WHITE HOUSE FACT SHEET ON CHANGING RELATIONS WITH CUBA

FROM:  THE WHITE HOUSE   
December 17, 2014
FACT SHEET: Charting a New Course on Cuba

Today, the United States is taking historic steps to chart a new course in our relations with Cuba and to further engage and empower the Cuban people.  We are separated by 90 miles of water, but brought together through the relationships between the two million Cubans and Americans of Cuban descent that live in the United States, and the 11 million Cubans who share similar hopes for a more positive future for Cuba.

It is clear that decades of U.S. isolation of Cuba have failed to accomplish our enduring objective of promoting the emergence of a democratic, prosperous, and stable Cuba.  At times, longstanding U.S. policy towards Cuba has isolated the United States from regional and international partners, constrained our ability to influence outcomes throughout the Western Hemisphere, and impaired the use of the full range of tools available to the United States to promote positive change in Cuba.  Though this policy has been rooted in the best of intentions, it has had little effect – today, as in 1961, Cuba is governed by the Castros and the Communist party.

We cannot keep doing the same thing and expect a different result.  It does not serve America’s interests, or the Cuban people, to try to push Cuba toward collapse.  We know from hard-learned experience that it is better to encourage and support reform than to impose policies that will render a country a failed state.  With our actions today, we are calling on Cuba to unleash the potential of 11 million Cubans by ending unnecessary restrictions on their political, social, and economic activities.  In that spirit, we should not allow U.S. sanctions to add to the burden of Cuban citizens we seek to help.

Today, we are renewing our leadership in the Americas.  We are choosing to cut loose the anchor of the past, because it is entirely necessary to reach a better future – for our national interests, for the American people, and for the Cuban people.

Key Components of the Updated Policy Approach:

Since taking office in 2009, President Obama has taken steps aimed at supporting the ability of the Cuban people to gain greater control over their own lives and determine their country’s future.  Today, the President announced additional measures to end our outdated approach, and to promote more effectively change in Cuba that is consistent with U.S. support for the Cuban people and in line with U.S. national security interests.  Major elements of the President’s new approach include:

Establishing diplomatic relations with Cuba-

The President has instructed the Secretary of State to immediately initiate discussions with Cuba on the re-establishment of diplomatic relations with Cuba, which were severed in January 1961.
In the coming months, we will re-establish an embassy in Havana and carry out high-level exchanges and visits between our two governments as part of the normalization process.  As an initial step, the Assistant Secretary of State for Western Hemisphere Affairs will lead the U.S. Delegation to the next round of U.S.-Cuba Migration Talks in January 2015, in Havana.
U.S. engagement will be critical when appropriate and will include continued strong support for improved human rights conditions and democratic reforms in Cuba and other measures aimed at fostering improved conditions for the Cuban people.
The United States will work with Cuba on matters of mutual concern and that advance U.S. national interests, such as migration, counternarcotics, environmental protection, and trafficking in persons, among other issues.
Adjusting regulations to more effectively empower the Cuban people-

The changes announced today will soon be implemented via amendments to regulations of the Departments of the Treasury and Commerce.   Our new policy changes will further enhance our goal of empowering the Cuban population.
Our travel and remittance policies are helping Cubans by providing alternative sources of information and opportunities for self-employment and private property ownership, and by strengthening independent civil society.
These measures will further increase people-to-people contact; further support civil society in Cuba; and further enhance the free flow of information to, from, and among the Cuban people.  Persons must comply with all provisions of the revised regulations; violations of the terms and conditions are enforceable under U.S. law.
Facilitating an expansion of travel under general licenses for the 12 existing categories of travel to Cuba authorized by law-

General licenses will be made available for all authorized travelers in the following existing categories: (1) family visits; (2) official business of the U.S. government, foreign governments, and certain intergovernmental organizations; (3) journalistic activity; (4) professional research and professional meetings; (5) educational activities; (6) religious activities; (7) public performances, clinics, workshops, athletic and other competitions, and exhibitions; (8) support for the Cuban people; (9) humanitarian projects; (10) activities of private foundations or research or educational institutes; (11) exportation, importation, or transmission of information or information materials; and (12) certain export transactions that may be considered for authorization under existing regulations and guidelines.
Travelers in the 12 categories of travel to Cuba authorized by law will be able to make arrangements through any service provider that complies with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) regulations governing travel services to Cuba, and general licenses will authorize provision of such services.
The policy changes make it easier for Americans to provide business training for private Cuban businesses and small farmers and provide other support for the growth of Cuba’s nascent private sector.  Additional options for promoting the growth of entrepreneurship and the private sector in Cuba will be explored.
Facilitating remittances to Cuba by U.S. persons-

Remittance levels will be raised from $500 to $2,000 per quarter for general donative remittances to Cuban nationals (except to certain officials of the government or the Communist party); and donative remittances for humanitarian projects, support for the Cuban people, and support for the development of private businesses in Cuba will no longer require a specific license.
Remittance forwarders will no longer require a specific license.
Authorizing expanded commercial sales/exports from the United States of certain goods and services-

The expansion will seek to empower the nascent Cuban private sector.  Items that will be authorized for export include certain building materials for private residential construction, goods for use by private sector Cuban entrepreneurs, and agricultural equipment for small farmers.  This change will make it easier for Cuban citizens to have access to certain lower-priced goods to improve their living standards and gain greater economic independence from the state.
Authorizing American citizens to import additional goods from Cuba-

Licensed U.S. travelers to Cuba will be authorized to import $400 worth of goods from Cuba, of which no more than $100 can consist of tobacco products and alcohol combined.
Facilitating authorized transactions between the United States and Cuba-

