Friday, October 3, 2014

EXPORT-IMPORT BANK SAYS BILLION DOLLAR GUARANTEE OF PEMEX BONDS SUPPORTS U.S. JOBS

FROM:  U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Supports U.S. Jobs Through $1 Billion Guarantee of Pemex Bonds To Be Issued in the Capital Markets
Guarantee of Pemex Bonds Will Support an Estimated 6,700 U.S. Jobs 

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) on Monday approved two authorizations totaling $1 billion in financing to support the export of U.S. goods and services to PetrĂ³leos Mexicanos (Pemex), Mexico's national oil-and-gas company.

Ex-Im Bank’s financing will support approximately 6,700 U.S. jobs, at both large and small businesses, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.

“Capital-markets financing is an innovative and proven approach that helps to provide funding for Pemex’s purchases of made-in-America goods and services at no extra cost to the U.S. Treasury,” said Ex-Im Bank Chairman and President Fred P. Hochberg. ”With these authorizations, Ex-Im Bank is continuing to meet our mission to support U.S. exporters and their workers by helping to maintain American jobs in both large and small businesses around the country.”

This transaction is assisting in financing exports to Pemex of American-made oil-field and gas-field drilling services, drilling platforms, turbine generators, mud pumps, chemicals, spare parts, geophysical studies and safety equipment – among numerous other U.S.-produced goods and services.

One of the many U.S. small businesses that is benefiting from this Ex-Im Bank financing for Pemex is Checkpoint Pumps & Systems in Mandeville, La., near New Orleans. Checkpoint Pumps, a chemical-injection packages provider, is a single source for concept, engineering, manufacturing, testing and field service. The company has approximately 70 employees at its Mandeville facility and 30 additional employees at other locations worldwide.

“We confidently expect that Ex-Im Bank financing will play an even larger role in our growth within the expanding Latin American market in the coming years,” said David Cheadle, Checkpoint’s Latin American sales manager.

Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the purchases of these exports.

MARKETERS SETTLE FTC CHARGES OVER WEIGHT-LOSS CLAIMS REGARDING CAFFEINE-INFUSED CLOTHING

 FROM:  U.S. FEDERAL TRADE COMMISSION 
Norm Thompson Outfitters and Wacoal America Settle FTC Charges Over Weight-Loss Claims for Caffeine-infused Shapewear

Two marketers of women’s “shapewear” undergarments have settled Federal Trade Commission charges that slimming claims for their caffeine-infused products were false and not substantiated by scientific evidence. The proposed orders settling the FTC’s complaints bar Norm Thompson Outfitters, Inc., and Wacoal America, Inc., from making false and unsubstantiated claims about their shapewear and require them to pay a total of more than $1.5 million for consumer refunds.

“Caffeine-infused shapewear is the latest ‘weight-loss’ brew concocted by marketers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If someone says you can lose weight by wearing the clothes they are selling, steer clear. The best approach is tried and true: diet and exercise.”

The FTC’s complaint against Norm Thompson Outfitters alleges the company deceptively advertised, marketed, and sold women’s undergarments infused with microencapsulated caffeine, retinol, and other ingredients, claiming the “shapewear” would slim and reshape the wearer’s body and reduce cellulite. The products, made with Lytess brand fabrics, were sold via mail order and on the company’s Norm Thompson Outfitters, Sahalie, Body Solutions, and Body*Belle websites.

Specifically, the FTC alleges that the company made claims that wearing its shapewear would eliminate or substantially reduce cellulite; reduce the wearer’s hip measurements by up to two inches and their thigh measurements by one inch; and reduce thigh and hip measurements “without any effort.” The complaint alleges that these claims are not true or substantiated by scientific evidence, and therefore violate the FTC Act.

The complaint against Wacoal America contains similar allegations. It charges that the company’s iPants supposedly slimmed the body and reduced cellulite. Specifically, the company made false and unsubstantiated claims that wearing iPants would: substantially reduce cellulite; cause a substantial reduction in the wearer’s thigh measurements; and destroy fat cells, resulting in substantial slimming. The complaint alleges that these claims are not true or substantiated by scientific evidence, and therefore also violate the FTC Act.

The proposed administrative consent orders settling the charges against Norm Thompson Outfitters and Wacoal America ban the companies from claiming that any garment that contains any drug or cosmetic causes substantial weight or fat loss or a substantial reduction in body size.  In addition, the companies are prohibited from making claims that any drug or cosmetic reduces or eliminates cellulite or reduces body fat, unless they are not misleading and can be substantiated by competent and reliable scientific evidence.

Finally, the orders require Norm Thompson Outfitters and Wacoal America to pay $230,000 and $1.3 million, respectively, that the FTC can use to provide refunds to consumers who bought the caffeinated shapewear.

