Monday, October 20, 2014

DEFENSE SECRETARY HAGEL, PEOPLE'S REPUBLIC OF CHINA STATE COUNCILOR JIECHI MEET AT PENTAGON

U.S. Defense Secretary Chuck Hagel, right, meets with Chinese State Councilor Yang Jiechi, second from left, at the Pentagon, Oct. 20, 2014, to discuss matters of mutual importance. DoD photo by U.S. Air Force Master Sgt. Adrian Cadiz.
FROM:  U.S. DEFENSE DEPARTMENT
 Hagel, Chinese Leader Discuss Strengthening Cooperation
DoD News, Defense Media Activity

WASHINGTON, Oct. 20, 2014 – Defense Secretary Chuck Hagel met in the Pentagon today with People's Republic of China State Councilor Yang Jiechi, Pentagon Press Secretary Navy Rear Adm. John Kirby reported.

In a statement summarizing the meeting, Kirby said the two leaders discussed the importance of maintaining the positive momentum that has developed in the military-to-military relationship between the United States and China.

“They also reaffirmed their shared interest in strengthening cooperation on regional and global challenges,” he added, “and noted the potential for greater cooperation in several areas, to include providing humanitarian assistance and disaster relief when crises arise, and containing the spread of Ebola in West Africa.”

Hagel and Yang both highlighted the importance of President Barack Obama's trip to Beijing in November and expressed a shared desire that the trip be a success, Kirby said.


SECRETARY KERRY'S REMARKS WITH AUSTRALIAN PRIME MINISTER ABBOT

FROM:  U.S. STATE DEPARTMENT 
Remarks With Australian Prime Minister Tony Abbott Before Their Meeting
Remarks
John Kerry
Secretary of State
Jakarta, Indonesia
October 20, 2014

PRIME MINISTER ABBOTT: Well, John, look, it's terrific to have yourself here to talk and to share (inaudible) very important issues, from the situation in the Middle East to the situation (inaudible) to all the other areas where the United States and Australia have a very, very close relationship. I appreciate the tremendous leadership the United States shows with the world. I'm grateful for (inaudible) today, because I think it's (inaudible) and that you can be here to help honor the incoming Indonesian President. Australia has had a long, strong relationship with Indonesia. Prime Minister Howard attended the inauguration of President (inaudible) back in 2004. And I hope the tradition that's now been established of Australian prime ministers attending the inaugurations of Indonesian presidents, and perhaps a similar tradition (inaudible) established (inaudible) secretaries of state.

But it's good to be with you, and I'm looking forward to (inaudible).

SECRETARY KERRY: Well, thank you, Prime Minister. It's a privilege to (inaudible), and I appreciate enormously your taking a moment to share (inaudible), and I bring you President Obama's strong greetings and great gratitude of him and all of (inaudible) Australians major stepping up with respect to the coalition. As we said when Secretary Hagel and I were in Sydney, we couldn't have a stronger partner, and we're very, very grateful for Australia's consistent willingness to step up and stand for values, as well as (inaudible) that are important to us.

We couldn't agree more about the inauguration today, the meaning of this, not just in Indonesia, but in the region. It's very, very important, obviously: you're here and, while the President couldn't come, he was very anxious to make sure we were represented at a high level here.

I do want to say that your efforts with respect to foreign fighters, which you regrettably have to experience even at a lower level, brings home to everybody how important it is for this to be a global coalition, and for all of us to understand the stakes. We were well served in the last couple of days as the Iraqis themselves chose a minister of interior and a minister of defense. That's particularly helpful for the planning and implementing of our efforts.

So, I look forward to talk with to you about that, about Iran (inaudible), Afghanistan, the DPRK, the South China Sea. There are a lot of issues for us to chat about. So again, it's good to be with you, and thank you so much for (inaudible).

NASA VIDEO: POWER SPACEWALK ON THIS WEEK @NASA

STOPPING EBOLA: NSF FUNDS RESEARCH ON STOPPING EBOLA

FROM:  NATIONAL SCIENCE FOUNDATION 
Halting the spread of Ebola: Nigeria a model for quick action, scientists find
Rapid control measures critical to stopping the virus in its tracks

Ebola. The word brings fear of an unseen and potentially lethal enemy. But there are ways to stop its spread, say infectious disease scientists.

Quick intervention is needed, according to the researchers, who recently published their findings in the journal Eurosurveillance.

Analyzing Ebola cases in Nigeria, a country with success in containing the disease, the scientists estimated the rate of fatality, transmission progression, proportion of health care workers infected, and the effect of control interventions on the size of the epidemic.

Rapid response needed

"Rapid control is necessary, as is demonstrated by the Nigerian success story," says Arizona State University (ASU) scientist Gerardo Chowell, senior author of the paper.

"This is critically important for countries in the West Africa region that are not yet affected by the Ebola epidemic, as well as for countries in other regions of the world that risk importation of the disease."

The research is funded by the U.S. National Science Foundation (NSF)-National Institutes of Health (NIH)-Department of Agriculture (USDA) Ecology and Evolution of Infectious Diseases (EEID) Program.

"Controlling a deadly disease like Ebola requires understanding how it's likely to spread, and knowing the ways of managing that spread that are most likely to be effective," says Sam Scheiner, NSF EEID program director.

"Being able to respond quickly needs a foundation of knowledge acquired over many years. The work of these scientists is testimony to long-term funding by the EEID program."

Control measures in Nigeria

The largest Ebola outbreak to date is ongoing in West Africa, with more than 8,000 reported cases and 4,000 deaths. However, just 20 Ebola cases have been reported in Nigeria, with no new cases since early September.

All the cases in Nigeria stem from a single traveler returning from Liberia in July.

The study used epidemic modeling and computer simulations to project the size of the outbreak in Nigeria if control interventions had been implemented during various time periods after the initial case, and estimated how many cases had been prevented by the actual early interventions.

"This timely work demonstrates how computational simulations, informed by data from health care officials and the complex social web of contacts and activities, can be used to develop both preparedness plans and response scenarios," says Sylvia Spengler, program director in NSF's Directorate for Computer and Information Science and Engineering, which also supported the research.

