE 

Letter from the President -- War Powers Resolution Regarding Iraq

TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT PRO TEMPORE OF THE SENATE

September 1, 2014

Dear Mr. Speaker: (Dear Mr. President:)

As I reported on August 8 and 17, 2014, U.S. Armed Forces have conducted targeted airstrikes in Iraq for the limited purposes of stopping the advance on Erbil by the terrorist group Islamic State of Iraq and the Levant (ISIL), supporting civilians trapped on Mount Sinjar, and supporting operations by Iraqi forces to recapture the Mosul Dam. U.S. Armed Forces have also provided humanitarian assistance to the civilians trapped on Mount Sinjar.

On August 28, 2014, I further authorized U.S. Armed Forces to conduct targeted airstrikes in support of an operation to deliver humanitarian assistance to civilians in the town of Amirli, Iraq, which is surrounded and besieged by ISIL. Pursuant to this authorization, on August 30, 2014, U.S. military forces commenced targeted airstrike operations in the vicinity of Amirli, Iraq. These additional operations will be limited in their scope and duration as necessary to address this emerging humanitarian crisis and protect the civilians trapped in Amirli.

I have directed these actions, which are in the national security and foreign policy interests of the United States, pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive. These actions are being undertaken in coordination with and at the request of the Iraqi government.

I am providing this report as part of my efforts to keep the Congress fully informed, consistent with the War Powers Resolution (Public Law 93-148). I appreciate the support of the Congress in this action.

Sincerely,

BARACK OBAMA

NASA SAYS ROCKET MADE FOR MARS REVIEW COMPLETED

Image credit: NASA/MSFC

FROM:  NASA 

NASA officials Wednesday announced they have completed a rigorous review of the Space Launch System (SLS) -- the heavy-lift, exploration class rocket under development to take humans beyond Earth orbit and to Mars -- and approved the program's progression from formulation to development, something no other exploration class vehicle has achieved since the agency built the space shuttle.
"We are on a journey of scientific and human exploration that leads to Mars," said NASA Administrator Charles Bolden. "And we’re firmly committed to building the launch vehicle and other supporting systems that will take us on that journey."
For its first flight test, SLS will be configured for a 70-metric-ton (77-ton) lift capacity and carry an uncrewed Orion spacecraft beyond low-Earth orbit. In its most powerful configuration, SLS will provide an unprecedented lift capability of 130 metric tons (143 tons), which will enable missions even farther into our solar system, including such destinations as an asteroid and Mars.

This decision comes after a thorough review known as Key Decision Point C (KDP-C), which provides a development cost baseline for the 70-metric ton version of the SLS of $7.021 billion from February 2014 through the first launch and a launch readiness schedule based on an initial SLS flight no later than November 2018.

Conservative cost and schedule commitments outlined in the KDP-C align the SLS program with program management best practices that account for potential technical risks and budgetary uncertainty beyond the program's control.
“Our nation is embarked on an ambitious space exploration program, and we owe it to the American taxpayers to get it right,” said Associate Administrator Robert Lightfoot, who oversaw the review process. “After rigorous review, we’re committing today to a funding level and readiness date that will keep us on track to sending humans to Mars in the 2030s – and we’re going to stand behind that commitment.”

"The Space Launch System Program has done exemplary work during the past three years to get us to this point," said William Gerstenmaier, associate administrator for the Human Explorations and Operations Mission Directorate at NASA Headquarters in Washington. "We will keep the teams working toward a more ambitious readiness date, but will be ready no later than November 2018.”
The SLS, Orion, and Ground Systems Development and Operations programs each conduct a design review prior to each program’s respective KDP-C, and each program will establish cost and schedule commitments that account for its individual technical requirements.

"We are keeping each part of the program -- the rocket, ground systems, and Orion -- moving at its best possible speed toward the first integrated test launch,” said Bill Hill, director Exploration Systems Development at NASA. "We are on a solid path toward an integrated mission and making progress in all three programs every day."

“Engineers have made significant technical progress on the rocket and have produced hardware for all elements of the SLS program,” said SLS program manager Todd May. “The team members deserve an enormous amount of credit for their dedication to building this national asset.”

The program delivered in April the first piece of flight hardware for Orion’s maiden flight, Exploration Flight Test-1 targeted for December. This stage adapter is of the same design that will be used on SLS’s first flight, Exploration Mission-1.

Michoud Assembly Facility in New Orleans has all major tools installed and is producing hardware, including the first pieces of flight hardware for SLS. Sixteen RS-25 engines, enough for four flights, currently are in inventory at Stennis Space Center, in Bay St. Louis, Mississippi, where an engine is already installed and ready for testing this fall. NASA contractor ATK has conducted successful test firings of the five-segment solid rocket boosters and is preparing for the first qualification motor test.

SLS will be the world's most capable rocket. In addition to opening new frontiers for explorers traveling aboard the Orion capsule, the SLS may also offer benefits for science missions that require its use and can’t be flown on commercial rockets.
The next phase of development for SLS is the Critical Design Review, a programmatic gate that reaffirms the agency's confidence in the program planning and technical risk posture.

FINAL ORDER APPROVED BY FTC OVER DIETARY SUPPLEMENT'S MEMORY IMPROVEMENT CLAIMS

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Approves Final Order Settling Charges that “BrainStrong Adult” Supplement Marketers Made Deceptive Memory Improvement Claims

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that supplement marketers i-Health, Inc. and Martek Biosciences made deceptive claims while advertising their BrainStrong Adult dietary supplement.

The FTC’s complaint against i-Health and Martek, announced in June 2014, charges that the two companies, which sold the supplement at major retail stores, including CVS Pharmacy, Walmart, Walgreens, and Rite Aid, as well as online through drugstore.com and Amazon.com falsely claimed that they had clinical proof that BrainStrong Adult improves adult memory.

The final order bars the companies from claiming that any dietary supplement, food, drug, or product promoted to prevent cognitive decline or improve memory or containing DHA can prevent cognitive decline or improve memory in adults, unless the claim is truthful and supported by clinical testing. It also bars the companies from making claims about the health benefits, performance, safety, or effectiveness of such products, unless the claims are supported by competent and reliable scientific evidence.  Finally, the companies cannot claim they have clinical proof when they do not.

The Commission vote approving the administrative final order and responses to members of the public who submitted comments was 3-1-1, with Commissioner Maureen K. Ohlhausen voting no, and Commissioner Terrell McSweeny not participating. (FTC File No. 132-3067).

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FORMER EXEC SENTENCED TO PRISON FOR INVOLVEMENT IN $750 MILLION SECURITIES FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, August 29, 2014

Former Arthrocare Executives Sentenced for Orchestrating $750 Million Securities Fraud Scheme

Former CEO and CFO Sentenced to 20 Years in Prison and 10 Years in Prison, Respectively

The former chief executive officer (CEO) of ArthroCare Corporation was sentenced to serve 20 years in prison, and the former chief financial officer (CFO) was sentenced to serve 10 years in prison today for their leading roles in a $750 million securities fraud scheme.   Two other former senior vice presidents of ArthroCare were also sentenced to prison terms for their roles in the scheme.  

Principal Deputy Assistant Attorney General Marshall L. Miller of the Department of Justice’s Criminal Division and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Field Office made the announcement.   U.S. District Judge Sam Sparks in the Western District of Texas imposed the sentences.