Consumers should carefully evaluate advertising claims for weight-loss products. For more information, see the FTC’s guidance for consumers of products and services advertised for Weight Loss & Fitness.

The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.

The Commission vote to issue the complaints and accept the proposed consent orders was 5-0 in each case. The FTC will publish a description of the consent agreement packages in the Federal Register shortly. The agreements will be subject to public comment for 30 days, beginning today and continuing through October 29, 2014, after which the Commission will decide whether to make the proposed consent orders final.

Interested parties can submit written comments on the proposed settlements with Norm Thompson Outfitters and Wacoal America electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section of the Federal Register notice.

NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

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TWO DETROIT-AREA RESIDENTS CHARGED IN HOME-HEALTH KICKBACK SCHEME

FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, September 30, 2014
Two Defendants Charged in Connection with Detroit-Area Home Health Kickback Scheme

Two Detroit-area residents were arrested today on charges related to a Medicare fraud scheme in which they are alleged to have referred Medicare beneficiaries to home health care agencies in exchange for kickbacks.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Acting Special Agent in Charge Jarod Koopman, of the Internal Revenue Service - Criminal Investigation (IRS-CI) Detroit Field Office, made the announcement.

Sophia Eggleston, 52, of Farmington Hills, Michigan, and Sekne Ali, 48, of Dearborn, Michigan, were charged in a four-count indictment, unsealed today, with conspiracy to violate the Anti-Kickback Statute and substantive violations of the Anti-Kickback Statute.   The indictment alleges that both defendants recruited Medicare beneficiaries to two home health agencies in Oakland County, Michigan – Prestige Home Health Services Inc. and Royal Home Health Care Inc. – and were paid kickbacks for the patient referrals.  Both agencies purported to provide in-home health care services to Medicare beneficiaries.

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

This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

FORMER WELLS FARGO EMPLOYEES ACCUSED OF RATINGS CHANGE ASSOCIATED RESEARCH TO MAKE INSIDER TRADES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
Two Former Wells Fargo Employees Charged With Insider Trading in Advance of Research Reports Containing Ratings Changes
09/29/2014 12:05 PM EDT

The Securities and Exchange Commission today announced insider trading charges against two former Wells Fargo employees involved in an alleged scheme to profit by buying or short selling a stock before research analyst reports were published containing a ratings change.

Research analysts typically produce reports with a recommendation or rating of a stock or other security they’ve reviewed.  When an analyst alters a prior view on the prospects of a security, a new report is issued with a ratings change.  The SEC’s Enforcement Division alleges that while Gregory T. Bolan Jr. worked as a research analyst at Wells Fargo, he tipped a trader at the firm, Joseph C. Ruggieri, in advance of several market-moving ratings upgrades or downgrades that he made in certain securities.  The tips enabled Ruggieri to generate more than $117,000 in profits.

“Instead of abiding by firm policies that specifically prohibited trading ahead of published research, Ruggieri used information obtained from Bolan to make profitable trades in advance of six separate research reports,” said Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office.  “The repeated nature of these violations demonstrates an utter disregard for our insider trading laws.”

According to the SEC’s order instituting a litigated proceeding before an administrative law judge, Bolan also tipped a close friend with nonpublic information about his upcoming ratings changes.  The friend, who is now deceased, generated approximately $10,000 in profits in a personal brokerage account by trading ahead of three ratings changes.

“Bolan gave two traders a sneak preview into his upcoming ratings changes and provided them an unfair and illegal advantage on the rest of the markets,” said Daniel M. Hawke, Chief of the SEC Enforcement Division’s Market Abuse Unit.

The SEC’s Enforcement Division alleges that after receiving Bolan’s tips, Ruggieri either purchased the relevant company’s stock ahead of Bolan’s upgrades or sold the stock short ahead of Bolan’s downgrades.  Ruggieri closed his overnight positions in those securities for a profit shortly after Bolan’s ratings changes were made public and the stock prices had moved.  From April 2010 to March 2011, Bolan published a total of eight research reports with a ratings change or initiation of coverage with an “outperform” or “underperform” rating.  Ruggieri traded profitably ahead of six of these reports in a manner that did not fit in his typical trading pattern.  Aside from this trading ahead, Ruggieri had only a handful of overnight positions in securities that had been rated within the six months prior to his trading.

The SEC’s Enforcement Division alleges that by engaging in the misconduct described in the SEC’s order, Bolan and Ruggieri willfully violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.  The administrative proceeding will determine what relief, if any, is in the public interest against Bolan and Ruggieri, including disgorgement of ill-gotten gains, prejudgment interest, financial penalties, and other remedial measures.