U.S. institutions will be permitted to open correspondent accounts at Cuban financial institutions to facilitate the processing of authorized transactions.
The regulatory definition of the statutory term “cash in advance” will be revised to specify that it means “cash before transfer of title”; this will provide more efficient financing of authorized trade with Cuba.
U.S. credit and debit cards will be permitted for use by travelers to Cuba.
These measures will improve the speed, efficiency, and oversight of authorized payments between the United States and Cuba.
Initiating new efforts to increase Cubans’ access to communications and their ability to communicate freely-

Cuba has an internet penetration of about five percent—one of the lowest rates in the world.  The cost of telecommunications in Cuba is exorbitantly high, while the services offered are extremely limited.
The commercial export of certain items that will contribute to the ability of the Cuban people to communicate with people in the United States and the rest of the world will be authorized.  This will include the commercial sale of certain consumer communications devices, related software, applications, hardware, and services, and items for the establishment and update of communications-related systems.
 Telecommunications providers will be allowed to establish the necessary mechanisms, including infrastructure, in Cuba to provide commercial telecommunications and internet services, which will improve telecommunications between the United States and Cuba.
Updating the application of Cuba sanctions in third countries-

U.S.-owned or -controlled entities in third countries will be generally licensed to provide services to, and engage in financial transactions with, Cuban individuals in third countries.  In addition, general licenses will unblock the accounts at U.S. banks of Cuban nationals who have relocated outside of Cuba; permit U.S. persons to participate in third-country professional meetings and conferences related to Cuba; and, allow foreign vessels to enter the United States after engaging in certain humanitarian trade with Cuba, among other measures.
Pursuing discussions with the Cuban and Mexican governments to discuss our unresolved maritime boundary in the Gulf of Mexico-

Previous agreements between the United States and Cuba delimit the maritime space between the two countries within 200 nautical miles from shore.  The United States, Cuba, and Mexico have extended continental shelf in an area within the Gulf of Mexico where the three countries have not yet delimited any boundaries.
The United States is prepared to invite the governments of Cuba and Mexico to discuss shared maritime boundaries in the Gulf of Mexico.
Initiating a review of Cuba’s designation as a State Sponsor of Terrorism-

The President has instructed the Secretary of State to immediately launch such a review, and provide a report to the President within six months regarding Cuba’s support for international terrorism.  Cuba was placed on the list in 1982.
Addressing Cuba’s participation in the 2015 Summit of the Americas in Panama-

President Obama will participate in the Summit of the Americas in Panama.  Human rights and democracy will be key Summit themes.  Cuban civil society must be allowed to participate along with civil society from other countries participating in the Summit, consistent with the region’s commitments under the Inter-American Democratic Charter.  The United States welcomes a constructive dialogue among Summit governments on the Summit’s principles.
Unwavering Commitment to Democracy, Human Rights, and Civil Society

A critical focus of our increased engagement will include continued strong support by the United States for improved human rights conditions and democratic reforms in Cuba.  The promotion of democracy supports universal human rights by empowering civil society and a person’s right to speak freely, peacefully assemble, and associate, and by supporting the ability of people to freely determine their future.   Our efforts are aimed at promoting the independence of the Cuban people so they do not need to rely on the Cuban state.

The U.S. Congress funds democracy programming in Cuba to provide humanitarian assistance, promote human rights and fundamental freedoms, and support the free flow of information in places where it is restricted and censored.  The Administration will continue to implement U.S. programs aimed at promoting positive change in Cuba, and we will encourage reforms in our high level engagement with Cuban officials.

The United States encourages all nations and organizations engaged in diplomatic dialogue with the Cuban government to take every opportunity both publicly and privately to support increased respect for human rights and fundamental freedoms in Cuba.

Ultimately, it will be the Cuban people who drive economic and political reforms.  That is why President Obama took steps to increase the flow of resources and information to ordinary Cuban citizens in 2009, 2011, and today.  The Cuban people deserve the support of the United States and of an entire region that has committed to promote and defend democracy through the Inter-American Democratic Charter.

President Obama Delivers a Statement on Cuba

VOAYAGE 1 EXPERIENCES THREE"TSUNAMI WAVES" IN INTERSTELLAR SPACE

BUILDING COMMUNITY TRUST TOUR WITH ATTORNEY GENERAL ERIC HOLDER

U.S. SUPPORTS RIGHT OF HAITIAN PEOPLE TO HAVE ELECTIONS

FROM:  U.S. STATE DEPARTMENT 
Elections in Haiti
Press Statement
John Kerry
Secretary of State
Washington, DC
December 16, 2014

As Haiti’s political leaders work to resolve the issue of delayed elections, the United States supports the right of the Haitian people to go to the polls to determine their future. Elections are essential for Haiti’s democratic development and for continued progress in post-earthquake reconstruction and development. We commend the work of Haiti's presidential advisory commission and welcome its recommendations as a basis to encourage consensus. We also commend President Martelly for his courageous efforts to resolve the deadlock and for his decision to accept the commission’s recommendations. Prime Minister Lamothe's announcement of his resignation is evidence of the Haitian executive branch’s commitment to resolve the situation. Haiti’s parliamentary and political leaders also have worked in earnest to maintain the integrity of Haiti’s democratic institutions. Recognizing the concessions made by all sides to resolve the impasse, the United States urges all parties to reach without delay a definitive agreement on all outstanding issues and to carry out that agreement in good faith. Too much progress has been made since the earthquake to risk going backwards now. The future of that progress is in the hands of Haiti’s leaders, and we urge them to negotiate a solution that will open the door for elections to be scheduled as soon as possible.

