Tuesday, December 2, 2014

12/1/14: White House Press Briefing

STATE DEPARTMENT ANNOUNCES GOOD NEWS IN HUANG CASE

FROM:  U.S. STATE DEPARTMENT
On the Case of Matthew and Grace Huang
Press Statement
John Kerry
Secretary of State
Washington, DC
December 2, 2014


The Attorney General of the State of Qatar has informed the U.S. Embassy in Qatar that no further appeal will be filed in the case of Matthew and Grace Huang. At the opening of business on Wednesday December 3, the travel ban will be lifted and Mr. and Mrs. Huang will be free to travel. The United States applauds this decision, and we look forward to seeing the Huangs reunited with their children at home.

DOD VIDEO: NATO SPEARHEAD FORCE TO ENHANCE ALLIANCE


AIRSTRIKES ONGOING AGAINST ISIL

FROM:  U.S. DEFENSE DEPARTMENT
Airstrikes Continue Against ISIL in Syria, Iraq

From a U.S. Central Command News Release

TAMPA, Fla., Dec. 1, 2014 – U.S. military forces continued to attack Islamic State of Iraq and the Levant terrorists in Syria using fighter, bomber and remotely-piloted aircraft to conduct 27 airstrikes Nov. 28 through today, U.S. Central Command officials reported today.

Separately, officials said, U.S. and partner-nation military forces conducted 28 airstrikes against ISIL terrorists in Iraq Nov. 28 through today using attack, fighter, and remotely-piloted aircraft.

Airstrikes in Syria

In Syria, 17 airstrikes near Kobani destroyed two ISIL-occupied buildings, three ISIL tanks, three ISIL fighting positions, an ISIL armored personnel carrier, three ISIL vehicles and two ISIL staging areas, and also struck seven tactical ISIL units. The airstrikes also targeted six ISIL fighting positions and damaged an ISIL-occupied building. Near Ar Raqqah, nine airstrikes struck an ISIL electronic warfare garrison, an ISIL military garrison, an ISIL headquarters, an ISIL jamming system, an ISIL tank and 14 ISIL vehicles. Near Aleppo, a U.S. airstrike struck a target associated with a network of veteran al Qaeda operatives, sometimes called the "Khorasan Group."

Airstrikes in Iraq

In Iraq, 13 airstrikes near Mosul destroyed four tactical ISIL units, two large ISIL units, two fighting positions, three armored vehicles, seven vehicles, two ISIL trucks and a bulldozer. Additionally, these airstrikes destroyed heavy weapons to include two heavy machine guns, a mortar position and an anti-aircraft artillery emplacement as well as an ISIL-occupied building and a tunnel entrance. Near Sinjar, an airstrike destroyed two ISIL-occupied buildings.

Near Tal Afar, five airstrikes destroyed 19 ISIL vehicles, two ISIL bunkers, an ISIL compound and struck a tactical ISIL unit. Near Hit, three airstrikes destroyed an ISIL checkpoint, an ISIL bunker, and an excavator and struck a tactical ISIL unit and also damaged another ISIL checkpoint. Near Tal Talab, two airstrikes destroyed three ISIL fighting positions and struck a tactical ISIL unit. Near Tirkrit, two airstrikes destroyed three ISIL vehicles and struck two large ISIL units. Near Kirkuk, an airstrike destroyed an ISIL vehicle. Near Ramadi, an airstrike destroyed an ISIL vehicle and struck a tactical ISIL unit.

All aircraft returned to base safely. Airstrike assessments are based on initial reports.

The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the terrorist group ISIL and the threat they pose to Iraq, the region and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project power and conduct operations.

Coalition nations conducting airstrikes in Iraq include the U.S., Australia, Belgium, Canada, Denmark, France, Netherlands and the United Kingdom. Coalition nations conducting airstrikes in Syria include the U.S., Bahrain, Jordan, Saudi Arabia, and the United Arab Emirates.