The SEC’s investigation was conducted by Sandeep M. Satwalekar, Charles D. Riely, and John Marino of the SEC’s Market Abuse Unit in New York, as well as Peter A. Lamore and Alexander M. Vasilescu of the New York Regional Office.  The case has been supervised by Mr. Hawke and Mr. Wadhwa.  The SEC’s litigation will be led by Mr. Vasilescu and Mr. Satwalekar.

The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

Thursday, October 2, 2014

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

FROM:  U.S. STATE DEPARTMENT 
Germany's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
October 2, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Germany as you celebrate the Day of German Unity on October 3.

I will always have a personal connection to Germany.  When my father served in Berlin as a Foreign Service Officer after World War II, I learned to speak German and came to love the culture, architecture, and beauty of the country.

Just last year, on my first trip abroad as Secretary, I returned to Berlin and walked its streets – past the Reichstag, past the Brandenburg Gate.  I marveled not just at the miles Germany has traveled, but at the journey we have traveled together since the fall of the Berlin Wall almost twenty five years ago.

Today, the ties that bind the United States and Germany remain stronger than ever.  Our partnership is critical for promoting security and stability in Afghanistan, the Middle East, and beyond.  Germany is our largest trading partner in Europe, and we look forward to deepening those ties as we work together for an ambitious Transatlantic Trade and Investment Partnership.

On this anniversary, we give thanks for Germany’s many contributions to the prosperity and security of Europe and to the wider world.

SECRETARY KERRY MAKES REMARKS WITH VIETNAMESE DEPUTY PRIME MINISTER AND FOREIGN MINISTER MINH

FROM:  U.S. STATE DEPARTMENT  
Remarks With Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh Before Their Meeting
Remarks
John Kerry
Secretary of State
Benjamin Franklin Room
Washington, DC
October 2, 2014

SECRETARY KERRY: Thank you. Well, good morning, everybody. It’s my distinct pleasure to welcome the Deputy Prime Minister and Foreign Minister Pham Binh Minh, who I have known for many, many years. I first met him when he was a student in Boston at Tufts University, Fletcher, and we’ve seen each other many times since in my journeys to Vietnam and in his work over here.

It’s fair to say that in the first year of our comprehensive partnership, we have now made significant progress on the civilian 123 nuclear program, on the Proliferation Security Agreement, as well as on economic and other issues that are important to both of our countries.

And we still have things that we’re working on. One of the things that we want to try to conclude is the Trans-Pacific Partnership trade agreement, and Vietnam is working very hard with us in order to be able to do that. We continue to talk about issues in the bilateral relationship – human rights, economic development, private company ability to be able to do business. These are all important things. And I look forward to a good discussion today, and I’m delighted to welcome Pham Binh Minh here to have this dialogue.

Thank you. Thank you, sir.

DEPUTY PRIME MINISTER MINH: Thank you very much.

SECRETARY KERRY: Want to say anything?

DEPUTY PRIME MINISTER MINH: Good morning. Thank you, Mr. Secretary, for inviting me to visit officially the United States. Since the establishment of the comprehensive partnership, we have recorded many achievements in all fields – economic, political, security, defense, and other areas.

So I come to United States today to meet and to work with U.S. colleagues to review the bilateral relations between the two countries. I’m looking forward to have the fruitful discussions on bilateral issues, how to deepen our relation, and also discuss the regional and international issues of our mutual interest. Thank you.

SECRETARY KERRY: Thank you, sir, very much. Thank you. Thank you all very much.

DEPUTY PRIME MINISTER MINH: Thank you.

23 YEAR OLD BOMB PLOTTER SENTENCED TO SERVE 30 YEARS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, October 1, 2014
Convicted Bomb Plotter Sentenced to 30 Years

PORTLAND, Oregon. – Mohamed Osman Mohamud, 23, who was convicted in 2013 of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland, was sentenced today to serve 30 years in prison, followed by a lifetime term of supervised release.

Mohamud, a naturalized U.S. citizen from Somalia and former resident of Corvallis, Oregon, was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland.  The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed.  The device was in fact inert, and the public was never in danger from the device.

At sentencing, United States District Court Judge Garr M. King, who presided over Mohamed’s 14-day trial, said “the intended crime was horrific,” and that the defendant, even though he was presented with options by undercover FBI employees, “never once expressed a change of heart.”  King further noted that the Christmas tree ceremony was attended by up to 10,000 people, and that the defendant “wanted everyone to leave either dead or injured.”  King said his sentence was necessary in view of the seriousness of the crime and to serve as deterrence to others who might consider similar acts.  