HOMELAND SECURITY AGENT RECEIVES PRISON TERM FOR IMPEDING GOVERNMENT CORRUPTION INVESTIGATIONS

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, December 15, 2014

Former Special Agent in Charge of the Department of Homeland Security's Office of Inspector General Sentenced to More Than Three Years in Prison
A former Special Agent in Charge of the Department of Homeland Security - Office of Inspector General (DHS-OIG) was sentenced to 37 months in prison today for a scheme to falsify records and obstruct an internal DHS-OIG inspection, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office.  The sentence was imposed by U.S. District Judge Andrew S. Hanen of the Southern District of Texas.

“While leading an office responsible for investigating misconduct at other government agencies, Pedraza sought to impede and obstruct the investigation of his own office,” said Assistant Attorney General Caldwell.  “Pedraza’s criminal conduct resulted in the premature closing of criminal cases without resolution, potentially endangering our national security and allowing others to escape justice.  We will root out and prosecute corruption wherever it may be found, including within the ranks of federal law enforcement.”

Former DHS-OIG Special-Agent-in-Charge Eugenio Pedraza, 50, of McAllen, Texas, was found guilty following a four-day jury trial on March 14, 2014, of conspiring with three other special agents to falsify criminal investigative reports to impede an internal DHS-OIG inspection and obstruct the underlying criminal investigations.  The jury also found Pedraza guilty of five counts of falsifying records.

DHS-OIG is responsible for investigating alleged criminal activity by DHS employees, including corruption by Customs and Border Protection (CBP) and Immigration and Customs Enforcement personnel affecting the integrity of the U.S. borders.  Pedraza headed DHS-OIG’s McAllen Field Office (MCA) from January 2009 to January 2012.

According to evidence presented at trial, in September 2011, DHS-OIG conducted an internal inspection of the MCA to evaluate whether the agency’s investigative standards and policies were being followed.  In anticipation of the internal inspection, Pedraza and at least three other DHS-OIG agents, including Special Agent Wayne Ball, engaged in a scheme to falsify investigative documents to make it appear that criminal investigations were being conducted in a timely fashion and in accordance with DHS-OIG standard operating procedures.  The scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards and policies at the MCA and Pedraza’s failure to properly supervise agents and investigations.  Court documents reflect that Pedraza, Ball, and other special agents wrote and signed false criminal investigative reports.  Pedraza then approved the reports for inclusion in the official investigative case files.

For example, the evidence at trial showed that, at Pedraza’s direction, a special agent drafted false memoranda of activity (MOAs) to fill gaps of inactivity in a criminal investigation to which he was assigned.  The criminal investigation had been initiated in March 2010 and concerned allegations that a CBP officer was assisting the unlawful smuggling of undocumented aliens and narcotics into the United States.   Because the MOAs were intended to describe investigative activities that occurred when the drafting agent was either not present at the MCA or not employed by DHS-OIG at all, Pedraza directed the agent to attribute the investigative activity to Ball.  Ball then signed and backdated the false MOAs.  Pedraza also signed and backdated the false MOAs, which were then placed in the investigation’s case file in advance of the internal inspection.  Upon discovery of the falsified reports, the criminal investigation had to be closed without resolution.  According to evidence presented at trial, Pedraza similarly directed other special agents to falsify records related to at least four other criminal investigations.

On Jan. 17, 2013, Ball pleaded guilty to one count of conspiring with Pedraza and at least two other special agents to falsify records in federal investigations and obstruct an agency proceeding.  Ball is scheduled to be sentenced on Jan. 7, 2015, by U.S. District Judge Hilda G. Tagle of the Southern District of Texas.

This case was investigated by the FBI’s San Antonio Field Office and is being prosecuted by Trial Attorneys Eric Gibson, Brian Kidd and J.P. Cooney of the Criminal Division’s Public Integrity Section.

SEC CHARGES OIL AND GAS CO & EXECS IN STOCK PRICE MANIPULATION CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
2/15/2014 02:10 PM EST

The Securities and Exchange Commission today charged a New Orleans-based oil-and-gas company and five executives with running a stock trading scheme in which they claimed to have struck oil in Belize in order to manipulate the price of the company’s stock as they illegally sold restricted shares to the public.

The SEC also charged a Houston-based attorney with facilitating the scheme by issuing false legal opinion letters that allowed free trading of the restricted company stock.

According to the SEC’s complaint filed in U.S. District Court for the Eastern District of Texas, Treaty Energy Company issued deceptive press releases touting drilling successes in Belize and Texas to induce investor demand for its unregistered stock, which was then illegally distributed to the public.  The SEC alleges that Treaty Energy’s founder Ronald Blackburn and four company officers – Andrew V. Reid, Bruce A. Gwyn, Lee C. Schlesinger, and Michael A. Mulshine – obtained at least $3.5 million in illicit profits from the scheme.

“Treaty Energy professed to be in the oil-and-gas business, but its real business seems to have been misleading investors,” said David Peavler, Associate Director for Enforcement in the SEC’s Fort Worth Regional Office.  “These company officers were behind press releases and SEC filings announcing drilling successes that were simply falsehoods designed to deceive the market and put investor money into their own pockets.”

The SEC’s complaint further alleges that Treaty Energy’s outside counsel Samuel Whitley abused his gatekeeper role and enabled the scheme by authoring improper legal opinion letters that allowed the company and its officers to illegally distribute unregistered stock to the public.  Whitley was aware that Blackburn was running the company and Treaty Energy was abusing registration rules under the federal securities laws.  Yet these facts did not deter him from issuing the opinion letters that allowed the scheme to proceed.