President Obama Discusses Communities and Law Enforcement Working Together

NASA VIDEO: SPACE STATION LIVE: SETTING UP A MACHINE SHOP IN SPACE

DOD VIDEO: TROOPS TO IRAQ, PLANES TO POLAND


SECRETARY KERRY'S REMARKS AT WORLD AIDS DAY EVENT

FROM:  U.S. STATE DEPARTMENT
Remarks at a World AIDS Day Event
Remarks
John Kerry
Secretary of State
Eisenhower Executive Office Building
Washington, DC
December 1, 2014


Susan, thank you.  Thank you for a wonderfully generous introduction and thank you most importantly for your extremely important comments this morning.  And I was really sitting there thinking, as I was listening to you, the thought was occurring to me as we think of the challenges that we face in today’s world, and you were talking about both the moral compulsion of doing this as well as making the important new announcements that you were making.  And as I think about the things we do in the world, whether it’s the fact that we are the largest contributor to refugees with respect to the problem of Syria, or whether we are leading a charge to try to deal with Ebola now in addition to other things, but of all the things in the world that the United States can take pride in, this has to be one of the single biggest and most important.  This is such an incredible statement about America’s values, about our commitment, about our willingness to take on tough challenges.  And for all the nations who push back, the fact is we are making a difference and we are getting it done.

And I thank you personally, Susan, because your commitment to fighting this epidemic goes back decades.  I know that when you were head of African Affairs in the State Department, you were way ahead of the curve, not just defining this as a health crisis but also as a human rights crisis.  And I thank you for that.  You’ve wrestled with many of the real-time challenges that we face here for a long time, from expanding treatment capacity to access to building a long-term delivery system, and we are very grateful for your leadership and for the President’s leadership.  It continues.

I want to thank Secretary Burwell.  And I think it’s fair to say that the AIDS outreach led by the Secretary and HHS literally sets the gold standard globally, and we’re very proud of that.  I’m also grateful to Valerie Jarrett, to Tony Fauci, to Rajiv Shah, to Debbi Birx sitting here.  Debbi, thanks for your great job.  Mark Dybul, thank you for what you’re doing.  Dana Hyde, Gayle Smith, everybody – it’s such a team effort.  And I think we all can take pride in what the Peace Corps is doing, the MCC, DOD.  This is an all-hands-on-deck initiative.

There are so many AIDS warriors here in this room, and those of you tuned in who are livestreaming – scientists and public servants, and Republicans and Democrats, across all ideologies and lines – all of whom have put ideology and partisanship aside in order to embrace a universal vision.  And it’s a vision that is much bigger than any of us individually and bigger than any country.

As this gathering knows better than anybody, the fight against HIV/AIDS, as Susan just underscored, does remain an enduring challenge.  But thanks to landmark scientific advances, and frankly, thanks to the grit and determination of so many of you here in this room, the fact is we do have, as the President said, an AIDS-free generation in sight.  That is, in and of itself, an absolutely remarkable accomplishment.

And I will tell you, Susan referred to the days in the Senate – back in 1991, when Bill Frist and I had the privilege of chairing a Center for Strategic and International Studies first-ever task force on this subject that we knew precious little about, it was even difficult politically for some people to talk about it publicly.  The barrier was enormous.  And back then, the primary response to HIV/AIDS was fear – fear of contracting it, fear of those who had it, fear that in some cases even learning about it or taking steps to contain or to stop it might somehow be dangerous.

As recently as 10 years ago, as Susan said – she mentioned also a five-year demarcation point which is quite critical with respect to President Obama’s commitment to take this to a new level – it seemed like this would be a death sentence for an entire continent.  That’s how we looked at it.  And many predicted that the virus was beyond our control and that there was no way that we could possibly turn the tide.

Well, the tide is turning.  And it’s not a done deal, we know that.  This morning at our meeting in the State Department, Raj Shah cautioned all of us, and so did Debbi, about the challenges that are ahead.  But make no mistake, because of your efforts we are now reaching more people and saving more lives than ever before.