“With today’s sentencing, Mohamed Osman Mohamud is being held accountable for his attempted use of what he believed to be a massive bomb to attack innocent civilians attending a public Christmas tree lighting ceremony in Portland,” said John P. Carlin, Assistant Attorney General for National Security.  “The evidence clearly indicated that Mohamud was intent on killing as many people as possible with his attack.  Fortunately, law enforcement was able to identify him as a threat, insert themselves in the place of a terrorist that Mohamud was trying to contact, and thwart Mohamud’s efforts to conduct an attack on our soil.  This case highlights how the use of undercover operations against would-be terrorists allows us to engage and disrupt those who wish to commit horrific acts of violence against the innocent public.  The many agents, analysts, and prosecutors who have worked on this case deserve great credit for their roles in protecting Portland from the threat posed by this defendant and ensuring that he was brought to justice.”

“This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists,” said Amanda Marshall, U.S. Attorney for the District of Oregon.  “With the sentencing today, the court has held this defendant accountable.   I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome.  I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence.”

According to the trial evidence, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula.  Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan.  Mohamud wrote several articles for Jihad Recollections that were published under assumed names.

In August 2009, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses.  Al-Ali sent Mohamud detailed e-mails designed to facilitate Mohamud’s travel to Yemen to train for violent jihad.  In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an e-mail: “yes, that would be wonderful, just tell me what I need to do.”  Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.

In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali’s associate.  Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali’s.  Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010.  At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections.  Mohamud also said that he wanted to become “operational.”  Asked what he meant by “operational,” Mohamud said he wanted to put an explosion together, but needed help.

According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15.  Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland’s Pioneer Courthouse Square on Nov. 26, 2010.  The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame.  Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.

According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics.  On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Oregon, where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack.  During the drive back to Corvallis, Mohamud was asked if was capable looking at all the bodies of those who would be killed during the explosion.  In response, Mohamud noted, “I want whoever is attending that event to be, to leave either dead or injured.”  Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack.

On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack.  On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was “beautiful.”  Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb rked near the Christmas tree lighting ceremony

This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff’s Office and the Portland Police Bureau.  The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney’s Office for the District of Oregon.  Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department’s National Security Division, assisted.

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COMPUTER SIMULATIONS, STATISTICAL TECHNIQUES INDICATE CALIFORNIA DROUGHT LIKELY LINKED TO CLIMATE CHANGE

FROM:  NATIONAL SCIENCE FOUNDATION 
Cause of California drought linked to climate change

Extreme atmospheric conditions responsible for drought more likely to occur in current global warming.

The atmospheric conditions associated with the unprecedented drought in California are very likely linked to human-caused climate change, researchers report

Climate scientist Noah Diffenbaugh of Stanford University and colleagues used a novel combination of computer simulations and statistical techniques to show that a persistent region of high atmospheric pressure over the Pacific Ocean--one that diverted storms away from California--was much more likely to form in the presence of modern greenhouse gas concentrations.

The result, published today in the Bulletin of the American Meteorological Society, is one of the most comprehensive studies to investigate the link between climate change and California's ongoing drought.

"Our research finds that extreme atmospheric high pressure in this region--which is strongly linked to unusually low precipitation in California--is much more likely to occur today than prior to the emission of greenhouse gases that began during the Industrial Revolution in the 1800s," says Diffenbaugh.

The exceptional drought crippling California is by some measures the worst in state history.

Combined with unusually warm temperatures and stagnant air conditions, the lack of precipitation has triggered a dangerous increase in wildfires and incidents of air pollution across the state.

The water shortage could result in direct and indirect agricultural losses of at least $2.2 billion and lead to the loss of more than 17,000 seasonal and part-time jobs in 2014 alone.

Such effects have prompted a drought emergency in the state; the federal government has designated all 58 California counties as natural disaster areas.

"In the face of severe drought, decision-makers are facing tough choices about the allocation of water resources for urban, agricultural and other crucial needs," says Anjuli Bamzai, program director in the National Science Foundation's (NSF) Division of Atmospheric and Geospace Sciences, which funded the research.

"This study places the current drought in historical perspective and provides valuable scientific information for dealing with this grave situation. "

Scientists agree that the immediate cause of the drought is a particularly tenacious "blocking ridge" over the northeastern Pacific--popularly known as the Ridiculously Resilient Ridge, or "Triple R"--that prevented winter storms from reaching California during the 2013 and 2014 rainy seasons.

Blocking ridges are regions of high atmospheric pressure that disrupt typical wind patterns in the atmosphere.

"Winds respond to the spatial distribution of atmospheric pressure," says Daniel Swain of Stanford, lead author of the paper.

"We have seen this amazingly persistent region of high pressure over the northeastern Pacific for many months, which has substantially altered atmospheric flow and kept California largely dry."

The Triple R was exceptional for both its size and longevity.