Control measures implemented in Nigeria included holding all people showing Ebola symptoms in an isolation ward if they had had contact with the initial case. If Ebola was confirmed through testing, people diagnosed with the disease were moved to a treatment center.

Asymptomatic individuals were separated from those showing symptoms; those who tested negative without symptoms were discharged.

Those who tested negative but showed symptoms--fever, vomiting, sore throat and diarrhea--were observed and discharged after 21 days if they were then free of symptoms, while being kept apart from people who had tested positive.

Brief window of opportunity

Ebola transmission is dramatically influenced by how rapidly control measures are put into place.

"Actions taken by health authorities to contain the spread of disease sometimes can, perversely, spread it," says NSF-funded scientist Charles Perrings, also of ASU.

"In the Nigeria case, people who tested negative but had some of the symptoms were not put alongside others who tested positive," says Perrings. "So they had no incentive to flee, and their isolation did nothing to increase infection rates. Elsewhere in the region isolation policies have had a different effect."

The researchers found that the projected effect of control interventions in Nigeria ranged from 15-106 cases when interventions are put in place on day 3; 20-178 cases when implemented on day 10; 23-282 cases on day 20; 60-666 cases on day 30; 39-1,599 cases on day 40; and 93-2,771 on day 50.

The person who was initially infected generated 12 secondary cases in the first generation of the disease; five secondary cases were generated from those 12 in the second generation; and two secondary cases in the third generation.

That leads to a rough estimate of the reproduction number according to disease generation declining from 12 during the first generation, to approximately 0.4 during the second and third disease generations.

A reproductive number above 1.0 indicates that the disease has the potential to spread.

Recent estimates of the reproduction number for the ongoing Ebola epidemic in Sierra Leone and Liberia range between 1.5 and 2 (two new cases for each single case), indicating that the outbreak has yet to be brought under control.

The effectiveness of the Nigerian response, scientists say, is illustrated by a dramatic decrease in the number of secondary cases over time.

The success story for Nigeria, they maintain, sets a hopeful example for other countries, including the United States.

Co-authors of the Eurosurveillance paper are Gerardo Chowell, Arizona State University; Folorunso Oludayo Fasina, University of Pretoria, South Africa; Aminu Shittu, Usmanu Danfodiyo University, Nigeria; David Lazarus, National Veterinary Research Institute, Plateau State, Nigeria; Oyewale Tomori, Nigerian Academy of Science, University of Lagos, Lagos, Nigeria; Lone Simonsen, George Washington University, Washington, D. C.; and Cecile Viboud, National Institutes of Health, Bethesda, Md.

-- Cheryl Dybas, NSF (
-- Julie Newberg, ASU
Related Programs
Ecology and Evolution of Infectious Disease

FORMER DERIVATIVE TRADERS CHARGED FOR ALLEGED MANIPULATION OF U.S. DOLLAR, YEN LIBOR RATES

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, October 16, 2014
Two Former Rabobank Traders Indicted for Alleged Manipulation of U.S. Dollar, Yen Libor Interest Rates

Two former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) derivative traders – including the bank’s former Global Head of Liquidity & Finance in London – have been charged in a superseding indictment for their alleged roles in a scheme to manipulate the U.S. Dollar (USD) and Yen London InterBank Offered Rate (LIBOR), a benchmark interest rate to which trillions of dollars in interest rate contracts were tied, the Justice Department announced today.  Six former Rabobank employees have now been charged in the Rabobank LIBOR investigation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.

Earlier today, a federal grand jury in the Southern District of New York returned a superseding indictment charging Anthony Allen, 43, of Hertsfordshire, England; and Anthony Conti, 45, of Essex, England, with conspiracy to commit wire fraud and bank fraud and with substantive counts of wire fraud for their participation in a scheme to manipulate the USD and Yen LIBOR rate in a manner that benefitted their own or Rabobank’s  financial positions in derivatives that were linked to those benchmarks.

The indictment also charges Tetsuya Motomura, 42, of Tokyo, Japan, and Paul Thompson, 48, of Dalkeith, Australia, who were charged in a prior indictment with Paul Robson, a former Rabobank LIBOR submitter.  In addition to adding as defendants Allen and Conti, the superseding indictment alleges a broader conspiracy to manipulate both the USD LIBOR and the Yen LIBOR.

Robson and Takayuki Yagami, a former Rabobank derivatives trader, each pleaded guilty earlier this year to one count of conspiracy in connection with their roles in the scheme.

“Today, we have charged two more members of the financial industry with influencing Dollar LIBOR and Yen LIBOR to gain an illegal advantage in the market, unfairly benefitting their own trading positions in financial derivatives,” said Assistant Attorney General Caldwell.  “LIBOR is a key benchmark interest rate that is relied upon to be free of bias and self-dealing, but the conduct of these traders was as galling as it was greedy.  Today’s charges are just the latest installment in the Justice Department’s industry-wide investigation of financial institutions and individuals who manipulated global financial rates.”

“With today’s charges against Messrs. Allen and Conti, we continue to reinforce our message to the financial community that we will not allow the individuals who perpetrate these crimes to hide behind corporate walls,” said Deputy Assistant Attorney General Snyder.  “This superseding indictment, with its charges against Mr. Allen, makes an especially strong statement to managers in financial institutions who devise schemes to undermine fair and open markets but leave the implementation – and often the blame – with their subordinates.”

“With today’s indictments the FBI’s investigation into Rabobank’s manipulation of LIBOR benchmark rates expands in scope to include the U.S. Dollar,” said Assistant Director in Charge McCabe. “I would like to thank the special agents, forensic accountants, and analysts, as well as the prosecutors who have worked to identify and stop those who hide behind complex corporate and securities fraud schemes.”

According to the superseding indictment, at the time relevant to the charges, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believed they would be charged if borrowing from other banks.   LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London.  LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year.  The published LIBOR “fix” for U.S. Dollar and Yen currency for a specific maturity was the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.

LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.

Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.