And when the President’s Emergency Plan for AIDS Relief first was launched in 2003, there were then some 10,000 infections daily.  Today, new HIV infections are down by nearly 40 percent, though still higher, obviously, than we want them to be.  Back then, more than 2 million people died from AIDS-related causes on a worldwide basis.  Today, we’ve cut those numbers by 34 percent.  Back then, AIDS threatened to wipe out a whole generation, leaving behind 14 million orphans and vulnerable children.  Today, we’ve slashed new infections among children in half.

So it is fair to say that we have achieved much of this because President Obama, when he came into office, was determined to set a higher standard.  And as you’ve heard directly from the President, PEPFAR is now supporting lifesaving anti-retroviral drug treatment for 7.7 million men, women, and children.  We’re providing HIV testing and counseling to more than 14 million pregnant women.  We’ve supported more than 6.5 million voluntary medical male circumcisions.  We’re training more than 140,000 new health care workers to deliver HIV and other health-related services in AIDS-affected countries, and we are mobilizing resources strategically to support UNAIDS’s 90-90-90 global targets.

So it is clear that we are at a real turning point, but emphasis today – battle not yet won.  There are major challenges ahead and they will require major commitments if we’re going to control the HIV/AIDS pandemic and achieve this AIDS-free generation that is our dream.

So first, we need to continue to make creative and strategic investments that are based on the latest science.  Only by sharing and using data efficiently are we going to be able to improve interventions and hold ourselves accountable.  That’s why I’m pleased to announce a new partnership between PEPFAR and the Millennium Challenge Corporation to promote even greater data transparency and use as part of our Country Health Partnerships.  We’re going to work with countries to create local data hubs, and these hubs are going to include key data to help countries control the disease – health, poverty, gender, you name it – and we will work with countries to set clear benchmarks and improve strategic planning, budget transparency, and decision making for better programming and sustainable results.

Second, we need to focus on the impact of HIV/AIDS on children, young women, and vulnerable populations.  And Susan was mentioning this incredible statistic about young women.  And that is why the United States announcement of a new partnership this summer between PEPFAR and the Children’s Investment Fund Foundation called Accelerating Children’s HIV/AIDS Treatment, or ACT, is so important.

Today, I am pleased to share the names of the ACT participating countries, and it’s a reflection of the hard work that everybody has done: Cameroon, Cote d’Ivoire, Democratic Republic of Congo, Kenya, Lesotho, Malawi, Mozambique, Tanzania, Zambia, and Zimbabwe.  These countries will lead the way in an effort to double the total number of children on lifesaving anti-retroviral therapy over the next two years.

We are also announcing a new global pediatric anti-retroviral commitment to action with our partners to accelerate the development of new anti-retroviral drugs for the children who need them most.  And this is a vital transformation.

Finally, we need to build sustainable health systems.  I don’t think that’s come home to us more than in the past months with respect to Ebola.  We all know that a central pillar of an effective health system is capable and experienced health care workforce.  Over the past 11 years, PEPFAR investments have strengthened health systems in developing countries, but we need to build on these results and we still have a long way to go.

And so today I am announcing PEPFAR’s new human resources for health strategy.  What we’re talking about here is a multi-million dollar effort that will strengthen the capacity of healthcare workers to deliver lifesaving HIV services.  This strategy will mark the next phase of the medical and nursing education partnership with Health and Human Services, and it will build on the global health service partnership with Peace Corps and Seed Global Health.  Our investment will improve clinical education, expand training for physicians and nurses, and build healthcare capacity.  It will also pay dividends for our engagement with some of the world’s most fragile states that are already grappling with Ebola and other health threats.  And if everybody steps up – bless you – we can do even more to meet these challenges.

Now every one of us who’ve traveled overseas in Africa knows what it’s like to walk into a hospital and see the operating room and see the facilities and the unbelievably complicated, difficult circumstances under which doctors and nurses are trying to operate and work.  I was stunned when I most recently was in the Democratic Republic of Congo, in Angola, and Ethiopia, and saw these facilities.  And I want to emphasize that the United States commitment to combatting HIV/AIDS through PEPFAR and our longstanding support of the Global Fund is as undiminished as our work is unfinished.