While it dissipated briefly during the summer months of 2013, it returned by fall 2013 and persisted through much of the winter, California's wet season.

"At its peak in January 2014, the Triple R extended from the subtropical Pacific between California and Hawaii to the coast of the Arctic Ocean north of Alaska," says Swain, who coined the term "ridiculously resilient ridge" to highlight the persistent nature of the blocking ridge.

Like a large boulder that has tumbled into a narrow stream, the Triple R diverted the flow of high-speed air currents known as the jet stream far to the north, causing Pacific storms to bypass not only California, but also Oregon and Washington.

As a result, rain and snow that would normally fall on the West Coast were instead re-routed to Alaska and as far north as the Arctic Circle.

An important question for scientists and decision-makers has been whether human-caused climate change has influenced the conditions responsible for California's drought.

Given the important role of the Triple R, Diffenbaugh and colleagues set out to measure the probability of such extreme ridging events.

The team first assessed the rarity of the Triple R in the context of the 20th century historical record.

Analyzing the period since 1948, for which comprehensive atmospheric data are available, the researchers found that the persistence and intensity of the Triple R in 2013 were unrivaled by any previous event.

To more directly address the question of whether climate change played a role in the probability of the 2013 event, the team collaborated with scientist Bala Rajaratnam, also of Stanford.

Rajaratnam applied advanced statistical techniques to a large suite of climate model simulations.

Using the Triple R as a benchmark, Rajaratnam compared geopotential heights--an atmospheric property related to pressure--between two sets of climate model experiments.

One set mirrored the present climate, in which the atmosphere is growing increasingly warmer due to human emissions of carbon dioxide and other greenhouse gases.

In the other set of experiments, greenhouse gases were kept at a level similar to those that existed just prior to the Industrial Revolution.

The researchers found that the extreme heights of the Triple R in 2013 were at least three times as likely to occur in the present climate as in the preindustrial climate.

They also found that such extreme values are consistently tied to unusually low precipitation in California, and to the formation of atmospheric ridges over the northeastern Pacific.

"We've demonstrated with high statistical confidence that large-scale atmospheric conditions similar to those of the Triple R are far more likely to occur now than in the climate before we emitted large amounts of greenhouse gases," Rajaratnam says.

"In using these advanced statistical techniques to combine climate observations with model simulations, we've been able to better understand the ongoing drought in California," Diffenbaugh adds.

"This isn't a projection of 100 years in the future. This is an event that is more extreme than any in the observed record, and our research suggests that global warming is playing a role right now."

The research was also supported by the National Institutes of Health. Rajaratnam was also supported in part by DARPA, the Air Force Office of Scientific Research and the UPS fund.

-NSF-
Media Contacts
Cheryl Dybas, NSF,


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DOJ SETTLES ALLEGED DISABILITY-BASED HOUSING DISCRIMINATION CASE AGAINST DEVELOPER

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, September 30, 2014
Justice Department Settles Allegations of Disability-Based Housing Discrimination with West Virginia Developer

The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia.  The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities.  The United States District Court for the Southern District of West Virginia approved the settlement yesterday.

Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users.  These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights.  In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.

“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.”

“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia.  “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused.  That’s an important victory for West Virginians with disabilities.”

Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement.  Notices of the settlement and a list of subject properties will be published in the Charleston Gazette.  Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at fairhousing@usdoj.govEmail links icon.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

POST-IT NOTE USER CHARGED BY SEC WITH INSIDER TRADING

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged a Brooklyn man with facilitating a $5.6 million insider trading scheme that typically involved the passing of illegal tips via napkins or post-it notes at Grand Central Terminal.

Earlier this year, the SEC charged a stockbroker and a law firm managing clerk with insider trading and alleged they were connected by a mutual friend who served as a “middleman” in an effort to keep the two unlinked.  In a separate complaint filed today in U.S. District Court for the District of New Jersey, the SEC identifies Frank Tamayo as that middleman.  The SEC alleges that Tamayo received material nonpublic information from Steven Metro about 13 impending corporate deals involving clients of the law firm where Metro worked.  Tamayo then tipped his stockbroker Vladimir Eydelman, who used the confidential information to illegally trade for himself and for Tamayo and other customers.  Tamayo allocated a portion of his ill-gotten profits for eventual payback to Metro for the inside information.

“As the middleman, Tamayo was the firewall between Metro and Eydelman.  Metro had the information, Eydelman did the trading, and Tamayo kept them apart,” said Robert Cohen, Co-Deputy Chief of the SEC Enforcement Division’s Market Abuse Unit.  “But they were wrong in believing that this would stop the SEC from detecting their scheme.”