According to allegations in the superseding indictment, Allen, who was Rabobank’s Global Head of Liquidity & Finance and the manager of the company’s money market desk in London, put in place a system in which Rabobank employees who traded in derivative products linked to USD and Yen LIBOR regularly communicated their trading positions to Rabobank’s LIBOR submitters, who submitted Rabobank’s LIBOR contributions to the BBA.  Motomura, Thompson, Yagami and other traders entered into derivative contracts containing USD or Yen LIBOR as a price component and they asked Conti, Robson, Allen and others to submit LIBOR contributions consistent with the traders’ or the bank’s financial interests, to benefit the traders’ or the banks’ trading positions.  Conti, who was based in London and Utrecht, Netherlands, served as Rabobank’s primary USD LIBOR submitter and at times acted as Rabobank’s back-up Yen LIBOR submitter.  Robson, who was based in London, served as Rabobank’s primary submitter of Yen LIBOR.  Allen, in addition to supervising the desk in London and money market trading worldwide, occasionally acted as Rabobank’s backup USD and Yen LIBOR submitter.  Allen also served on a BBA Steering Committee that provided the BBA with advice on the calculation of LIBOR as well as recommendations concerning which financial institutions should sit on the LIBOR contributor panel.

The charges in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The investigation is being conducted by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office.  The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division.  The Criminal Division’s Office of International Affairs has provided assistance in this matter.

The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad.  The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation.  The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.   The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank.  Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

U.S. REP. TO UN SAMANTHA POWER'S REMARKS AT GOAL USA ANNUAL BENEFIT BALL

FROM:  U.S. STATE DEPARTMENT 
U.S. Mission to the United Nations: Remarks at the GOAL USA Annual Benefit Ball
Samantha Power
U.S. Permanent Representative to the United Nations 
New York, NY
October 18, 2014
AS DELIVERED

Thank you, everybody. Thank you, Barry, for that generous introduction. Let me also welcome Ambassador David Donoghue – my colleague and co-conspirator – the Irish Ambassador to the United Nations, who is here tonight.

I’m very honored to have been asked to join you for GOAL’s dinner. I’d like to begin, somewhat abruptly, by reading you an excerpt from a news story.

“And there I saw the dying, the living and the dead, lying indiscriminately upon the same floor, without anything between them and the earth, save a few miserable rags. To point to any particular house as a proof of this would be a waste of time as all were in the same state; and not a single house could boast of being free from death and fever, though several could be pointed out with the dead lying close to the living, without any effort being made to remove the bodies to a last resting place.”

Now, this could have been written today about a village or neighborhood in one of the countries most affected by the Ebola outbreak. But it was published in 1847 in the Illustrated London News. The author, a young journalist and artist from Cork, named James Mahoney, was describing the scene he witnessed upon arriving in the town of Bridgetown, in southern Ireland, during the famine.

I begin here because while GOAL is an international humanitarian organization, it is also an Irish organization. GOAL was started by an Irishman, a former sports journalist in fact; an Irish football fan who, like all Irish football fans, was doomed to a life of heartbreak and suffering.

But he decided to dedicate his life to alleviating even greater, truer, suffering around the world.

I begin with the snapshot of the famine because it is impossible to understand the proud tradition of Irish generosity or the passion for service that drives GOALies in the field, without understanding the history of the Irish people.

When people come through an experience as harrowing as the scene that Mahoney described in 1847, empathy is in the bloodstream - it’s in the genes. It was in the bloodstream of my greatest mentor and my best friend, my mother, who brought me to this country from Ireland when I was nine. And I trust and hope it will be in the bloodstream of my kids, Declan and Rian.

These days, people often tell me that my last name, Power, is an appropriate one for representing the United States. What they don’t know, but what probably many of the people in this room do know, is that the surname Power comes from the Irish, de Paor, which means “of the poor.”

With a name like this, and the responsibilities that go with it, how could I not join GOAL tonight, when so many here are gathering in support of an organization that does so much for the most vulnerable and the most poor around the world?

There are so many worthy humanitarian crises that GOAL works on, that the United Nations works on, that the United States government, the Irish government work on; any one of them I could choose to talk about tonight, but I want to focus on Ebola because despite growing international awareness of the outbreak’s severity and mounting commitments, it has to be said, during recent weeks, we are still far behind the terrifying curve of this deadly virus. And the longer we wait to scale up our response, the harder it is for us to bend the curve downward and to stop the exponential spread. That means the greater the risk that we all face, no matter where we live in the world.

GOAL’s experience responding to the outbreak on the ground underscores the extent of the challenges the entire international community faces – and most importantly the infected communities face in dealing with this epidemic. And the interventions by GOAL and partners show how local, targeted interventions can make a profound difference in slowing the spread of this deadly virus.

Let me just give you two examples from the town of Kenema, a district in eastern Sierra Leone. According to Sierra Leone’s Health Ministry, 429 cases of Ebola had been confirmed in Kenema by October 1st – the second highest number of any district in the country of Sierra Leone. More than 20 health care workers in the district had lost their lives treating waves of patients at Kenema’s hospital.

In Sierra Leone, the government tasked the police with taking the lead in maintaining quarantines of people suspected of having infections. However, as GOAL staff in Kenema observed, police had little idea how to quarantine properly. GOALie Gillian McKay wrote in mid-September from Kenema that, “In some cases, police officers can be found sitting on the terrace of a quarantined house, eating food that the family has cooked.” In other cases, she wrote, “Quarantined individuals may be permitted to fetch water or go to the market because as long as they do not run away, the quarantine is being observed in the eyes of the police.”

The consequences of this lack of knowledge were swift and devastating. Not only did the poorly imposed quarantines fail to keep the virus from spreading, but three police officers who were enforcing them were themselves infected and later died. Many more police in Kenema feared they would be next.

Overwhelmed, the local police chief asked GOAL to train his officers in how to safely and effectively implement the quarantine. GOAL developed a training module that balanced the need to prevent the Ebola’s spread with the need to treat possible victims with dignity, rather than as prisoners or pariahs. The training included health professionals as well as Ebola survivors, who could tell the police how it felt to be on the other side of a quarantine – a perspective too rarely taken into account.

The program trained over 2,400 police officers in a month. They in turn have trained other police officers. And since the training began, GOAL reports that no additional Kenema police officers have been infected, and that the quality of quarantines has dramatically improved.