Our commitment has only been strengthened by the progress that we’ve made and the lives that we have saved.  That is a story worth telling and is also a story that compels all of us to continue this work.  On my last trip to Ethiopia, I visited the Gandhi Memorial Hospital in Addis Ababa, and I heard their story of the – from these remarkable people who were working in the AIDS component, the AIDS clinic in the hospital, and they told me about a woman named Abeba.

Abeba is the mother of two daughters.  She’s also HIV-positive.  And soon after her diagnosis, she found herself alone.  I mean literally alone – alone in the street wandering in the pouring rain.  She was trying to find the local health center, and she was literally too weak and too sick to be able to finish her journey.  She collapsed in the street.  And when a group of community workers spotted her, they didn’t drive by or look away.  They stopped and they picked her up and they brought her to this health center, and they found housing for her and they helped raise money to put a roof over her head and to nurse her back to health.

Abeba is not just a survivor, my friends.  She is working now to become a volunteer herself and a mentor to young women across Ethiopia.  And her story, I believe, underscores that all of our fates are inextricably linked together in this fight.  It’s not an inappropriate reminder to turn to the scriptures to remember that this responsibility is clearly declared for us:  “For I was hungry and you gave me food.  I was thirsty and you gave me drink.  I was a stranger and you welcomed me.”

On that day in the rain, strangers welcomed Abeba and it made all the difference.  And now Abeba is determined to welcome others in return.  That is the kind of courage and compassion and caring that has brought all of us this far in this fight – a long distance from where we were back in the beginning of the 1990s.  And that is what is most inspiring, and it needs to be inspiring here today on World AIDS Day.

We’re not done yet.  That’s the message that comes out of here from the President and from everyone in this Administration.  With the commitment of every person in this room, we can achieve an AIDS-free generation, and we can silence the armies of pessimism and cynicism and the indifference who said it could never be done.  We can and we will defeat this horrific disease, and I’ll tell you, that is a charge worth fighting to keep.  Thank you.  (Applause.)

SLEEP THERAPY CO. SETTLES ALLEGATIONS OF VIOLATING FALSE CLAIMS ACT

FROM:  THE JUSTICE DEPARTMENT
Monday, December 1, 2014
Government Settles False Claims Act Allegations Against Oxygen and Sleep Therapy Company


North Atlantic Medical Services Inc. (NAMS), doing business as Regional Home Care Inc., has agreed to pay $852,378 to resolve allegations that it violated the False Claims Act by submitting claims to Medicare and Medicaid for respiratory therapy services provided by unlicensed personnel, the Department of Justice announced today.  NAMS is a medical device company based in Massachusetts that provides equipment and services for the treatment of respiratory ailments, such as oxygen deficiency and sleep apnea. 

“Respiratory care services should be performed by properly licensed personnel,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division.  “We will not tolerate companies prioritizing their own profits and convenience at the expense of patient safeguards.”   

Medicare and Medicaid require suppliers of respiratory therapy equipment and services to comply with state licensing standards.  In Massachusetts, the Department of Public Health requires respiratory therapists to apply for and obtain a license.  Applicants can do so by passing the National Board for Respiratory Care’s “Certification Examination for Entry-Level Respiratory Therapy Practitioners” or obtaining a reciprocal license from a different jurisdiction.  This settlement resolves allegations that, from September 2010 to January 2013, NAMS used unlicensed employees to set up sleep apnea masks and oxygen therapy equipment for patients in Massachusetts.  The government alleged that, even after the Massachusetts Department of Public Health informed the company that the practice was illegal, NAMS continued to use unlicensed personnel and bill Medicare and Medicaid for these services.

“This respiratory care company flouted important licensure requirements, failed to provide patients the standard of care that they deserve and fraudulently billed the federal government for improperly rendered services,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.  “With the important assistance of whistleblowers, our health care fraud team seeks to ensure patient safety and protect the public fisc.”

“To safeguard patient health and ensure that taxpayer money is spent well, Medicare and Medicaid require providers of respiratory care services to follow state licensure rules,” said Special Agent in Charge Phillip M. Coyne for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “Companies seeking to boost profits by using unlicensed personnel will be held accountable for their actions.”