In a parallel action, the U.S. Attorney’s Office for the District of New Jersey today announced criminal charges against Tamayo.  The U.S. Attorney previously brought criminal actions against Metro and Eydelman.  Those criminal cases and the SEC’s civil case against Metro and Eydelman are pending.

According to the SEC’s complaint against Tamayo, the scheme was deliberately structured to avoid detection, enabling Eydelman and Tamayo to profit without connecting the trades to an insider source and also allowing Metro to share in the trading proceeds.  For a five-year period, Metro repeatedly accessed confidential information in his law firm’s computer systems and met with Tamayo at bars and coffee shops in New York City to provide tips about firm clients ready to participate in a corporate transaction.  Tamayo typically would then connect with Eydelman near the clock at the information booth at Grand Central, where he would show him a post-it note or napkin on which Tamayo wrote the stock ticker symbol of the company to be acquired.  Tamayo then chewed up and sometimes even ate the post-it note or napkin to destroy evidence of the tip.  Tamayo also conveyed to Eydelman the approximate transaction price and timing of the deal.  After Eydelman returned to his office and gathered research about the target company, he would e-mail Tamayo supposed thoughts about why buying the stock made sense.  Their intent was to create a paper trail of e-mails to make it appear they were making their trading decisions based on research and analysis rather than inside information.

The SEC’s complaint charges Tamayo with violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rule 10b-5 and 14e-3 as well as Section 17(a) of the Securities Act of 1933.

The SEC’s investigation was conducted by Jason Burt and Carolyn Welshhans in the Market Abuse Unit with assistance from John Rymas, Mathew Wong, Daniel Koster, and Leigh Barrett.  The case was supervised by Daniel M. Hawke, Chief of the Market Abuse Unit, and Mr. Cohen.  The SEC’s litigation will be led by Stephan Schlegelmilch and Bridget Fitzpatrick.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of New Jersey, Federal Bureau of Investigation, Financial Industry Regulatory Authority, and Options Regulatory Surveillance Authority.

Wednesday, October 1, 2014

SECRETARY KERRY'S REMARKS WITH CHINESE FOREIGN MINISTER WANG YI

FROM:  U.S. STATE DEPARTMENT 
Remarks With Chinese Foreign Minister Wang Yi Before Their Meeting
Remarks
John Kerry
Secretary of State
Ben Franklin Room
Washington, DC
October 1, 2014

 SECRETARY KERRY:  Good afternoon, everybody.  It’s my distinct pleasure to welcome His Excellency, the foreign minister of China, Foreign Minister Wang Yi.  I met with the foreign minister in July in Beijing for a very productive Strategic & Economic Dialogue.  We spent two days together and President Xi opened up that meeting and closed the meeting.  And we are very grateful for China’s significant commitment to that dialogue.  And in addition, we had useful conversations in August during my trip to Burma for the ASEAN Regional Forum, and we had a chance to briefly talk in New York.  Knowing that we were going to be meeting here, we held back on the length and breadth of that conversation.

But I’m very pleased that he has taken time to visit us here in Washington on the occasion of China’s National Day, and we congratulate you on that and welcome you here.  And I’m pleased he’s taken time to come here and strengthen our relationship as part of the ongoing dialogue between us.

I want to emphasize that the United States welcomes the rise of a peaceful, prosperous, and stable China, and one that plays a responsible role in Asia and the world, and contributes to upholding the existing rules and the norms on economic and security issues.  I take note that China is stepping up and contributing to this challenge of Ebola, and we are appreciative for China’s willingness to put both equipment and personnel on the line in order to help deal with this.  We view that in very positive terms with respect to China’s important role in global leadership.

And that is why we are committed – that role and our interests together – in trying to find ways to cooperate on those issues of greatest consequence on a global basis while we manage some of the differences between us effectively.  We want to show a new model of relations in which we broaden our cooperation on the common interests and constructively manage those differences so that we can be as effective as possible.

The foreign minister and I are both coming off of a very busy and very productive week in New York for the climate summit and the UN General Assembly.  There I took pleasure in participating in President Obama’s meeting with Chinese Vice Premier Zhang Gaoli and I left those meetings encouraged, significantly encouraged, by his commitment on behalf of China to the dialogue with respect to climate change.  And particularly, we talked about dealing with the mitigating of threats from global climate change and also to trying to work together as we develop the targets for next year’s conference in Paris.  We also talked about containing Ebola as well as countering the challenge of radical extremism and terrorism, and particularly ISIL.

One of the issues that we’re going to discuss today, no doubt, is the situation in Hong Kong.  And as China knows, we support universal suffrage in Hong Kong accordant with the Basic Law, and we believe in open society with the highest possible degree of autonomy and governed by rule of law is essential for Hong Kong’s stability and prosperity.  And we have high hopes that the Hong Kong authorities will exercise restraint and respect for the protestors’ right to express their views peacefully.