“Earlier today, in federal court in Austin, Texas, we witnessed the culmination of an epic tale of greed,” said Principal Deputy Assistant Attorney General Miller.  “The CEO, CFO and two vice presidents of ArthroCare sentenced today ran a successful business, but they wanted more.  Their greed led to fraud, and their fraud caused investors to lose hundreds of millions of dollars.   At the Criminal Division of the Department of Justice, we are committed to prosecuting individuals who commit crimes to make money, whether they do so on street corners or in corner offices.  The aggressive pursuit of corporate executives  who commit fraud is at the core of our mission to  pursue justice and protect the American public.”

“This scheme of betrayal and deceit was carried out by the defendants without regard to the deep-reaching and irreparable harm their actions caused to thousands of victims, here in Texas, and throughout the United States,” said FBI Special Agent in Charge Combs.   “While it is important to recognize the financial losses sustained by all victims, which includes individual investors and institutional investment firms, many of the victims will never recover from the financial ruin caused by the defendants’ greed.  Many of the victims worked hard their entire lives, saving money for retirement or their children’s’ college funds.  Some were already living on fixed incomes and are now struggling to make ends meet.  The FBI will continue to aggressively work to uncover these fraud schemes in an effort to prevent future victimization and to protect the integrity of the securities and commodities market.”

On June 2, 2014, former ArthroCare’s CEO Michael Baker, 55, and former CFO Michael Gluk, 56, were convicted by a jury of wire fraud, securities fraud, and conspiracy to commit wire and securities fraud; Baker was also convicted of making false statements.   On June 24, 2013, John Raffle, 46, the former Vice President of Strategic Business Units, pleaded guilty to conspiracy to commit securities, mail and wire fraud, and two false statements charges.  On May 9, 2013, David Applegate, 55, the former Senior Vice President of the Spine Division, pleaded guilty to conspiracy to commit securities, mail and wire fraud, and a false statements charge.   At sentencing, the court found that investors lost approximately $756 million as a result of the defendants’ scheme to artificially inflate the share price of ArthroCare stock through sham transactions.

According to court documents, between 2005 and 2009, Baker, Gluk, Raffle and Applegate executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors.  Products were shipped to distributors at quarter end based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders.  ArthroCare then fraudulently reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to appear to meet or exceed internal and external earnings forecasts.  ArthroCare’s distributors agreed to accept these shipments of millions of dollars of excess inventory in exchange for lucrative concessions from ArthroCare, such as upfront cash commissions, extended payment terms, and the ability to return products.  In some cases, like that of ArthroCare’s largest distributor, DiscoCare, the defendants agreed ArthroCare would acquire the distributor and the inventory so that the distributor would not have to pay ArthroCare for the products at all.  

Between December 2005 and February 2009, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock.   On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results to reflect the results of an internal investigation and account for the defendants’ fraud, the price of ArthroCare shares dropped from $40.03 to $23.21 per share.   On Dec.19, 2008, ArthroCare again announced publicly that it had identified more accounting errors and possible irregularities related to the defendants’ fraud.   That day, the price of ArthroCare shares dropped from approximately $16.23 to approximately $5.92 per share.

In addition to the underlying conduct, Baker was convicted of lying to the U.S. Securities and Exchange Commission during its investigation of the conduct.   The court further found, as part of sentencing, that Baker and Gluk each lied under oath during their trial testimony, in which they attempted to escape responsibility for their actions.

In addition to their prison terms, Baker and Gluk were sentenced to serve five years of supervised release.   In addition, the court ordered Gluk and Baker to forfeit $22,165,030, the amount of their profits from the scheme.

John Raffle was sentenced to serve 80 months in prison followed by three years of supervised release.   David Applegate was sentenced to serve 60 months in prison followed by three years of supervised release.

The case was investigated by the FBI’s San Antonio Field Office.  The case was prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William S.W. Chang of the Criminal Division’s Fraud Section.   The Department recognizes the substantial assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section and the U.S. Securities and Exchange Commission, as well as the critical role of the U.S. Attorney’s Office for the Western District of Texas, which provided invaluable support to the prosecution team during all phases of the litigation.

CHRISTOPHER KLEIN'S REMARKS TO UN ON INTERIM ADMINISTRATION MISSION IN KOSOVO

FROM:  U.S. STATE DEPARTMENT 

Remarks by Christopher Klein, Political Minister Counselor, U.S. Mission to the United Nations, at a Security Council Open Debate on the United Nations Interim Administration Mission in Kosovo

Christopher Klein, Political Minister Counselor

New York, NY

August 29, 2014

AS DELIVERED

Thank you, Mr. President, and thank you, Special Representative Zarif for your briefing. I would also like to thank Foreign Minister Dacic and Foreign Minister Hoxhaj for your remarks.

Mr. President, the United States notes and welcomes Kosovo’s continued steps toward full integration within the international community. We commend the governments of the Solomon Islands and Togo for their recognition of Kosovo as a sovereign, independent state. We are also very pleased about Kosovo’s acceptance into the Venice Commission of the Council of Europe as its 60th member state. These steps further cement Kosovo’s place within the international community, strengthening Kosovo, the region, and international cooperation.

The United States praises both Serbia and Kosovo for their continued dedication to the EU-facilitated Kosovo-Serbia Dialogue and the implementation of the April 2013 agreement to normalize relations. While the next high-level meetings await government formation in Kosovo, we are encouraged that working level discussions continue, including a planned meeting on September 4 to carry forward the work on integrated border management. Both governments have made difficult but necessary decisions to advance the Dialogue, which remains integral to a stable, peaceful, and prosperous region. We are further heartened by the recent public statements by Serbian officials reaffirming that stability is Belgrade’s key interest in Kosovo.

The process of government formation in Kosovo is underway following successful parliamentary elections in June. We are encouraged by the positive reports from local and international observers on the smooth and orderly conduct of the election and broad participation throughout Kosovo. As Kosovo’s political and party leaders work to form the next government, it is important that the process proceed in line with Kosovo’s laws and constitution; the July 1 and August 26 rulings by Kosovo’s constitutional court should serve as guidelines in this regard. We urge the leaders, parties and Kosovo Assembly members to move lawfully and quickly toward formation of the new government, so that the important work of strengthening Kosovo’s multiethnic democracy can continue. We also welcome the formation of municipal assemblies and the Kosovo Ministry of Local Government Administration’s certification in May of municipal statutes for the four municipalities in the Serb-majority North.

Mr. President, the United States supports freedom of expression and universal human rights, and we denounce those who would turn to violence to sow discord and unrest within their communities. We condemn the violence that occurred during the South Mitrovica demonstration on June 22 regarding barriers on the Austerlitz Bridge. The security services, including the Kosovo police, EULEX, and KFOR, merit praise for their swift and appropriate response, which prevented further escalation. The violence and tensions over the Mitrovica bridge underscore the enduring sensitivity of these issues and the need for continued, constructive dialogue to resolve differences.