Medicaid is jointly funded by the states and federal government.  The Commonwealth of Massachusetts, which paid in part for the Medicaid claims at issue, will receive $229,210 of the settlement amount.

The government’s investigation was initiated by a qui tam, or whistleblower, lawsuit filed under the False Claims Act by former NAMS employees Konstantinos Gakis and Demetri Papageorgiou.  The False Claims Act allows private citizens to file suit for false claims on behalf of the government and to share in the government’s recovery.  Gakis and Papageorgiou will receive $153,428.  

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $23.2 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.

This settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the District of Massachusetts, FBI, HHS-OIG, and the Commonwealth of Massachusetts.

U.S. CONGRATULATES PEOPLE OF URUGUAY ON THEIR "PEACEFUL AND ORDERLY ELECTION"

FROM:  U.S. STATE DEPARTMENT
Press Statement
John Kerry
Secretary of State
Washington, DC
December 1, 2014


We congratulate the Uruguayan people and electoral officials on a peaceful and orderly election. We look forward to working with President-elect Vazquez and his administration to advance our bilateral relationship. We are grateful for the vibrant relationship we have had with Uruguay under the leadership of President Mujica and congratulate him on winning a seat in the Senate.

The United States and Uruguay share a long history of successful partnership, anchored by a commitment to democracy and the rule of law, peace and citizen security, respect for human rights, social inclusion, and economic opportunity for all. Our longstanding cooperation and commitment to Uruguay and the Uruguayan people will continue to thrive with the next administration.

U.S. CONGRATULATES PEOPLE OF LAO PEOPLE'S DEMOCRATIC REPUBLIC ON THEIR NATINAL DAY

FROM:  U.S. STATE DEPARTMENT
Lao People's Democratic Republic Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 28, 2014


On behalf of President Obama and the people of the United States, I would like to congratulate President Choummaly Sayasone and the people of the Lao People’s Democratic Republic as you celebrate your National Day on December 2.

This year marks 64 years of diplomatic relations between the United States and Laos, and our longstanding cooperation continues to deepen.

The United States remains committed to working with the Lao Government to achieve its development goals in areas such as health and nutrition, education, and economic growth. We will continue to work in partnership with Laos to address the legacy of the Indochinese conflict by reducing the impact of unexploded ordnance and accounting for U.S. personnel missing in action. Looking ahead, the United States welcomes new opportunities to enhance the close partnership between our two nations.

I wish the Lao people peace, prosperity, and happiness in the coming year.

Monday, December 1, 2014

President Obama on World AIDS Day 2014

U.S. CONGRATULATES PEOPLE OF CENTRAL AFRICAN REPUBLIC ON THEIR NATINAL DAY

FROM:  U.S. STATE DEPARTMENT
John Kerry
Secretary of State
Washington, DC
December 1, 2014

Central African Republic National Day Message


On behalf of President Obama and the people of the United States, I congratulate the people of the Central African Republic as you celebrate your independence on December 1.

The United States is proud to stand with the courageous people of the Central African Republic. I commend all of you who are working to promote peace, advance the democratic transition, and promote national reconciliation.  The United States shares your vision for a future rooted in security, justice, and prosperity for everyone.

The resumption of operations at our embassy in Bangui this past September is a testament to our commitment. We will continue to support your country as you seek the peace and unity that you so richly deserve.

I wish all people of the Central African Republic a joyous National Day.

NSF VIDEO: ROBOTS IN A HUMAN WORLD

USFWS VIDEO: NINE WYOMING RANCHERS SIGN HISTORIC SAGE GROUSE AGREEMENT

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

FROM:  U.S. STATE DEPARTMENT
Romania's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 28, 2014


On behalf of President Obama and the American people, I congratulate all Romanians as you celebrate your Unification Day on December 1.

Ninety-six years ago, the people of Romania created a democracy that guaranteed equality for all nationalities and religions and protected the freedoms of press, association, and speech. We pay tribute to those visionary leaders and applaud all those who continue to defend those fundamental rights and strengthen your democracy, rule of law, and national diversity.