China, importantly, is hosting APEC this year, and their hosting of that meeting could not be more timely or more important to all of us.  I know President Obama is personally looking forward to attending the APEC summit in November.  We’re grateful to the Chinese for helping to arrange the dates in a way that worked for everybody’s schedule.  And I think that the foreign minister and I in a few moments will discuss how we can make certain that that visit is a success, that it is as productive as possible, but also so that the APEC summit is the success that we all want it to be.

So Mr. Foreign Minister, I’m delighted you’re here, and I very much look forward to our conversation.  Thank you.

FOREIGN MINISTER WANG:  (Via interpreter) Secretary Kerry, friends from the press, today marks the 65th anniversary of the founding of new China.  It’s our National Day.  I want to share the joy of the Chinese people with you.  I also want to thank Secretary Kerry for his best wishes.  This is a regular visit to the United States by me; it is also a return visit for Secretary Kerry’s visit to China earlier this year.

More importantly, I’ve come to the United States to hold discussion with the U.S. side, to have strategic communication with the U.S. colleagues for President Obama’s trip to China for the APEC meeting and visit to China, particularly for the important consultations, talks between the two presidents.  I want to say that the common interests between us are far greater than our differences.  I agree with what Secretary Kerry said about the areas of cooperation.  Indeed, we need cooperation.  We can cooperate with each other.  And there is an increasing list of areas of cooperation between us, and I believe the list can go on.

There is a very important common mission for the two countries; that is, as the largest developing country and largest developed country in the world, China and the United States need to work together to build a new model of major country relations featuring non-conflict, non-confrontation, mutual respect, and win-win cooperation.  This meets our common interests, meets the expectation of the international community.  It is also in keeping with the trend of human progress.

We don’t think the process will be all smooth sailing.  There will be various risks and challenges on the way.  The China-U.S. relationship is just like a giant ship sailing on the sea.  It requires that both sides work jointly to keep the ship on the right course, keep injecting the impetus for it to forge ahead; and at the same time, we also work jointly to properly handle hidden rocks and shoals.  I believe we need to enhance mutual trust, strategic trust; reduce mutual strategic misgivings; and reduce our misjudgment.  As long as we work jointly in that direction, we will be able to meet our goal.  This is our common mission.  It is also the responsibility that we need to jointly fulfill for the international community.

The endeavor for building this new model of major country relationship is an ongoing process that we are undertaking right at this moment.  We are ready to work with the United States to enhance cooperation, properly manage our differences, and make unremitting efforts towards our common goal.

Secretary Kerry mentioned Hong Kong.  The Chinese Government has very firmly and clearly stated its position.  Hong Kong affairs are China’s internal affairs.  All countries should respect China’s sovereignty.  And this is also a basic principle governing international relations.  I believe for any country, for any society, no one will allow those illegal acts that violate public order.  That’s the situation in the United States, and that’s the same situation in Hong Kong.  We believe that the Hong Kong Special Administrative Region’s government has the capability to properly handle the current situation in accordance with the law.

And I am ready to have a full discussion with Secretary Kerry about those regional and international issues of mutual interest and also our strategic bilateral cooperation.  I hope that more consensus can be reached through such dialogue.  Thank you all.

U.S. DOD SAYS AIRSTRIKES CONTINUE IN IRAQ AND SYRIA

FROM:  U.S. DEFENSE DEPARTMENT 
More Airstrikes Hit ISIL in Syria and Iraq
DoD News, Defense Media Activity

TAMPA, Fla., Oct. 1, 2014 – U.S. military forces continued to attack ISIL terrorists in Syria yesterday and today using a mix of fighter and remotely piloted aircraft to conduct three airstrikes.

Separately, U.S. military forces and a partner nation used a mix of fighter and remotely piloted aircraft yesterday and today to conduct five airstrikes against ISIL in Iraq.

In Syria, three strikes near Kobani destroyed an ISIL armed vehicle, an ISIL artillery piece, and an ISIL tank. All aircraft departed the strike areas safely.
In Iraq, three strikes northwest of Mosul destroyed two ISIL armed vehicles, destroyed an ISIL occupied building, and struck two ISIL fighting positions. One strike in the vicinity of Haditha Dam destroyed an ISIL armed vehicle while another strike northwest of Baghdad destroyed two armed vehicles.

To conduct these strikes, the U.S. employed U.S. Air Force and U.S. Navy fighter aircraft deployed to the U.S. Central Command area of operations. In addition, the United Kingdom also participated in the Iraq airstrikes. All aircraft departed the strike areas safely.