In a broader context, stability and security – both regionally and globally – benefit from rule of law and strong, democratic institutions in Kosovo. Mr. Zarif, you mentioned interconnectedness. We commend Kosovo authorities for their efforts to address the problems of violent extremism and the initiative of the Kosovo police and judiciary in apprehending suspected foreign fighters and their supporters in June and August. President Jahjaga has publicly reinforced that Kosovo will not become a terrorist haven, and that Kosovo institutions will not permit terrorists to endanger peace, stability, and constitutional order. We welcome the initiative of several countries in the region, including Kosovo and Serbia, to put in place legislation penalizing the recruitment and participation of its citizens in foreign armed conflicts. We call on all states in the region to cooperate more closely on countering the common threat of violent extremism.

Finally, Mr. President, we are pleased with the agreement between the European Union and Kosovo to extend the mandate of the European Union Rule of Law Mission in Kosovo until June 2016. EULEX and KFOR continue to make essential contributions to the international community’s work in Kosovo.

Thank you.

U.S. CONGRATULATES PEOPLE OF VIETNAM ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

Vietnam's National Day

Press Statement

John Kerry

Secretary of State

Washington, DC

August 29, 2014

---

On behalf of President Obama and the people of the United States, I am delighted to congratulate the people of Vietnam as you celebrate your National Day on September 2.
Our relationship has grown in ways many would never have predicted. We have moved past war and division. In the years since the embargo was lifted and we achieved normalization and trade, Vietnam has become a modern nation and an important partner for the United States. Vietnam is a country on the move and Vietnam’s moving.

My own journey with Vietnam came full circle when I visited Vietnam last December for my first time as Secretary of State. To know a country as a diplomat which I first knew as a combatant in a war is an experience that says so much about the progress we have made. On my trip, I met with Deputy Prime Minister and Foreign Minister Pham Binh Minh to discuss the work ahead as we deepen the U.S.-Vietnam Comprehensive Partnership on everything from trade and investment to our growing people-to-people ties. I’m proud to have led the efforts as a Senator to create a Fulbright Economics Teaching Program in Ho Chi Minh City, and I am equally proud that we are now working with the Vietnamese Government to establish a Fulbright University in the near future.

Over these last 19 years, Vietnam has taken a long journey. And as Vietnam has grown, so has our partnership. It has been moving and rewarding to be a partner to the Vietnamese people in that effort, and I look forward to celebrating the 20th anniversary of diplomatic ties next year.

SECRETARY KERRY CONGRATULATES NEW PRESIDENT OF EUROPEAN UNION DONALD TUSK

FROM:  U.S. STATE DEPARTMENT 

Statement on New European Council President and High Representative

Press Statement

John Kerry

Secretary of State

Washington, DC

August 31, 2014

---

I want to congratulate Polish Prime Minister Donald Tusk on his election as President of the European Council, and Italian Foreign Minister Federica Mogherini on her appointment as High Representative for Foreign Affairs and Security Policy.

The Prime Minister was a warm host when I visited Warsaw last November, and when President Obama and I returned earlier this year. The Polish people are strong and rightly proud of their country, and I know the Prime Minister will carry his leadership to the Council.
I have met with Foreign Minister Mogherini several times, most recently in Paris last month, and I value the collegial rapport we have developed as we work on a range of challenging issues.
I look forward to working closely together with both leaders to overcome the stark challenges we face to security, democracy, and freedom in Europe’s east, the Middle East, and throughout the world – and to defend and achieve our common vision of a Europe whole, free, and at peace.

I also want to salute President Van Rompuy and especially High Representative Ashton, my close colleague and partner on the full range of global security issues, for their dedicated and indispensable work helping to steer the European Union through the last years.
The United States and Europe share deep common commitments to freedom, security, democracy, human rights, the rule of law, and open markets. We are joined by enduring links of culture and commerce, by our shared history and our common hopes for the future.

As the European Union names its new leaders and moves to confirm a new Commission, I look forward to continuing our work together to build an ever stronger transatlantic relationship, and a safer, more prosperous world for future generations.

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DOJ SETTLES KICKBACK ALLEGATIONS CASE WITH MEDICAL DEVICE COMPANY AND SURGEON FOR $2.6 MILLION

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, August 29, 2014

Manufacturer of Spinal Devices and Surgeon to Pay United States $2.6 Million to Settle Alleged Kickback Scheme Omni Surgical L.P., doing business as Spine 360, a manufacturer of devices used in spinal surgery, and Dr. Jamie Gottlieb, an Indiana spinal surgeon, have agreed to pay $2.6 million to the United States to settle allegations that Spine 360 paid illegal kickbacks to Gottlieb to induce him to use the company’s products.  Spine 360 is based in Austin, Texas.

“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician’s judgment about the patient's true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division.   “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”

The Anti-Kickback Statute restricts the financial relationships that medical device manufacturers may have with doctors who use or prescribe their products.  It is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based upon the best interests of the patient.

The settlement announced today involved payments that Spine 360 made between 2007 and 2009 to an entity controlled by Gottlieb.  Although the payments were purportedly made pursuant to a series of intellectual property agreements, the United States contended that those agreements were shams, and that the payments were intended to compensate Gottlieb for using Spine 360 products in his surgeries.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The case was handled by the Commercial Litigation Branch of the department’s Civil Division , the U.S. Attorney’s Office for the Northern District of Indiana and the U.S. Department of Health and Human Services-Office of Inspector General.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

NASA VIDEO: ETA CARINAE: OUR NEIGHBORING SUPERSTARS

LABOR DEPARTMENT SECRETARY'S STATEMENT ON LABOR DAY 2014

FROM:  U.S. DEPARTMENT OF LABOR

Statement on Labor Day by US Secretary of Labor Thomas E. Perez

WASHINGTON — Each year, Labor Day gives us an opportunity to recognize the invaluable contributions that working men and women make to our nation, our economy and our collective prosperity. It gives us a chance to show gratitude for workers' grit, dedication, ingenuity and strength, which define our nation's character. At the Labor Department, it also provides an opportunity to reflect on how we can best serve and honor workers in return.

This year, we're honoring workers by investing more than a $1 billion in job-driven training programs to give Americans the skills employers need. We're honoring workers by promoting quality apprenticeships that will enable more people to "earn and learn." We're honoring workers, at President Obama's direction, by developing new rules to give more workers access to overtime pay and increase the minimum wage for private-sector workers hired under federal contracts. We're honoring workers by implementing a new life-saving rule to limit miners' exposure to coal dust and move us closer to eliminating black lung disease and by taking the next steps toward protecting workers from inhaling high levels of crystalline silica.

But as a nation, we can do more to lift workers up, and to ensure that all hardworking people are able to climb ladders of opportunity and reach for the American dream. It's time to raise the national minimum wage, so that no one working a full-time job has to live in poverty. It's time to update our workplace policies to reflect the realities of the 21st century labor force and to support modern working families. It's time to continue our nation's long commitment to supporting unemployed workers by extending emergency unemployment compensation.

Our nation is in the midst of a strong economic recovery. Job growth has topped 200,000 for six consecutive months — the first such stretch since 1997. Businesses have added nearly 10 million jobs since February 2010, with 53 consecutive months of growth. I'm optimistic about where we're headed — and I know we wouldn't be where we are without the resilience, commitment and strength of American workers.

This Labor Day, let's remember that hardworking men and women are the backbone of our country, and let's redouble our efforts to uphold our nation's great promise to them: that if you work hard and play by the rules, you can make it in America.