The United States is grateful for Romania’s strong partnership on regional and global security challenges. As NATO allies, our soldiers serve side-by-side in Afghanistan. They carry out joint military training exercises. And they collaborate at military bases in your country like Deveselu and Mihail Kogalniceanu.

As you celebrate with family and friends, I look forward to building on our strategic partnership for many years to come.

OCEANS SPRINGS, MISSISSIPPI TO PAY $437,000 TO RESOLVE DISABILITY DISCRIMINATION CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, November 25, 2014
City of Ocean Springs, Mississippi, Agrees to Reforms and $437,500 Payment to Resolve Disability Discrimination Lawsuit

The Justice Department today announced a settlement resolving a federal civil rights lawsuit against the City of Ocean Springs, Mississippi, for alleged violations of the Americans with Disabilities Act (ADA).  Under the proposed consent decree, the city will pay $437,500 in damages to an outpatient psychiatric treatment facility that was discriminated against by the city based on unsupported myths and stereotypes about prospective patients at the facility.  The decree requires the city to reform its land use and zoning practices to eliminate discriminatory barriers for providers of mental health services to people with disabilities and combat the stigma of mental illness.

The documents filed in federal court today allege that the city discriminated against Psycamore LLC when it denied a certificate of occupancy and a use permit because Psycamore treats patients with mental illness.  Psycamore sought to operate in an area allowing medical clinics and should have been allowed to operate by the city.  But the city would not allow it to open.  At public hearings called by the city a flier that depicted Psycamore as the psychiatric ward in the film One Flew Over the Cuckoo’s Nest was circulated to city officials.

The department found that the city based its decision on discriminatory beliefs, myths and stereotypes about Psycamore’s patients and their mental disabilities.  As a result, the city perpetuated the stigma surrounding mental illness, interfered with Psycamore’s ability to treat individuals with mental disabilities in Ocean Springs and forced Psycamore to delay opening its clinic and to move it to Biloxi, Mississippi.  Psycamore also suffered economic losses, including lost profits and out of pocket expenses.

“The Americans with Disabilities Act protects people with mental illness from discrimination and mental health facilities are protected from discrimination based on the disabilities of the people they serve.  ” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “The Civil Rights Division is committed to combating the stigma of mental illness, promoting greater community awareness and protecting the rights of persons living with mental illness as well as the persons and entities who serve them.”

“The participation of the U.S. Attorney’s Office in this important litigation sends a strong message that we will not tolerate discrimination of any kind in this district,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi.  “Discrimination based upon myths, fears and stereotypes is never appropriate.  We are fully committed to ensuring that individuals with disabilities and those who provide services to them have a full and equal opportunity to participate in all facets of their communities.”

Under the consent decree, the city will adopt and implement policies to ensure nondiscriminatory zoning practices that will not limit access to needed services and treatment for people with mental disabilities.  City officials involved in zoning decisions will be trained on the ADA.  The city will also report to the Justice Department on future land use decisions involving individuals with disabilities and hire an ADA coordinator to oversee the city’s compliance with the ADA and the consent decree.  In addition to paying damages to Psycamore, the consent decree requires the city to grant Psycamore a certificate of occupancy and use permit, if necessary, to return to Ocean Springs in the future in the same or similar zone where it previously sought to locate.

The ADA protects individuals with disabilities from discrimination in all activities of state and local government entities, including zoning and land use decisions.

SEC CHARGES HSBC SWISS-BASED PRIVATE BANK WITH FAILING TO REGISTER WITH SEC

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
1/25/2014 12:40 PM EST

The Securities and Exchange Commission charged HSBC’s Swiss-based private banking arm with violating federal securities laws by failing to register with the SEC before providing cross-border brokerage and investment advisory services to U.S. clients.

HSBC Private Bank (Suisse) agreed to admit wrongdoing and pay $12.5 million to settle the SEC’s charges.