“This case highlights the importance of gatekeepers in the sale of securities. Attorneys and other gatekeepers have an obligation to stop frauds, not enable them by turning a blind eye,” said David Woodcock, Director of the SEC’s Fort Worth Regional Office.

According to the SEC’s complaint, the scheme had three basic components.  The first part began in January 2012 when Blackburn directed Treaty Energy to issue a press release claiming that its purported oil strike in Belize contained an estimated five to six million barrels of recoverable oil.  Treaty’s stock price shot up nearly 80 percent that day.  However, the Belize government publicly refuted Treaty Energy’s purported oil strike the very next day, calling the company’s statement “false and misleading” and “irresponsible.”  The SEC alleges that despite Belize’s denial, Blackburn and the company’s officers continued to mislead investors by claiming that Belize was merely downplaying an actual oil strike for strategic reasons.

The SEC alleges that the second part of the scheme entailed Treaty Energy’s failure to disclose in public filings from 2009 to 2013 that Blackburn – previously convicted of federal income tax evasion – actually controlled the company and was a de facto officer.  The SEC alleges that Reid, Gwyn, Schlesinger, and Mulshine all knew Blackburn’s true role at the company, but intentionally kept this fact out of its disclosures to conceal from the public that a convicted felon was in charge.

According to the SEC’s complaint, the final part of the scheme got underway in November 2013 when Treaty Energy began offering investors working interests in a well in West Texas.  Investors were enticed with claims that the working interests were low-risk and expected to yield a return of 111.42 percent over a 10-year period.  The SEC alleges that Treaty Energy and its officers knew these claims were baseless because the well was producing only marginal amounts of oil.  In fact, the well produced 235 total barrels from October 2013 to October 2014.

The SEC’s complaint charges Treaty Energy, Blackburn, Reid, Gwyn, Mulshine, and Schlesinger with securities fraud as well as violations of the registration and reporting violations of the federal securities laws.  The SEC seeks disgorgement of ill-gotten gains with prejudgment interest plus financial penalties as well as penny stock bars, officer-and-director bars, and permanent injunctions against them.  Reid and Gwyn are additionally charged with signing false certifications in Treaty Energy’s SEC filings, and Whitley is accused of securities registration violations.

The SEC’s investigation was conducted by Samantha Martin, Keith Hunter, and Joann Harris of the Fort Worth Regional Office.  The SEC’s litigation will be led by Jessica Magee.

U.S. HAS PLAN TO HANDLE EBOLA MEDICAL WASTE

FROM:  U.S. TRANSPORTATION DEPARTMENT 
U.S. Department of Transportation Approved Special Permit for the Safe Transport of Ebola Infected Medical Waste for Disposal

WASHINGTON—The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) in coordination with the Centers for Disease Control and Prevention (CDC) announced that it has issued an emergency special permit allowing a Lake Forest, Ill.-based company to transport large quantities of Ebola-contaminated waste from Texas Health Presbyterian Hospital Dallas for disposal.

The special permit will cover all of Texas, not just waste originating at Texas Health Presbyterian Hospital Dallas, which is beneficial should another diagnosed case present itself in the state.  The special permit also extends to the removal of household hazardous material, including the patient’s home.  Special permits are issued to individual companies to ensure that each holder is fit to conduct the activity authorized. PHMSA has been in proactive discussions with CDC to prepare guidance to address emerging issues elsewhere in the United States should they develop.

The special permit issued today offers Stericycle, Inc. two alternative options for packaging the waste material prior to transport. Both options require a series of inner and outer packaging and the application of a CDC-authorized disinfectant to the inner packaging. The special permit also provides instructions for operation controls during transport, and requires the carrier to maintain a written spill response plan with guidelines for protecting employees and decontaminating any released material in the event of an accident.  For more information about the special permit, please click here.

The Hazardous Materials Regulations authorizes the issuance of special permits that allow a company or individual to package or ship hazardous materials in a manner that varies from existing regulations but maintains an equivalent level of safety. Solid materials contaminated with the Ebola virus are classified as Category A infectious substances according to the Hazardous Materials Regulations. Current safety regulations governing the transport of Category A infectious substances require packaging that may not be always suited for the transport of larger quantities of contaminated waste.  The treatment of Ebola patients creates a relatively large quantity of contaminated medical waste.

While the U.S. Department of Transportation’s PHMSA approves the special permit to Stericycle, the contract for services is between the company and Texas Health Presbyterian Hospital Dallas.  All questions related to the terms of the contract and operational logistics such as the costs, the times of pick up, disposal locations, the volume of materials, etc. should be answered by the state of Texas health officials or the hospital.
DOT 94-14
Friday, October 3, 2014

SEC CHARGES U.S. TECH FIRM IN CASE INVOLVING PAYMENTS TO CHINESE GOVERNMENT OFFICIALS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged a Billerica, Mass.-based global manufacturer of scientific instruments with violating the Foreign Corrupt Practices Act (FCPA) by providing non-business related travel and improper payments to various Chinese government officials in an effort to win business.

An SEC investigation found that Bruker Corporation lacked sufficient internal controls to prevent and detect approximately $230,000 in improper payments out of its China-based offices that falsely recorded them in books and records as legitimate business and marketing expenses.  The payments enabled Bruker to realize approximately $1.7 million in profits from sales contracts with state-owned entities in China whose officials received the improper payments.

Bruker, which self-reported its misconduct and provided extensive cooperation during the SEC’s investigation, agreed to pay approximately $2.4 million to settle the SEC’s charges.

“Bruker’s lax internal controls allowed employees in its China offices to enter into sham ‘collaboration agreements’ to direct money to foreign officials and send officials on sightseeing trips around the world,” said Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit.  “The company has since taken significant remedial steps to revise its compliance program and enhance internal controls over travel and contract approvals.”