A second example from Kenema of a challenge across the region is the danger of misinformation. Early in the outbreak, word spread through social media in Sierra Leone that washing with salt water could prevent and cure infections. Meanwhile, as more people died in Kenema’s government hospital, a rumor spread that the virus was a sham, and that victims’ bodies were being used for cannibalistic rituals. At the end of July, an angry mob of thousands of people marched on the hospital, threatening to remove patients and bodies and burn the building to the ground. This gives you some sense of the challenge that all who are trying to deal with this epidemic are facing. It is an uphill battle.

At the very least, rumors like these have hampered efforts to contain the virus; at worst, they left countless people more vulnerable to infection. Yet in a climate of growing fear and limited understanding, rumors are spreading as fast as the virus itself.

Interventions by humanitarian aid organizations show, though, how the swift dissemination of accurate, easy-to-understand information can help offset these rumors and undermine the harm that those rumors are causing. In Sierra Leone, for example, public service announcements on local radio stations are now helping to dispel the fiction around false cures. To raise awareness about the causes of infections and the risks of customary practices like hand-washing the bodies of deceased relatives, GOAL and others enlisted the help of community activists, who can build on existing trust and relationships to spread awareness from the grassroots up.

The lack of knowledge among police about how to carry out a safe, effective quarantine, and the spread of these rumors are just two of the many challenges that GOAL and others responding to the crisis have faced, in Kenema and well beyond. Sierra Leone still has only a quarter of the beds it needs for sick patients. Schools in the country have been closed since July. Burial teams continue to lack adequate protection and the protective gear that they need. The list goes on. Guinea and Liberia face many of the same problems, and new problems of their own.

Under President Obama’s leadership, the United States is stepping up to help to address these challenges. We have contributed more than $350 million in humanitarian assistance and deployed more than 600 U.S. government personnel from USAID, from the CDC, and from the Defense Department – it's the largest-ever U.S. response to a global health crisis. We’re committed to sending up to 3,900 U.S. forces to the region and the U.S. military is already overseeing the construction of up to 17 100-bed Ebola Treatment Units, and we’re establishing a training hub where we will train up to 500 health care workers each week on how to safely interact with patients who have contracted this virus.

Some governments in the United Nations are punching well above their weight. I'll give you a couple of examples: Cuba has sent 165 doctors to West Africa – to Sierra Leone, in fact; Timor-Leste has pledged $1 million to the effort, notwithstanding itself, not that long ago, having come out of its own conflict and having tremendous needs at home. Humanitarian organizations too are doing tremendous work. Medecins Sans Frontiers, International Medical Corps, the Red Cross, and GOAL – these are organizations that are on the front lines. These are individuals who comprise these organizations, who are putting themselves into the hot zone because they know that they can remain safe and they know that they can save countless lives; and that they will contribute to putting an end to one of the worst health crises the world has ever seen.

Yet much, much more is needed. According to the UN’s financial tracking service, only 25 counties have pledged $1 million or more to the effort. There are 193 in the United Nations – 25 just. The UN has only received a little more than a third of the funds that they currently need – and that’s just for right now. In Guinea and Sierra Leone, the number of infections is projected to double every three to four weeks; in Liberia, infections are projected to double every 2 weeks. This is bad.

The international community isn’t just losing the race to Ebola. We are getting lapped, at present.

And it’s not just governments and NGOs that have to do their part. It is the private sector and private institutions, philanthropies, and individual donors. Far too few are giving far too little, counting on others to step up. Those of us who have made announcements, like the United States government, have to keep looking to see what more, we too, can do. This is an all hands on deck operation – one in which everyone needs to do his or her part.

Interventions like the ones that I have described in Kenema show that, with the right information and resources, we can slow the spread of this deadly virus. According to data from Sierra Leone’s health ministry, the number of new infections in the Kenema district declined every week of September. This really, really matters.

It is easy to lose sight of what the downward curve really means. It means children, women, and men who – because they were never infected in the first place – have the rest of their lives ahead of them. It means that even in an environment of fear and distrust, people can learn how to keep themselves and their loved ones healthy.

This is an especially important lesson as we witness the spread of fear here in the United States. The fear is understandable. People don’t want hospitals to treat the infected if they believe that health workers at those hospitals will get sick and themselves help spread the virus.

But we know how to care for people with Ebola safely and with compassion. We can give patients a fighting chance of surviving. We just need to ensure that doctors, nurses, and other health professionals get the right training – the training that the doctors and the nurses at Emory and Nebraska had when they successfully adhered to CDC protocols and safely treated those who came from West Africa and nursed them back to health safely.

In closing, one of the most important facts about the famine is that up to a million lives could have been saved. Food was exported from Ireland as people starved. I don’t have to tell this audience that. As a relief inspector wrote in 1846, “A woman with a dead child in her arms was begging in the street yesterday and the Guard of the Mail told me he saw a man with three dead children lying by the roadside. Notwithstanding all this distress, there was a market, plentifully supplied with meat, bread, and fish, – in short, everything.”

Today too, our world has everything that we need to curb the spread of the deadly virus of Ebola. And while it may not be around the corner in a market, we can get the necessary supplies to the infected communities. We can build the Ebola treatment units. We can supply the beds. We can train nurses and manufacture protective gear so that providing help – nursing people back to health – is not itself a perilous endeavor. We just need to act. We need to act more robustly and we need to act far more swiftly. We have the knowledge, we have the resources, and we have the capacity. It is on all of us to marshal the will and conquer the fear to enable us to use them.

Now, as then, hundreds of thousands of people’s lives are at stake. We cannot fail them. We must not fail them.

Thank you so much and thank you GOAL for having me with you this evening. Thank you.

MAN CONVICTED FOR ROLE IN DEFRAUDING AND EXTORTING MONEY FROM SPANISH-SPEAKERS THROUGH CALL CENTERS

FROM:  U.S. JUSTICE DEPARTMENT
Friday, October 17, 2014
Jury Convicts Peruvian Man of Defrauding and Extorting Spanish-Speaking Customers through Fraudulent Call Centers

A jury in Miami convicted a Lima, Peru, man on 26 felony charges of conspiracy, fraud and attempted extortion arising from his operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements, the Department of Justice announced today.