U.S. MILITARY EXPANDS SPACE-TRACKING WEBSITE TO LOOK FOR DEBRIS OF UNKNOWN ORIGIN

FROM:  U.S. DEFENSE DEPARTMENT  Officials Expand Space-tracking Website By Amaani Lyle DoD News, Defense Media Activity WASHINGTON, Aug. 25, 2014 – Defense Department officials announced additions to its space situational awareness program’s Space-Track.org website. In a recent telephone interview with DoD News, Air Force Maj. Gen. David D. Thompson, U.S. Strategic Command’s director of plans and policy at Offutt Air Force Base, Nebraska, said the release of new high-quality positional information on space debris of an unknown origin will help owner-operators better protect their satellites from these objects and ultimately create less space debris. “We run a predictive program that shows where the objects are, where they will be in the future, and the potential for these objects to run into each other,” Thompson said. Thompson explained that most of the debris that is considered “objects of unknown origin” resulted from launches or space collisions, but has not been definitively identified by source. Thousands of space objects The Joint Functional Component Command for Space at Vandenberg Air Force Base in California currently tracks more than 17,000 objects in space on a continuous basis, Thompson said. Among those objects, he said, about 1,100 are active satellites currently conducting operations. The average person has a lot more invested in space than he or she may realize, Thompson said. “We have more than 30 GPS satellites on orbit today providing global navigation and positioning for the world,” the general said. With modern smart phones offering so many diverse functions, the loss of connectivity and functionality could cripple a fair amount of consumers in the United States and abroad. “Networks that run those and the timing required to keep them all in sync is enabled through the global positioning system that every U.S. citizen and just about every advanced global citizen depends on,” Thompson said. Yet it is the other approximately 16,000 objects -- the ones not active and/or of unknown origin in space -- that JFCC Space and Stratcom are most concerned with. Objects present collision threat Many objects, ranging from at least the size of the human fist to as large as the international space station, which is slightly larger than a full-sized soccer field, continue to pose a collision threat in space, Thompson said. “There is also a high volume of debris smaller than the average fist that [JFCC Space] cannot track that are also on orbit today,” he said. With old satellites and debris orbiting at thousands of miles per hour, the probability of a collision poses a threat to the continuing mission of operational satellites. Exchange of space information While some active satellites are not maneuverable, JFCC Space officials said they try to inform the owners of all satellites that they may want to take action to reduce the likelihood of collision. “Exchanging information allows spacefaring organizations to take action to reduce the risk of a collision that could generate hundreds of thousands of pieces of additional space debris,” said Lt. Gen. John W. Raymond, JFCC Space commander. “JFCC Space shares information globally because it is in everyone’s best interest to ensure the safety of the space domain.” An example of space cluttering occurred in 2007, Thompson said, when the Chinese conducted an anti-satellite weapons test and almost immediately created 1,500 new objects that pose a risk to satellites in orbit. Stratcom tracks space objects And after the collision of an inoperable spacecraft with a commercial communications satellite in 2009, Stratcom took on the role for the world in keeping track of such objects and providing that warning to others to prevent the situation from worsening, Thompson said. “We have the assigned responsibility for planning and conducting space operations,” said Navy Adm. Cecil D. Haney, Stratcom’s commander. “By sharing previously unavailable information on space objects, we’re helping nations that operate in space to do so safely and effectively,” Haney added. “It is one way we fulfill our assigned space mission for the U.S. and its allies, while also protecting capabilities important to citizens around the world.” Yet it is a mission that extends beyond the average civilian. Warfighters depend on satellites Joint warfighters depend on advanced warning such as missile launch or intelligence, surveillance and reconnaissance from satellite systems, Thompson said. “It’s understanding what’s there [in space], what [the object] is doing, and how it poses a threat to our military mission, to our ability to support joint forces and contribute to the global good,” the general said. “While space is a very big place, there are a lot of things up there.” As such, for several years, JFCC Space has been responsible for monitoring, coordinating and synchronizing space operations for the Department of Defense. “We are the single point of contact for U.S. military space operational matters,” Raymond said. “We are not, however, the only ones who operate in that environment.” Many organizations in space Many public, private, commercial and other governmental organizations conduct space operations. “Space is not owned by anyone, it is used by all and we strongly support responsible and safe use of space and transparency of operations that go on in space,” Thompson said. Reversing congestion and pollution in space, he said, is a complex task. “We are talking decades or centuries before the environment will clean itself naturally so we have to share and act responsibly with this precious resource because it’s important to all of us,” Thompson said.

NSF VIDEO: HOW TIGER SHARKS AFFECT SHARK BAY'S ECOSYSTEM

RUSSIA CONTINUES BUILDUP

FROM:  U.S. DEPARTMENT OF DEFENSE 

Pentagon: Russia Intensifies Efforts Inside Ukraine

By Jim Garamone

DoD News, Defense Media Activity

WASHINGTON, Aug. 29, 2014 – Russia continues to build up along its border with Ukraine and has moved sophisticated weapons systems into the country, the Pentagon press secretary said here today.

Navy Rear Adm. John Kirby told reporters that Russian military forces are part of those movements. Russian forces are, “facilitating the movement and then helping the separatists use the systems, if not using it themselves in support of separatists,” he said.

NATO has released surveillance photos showing these assets inside Ukraine. Kirby tied the Russian movements to the success that Ukraine has had against Russian-backed separatists in the country. “We believe that that has helped foster Moscow’s intention to intensify these efforts,” he said.

Kirby called Russian actions an “intensification” of the behaviors the Kremlin has exhibited for months.

“Our position hasn't changed,” he said. “We continue to look for ways to support the Ukrainian armed forces and the border guards. We continue to look for ways to reassure our NATO allies and partners, and we continue to call for Russia to pull its forces back and to stop escalating the tension there.”

President Barack Obama addressed the issue yesterday during a White House news conference. Russia has deliberately and repeatedly violated the sovereignty and territorial integrity of Ukraine, the president said. He called on nations of the world to impose new sanctions against Russia.

“As a result of the actions Russia has already taken and the major sanctions we’ve imposed with our European and international partners, Russia is already more isolated than at any time since the end of the Cold War,” the president said.

Obama said he would reaffirm U.S. commitment to the defense of NATO allies and said he would speak with fellow NATO leaders at the summit in the United Kingdom next week.

“We’ll focus on the additional steps we can take to ensure the alliance remains prepared for any challenge,” he said.

Ukraine is not a NATO member, but the United States does “stand shoulder-to-shoulder with them,” the president said.

POLITICAL CONSULTANT PLEADS GUILTY FOR ATTEMPT TO CONCEAL CAMPAIGN FINANCE-RELATED FRAUD SCHEMES

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, August 27, 2014

Philadelphia Political Consultant Pleads Guilty for His Role in Attempting to Conceal Campaign Finance-Related Fraud

Political consultant Gregory Naylor, 66, of Philadelphia, pleaded guilty today to making false statements to federal agents and misprision of a felony in connection with his role in attempting to conceal two campaign finance-related fraud schemes.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Edward Hanko of the FBI’s Philadelphia Field Office and Special Agent in Charge Akeia Conner of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement. The plea was entered by U.S. District Court Judge Harvey Bartle III of the Eastern District of Pennsylvania.