According to the SEC’s order instituting a settled administrative proceeding, a Bruker office in China paid more than $111,000 to Chinese government officials under 12 suspicious collaboration agreements contingent on state-owned entities providing research on Bruker products or using Bruker products in demonstration laboratories.  The collaboration agreements did not specify the work product that the state-owned entities had to provide in order to be paid, and no work product was actually provided to the Bruker office by the state-owned entities.  Certain collaboration agreements were executed directly with a Chinese government official rather than the state-owned entity itself, and in some cases Bruker’s office paid the official directly.

According to the SEC’s order, the other improper payments involved reimbursements to Chinese government officials for leisure travel to the United States, Czech Republic, Norway, Sweden, France, Germany, Switzerland, and Italy.  These officials often were responsible for authorizing the purchase of Bruker products, and the leisure trips typically followed business-related travel for the officials funded by the company.  For example, Bruker paid for the purported training expenses of a Chinese government official who signed the sales contract on behalf of a state-owned entity, but the payment actually was reimbursement for sightseeing, tour tickets, shopping, and other leisure activities in Frankfurt and Paris.  Bruker also funded some trips for Chinese government officials that had no legitimate business component.  For example, two Chinese government officials received paid travel to New York despite the lack of any Bruker facilities there, and also to Los Angeles where they engaged in sightseeing activities.

The SEC’s order finds that Bruker violated the internal controls and books and records provisions of the Securities Exchange Act of 1934.  The company agreed to pay $1,714,852 in disgorgement, $310,117 in prejudgment interest, and a $375,000 penalty.  Bruker consented to the order without admitting or denying the findings, and the SEC considered the company’s significant remedial acts as well as its self-reporting and cooperation with the investigation when determining a settlement.

The SEC’s investigation was conducted by Asita Obeyesekere and Mark Albers of the Boston Regional Office.  The case was supervised by Paul G. Block of the FCPA Unit.

U.S. CONDEMNS TALIBAN ATTACKS ON SCHOOL IN PAKISTAN

FROM:  U.S. DEFENSE DEPARTMENT 
U.S. Stands With Pakistanis, Afghans Against Taliban
By Jim Garamone
DoD News, Defense Media Activity

WASHINGTON, Dec. 16, 2014 – The United States condemns the deadly Taliban attack on a Pakistani school and remains committed to bringing stability to the Afghanistan-Pakistan region, Navy Rear Adm. John Kirby said today, emphasizing that the end of the NATO combat mission does not mean an end to U.S. involvement in the region.

The attack on the school in Peshawar is the latest manifestation of the savagery of the Taliban, Kirby said, noting that Pakistan remains a front-line state in the battle against terrorism and extremists and has suffered major casualties in the struggle against the Taliban. While U.S.-Pakistani relations have been rocky at times over the past decade, both countries share the fight, the admiral said, and added that today’s terrorist attack will not change that.

“I think we have certainly made it clear to Pakistan that we’re willing to help in the wake of this attack should they want or need any,” the admiral said. “There’s been no request for U.S. assistance. But we’ve certainly made it obvious that we’re willing to assist in any way we can.”

The attack on the school killed more than 140 children and teachers.
Across the border in Afghanistan the mission will change, Kirby said, but American and partner nations will continue their commitment to Afghan stability.

With Afghan forces now in charge of security, reporters asked Kirby whether they would be able to defend against an attack like the one in Pakistan. “The Afghan national security forces are very capable,” Kirby said. “They are already leading security operations in their country, and for all intents and purposes, are … conducting all the combat missions inside Afghanistan.”

Afghan forces secured both national elections this year and while there has been an upsurge in violence in Kabul, Afghan forces have handled the situations well, he noted. Officials expected the recent spate of Taliban attacks inside the capital as the NATO mission transitions. Kirby said the attacks are a Taliban tactic to “divert attention from the fact that real progress has been made and that Afghanistan is a more safe and secure environment than it was even just six months ago.”

Afghanistan is still a dangerous place, the admiral said, but no one is walking away from it.

12/16/14: White House Press Briefing

Vice President Biden Speaks at the National Menorah Lighting

U.S. CONGRATULATES PEOPLE OF KAZAKHSTAN ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 
Anniversary of Kazakhstan's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
December 16, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Kazakhstan as you celebrate your Independence Day on December 16.

The United States was the first country in the world to recognize your independence in 1991. Our friendship has only grown stronger since that day twenty three years ago.

I was honored to host Foreign Minister Irlan Idrisov recently in Washington, D.C. It was clear to both of us that we share an interest in bolstering economic ties, securing a reliable energy future, and maintaining regional and global security. We will continue to work with Kazakhstan’s government officials, civil society, and private sector leaders to improve human rights and help build a more stable, secure, democratic, and prosperous future.

As you celebrate this special day, I wish all of the Kazakhstani people peace and prosperity in the coming year.

SECRETARY KERRY'S PRESS AVAILABILITY IN LONDON

FROM:  U.S. STATE DEPARTMENT 
Press Availability in London
Press Availability
John Kerry
Secretary of State
London, United Kingdom
December 16, 2014

SECRETARY KERRY: Afternoon, everybody. Thanks for being here. Obviously, the last few days have been fairly intensive set of discussions, and we’ve covered a lot of ground, so I thought it was important to try to bring everybody up to speed on the road journeyed and the road ahead.

Before I do, though, I want to address, for a moment, the tragic events that have taken place over the course of the last 24 hours that have hit our friends in Australia and in Pakistan.