Juan Alejandro Rodriguez Cuya, 35, was convicted by a jury after less than two hours of deliberation following a two-week trial before U.S. District Court Judge Patricia A. Seitz in Miami federal court. His co-defendant at trial, Maria Luzula, 52, of Miami, pleaded guilty to all of the charges against her midway through the trial.  Luzula is Cuya’s mother.

Cuya and Luzula both face a statutory maximum of 20 years in prison on each count. Both defendants remain in custody pending their sentencing on Jan. 22, 2015, and Dec. 18, respectively.

“The defendants targeted and preyed upon the Spanish-speaking community – and the evidence of the harm that their fraud caused on individual victims is heart-wrenching,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division.  “The Justice Department is committed to prosecuting those who defraud consumers for their own personal gain.”

According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States.  The Peruvian callers falsely accused the victims of having refused delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them.  In reality, the victims had never ordered these products and nothing had been delivered.

Additional evidence at trial established that Luzula’s and Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.”  Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or forfeiture of property.  Thousands of victims succumbed to these threats and paid fees that they did not owe.  A phone room in Miami collected the fees.

Victims who testified at trial spoke of how anxious the calls made them.  The victims were so afraid of the threats that they paid fees they simply could not afford.

Acting Assistant Attorney General Branda commended the U.S. Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case.  The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.

Sunday, October 19, 2014

CDC VIDEO: CDC DISEASE DETECTIVES: LT. KELSEY MIRKOVIC

SECRETARY KERRY'S REMARKS WITH CHINESE STATE COUNCILOR JIECHI

FROM:  U.S. STATE DEPARTMENT 
Remarks With Chinese State Councilor Yang Jiechi Before Their Meeting
Remarks
John Kerry
Secretary of State
Taj Hotel
Boston, Massachusetts
October 18, 2014

SECRETARY KERRY: Good morning, everybody. I just want to say a couple things. First, my great pleasure to welcome the State Councilor of China Yang Jiechi to Boston. We have a great deal that we will be talking about and already began last night with a very informal and pleasant dinner. But there are many issues that China and the United States are cooperating on, even as we have some differences that we try to manage effectively. But right now, particularly on Ebola, on Afghanistan, on the Democratic Republic of North – of Korea, the North Korea nuclear situation, on Iran particularly, and on ISIL and counterterrorism, and on climate change. There are many areas where we are working hard.

So we look forward to some good discussions today. And on another note, I might just report we had a very positive step forward in Iraq today with the selection of a minister of the interior and a minister of defense. These were critical positions to be filled in order to assist with the organizing effort with respect to ISIL. So we’re very pleased. We congratulate Prime Minister Abadi and we look forward to working with them as we continue to grow the coalition and move forward.

So thank you for being here, State Councilor.

STATE COUNCILOR YANG: Well, friends from (inaudible), it’s a great pleasure to see you here today. (Inaudible) invitation of Secretary John Kerry, I have the great pleasure to visit this beautiful city of Boston. And the purpose of my visit to Boston and then to Washington is really to pave the ground for President Obama’s visit to China in November and also for participation of the President in the APEC informal leadership meeting to be hosted by China.

I think the Sunnylands meeting between President Xi Jinping and President Obama was very successful. Two countries have decided to work to build this new model of major country relationship between China and the United States. Since then, much progress has been made in our relationship. Lately, the Secretary himself went to China to participate in the S&ED discussion with the Chinese side. We believe that we should continue to work together to deepen our mutual trust and to put our efforts to the major areas of cooperation while on the basis of mutual respect we can properly handle any kind of difference between us.

I think the Asia Pacific region is a very important region. We need to work together to build up even more cooperation between China and the United States in the area because this is the area which has experienced robust economic development, and I’m sure that the APEC meeting will go further to bring about more connectivity, innovative development, and to shape a greater future for the region.

There are also quite a few issues in the world, as the Secretary State has mentioned. I believe that in terms of climate change, Ebola, and we have to address the (inaudible) issues and so on, so forth, China and the United States have a lot to discuss today and beyond.

I would like to thank the Secretary for his warm hospitality. I’m sure that our discussion will be both constructive and productive. I’m sure that China-U.S. relationship will be on the way up.

Thank you very much.

AG HOLDER ANNOUNCES RECOGNITION OF SAME-SEX MARRIAGES IN SEVEN STATES

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, October 17, 2014
After Supreme Court Declines to Hear Same-Sex Marriage Cases, Attorney General Holder Announces Federal Government to Recognize Couples in Seven New States

Attorney General Eric Holder announced today that the federal government will recognize same-sex marriages taking place in the states affected by the Supreme Court’s recent decision to decline to review rulings from three federal appeals courts that had struck down bans on same-sex marriage. The Attorney General added that the Department of Justice will work with agencies across the administration to ensure that all applicable federal benefits are extended to those couples as soon as possible.

“We will not delay in fulfilling our responsibility to afford every eligible couple, whether same-sex or opposite-sex, the full rights and responsibilities to which they are entitled. With their long-awaited unions, we are slowly drawing closer to full equality for lesbian, gay, bisexual, and transgender Americans nationwide,” Attorney General Holder said.

The complete text of the Attorney General’s video message is below:

“Last week, the Supreme Court declined to review rulings from three federal appeals courts that had struck down bans on same-sex marriage in five states across the country.  Going forward, marriage equality will be the law in those states.

“The practical consequences of the Court’s decision are profound for families throughout the nation.  Within hours of the decision, same-sex couples in Indiana, Oklahoma, Utah, Virginia, and Wisconsin were able to have their unions recognized in the states where they live—to stand with their partners, and with their children, as loving and committed families with the full protection of the law.

“I am pleased to announce that the federal government will recognize the same-sex marriages now taking place in the affected states, and I have directed lawyers here at the Department of Justice to work with our colleagues at agencies across the Administration to ensure that all applicable federal benefits are extended to those couples as soon as possible.  We will not delay in fulfilling our responsibility to afford every eligible couple, whether same-sex or opposite-sex, the full rights and responsibilities to which they are entitled.