“HSBC’s Swiss private banking unit illegally conducted advisory or brokerage business with U.S. customers,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement.  “HSBC Private Bank’s efforts to prevent registration violations ultimately failed because their compliance initiatives were not effectively implemented or monitored.”

According to the SEC’s order instituting settled administrative proceedings, HSBC Private Bank and its predecessors began providing cross-border advisory and brokerage services in the U.S. more than 10 years ago, amassing as many as 368 U.S. client accounts and collecting fees totaling approximately $5.7 million.  Personnel traveled to the U.S. on at least 40 occasions to solicit clients, provide investment advice, and induce securities transactions.  These relationship managers were not registered to provide such services nor were they affiliated with a registered investment adviser or broker-dealer.  The relationship managers also communicated directly with clients in the U.S. through overseas mail and e-mails.  In 2010, HSBC Private Bank decided to exit the U.S. cross-border business, and nearly all of its U.S. client accounts were closed or transferred by the end of 2011.

According to the SEC’s order, HSBC Private Bank understood there was a risk of violating the federal securities laws by providing unregistered broker-dealer and investment advisory services to U.S. clients, and the firm undertook certain compliance initiatives in an effort to manage and mitigate the risk.  The firm created a dedicated North American desk to consolidate U.S. client accounts among a smaller number of relationship managers and service them in a compliant manner that would not violate U.S. registration requirements.  However, relationship managers were reluctant to lose clients by transferring them to the North American desk.  HSBC Private Bank’s internal reviews revealed multiple occasions when U.S. accounts that were expected to be closed under certain compliance initiatives remained open.

The SEC’s order finds that HSBC Private Bank willfully violated Section 15(a) of the Securities Exchange Act of 1934 and Section 203(a) of the Investment Advisers Act of 1940.  HSBC Private Bank agreed to admit the facts in the SEC’s order, acknowledge that its conduct violated the federal securities laws, and accept a censure and a cease-and-desist order.  The firm agreed to pay $5,723,193 in disgorgement, $4,215,543 in prejudgment interest, and a $2.6 million penalty.

The SEC’s investigation was conducted by Matthew R. Estabrook and David S. Karp, and the case was supervised by Laura B. Josephs.  The SEC appreciates the assistance of the Swiss Financial Market Supervisory Authority.

Sunday, November 30, 2014

U.S. CONGRATULATES PEOPLE OF NAMIBIA ON ELECTIONS

FROM:  U.S. STATE DEPARTMENT
Press Statement
John Kerry
Secretary of State
Washington, DC
November 30, 2014


The United States congratulates the people of Namibia for exercising their democratic right to vote in presidential and parliamentary elections on November 28.

Namibia has once again demonstrated its commitment to an open electoral process and respect for presidential term limits. We applaud the active participation of Namibia’s political parties, civil society, and citizens in shaping an inclusive discussion throughout the campaign. The extraordinary participation among first-time voters and women candidates reflects the progress that Namibia has made and the commitment of the Namibian people to a democratic future.

The United States and Namibia share a strong partnership. We work together to strengthen health care systems, counter threats to Namibia’s unique ecosystems, promote peace and security in the region, and protect human rights for all of Namibia’s citizens, particularly the most vulnerable in society.

The United States looks forward to continuing our partnership with the new Namibian Government and the people of Namibia in support of Namibia’s development and the welfare of its people.

QATARI COURT OVERRUNS CONVICTIONS OF MATHEW AND GRACE HUANG

FROM:  U.S. STATE DEPARTMENT
Press Statement
John Kerry
Secretary of State
Washington, DC
November 30, 2014


I welcome the decision of the Qatari Court of Appeals to overturn the conviction of Matthew and Grace Huang. The thoroughly documented findings of the court clearly establish the Huang's innocence. The 22 long months of court proceedings following their daughter's tragic death have compounded the tragedy for the Huang family, and it is time now, as the Appeals Court stated, to let the Huangs return home. We are deeply concerned about new delays that have prevented their departure. I spoke with Qatari Foreign Minister Attiya today and called on the government to immediately implement the court’s decision and permit their return to the United States without further delay.

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