The news of the brazen murder of more than 120 innocent students in Peshawar is devastating. And as a father, I know exactly how hard it is when you send kids out of house into the world, to school or anywhere, and particularly in today’s world. Mothers and fathers send their kids to school to learn and to be safe and to dream and to find opportunity. And particularly at this military school in Pakistan, they sent their kids there with the hope and dreams of serving their country. Instead, today they are gone, wiped away by Taliban assassins who serve a dark and almost medieval vision, and the opposite of everything that those mothers and fathers wanted for their children.

The images are absolutely gut-wrenching: young children carried away in ambulances, a teacher burned alive in front of the students, a house of learning turned into a house of unspeakable horror. And Prime Minister Sharif said, “These are my children. It is my loss.” Well, this morning, wherever you live, wherever you are, those are our children, and this is the world’s loss. This act of terror angers and shakes all people of conscience, and we condemn it in the strongest terms possible. The perpetrators must be brought to justice. And we pledge our full support to the people of Pakistan in this difficult hour and we will help them in any way that we possibly can.

Likewise, our friends in Sydney are also especially on our minds. The United States, obviously, in recent memory, has come face to face with horrific violence on our own soil, and we have seen our citizens held hostage and murdered in faraway places for the most nihilistic, devastatingly negative purposes. So we know in a very personal way what our ally Australia is going through at this very moment. And we grieve with Australia and with the families of all those terrorized, injured, and killed.

And even though we’re at opposite ends of the globe, the United States and Australia are united not just in an alliance, but we are deeply united by our values and our friendship and our years of cooperation together. Our countries and our people are strong. And Australian law enforcement and security forces are about as good as it gets. I spoke this morning with Foreign Minister Julie Bishop and told her that the United States stands ready to provide whatever appropriate assistance we can as Australian authorities determine the facts of the case, assist the victims, and hold accountable anyone and everyone responsible for this act of terror.

The attacks in Peshawar and Sydney underscore that threats locally are also threats globally. In today’s world, next door is everywhere. And that’s why the United States is engaged in more places with more partners on more issues than ever before, and we are committed with all those allies and partners to standing up to extremism and to the extremists themselves.

And make no mistake, we are just as committed to finding ways to help solve the challenges of the Middle East and of other places of extremism and of terrorist activity because we know too well that while it’s difficult work, it’s also the only course that has any possibility of taking us towards stability, towards prosperity, towards a future. And so we will remain committed to this effort.

Over the past few days, I’ve had very candid and constructive conversations with Russian Foreign Minister Lavrov, Secretary of State of the Holy See Cardinal Parolin, with Israeli Prime Minister Netanyahu yesterday in Rome, with EU High Representative Mogherini, and with my counterparts from Jordan, Egypt, the United Kingdom, France, and Germany. And I will do the same today, the same kinds of conversations today, with Palestinian leaders who are here in London, with the Arab League Secretary-General Elaraby and his delegation who have come on behalf of the Arab League.

Now obviously, a focus of these conversations has been our deep concern about the situation on the ground in Israel and in the West Bank and the mounting calls from the international community to pursue diplomatic measures to try to address it. I want to be very clear: This isn’t the time to detail private conversations or speculate on a UN Security Council resolution that hasn’t even been tabled, no matter what pronouncements are made publicly about it. Many of us share a deep sense of urgency about this, given the constant threat of escalation and the dangers of a downward spiral of violence.

But we’re also very mindful that we have to carefully calibrate any steps that are taken for this difficult moment in the region. We all understand the challenges that are presented by this conflict. We all understand that there are pent-up frustrations on both sides and they run deep. We all know the risk of escalation. It’s constant and it’s real. And that is why it is imperative to lower the temperature, end the tension, so that we have an opportunity to find a path that Israelis and Palestinians both want so desperately, which is a path that leads out of the current predicament and actually provides people with an opportunity to touch, to feel, to see and know that there really is a prospect for genuine peace.

They want – everybody that I have talked to keeps talking to me – all the leaders on both sides keep talking to me about how they want a safe and secure future, and obviously, more hope for their people. All of the reasons that we engaged so intensely one year ago, a little more than that, and all the reasons that Prime Minister Netanyahu and President Abbas were willing to engage – those reasons are even more compelling today. The status quo is unsustainable for both parties and for the region.

And no people should have to endure a barrage of rockets in the thousands or the threat of a terrorist jumping out of a tunnel armed with a tranquilizer, drugs, and handcuffs in order to snatch them out of the night and drag them back into another place where they can hold them hostage. No one should have to endure either of those things. But the Israelis saw that firsthand during the course of the Gaza conflict. And likewise, no community should have to endure the loss of thousands of its citizens, including hundreds of women and children, as the Palestinians experienced during the same conflict, during – due to the choices that Hamas made that led them nowhere.

The ongoing unrest of the last weeks has brought new tensions to all sides. And earlier this month, two Israelis were stabbed as they shopped for groceries in the West Bank. Two more were axed to death while praying. And we were all devastated and shocked by the acid attack against an Israeli family last week. Palestinians have mourned the death of a Palestinian official, Ziad Abu Ein, and they have suffered indefensible price tag attacks, so-called price tag attacks, including the recent burning of a mosque near Ramallah.

The cycle of violence leads to more violence and to nowhere. Peace is the only prospect, and people need to fight for it. Getting to a better place is obviously not easy, but the alternative is more of the violence and the suffering that no people anywhere should have to accept as the daily fare of their lives, as the price of being born Israeli or Palestinian. And we are focused – we, the United States, and our allies and our friends in Europe and in the Arab community are all focused on a different path. Our friends are focused on a path that could lead to a different future, and we will never hesitate to fight to go down that path.