“With their long-awaited unions, we are slowly drawing closer to full equality for lesbian, gay, bisexual, and transgender Americans nationwide.  By letting the lower-court decisions stand, the Supreme Court expanded the number of states allowing same-sex marriage from 19 to 24, along with the District of Columbia.  Just one day after the Supreme Court’s action, the U.S. Court of Appeals for the Ninth Circuit joined the other courts that have invalidated bans, extending marriage rights even further.  In the past eight days, at least half a dozen additional states have recognized marriage equality.  And even more states covered by the lower-court rulings will almost certainly be joining them in short order.

“The steady progress toward LGBT equality we’ve seen – and celebrated – is important and historic.  But there remain too many places in this country where men and women cannot visit their partners in the hospital, or be recognized as the rightful parents of their own adopted children; where people can be discriminated against just because they are gay.  Challenges to marriage restrictions are still being actively litigated in courts across the country.  And while federal appeals courts have so far been unanimous in finding that bans on same-sex marriage are unconstitutional, if a disagreement does arise, the Supreme Court may address the question head-on.  If that happens, the Justice Department is prepared to file a brief consistent with its past support for marriage equality.

“In the meantime, we will continue to extend federal benefits to same-sex couples to the fullest extent allowed by federal law.  And we will continue to work—to the very best of our ability—to bring about a more equal future for all Americans nationwide.”

DOJ SUES MOBILE HOME PARK FOR DISCRIMINATION AGAINST FAMILIES WITH CHILDREN

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, October 17, 2014
Justice Department Sues Wisconsin Mobile Home Park for Discriminating Against Families with Children

The Justice Department announced today that it has filed a lawsuit against the owners and operators of the Twin Oaks Mobile Home Park, a 230-lot mobile home park, in Whitewater, Wisconsin, for refusing to allow families with children to live in certain areas of the park, in violation of the Fair Housing Act.

The lawsuit, filed in U.S. District Court in Madison, Wisconsin, alleges that the owner of Twin Oaks, Twin Oaks Mobile Home Park, Inc. and its managers—Merrill Eugene Gutzmer and Dennis Hansen—violated the Fair Housing Act by maintaining and enforcing a policy of not allowing families with children to reside in an area that includes approximately 60 of the 230 lots within the park.  The park does not limit residency to older persons.  The complaint further alleges that, under the policy described above, the defendants refused to approve the application for residency of a single woman who planned to purchase the home of a former resident and live there with her then two-year-old child.  The single woman and the mobile home owner who was trying to sell her mobile home subsequently filed a complaint with the Department of Housing and Urban Development (“HUD”).  After conducting an investigation, HUD found that the defendants had violated the Fair Housing Act, and referred the matter to the Department of Justice.

“For over twenty-five years, the Fair Housing Act has prohibited housing providers from refusing to rent or sell housing to families with children,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “Many parents are already struggling to find affordable housing for their families, and they should not also have to face discrimination because they have children.”

“This office is committed to ensuring that all residents in this district, including families with children, are afforded equal opportunity to rent and live where they choose under the Fair Housing Act,” said U.S. Attorney John W. Vaudreuil for the Western District of Wisconsin.  “Discrimination based on familial status will not be tolerated in this district.”          

“HUD and the Department of Justice will continue to enforce the Fair Housing Act to ensure that the housing options of families are not illegally limited because they have children,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity.

The suit seeks a court order requiring the defendants to bring their policies and practices into compliance with the Fair Housing Act, as well as monetary damages for persons harmed and civil penalties to the United States.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability.  Among other things, the Fair Housing Act makes it illegal to refuse to rent housing and to discriminate in the terms or conditions of housing rentals because of familial status, except in specified categories of housing that are reserved for older persons.

SECRETARY KERRY'S REMARKS TO PLENIPOTENTIARY CONFERENCE

FROM:  U.S. STATE DEPARTMENT 
U.S. Delegation to the International Telecommunication Union Plenipotentiary Conference in Busan, Republic of Korea
Press Statement
John Kerry
Secretary of State
Washington, DC
October 16, 2014

In today’s world everyone is connected. With the touch of a button – or the swipe of a finger – we can talk to anyone, anywhere, anytime, about anything. And we can do it instantly. The communications revolution has radically changed how we live our lives, do business, choose our leaders, provide health care, and interact with other cultures.

Almost 150 years after its creation, the International Telecommunication Union remains critical to overseeing and advancing the extent and the efficiency of international communications. The Republic of Korea will host the ITU Plenipotentiary Conference 2014 in Busan from October 20 to November 7. This international gathering is an important opportunity for ITU Member States to review the work of the Union and prioritize programs, improve working methods, and increase collaboration with other institutions.

The U.S. delegation to Busan will be led by Ambassador Daniel Sepulveda and consist of nearly 130 government, private sector, and civil society representatives. They will work with our partners to ensure that the ITU is transparent and accountable, while remaining responsive to the evolution of technology. As the fast paced march of innovation continues, it is essential we meet the needs of all telecommunications users, especially those from underserved communities.

Telecommunications connect our societies, create shared prosperity, and facilitate the exchange of goods and services, as well as thoughts and ideas. We look forward to working with our friends and allies to ensure that the ITU continues to be a hub for open and broad-based global communications.

WEST WING WEEK 10/17/14

Saturday, October 18, 2014

NASA VIDEO: SATELLITES SEE POWERFUL HURRICANE GONZALO HIT BERMUDA

10/17/14: WHITE HOUSE PRESS BRIEFING

WEEKLY ADDRESS: WHAT YOU NEED TO KNOW ABOUT EBOLA

U.S. AIR FORCE VIDEO: F-35 AND THE LEGACY OF AIR SUPREMACY

SECRETARY KERRY'S REMARKS ON EBOLA AND THE DIPLOMATIC CORPS

FROM:  U.S. STATE DEPARTMENT 
Remarks on the U.S. Response to Ebola for Members of the Diplomatic Corps
Remarks
John Kerry
Secretary of State
Benjamin Franklin Room
Washington, DC
October 17, 2014

Thank you, Nancy. Good morning, everybody. Thank you very much for being here, and thank you, Ambassador Powell, for all you’re doing to lead on this effort.

I know that there’s no shortage of demands on all of your time, so we really do appreciate and I know President Obama appreciates your coming in here this morning for this very important briefing. And I’m particularly grateful to Nancy Powell, who’s leading our efforts against Ebola at the State Department, and you’ll hear from her and from others who are on the front lines of our efforts to respond to this challenge. We thought it was critically important to bring everybody here together so you could hear from the experts and really get a chance to understand and report back to your governments about our efforts and where we’re heading.