According to court documents, the charges stem from Naylor’s participation in two campaign finance-related schemes initiated by a long-time friend and former employer, identified in the information as Elected Official A. In the first scheme, Naylor helped conceal the theft of federal grant funds and private charitable funds that were used to repay an illegal campaign debt incurred by Elected Official A during a 2007 campaign for elected office.

Specifically, Naylor was aware that large amounts of money from an unexplained source were being spent on Elected Official A’s campaign, and Naylor helped to conceal the source of those funds by preparing a false invoice for services rendered by his consulting firm. Naylor subsequently learned that Elected Official A and others orchestrated the theft of federal grant funds to repay the outstanding balance of the campaign debt, and he agreed to the falsification of campaign finance reports to further conceal Elected Official A’s activities.

Also according to court documents, in the second scheme, Naylor conspired with Elected Official A to pay down portions of the college debt of Elected Official A’s son using federal and local campaign funds. Some of the payments originated directly from the local campaign fund, and some were illegally sourced from Elected Official A’s federal campaign election committee and passed through the local campaign fund account to Naylor. Naylor made approximately $22,000 in improper payments between August 2007 and April 2011 at Elected Official A’s request. Naylor also falsely claimed on IRS forms that the payments made towards the college debt were earned income to Elected Official A’s son for services rendered as an independent contractor to Naylor’s consulting firm. When confronted by federal agents in investigative interviews about the payments, Naylor lied on two occasions and repeated his cover story that the son of Elected Official A was an independent contractor working for his political consulting firm.

Sentencing is scheduled for Dec. 2, 2014.

The case was investigated by the FBI and the IRS-CI with assistance provided by the NASA Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.

ISS VIEW OF EASTERN MEDITERRANEAN AT NIGHT

FROM:  NASA 

Eastern Mediterranean Coastline at Night

This night photograph taken by astronauts aboard the International Space Station (ISS) shows the location and size of cities at the east end of the Mediterranean Sea. The largest, brightest cluster is the Israeli city of Tel Aviv, a port set against the blackness of the Mediterranean Sea. Jerusalem, Israel’s capital city, and Amman, Jordan’s capital, are the next largest (with Amman’s lights having a whiter tone), followed by Beersheba.

Bright but narrow lines that snake between the cities are highways. The darker areas with smaller patches of lights are mostly agricultural and pastoral areas of Israel, Sinai, the West Bank, and Jordan. A wide, almost black zone between Jerusalem and Amman trends north-south across the right half of the image; it is the long valley that includes the Jordan River and the Dead Sea.

Click here to view an astronaut image of the same area in daylight. And read more here about a new NASA crowd-sourcing project to identify cities and towns in night images from the space station.

Astronaut photograph ISS040-E-74022 was acquired on July 22, 2014, with a Nikon D3S digital camera using an 85 millimeter lens, and is provided by the ISS Crew Earth Observations Facility and the Earth Science and Remote Sensing Unit, Johnson Space Center. The image was taken by the Expedition 40 crew. It has been cropped and enhanced to improve contrast, and lens artifacts have been removed. The International Space Station Program supports the laboratory as part of the ISS National Lab to help astronauts take pictures of Earth that will be of the greatest value to scientists and the public, and to make those images freely available on the Internet. Additional images taken by astronauts and cosmonauts can be viewed at the NASA/JSC Gateway to Astronaut Photography of Earth. Caption by M. Justin Wilkinson, Jacobs at NASA-JSC.

FTC WARNS CONSUMERS ABOUT SCAMS USING FAKE GOVERNMENT AFFILIATION AS MEANS TO ILLICIT MONEY

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Warns Against Government Imposter Scams

Can you spot a government imposter?

Even if your phone’s caller ID says “FTC” or “IRS,” or shows Washington, DC’s “202” area code, it could still be a scam. Scammers know how to show fake information on caller ID.

The Federal Trade Commission is warning consumers about scammers who pretend they’re with the government to scare you into sending money. They say you owe taxes or some other debt, and tell you to put money on a prepaid debit card and tell them the number — something no government agency would ask you to do.

Others say you’ve won big money in a sweepstakes the FTC or some other agency is supervising, and that the money will be yours when you pay for shipping, taxes, or some other expense. But it’s just phony baloney. Federal government agencies will never ask you to send money for prizes.

NSF VIDEO: SCIENCE OF SPEED: TURNING

STATEMENT BY SECRETARY KERRY ON THE INTERNATIONAL DAY OF THE DISAPPEARED

FROM:  U.S. STATE DEPARTMENT 

International Day of the Disappeared

Press Statement

John Kerry

Secretary of State

Washington, DC

August 30, 2014

---

Countless people around the world are haunted by the disappearance of a loved one. Those who vanished are neither alive nor dead. Their mothers and fathers, husbands and wives, family and friends are left without closure – neither able to mourn their loss nor rejoice in the safe return of their loved ones.

Today, we mark the 31^st International Day of the Disappeared and remember those individuals whose locations and fates remain unknown. Too often, lawyers, investigative journalists, and human rights activists fall victim to kidnapping for simply speaking the truth. That is unacceptable.

In Syria, thousands have disappeared at the hands of the Assad government. Violent extremist groups such as ISIL are ruthlessly targeting and disappearing innocent civilians in Syria and Iraq. In Nigeria, extremists kidnapped the Chibok girls from their school in the middle of the night. Such disappearances bring suffering to the victims and heartbreak to their families. They also create toxic atmospheres and breed terror within communities.

The State Department commends those men and women who work tirelessly to bring home missing individuals. The advancement of DNA sampling and analysis has helped reunite families who have suffered from unjust disappearances. Just last year the State Department helped to reunite a woman in Latin America who was abducted from her family during a massacre in 1982. She was only 18 months old at the time.

The United States and our international partners remain vigilant in our pursuit of those missing around the globe. They are missing, but never left behind. They are gone, but not lost. They are taken, but not forgotten.

Weekly Address: This Labor Day, Let’s Talk About the Minimum Wage

8/29/14: White House Press Briefing

NSF VIDEO: SCIENCE NATION - ANTARCTICA ROCKS

U.S. STATE DEPARTMENT TARGETS IRANIAN WMD PROLIFERATORS WITH SANCTIONS

FROM:  U.S. STATE DEPARTMENT 

Additional Sanctions Imposed by the Department of State Targeting Iranian Proliferators

Media Note

Office of the Spokesperson

Washington, DC

August 29, 2014

The Administration imposed sanctions today on a series of companies and individuals under various Iran-related authorities targeting those engaged in proscribed activities. These actions underscore U.S. resolve to enforce sanctions as the P5+1 and Iran work toward a comprehensive solution to address the international community’s concerns over Iran’s nuclear program. As part of the Joint Plan of Action (JPOA), which was extended in July, the P5+1 committed to providing Iran with limited, temporary, and targeted sanctions relief in return for important steps Iran took to constrain its nuclear program. The Department of State today imposed sanctions on a series of entities providing support to illicit Iranian nuclear activities. The Department of the Treasury announced additional actions under its authorities as well. Today’s actions target sanctionable activity beyond the scope of the relief offered to Iran as part of the JPOA.