And that is why the United States and our partners will remain deeply engaged not just with the Israelis and the Palestinians, but on the other conflict – conflicts, plural, that dominated our discussions during the course of this week.

In Syria and Iraq, a historically broad coalition composed of countries from five continents is taking on Daesh, a vicious terrorist organization whose sheer evil clearly knows no bounds. And I engaged in a conversation with Foreign Minister Lavrov regarding the need for a political settlement, which he also agrees is the only solution, as do others in the region and all of our European allies.

And in Ukraine, the international community continues to stand up for the principle that a nation has the right to determine its own future, that no matter how powerful and aggressive its neighbor, its borders should be sovereign and should be integral and respected.

Now obviously, there is no shortage, therefore, of challenges, and I’ve only scratched the surface in those that I’ve listed. There is, of course, Libya, Somali, and the Sahel, the Maghreb and Yemen and Afghanistan, and you can run a longer list, yes. And we are engaged in all of those places trying to find a better path forward.

But even as we look down this difficult road that’s before us and consider the complicated choices that we face, we simply cannot lose sight of the fact that that hard road leads to a better place. I’m convinced of that. The United States recognizes the deeply felt aspiration for peace shared by the vast majority of Israelis and Palestinians, and we will continue to work with our friends and partners to find a path to the goal that we all share for a more peaceful and stable region.

So with that, I’d be happy to take some questions. And I don’t know who’s up or --

MS. HARF: Yeah. Our first – is it on? Oh, yes. Our first question’s from Nicole Gaouette of Bloomberg, and the mike will come to you.

QUESTION: Thanks for giving us this time, Mr. Secretary. In the past, the U.S. has simply blocked resolutions at the UN that it feels threaten or undermine Israel. This time, you’ve made this trip to Europe to discuss various proposals with your counterparts. Can you tell us what has changed that’s led you to do this? And mindful of your concern about discussing details about resolutions, could you tell us what the U.S. would like to see or would need to see in a resolution to support it?

And finally, given the challenges that the U.S. has faced in trying to broker a Mideast peace deal over these many years, is it time for the process to become more of a multilateral affair? Thank you.

SECRETARY KERRY: Well, let me answer the last first. It’s always been a multilateral affair. There were always countries that are involved in it, but the United States clearly has a unique role to play as a result of our longtime friendship and relationship with Israel, and the role that we have played historically with respect to Camp David, Oslo and so forth. In the end, though, this isn’t up to the international community or others. This has to be decided by the parties. The parties have to want this more than anybody outside, and the parties have to make key decisions that can lead to the resolution.

Now, coming back to the first part of the questions, right now, what we’re trying to do is have a constructive conversation with everybody to find the best way to go forward in order to create the climate; the atmosphere; the political space, if you will, to be able to go back to negotiations and resolve this politically. Now, clearly, in the beginning of an election and in the middle of an election, it’s very difficult and complicated because we believe very deeply that nobody should somehow interfere or do something that might be perceived of as interfering in the course of that election, and we want to find the most constructive way of doing something that therefore will not have unintended consequences, but also can stem the violence.

It’s a particularly sensitive moment because we understand the frustrations of Palestinians. We understand the frustrations of the Palestinian Authority and President Abbas and those who are pushing hard, because they don’t see another course at this moment. So the key is to try to find out whether or not there are other options, other ways, other courses; could something be done that helps to respect the process that the Israelis are about to undergo, simultaneously respecting the needs of the region to de-escalate the tensions and avoid confrontation?

That’s what we hope to achieve, that’s what these discussions are all about, and we will continue to have these discussions this afternoon and on into the next days. But we’ve made no determinations other than that about any – about language, approaches, specific resolutions, any of that. We haven’t made any determinations.

MS. HARF: Great. And the final question is from Jo Biddle of AFP. Please wait for the mike.

QUESTION: Thank you very much, Mr. Secretary. If I could just ask you to turn our attention to Russia, today, the ruble is falling and crashing to unprecedented lows against the dollar. Was this what the United States and the European sanctions were intended to do – weaken the ruble and thereby weaken Putin and hope he changes course in Ukraine? And now that the Russian people are facing real economic hardship, is it the right time for more sanctions in order to try to force a de-escalation in Ukraine, or should Moscow be given some breathing space in order to prevent an economic meltdown which could have an effect on the global economy?

And just turning back to what you mentioned – and you talked about the Taliban, the attack in Peshawar today, and the hostage-taking in the cafe in Sydney yesterday – what is your assessment of the rising threat level from Islamic extremism around the world? Is it now, would you agree, at one of its highest levels ever, despite the United States efforts to try and counterattack this? And how could governments around the world protect their people from what seems to be a growing trend towards lone wolf attacks? Thank you.

SECRETARY KERRY: Well, obviously, everybody has taken note of what has happened with respect to the ruble in the last days and the pressures on it, and it goes without saying that the purpose of the European-U.S.-et al effort with respect to sanctions was to make it clear to Russia, to President Putin, that there are costs attached to the unilateral annexation of Crimea and the continued support for separatists within Ukraine and the violation of Ukraine’s territorial sovereignty and integrity, and the sanctions set out to do that. I don’t think that what is happening is just related to the sanctions. I think it is much broader, more complicated than that. It has to do with other issues with respect to the Russian economy, and oil prices, obviously, have also played a significant role in this. So there are a lot of combined factors, but the sanctions were clearly intended to invite President Putin to make a different set of choices.

Now, these sanctions could have been lifted months ago. These sanctions could be lifted in a matter of weeks or days, depending on the choices that President Putin takes. And we have been crystal clear – when I say “we,” the European community and the United States and others joined together have been crystal clear that their sole purpose here is to restore the international norm with respect to behavior between nations with respect for borders and respect for sovereignty and respect for the rights of people to determine their future not at the barrel of a gun, but through the ballot box.