We are very privileged in Washington, in the United States, to have here one of the most distinguished diplomatic corps that is posted anywhere in the world. Few cities are home to so many ambassadors with so much experience, which is why you come here, and so much global expertise and influence, frankly. So that’s why coming together here this morning really does represent a special opportunity to deal with this moment. Meeting this crisis is going to require that we draw on each other’s collective experience and our collective capacities. No one country, no individual group of nations is going to resolve this problem by themselves. This is going to take a collective, global response – all hands on deck. That’s the only way to get it done. And we believe that coming together here this morning can be an important beginning in really creating the kind of global response necessary.

Now I know you don’t need me to tell you what we’re up against, and I’m sure you’ve heard it from your own capitals, and every time you turn on the television or the radio, you hear or see gripping scenes that tell us in real terms about this challenge. There’s no way to describe the scenes from West Africa other than just heart-wrenching, gut-wrenching. And the images of a pregnant woman being turned away from a hospital on the – and she’s on the verge of collapse, or of men and women dying on the streets, their children orphaned, and a lot of hopeful nations working to plant the seeds of prosperity and open societies now suddenly battling a brutal epidemic.

So it’s not just the suffering that we see or the potential risks that we face that make this a different kind of crisis for us as diplomats. We live in a world of a lot of close calls, tough decisions on a daily basis, difficult and contentious issues where you can have an honest disagreement about what the best course of action is or about what the facts are or the results of your decision may be.

Ebola is not one of them. It should not be contentious with respect to the facts or what is needed or how we proceed. We know the risks. We know the science. We know the medical certainties. We know what is required to beat back this epidemic. And right now, we know that this is a time for nothing less than brutal honesty with each other about what we need, in both the capabilities that we need in order to meet this crisis and the real ways on the ground and the kinds of cash contributions – yes, cash contributions – that we need to fund these efforts for the months to come. And the fact is we haven’t begun yet to fully meet the challenge at hand.

So there are specific needs that we can meet right now. We need 200 flatbed trucks and 350 of so-called soft-skinned vehicles for transport of aid and resources. We need more helicopters and capable crews who can get to work right away. We need more mobile laboratories, treatment centers and beds. We need more incinerators and more generators. Most of all, we need more of the courageous healthcare workers that we see making an incredible contribution right now on the ground, and we need to do everything that we can to provide these men and women the protective equipment and the treatment that they need.

Now, we know this – the things that we can do and that we need to do. We know even in the cases of Texas, for instance, know that protocols are perhaps not followed in some instance or another. So there are ways, because we have plenty of people working who are treating people who are not getting it, and plenty of people who have been surrounding and around it who don’t get it. So the fact is that you have to come in contact. And as long as you can make certain that that is not happening during those critical periods of incubation, there are ways to contain this.

As President Obama has said repeatedly, we approach this with humility and we approach this with a huge sense of purpose, but we know that no matter what we do, we’re not going to be able to do it alone. We’re proud of the fact that we’ve contributed $258 million most recently and we’re also delivering support in some very unique ways that only the U.S. military can provide, and that’s why we’re sending as many as 4,000 troops to the region. And that’s why we’re allocating up to one billion more for our armed forces for this purpose. And that’s why we’re creating 17 Ebola treatment units and providing support right now for the mobile laboratories and the communications infrastructure.

We are using every instrument of American power in order to try to get this job done, and as many of you know, I’ve been making a number of phone calls each day to my counterparts from your countries in order to encourage concrete steps. And we’ve been raising this issue in every single bilateral meeting that I have, but we know that nothing that one, two, three countries do together is going to solve it. We have to all be engaged in this. There is no country that is exempt from being able to do something to be able to contribute to this effort and help make a difference. And everything we do depends on how we coordinate our efforts as partners in how we contribute together.

Now already we are seeing nations large and small stepping up in impressive ways to make a contribution on the frontlines. Timor-Leste has donated $2 million. Cuba, a country of just 11 million people has sent 165 health professionals, and it plans to send nearly 300 more. We want to thank France for committing 70 million euro and for those response in Guinea, where they’ve taken on special responsibilities. And we want to thank the United Kingdom for the Ebola treatment units that they are building in Sierra Leone, and Germany has significantly stepped up its efforts, including offering their facilities to treat healthcare workers. The European Union is organizing medevac capacity and contributing 140 million euro, and the World Bank and IMF have committed more than $678 million. The African Union is moving to send trained emergency responders to West Africa.

But no matter what we have already committed, it is clear, every one of us, that we have to do more, and we have to do it quickly. So of the one billion in needs that are estimated by the UN, I regret to say we are barely a third of the way there. If we don’t adequately address this current outbreak now, then Ebola has the potential to become a scourge like HIV or polio, that we will end up fighting, all of us, for decades. And we shouldn’t kid ourselves. Winning this fight is going to be costly, it is going to take all of our efforts, and it is not risk-free. Nobody knows that better than the healthcare workers on the front lines right now. And whatever the differences there are between us in this room on one issue or another, on one attitude or another, the fact is everyone I know respects and admires the courage of any healthcare worker who is undertaking this challenge.

So let’s make sure that those healthcare workers aren’t hanging out there by themselves. Let’s make sure that we’re pulling together the resources, the equipment, the commitment, the cash to support their efforts. And let’s make sure that their courage is motivating us every step of the way. For these men and women to succeed, they need nothing less than our full commitment, which is why we’ve asked you to come forward here today. This is a matter of real people, real lives, in countries that were beginning to take off, countries that were beginning to see the future and feel it, and suddenly they’ve been hit by this. This engages all of us, and it is a real test of global citizenship. So today in this room, we have a unique opportunity to try to come together to make important contributions. I’ve touched on some of the urgent needs. There is nobody, frankly, who can more competently explain where we stand, who knows what is at stake better than Ambassador Nancy Powell.