The strikes were conducted as part of the President's comprehensive strategy to degrade and destroy ISIL. The destruction and degradation of ISIL targets in Syria and Iraq further limits the terrorist group's ability to lead, control, project power and conduct operations.

PRESIDENT OBAMA AND PRIME MINSITER NETANYAHU OF ISRAEL MAKE REMARKS BEFORE MEETING

FROM:  THE WHITE HOUSE 
October 01, 2014
Remarks by President Obama and Prime Minister Netanyahu of Israel Before Bilateral Meeting
Oval Office
11:23 A.M. EDT

PRESIDENT OBAMA:  Well, it’s good once again to welcome the Prime Minister of Israel, Bibi Netanyahu.  Obviously, he’s no stranger to the White House.  I think I’ve met with Bibi more than any world leader during my tenure as President.

We meet at a challenging time.  Israel is obviously in a very turbulent neighborhood, and this gives us an opportunity once again to reaffirm the unbreakable bond between the United States and Israel, and our ironclad commitment to making sure that Israel is secure.

Throughout the summer, obviously all of us were deeply concerned about the situation in Gaza.  I think the American people should be very proud of the contributions that we made to the Iron Dome program to protect the lives of Israelis at a time when rockets were pouring into Israel on a regular basis.  I think we also recognize that we have to find ways to change the status quo so that both Israeli citizens are safe in their own homes and schoolchildren in their schools from the possibility of rocket fire, but also that we don’t have the tragedy of Palestinian children being killed as well.

And so we’ll discuss extensively both the situation of rebuilding Gaza but also how can we find a more sustainable peace between Israelis and Palestinians.

Our agenda will be broader than that, obviously.  I’ll debrief Bibi on the work that we’re doing to degrade and ultimately destroy ISIL, and the broader agenda that I discussed at the United Nations, which is mobilizing a coalition not only for military action, but also to bring about a shift in Arab states and Muslim countries that isolate the cancer of violent extremism that is so pernicious and ultimately has killed more Muslims than anything else.

And we’ll also have an opportunity to discuss the progress that’s being made with respect to dealing with Iran’s nuclear program, which obviously has been a high priority for not only Israel, but also the United States and the world community.

So we have a lot to talk about, and I appreciate very much the Prime Minister coming.  It’s challenging I think for an Israeli Prime Minister to have to work so hard during Rosh Hashanah and Yom Kippur, but I know that the Prime Minister’s utmost priority is making sure that his country is safe during these difficult times.  And we’re glad that the United States can be a partner in that process.

PRIME MINISTER NETANYAHU:  Mr. President, first I want to thank you.  I want to thank you for the unflinching support you gave Israel during our difficult days and difficult summer we had -- expressed in so many ways, but also in an additional installment of support for Iron Dome, which has saved so many lives, saved many lives across the border.  And I thank you for that, and for the continuous bond of friendship that is so strong between Israel and the United States.

I also want to thank you for this opportunity to meet with you and to discuss the enormous challenges facing the United States and Israel in the Middle East.  There’s definitely a new Middle East.  I think it poses new dangers, but it also presents new opportunities.

As for the dangers, Israel fully supports your effort and your leadership to defeat ISIS.  We think everybody should support this.  And even more critical is our shared goal of preventing Iran from becoming a military nuclear power.

As you know, Mr. President, Iran seeks a deal that would lift the tough sanctions that you’ve worked so hard to put in place, and leave it as a threshold nuclear power.  I fervently hope that under your leadership that would not happen.

Equally, I think that there are opportunities.  And the opportunities, as you just expressed, is something that is changing in the Middle East, because out of the new situation, there emerges a commonality of interests between Israel and leading Arab states.  And I think that we should work very hard together to seize on those common interests and build a positive program to advance a more secure, more prosperous and a more peaceful Middle East.

I remain committed to a vision of peace of two states for two peoples based on mutual recognition and rock solid security arrangements on the ground.  And I believe we should make use of the new opportunities, think outside the box, see how we can recruit the Arab countries to advance this very hopeful agenda.  And I look forward to our discussions on these and many other matters.

PRESIDENT OBAMA:  Thank you very much, everybody.

END
11:29 A.M. EDT

U.S. CONGRATULATES THE PEOPLE OF GUINEA ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT   
Guinea's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
October 1, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Guinea as you commemorate 56 years of independence on October 2.

The United States shares a long and productive relationship with Guinea and recognizes the progress that the people of Guinea have made promoting democracy and shared economic prosperity. We look forward to continuing our close partnership in the areas of health, women’s rights, agricultural development, good governance, transparency in the mining sector, and regional stability.

On this joyous holiday, I send best wishes for a peaceful and prosperous future.

9/30/14: White House Press Briefing

The President Meets with the Prime Minister of India

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