Actions Targeting Weapons of Mass Destruction (WMD) Proliferators and Their Supporters

As part of these combined actions, the Department of State imposed sanctions on four companies pursuant to Executive Order (E.O.) 13382 for engaging in or attempting to engage in activities that have materially contributed to, or posed a risk of materially contributing to, the proliferation of WMD or their means of delivery. The Department of State’s designations comprise Iran-based entities engaged in efforts to support the development of nuclear weapons, or elements of Iran’s program that could be used to produce nuclear weapons.

Organization of Defensive Innovation and Research:

The Organization of Defensive Innovation and Research (SPND) is a Tehran-based entity that is primarily responsible for research in the field of nuclear weapons development. SPND was established in February 2011 by the UN-sanctioned individual Mohsen Fakhrizadeh, who for many years has managed activities useful in the development of a nuclear explosive device. Fakhrizadeh led such efforts in the late 1990s or early 2000s, under the auspices of the “AMAD Plan, the MODAFL subsidiary Section for Advanced Development Applications and Technologies (SADAT) and Malek Ashtar University of Technology (MUT). In February 2011, Fakhrizadeh left MUT to establish SPND. Fakhrizadeh was designated in UNSCR 1747 (2007) and by the United States in July 2008 for his involvement in Iran’s proscribed WMD activities. SPND took over some of the activities related to Iran’s undeclared nuclear program that had previously been carried out by Iran’s Physics Research Center, the AMAD Plan, MUT, and SADAT.

Nuclear Science and Technology Research Institute:

Iran’s Nuclear Science and Technology Research Institute (NSTRI) implements projects in the nuclear field, specifically at Iran’s 40-megawatt heavy water research reactor at Arak (the IR-40) - a reactor that, as presently designed, would provide Iran the capability to produce plutonium from the reactor’s spent fuelthe could be used in nuclear weapons. NSTRI has engaged with Modern Industries Technique Company (MITEC), an Iranian entity is responsible for design and construction of the IR-40, to produce lead glass for the hot cell facilities at the IR-40. This project would allow Iran, when reprocessing spent fuel, to contain radiation using high-density concrete walls to enclose the primary containment area, known as a “hot cell.” Hot cells with thick radiation shielding and leaden glass for direct viewing are adequate for research-scale plutonium extraction. NSTRI is a subordinate to the Atomic Energy Organization of Iran (AEOI), which is the primary Iranian organization responsible for nuclear technology research and development activities and was designated by the UNSC in resolution 1737 (2006) and by the United States in the annex to E.O. 13382. Further, MITEC was designated by the UNSC in resolution 1929 (2010) for its involvement in the design and construction of the IR-40, and by the United States pursuant to E.O. 13382 in November 2011 for providing services to the AEOI.

Jahan Tech Rooyan Pars and Mandegar Baspar Kimiya Company:

Jahan Tech Rooyan Pars (Jahan Tech) and Mandegar Baspar Kimiya Company (Mandegar Baspar) are Iran-based entities involved in the procurement of proliferation-sensitive material, specifically carbon fiber, for proscribed elements of Iran’s nuclear program. Since early 2010 and as recently as 2013, Jahan Tech and Mandegar Baspar have attempted to procure high-strength carbon fiber from Asia-based suppliers, some of which is controlled for export pursuant to the Nuclear Suppliers Group (NSG) Guidelines and is proscribed for export to Iran by UNSCR 1737. Among other uses, high-strength carbon fiber is suitable for the production of advanced centrifuge rotors, as well as for forming components that increase the range and payload capability of ballistic missiles. The Panel of Experts established pursuant to UNSCR 1929 (2010) noted in its May 2014 report that Iran has been attempting to procure high-grade carbon fiber for use in manufacturing of some of its centrifuge rotors. The Washington Post in 2013 documented Jahan Tech’s efforts to acquire 100,000 highly specialized magnets used in centrifuge machines – a quantity that could outfit 50,000 new centrifuges. Iranian private sector firms should heed the risks incurred by conducting business with those who support Iran’s proscribed nuclear activities and choose to focus their activities on legitimate international commerce. The United States will continue to investigate additional companies making material contributions to the Iranian government’s proliferation of weapons of mass destruction or their means of delivery

Actions Targeting Persons Engaging with the Energy or Petrochemical Sectors of Iran

Also today, the Department of State imposed sanctions pursuant to the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) on Goldentex FZE, a UAE-based company involved in providing support to Iran’s shipping sector.

IFCA mandates, among other things, the imposition of sanctions on individuals and companies determined to have knowingly transferred to or from Iran significant goods or services used in connection with the energy or shipping sector of Iran, including the National Iranian Oil Company or the National Iranian Tanker Company (NITC).

In addition, the Department of State took action to impose sanctions on Italy-based Dettin SpA pursuant to the Iran Sanctions Act of 1996 (ISA), as amended by the Iran Threat Reduction and Syria Human Rights Act of 2012 (TRA). According to information available to the United States, Dettin SpA knowingly providing Iran’s petrochemical industry with goods and support whose value exceeded $250,000. Although the JPOA authorizes Iran to export petrochemicals, providing goods, services, and support for the maintenance or expansion of Iran’s domestic production of petrochemicals is not within the scope of sanctions relief under the JPOA and, therefore, remains sanctionable.

These sanctions send a clear message that the United States will act resolutely against attempts to circumvent U.S. sanctions. Individuals and companies providing support to illicit Iranian nuclear activities program or engaged in assisting Iran’s efforts to evade U.S. sanctions will face serious consequences.

Identifier Information

Name: The Organization of Defensive Innovation and Research
AKA: SPND
Address: Negarestan 3, off of Pasdaran Street, Tehran, Iran

Name: The Nuclear Science and Technology Research Institute
AKA: NSTRI
AKA: Research Institute of Nuclear Science and Technology
AKA: Nuclear Science and Technology Research Institute
AKA: Nuclear Science and Technology Research Center
Address: P.O. Box 11365-3486, Tehran, Iran
Address: P.O. Box 14399-51113, Tehran, Iran
Address: North Karegar Ave., P.O. Box 14399/51113, Tehran, Iran
Address: Moazzen Blvd. Rajaee Shahr, Karaj, Iran, P.O. Box 31485-498
Address: End of Karegare Shomali Street, P.O. Box 11365-3486, Tehran, Iran

Name: Jahan Tech Rooyan Pars
AKA: Jahan Tech Rooyan Pars Company
AKA: Jahan Tech
Address: B18, Takhte-e-Jamshid Building, Science and Technology Park, Shiraz, Iran

Name: Mandegar Baspar Kimiya Company
AKA: Mandegar Baspar Fajr Asia
AKA: Bardiya Tejarat Javid
Address: No. 510, 5th Floor, Saddi Trading Building, South SAA DI Street, Tehran, Iran

Name: Goldentex FZE
Address: M05 Bin Thani BLD, Sheikh Khalifah Bin Zayed Road, Burdubai, Dubai, United Arab Emirates

Name: Dettin SpA
Address: Via Campania, 9 – 36015 Schio (4543N 11221E) Italy

EXPORT-IMPORT BANK TOUTS PARTNERSHIP WITH FLORIDA AND WASHINGTON STATE TO HELP SMALL BUSINESSES

FROM:  U.S. EXPORT-IMPORT BANK 

Small Business Success of the Week: Florida and Washington State Partner with Export-Import Bank US to Help Local Businesses Grow

WASHINGTON, D.C. – Two state agencies looking to help their local businesses grow joined forces with the Export-Import Bank of the United States (Ex-Im Bank) through the Bank’s City/State Partner program, to better prepare their small businesses to create jobs through exports. The Florida Export Finance Corporation (FEFC) and the Export Finance Assistance Center of Washington State are working with small businesses in their states to determine which Ex-Im products would be best for their needs.