A lot of you know her very, very well because she has served alongside you. She’s one of the very few five-time ambassadors at the State Department. And partly because of what she has already done once before to spread – to help prevent the spread of a pandemic, which she did – she’s already one of the most accomplished people to have to deal with this challenge and one of the best diplomats we could think of in order to help us all do what we need to do. So ladies and gentlemen, Nancy Powell. (Applause.)

TWO PLEAD GUILTY FOR ROLES IN BRIBERY SCHEME INVOLVING AN FBI SPECIAL AGENT WHO WORKED IN COUNTERINTELLIGENCE

FROM:  U.S. JUSTICE DEPARTMENT
Friday, October 17, 2014
Two Connecticut Men Plead Guilty to Bribery Scheme Involving FBI Agent in New York

Two Connecticut men pleaded guilty today to bribery charges, admitting that they participated in a scheme to obtain confidential, internal law enforcement documents and information from a former FBI Special Agent in White Plains, New York.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Justice Department Inspector General Michael D. Horowitz made the announcement.

Johannes Thaler, 51, of Fairfield County, Connecticut, and Rizve Ahmed, aka “Caesar,” 35, of Danbury, Connecticut, pleaded guilty today in White Plains, New York, federal court to bribery and conspiracy to commit honest services and wire fraud before U.S. District Judge Vincent L. Briccetti of the Southern District of New York.  Both Thaler and Ahmed admitted to participating in a bribery scheme with Robert Lustyik, a former FBI Special Agent in White Plains who worked on the counterintelligence squad.

In pleading guilty, Thaler and Ahmed admitted that between September 2011 and March 2012, Thaler and Lustyik solicited bribes from Ahmed, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent.  Thaler was Lustyik’s friend, and Ahmed, a native of Bangladesh, was an acquaintance of Thaler.  Ahmed sought confidential law enforcement information, including a Suspicious Activity Report, pertaining to a Bangladeshi political figure who was affiliated with a political party opposing Ahmed’s views.  Thaler and Ahmed admitted that Ahmed requested the confidential information to help Ahmed locate and harm his intended victim and others associated with the victim.  Ahmed also sought assistance in having criminal charges against a different Bangladeshi political figure dismissed.

Thaler and Ahmed admitted that they exchanged various text messages in furtherance of the scheme, including text messages about a “contract” that would require Ahmed to pay a $40,000 “retainer” and $30,000 “monthly.”  In return, Lustyik and Thaler agreed to “give [Ahmed] everything [they] ha[d] plus set up [the victim] and get the inside from the party.”

Thaler and Lustyik also exchanged text messages about how to pressure Ahmed to pay them additional money in exchange for confidential information.  For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.”  Thaler responded, “I know.  It’s all right there in front of us.  Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”

Additionally, in late January 2012, Lustyik learned that Ahmed was considering using a different source to obtain confidential information.  As a result, Lustyik sent a text message to Thaler stating, “I want to kill [Ahmed] . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [the victim’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to the victim].”  Lustyik further stated, “So bottom line.  I need ten gs asap.  We gotta squeeze C.”

Sentencing hearings for Thaler and Ahmed are scheduled for Jan. 23, 2015.

Lustyik is scheduled for trial on Nov. 17, 2014.  The charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

This case was investigated by the Department of Justice’s Office of the Inspector General and is being prosecuted by Trial Attorney Emily Rae Woods of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the White Plains Division of the U.S. Attorney’s Office for the Southern District of New York.

EXPORT-IMPORT BANK AGREES T FINANCE EXPORT OF LOCOMOTIVES TO INDONESIA

FROM:  U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Signs Credit Agreement to Finance Export of American-made Locomotives to Indonesia
Deal Supports 700 U.S. Jobs 

Washington, D.C. – Today Export-Import Bank of the U.S. (Ex-Im Bank) Chairman and President Fred P. Hochberg, GE Transportation President and CEO Russell Stokes, and Indonesia’s PT Kereta Api (PTKAI) of Jakarta President and CEO Ignasius Jonan signed a credit agreement totaling $94.3 million to finance the export of 50 General Electric Company locomotives to Indonesia.

Ex-Im Bank’s credit will support approximately 700 U.S. jobs up and down the supply chain, primarily in Erie, Pa. These estimates are derived from Department of Commerce and Department of Labor data and methodology.

“This is a perfect example of the sort of win-win situation that happens when countries buy American,” said Hochberg. “Ex-Im is proud to facilitate transactions like this one, which will support 700 quality jobs here in America even as it empowers Indonesia to build an enduring, reliable transportation infrastructure on the foundation of quality U.S. products.”

PTKAI is the national railway of Indonesia and operates a fleet of more than 300 locomotives that provide both freight and passenger services on the islands of Java and Sumatra. The company plans to upgrade and modernize the nation’s rail infrastructure to better serve Indonesia’s growing economy.

“Ex-Im Bank's financing of this transaction demonstrates the importance of public and private sector leadership,” said Stokes. “The Bank's financial support is a critical part of GE's ability to win foreign sales and deliver for our global customers like PTKAI. With $94.3 million in financing to PTKAI now secured, GE will build 50 locomotives in Pennsylvania and deliver them next year to Indonesia, sustaining good jobs in the U.S. and abroad.”

Industrial Sales and Manufacturing Inc. (ISM), a small business headquartered in Erie, will supply numerous machined, fabricated and assembled components for the GE locomotives. ISM fabricates, assembles, tests, and finishes products found around the world in applications ranging from transportation, mining, agriculture, and recreation to medical devices and renewable energy.

“As a contract manufacturer supplying original equipment manufacturers, Ex-Im Bank's support of global customers of companies like GE is vital to our own company, our community, and the stability and growth of the broader economy in the United States,” said Jim Rutkowski, Jr. of Industrial Sales & Manufacturing, Inc. of ISM.   “Industrial Sales & Manufacturing, Inc. sees Ex-Im Bank's financial support for international sales as a vital component in our continued success in getting long-term American-made assets in place around the world."

ABOUT EX-IM BANK:

Ex-Im Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad.  Ninety percent of its transactions directly serve American small businesses.

In fiscal year 2013, Ex-Im Bank generated more than $1 billion for U.S. taxpayers while approving more than $27 billion in total authorizations.  These authorizations supported an estimated $37.4 billion in U.S. export sales, as well as approximately 205,000 American jobs in communities across the country.

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