“Our strategic partnerships with regional economic development organizations, private lenders, and advisors are opening new doors for small businesses in communities across America,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “The goal of the City/State Partners program is to ensure that more small businesses and entrepreneurs know how Ex-Im Bank products can equip local companies to grow their sales and add U.S. jobs through exports.”

In Florida, Florida Export Finance Corporation staff worked with Gus Vidauretta, co-founder of Top Secret Nutrition, to develop financial solutions for his small business. Working together, they identified Ex-Im Bank’s Global Credit Express program as a great way to expand the reach of Top Secret Nutrition. Global Credit Express enables exporters to set up a revolving line of credit in amounts up to $500,000, at no cost to taxpayers. Gus and his team subsequently created three new, dedicated product lines for markets in the UK, Italy, and Brazil.

“Ex-Im has been a key partner in several ways,” said Vidauretta. “Top Secret Nutrition first worked with the insurance side of Ex-Im. Our ability to export and our level of security were both enhanced by the fact that our exports were insured. Later we applied and received a loan from Ex-Im to create inventory for export. Ex-Im is an incredible asset and partner to businesses like mine.”

In Washington State, Whooshh Innovations, developers of an innovative product for transporting live fish and delicate fruit needed capital to complete orders from overseas buyers. With a slim history of financing export sales, rising orders created a funding gap between the capital Whooshh needed to produce its machinery, and what commercial banks were willing to put at risk. Doug Kemper, advising on behalf of Export Finance Assistance Center, matched his client’s need with the Bank’s Global Credit Express program. The loan enabled Whooshh to increase its production capacity, in order to fulfill the foreign buyers’ demand. Combining the financing with Ex-Im export credit insurance gave Whooshh flexibility to offer open account credit terms to make their export sales more competitive.

Kemper called Ex-Im’s Global Credit Express the perfect fit for Whooshh Innovations, which is “now on the cusp of some significant international sales.” Kemper’s office and other strategic partnerships plan to repeat that success. “This is a very unusual product that was created by [Ex-Im] Bank to fulfill a need that is definitely in the marketplace,” he said. “The relationship with Ex-Im is excellent. GCE is very creative, and the support and backing by the Bank – the willingness to help – is certainly there.”

WEST WING WEEK 08/29/14 OR "CHOOSE THE HARDER RIGHT INSTEAD OF THE EASIEST"

DOE SPENDS $67 MILLION FOR NUCLEAR ENERGY RESEARCH AND INFRASTRUCTURE ENHANCEMENTS

FROM:  U.S. ENERGY DEPARTMENT 

Energy Department Invests $67 Million to Advanced Nuclear Technology

August 20, 2014 - 12:00pm

WASHINGTON – Building on President Obama’s Climate Action Plan and the Administration’s efforts to expand clean energy innovation, the Energy Department announced today nearly $67 million in nuclear energy research and infrastructure enhancement awards. 83 projects were selected from across the country based on their potential to create scientific breakthroughs that both help strengthen the nation’s energy security and reduce harmful greenhouse gas emissions.

“The Department’s support for cutting-edge nuclear science and engineering across our universities, national laboratories, and industry reflects the key role of nuclear energy in helping ensure America’s low carbon future,” said Energy Secretary Ernest Moniz. “These awards not only provide crucial funding for research and development, but also for the training and education of the next generation nuclear energy workforce that will enhance American leadership in the safe, secure and efficient use of nuclear energy here and around the world.”

As part of the announcement, the Energy Department is awarding over $30 million through its Nuclear Energy Research Programs (NEUP) to support 44 university-led nuclear energy research and development projects to develop innovative technologies and solutions. These projects will be led by 30 U.S. universities in 24 states. Today’s announcement also includes approximately $4 million to 19 universities for research reactor and infrastructure improvements – providing important safety- performance- and student education-related upgrades to the nation’s 25 university research reactors as well as enhancing university research and training infrastructure.

The Energy Department is also awarding $20 million for 5 Integrated Research Projects (IRPs) that will deliver solutions to high priority nuclear energy research challenges, including instrumentation and vacuum drying systems associated with the storage of used nuclear fuel, an integrated approach to fluoride high temperature reactor technology development, and advanced instrumentation to support transient testing.

Additionally, $11 million will be awarded for 12 research and development projects led by U.S. universities, Department of Energy national laboratories and industry in support of the Nuclear Energy Enabling Technologies Crosscutting Technology Development Program (NEET CTD) to address crosscutting nuclear energy challenges. 2 infrastructure enhancement projects totaling over $1 million will be awarded to Department of Energy national laboratories to further reactor materials and instrumentation research.

Since 2009, the Energy Department’s Office of Nuclear Energy has awarded approximately $350 million to 98 U.S. colleges and universities to continue American leadership in clean energy innovation and to train the next generation of nuclear engineers and scientists through its university programs. Visit neup.gov for more information on today’s awards and Energy.gov for information on all of the Energy Department’s efforts to continue American leadership in low-carbon nuclear energy innovation.

FDA COMPLETES REVIEW OF HOW AGENCY EVALUATES HARMFUL CHEMICALS IN PRODUCTS

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 

FDA Takes Steps to Strengthen Program to Assess the Safety of Chemicals in Foods, Other Products

August 28, 2014

The U.S. Food and Drug Administration has completed a review of how the agency evaluates the harmful effects of chemicals in foods, cosmetics, dietary supplements, animal food/feed and veterinary drugs. Based on the findings, the agency is taking steps to strengthen internal processes.

The chemical safety assessment review is the first of three planned strategic reviews being conducted under the direction of the FDA’s Office of Foods and Veterinary Medicine (OFVM). The other two focus on nutrition and microbiological laboratory programs.

The FDA conducted the chemical safety assessment review in order to ensure that the agency is making the most effective and efficient use of its chemical safety resources. The review focused on the scientific capacity and management of the program’s multiple elements across the Center for Food Safety and Applied Nutrition (CFSAN) and the Center for Veterinary Medicine (CVM). Initiated in 2012, the review included interviews of current and former FDA employees involved in all aspects of the agency’s chemical safety assessment program, as well as senior managers from other U.S. government agencies experienced in chemical safety assessment, and five listening sessions conducted by CFSAN with internal and external stakeholders on OFVM’s overall chemical safety assessment program. In addition, four outside consultants, all of whom are considered experts in the field, and who had previously held senior management positions dealing with chemical safety assessment in the Federal government, met with OFVM and senior CFSAN managers to discuss the interview and listening session reports. Based on this discussion and their review of the interview and listening session reports, each consultant also made his or her own written recommendations for OFVM’s chemical safety program.

Working groups were formed in CFSAN and CVM to review all the reports and consultant recommendations. The issues and recommendations identified in the workgroup reports fall into three overarching categories (Science, Communication and Collaboration, and Training and Expertise).

Among the review’s most significant outcomes: the centers, led by CFSAN, will develop a process for updating FDA’s Toxicological Principles for the Safety Assessment of Food Ingredients (also called the “Redbook”), so that it reflects current science. Additionally, the centers will jointly develop a process to ensure consistency of methodologies used for safety and risk assessments within and across offices at CFSAN, and between CFSAN and CVM.

SECRETARY KERRY'S STATEMENT REGARDING U.S. CITIZENS IN IRAN

FROM:  U.S. STATE DEPARTMENT 

U.S. Citizens Detained or Missing in Iran

Press Statement

John Kerry

Secretary of State

Washington, DC

August 29, 2014

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U.S. Citizens Detained or Missing in Iran

The Unites States respectfully calls on the Government of the Islamic Republic of Iran to release Amir Hekmati, Saeed Abedini, and Jason Rezaian to their families and work cooperatively with us to find Robert Levinson and bring him home.

Today marks the three-year anniversary of U.S. citizen Amir Hekmati’s detention on false espionage charges while visiting his family in Iran.  Mr. Hekmati is the eldest son; he has long been separated from his family and they need him home.

Mr. Levinson went missing in March 2007 on Kish Island.  His family has endured years of painful separation and worry.  We are immensely concerned about his well-being and whereabouts.

On September 26, Mr. Abedini will have been detained for two years in Iran, on charges related to his religious beliefs.  Mrs. Abedini has spoken eloquently about the difficulties her family has faced during this challenging time.

Mr. Rezaian, a reporter for the Washington Post, is being detained in an unknown location.  His love of Iran is seen in his reporting – portraits of the generosity and kindness of the Iranian people.

The United States remains committed to returning all of them to their families, friends, and loved ones.  We ask the Government of the Islamic Republic of Iran to immediately release Amir Hekmati, Saeed Abedini, and Jason Rezaian and respectfully request the Government of the Islamic Republic of Iran work cooperatively with us to find Mr. Levinson and bring him home.

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OWNER, EMPLOYEES OF MORTGAGE COMPANY, TWO REAL ESTATE DEVELOPERS INDICTED FOR ROLES IN $50 MILLION MORTGAGE SCAM

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, August 28, 2014

Owner and Seven Employees of Mortgage Company and Two Real Estate Developers Indicted for $50 Million Scam Involving Federally Insured Mortgages

The owner of a Florida mortgage company, seven employees of the company and two real estate developers were indicted in the Southern District of Florida in connection with an alleged $50 million mortgage fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and David A. Montoya, Inspector General for the Department of Housing and Urban Development (HUD) made the announcement.

Hector Hernandez, 56, of Miami, Florida, the owner and operator of Great Country Mortgage Bankers (Great Country), a mortgage lender in Miami, was charged with one count of conspiracy to commit wire fraud affecting a financial institution and 25 counts of wire fraud affecting a financial institution.   Great Country loan officers Durand Deeb, 43, of Miami, Frank Carino, 48, of Apollo Beach, Florida, and Fabian Perez, 39, of Miami; Great Country loan processors Juliette Del Rio, 37, of Miami, and Julissa Saavedra, 43, of Miami,; Great Country underwriters Olga Hernandez, 58, of Lake Mary, Florida, and Olga Rodriguez, 53, of Miami; and real estate developers Armando Bravo, 42, of Coral Gables, Florida, and Aleida Fontao, 61, of Miami, were also indicted for conspiracy to commit wire fraud affecting a financial institution and varying counts of wire fraud affecting a financial institution.

According to the indictment, beginning in January 2006 and continuing through September 2008, Hernandez and others allegedly obtained mortgage loans insured by the Federal Housing Administration (FHA), a division of HUD, for unqualified borrowers by exaggerating the borrowers’ income and otherwise misrepresenting their financial condition.

Specifically, Hernandez and others allegedly created false documents on behalf of borrowers who could not otherwise qualify for FHA-insured loans due to insufficient income, high levels of debt, and outstanding collections.   These documents included bogus earnings statements that inflated the borrowers’ income and false verification of employment forms that overstated their work histories.

In addition to creating these false documents, Hernandez and others allegedly offered the unqualified borrowers cash back after closing as an incentive to purchase condominiums.   These secret payments were not disclosed in the loan applications and were omitted from loan closing documents so that HUD and the financial institutions that subsequently purchased the loans would not know of their existence.

By later selling the fraudulent loans to financial institutions, Great Country transferred the risk of loss to those institutions .   The vast majority of the unqualified borrowers failed to meet their monthly mortgage obligations and defaulted on their loans.   When the loans went into foreclosure, HUD, which insured the loans, was required to pay the outstanding balances to the financial institutions, resulting in losses in excess of $50 million to the agency.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

This case is being investigated by HUD’s Office of Inspector General with assistance from the U.S. Marshals Service, Miami-Dade Police Department Warrants Bureau and Miami-Dade State Attorney’s Office – Public Corruption Task Force.   This is being prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section.

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SEC CHARGES TWO IT COMPANY EXECUTIVES WITH "MISCHARACTERIZEING AN ARRANGEMENT"

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged two executives at a Dallas-based information technology company with mischaracterizing an arrangement with an equipment manufacturer to purport that it was conducting so-called “resale transactions” to inflate the company’s reported revenue.

An SEC investigation found that then-CEO Lynn R. Blodgett and then-CFO Kevin R. Kyser caused the disclosure failures at Affiliated Computer Services (ACS), which has since been acquired by Xerox Corporation.  ACS provided business process outsourcing and information technology services.  Shortly before the end of its first quarter in fiscal year 2009, ACS faced a scenario where the company’s revenue was set to fall short of company guidance and consensus analyst expectations, so ACS arranged for an equipment manufacturer to re-direct through ACS pre-existing orders that the manufacturer already had received from one of its customers.  This gave the appearance that ACS was involved in resale transactions, but ACS in fact had no such involvement.  ACS went on to report $124.5 million in fiscal year 2009 revenue from these transactions as though it had resold the equipment itself.

Blodgett and Kyser have agreed to pay nearly $675,000 to settle the SEC’s charges that they and ACS did not adequately describe the arrangement in its financial reporting, and the purported revenue in turn allowed ACS to publicly report inflated internal revenue growth (IRG).  Blodgett and Kyser emphasized the inflated IRG as a key metric in earnings releases and other public statements to investors, and a portion of their annual bonuses was linked to IRG.
“ACS positioned itself in the middle of pre-existing transactions without adding value, but still improperly reported the revenue. Blodgett and Kyser knew the truth about these deals, and they were responsible for ensuring that ACS accurately disclosed the full story to investors,” said David R. Woodcock, director of the SEC’s Fort Worth Regional Office and chair of the agency’s Financial Reporting and Audit Task Force.  “This enforcement action holds them accountable for failing to uphold that responsibility.”

Blodgett and Kyser consented to the SEC’s order to cease-and-desist from violating Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, and Rules 12b-20, 13a-1, 13a-11, 13a-13, and 13a-14.  Without admitting or denying the findings, they have agreed to collectively disgorge IRG-related bonuses plus prejudgment interest totaling $569,327, and they each must pay $52,000 penalties.

The SEC’s investigation was conducted by James E. Etri, Todd B. Baker, and David R. King of the Fort Worth office.

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