Let me say that Russia has made constructive moves in the last days and there are some indications that whether it is the line of control negotiation or the calm that is, in fact, in place in a number of places, the withdrawal of certain people, there are signs of constructive choices. And that can only be helpful, hopefully. And our hope is that in the days ahead we can get a clear, defined path by all parties, where everybody understands what each is doing and living up to agreements and in moving to de-escalate this situation. That has always been our goal. And I’m confident that as rapidly as that can happen, you will see Europe and the United States respond with respect to the sanctions that are in place today.

We do not want the people of Russia to be hurt here. This is not our goal. None of what we are doing is targeted specifically against the people. But yes, collaterally, of course, they are caught up in the choices that their government makes and it does have an impact. We understand that. But that’s not the goal or purpose.

QUESTION: Please, on the (inaudible) on the fight against the Islamists?

SECRETARY KERRY: Oh, on the fight against extremism, is the threat – no, I’m not going to say – the threat is what the threat is. There’s always been a threat of lone wolves, from the day that those terrorists drove their airplanes into the World Trade Center and crashed in Pennsylvania, and crashed into the Pentagon, we’ve had warnings of lone wolf activities. We’ve had warnings of sleeper cells. We’ve had warnings. And there have been many, many attempts over the course of the last years. The New York attempt for a bombing in Times Square, the Christmas bomber on an airplane, and so forth. But because of great work between our countries and terrific intelligence sharing, we were able to prevent those things from happening.

But it’s always very difficult. If somebody decides they want to die, it’s very hard to prevent every situation from occurring. So I’m not going to categorize on the scale, but everybody knows that Daesh is busy using the internet to proselytize, to entice, to lie, to put out propaganda, to try to influence minds of people who may be influenceable. And so that does present a threat, and people, unfortunately, everywhere need to be sort of aware of their surroundings, more alert than we’d like to be or want to be in the context of everyday life, but that’s where we are right now.

But as I said last week, we are making progress in the initial stages of halting Daesh’s progress in Iraq, of beginning to change their behavior, of attacking their command and control, of attacking their facilities and denying them supplies, of beginning to cut off financing, beginning to reduce the flow of foreign fighters, and so we have to be tough and courageous and stay the course here. And I’m confident that people are prepared to do that, and I know that our friends in Pakistan and in Australia are tough and strong and prepared to stay the course. So it’s very unfortunate when this happens, but it is done precisely for the kind of effect that it gets, which is questions at a press conference and fears that are spread in various parts of the world.

MS. HARF: Thank you, everyone.

SECRETARY KERRY: Thank you all very much. Appreciate it.

NAVY COMPLETES TESTS ON GHOSTSWIMMER

FROM:  U.S. NAVY GHOSTSWIMMER 
141211-N-KE519-014 VIRGINIA BEACH, Va. (Dec. 11, 2014) 

The GhostSwimmer vehicle, developed by the Chief of Naval Operations Rapid Innovation Cell project Silent NEMO, undergoes testing at Joint Expeditionary Base Little Creek - Fort Story. Project Silent NEMO is an experiment which explores the possible uses for a biomimetic device developed by the Office of Naval Research. (U.S. Navy photo by Mass Communication Specialist 3rd Class Edward Guttierrez III/Released)

Navy Tests New Unmanned Underwater Vehicle at JEBLC-FS
Story Number: NNS141212-26Release Date: 12/12/2014 11:24:00 AM A  A  A  
By Mass Communication Specialist 3rd Class Edward Guttierrez III, Navy Public Affairs Support Element East
VIRGINIA BEACH, Va. (NNS) -- The U.S. Navy completed tests on the GhostSwimmer unmanned underwater vehicle (UUV) at Joint Expeditionary Base Little Creek-Fort Story (JEBLC-FS), Dec. 11.

GhostSwimmer is the latest in a series of science-fiction-turned-reality projects developed by the chief of naval operations' Rapid Innovation Cell (CRIC) project, Silent NEMO.

Silent NEMO is an experiment that explores the possible uses for biomimetic, unmanned underwater vehicles in the fleet.

Over the past several weeks, Boston Engineering's tuna-sized device has been gathering data at JEBLC-FS on tides, varied currents, wakes, and weather conditions for the development of future tasks.

"GhostSwimmer will allow the Navy to have success during more types of missions while keeping divers and Sailors safe," said Michael Rufo, director of Boston Engineering's Advanced Systems Group.

The GhostSwimmer was developed to resemble the shape and mimic the swimming style of a large fish. At a length of approximately 5 feet and a weight of nearly 100 pounds, the GhostSwimmer vehicle can operate in water depths ranging from 10 inches to 300 feet.

"It swims just like a fish does by oscillating its tail fin back and forth," said Rufo. "The unit is a combination of unmanned systems engineering and unique propulsion and control capabilities."

Its bio-mimicry provides additional security during low visibility intelligence, surveillance and reconnaissance (ISR) missions and friendly hull inspections, while quieter than propeller driven craft of the same size, according to Navy Warfare Development Command (NWDC).

The robot is capable of operating autonomously for extended periods of time due to its long-lasting battery, but it can also be controlled via laptop with a 500-foot tether. The tether is long enough to transmit information while inspecting a ship's hull, for example, but if operating independently (without a tether) the robot will have to periodically be brought to the surface to download its data.

"This project and others that we are working on at the CRIC are important because we are harnessing the brainpower and talents of junior Sailors," said Capt. Jim Loper, department head for Concepts and Innovation, NWDC. "The opportunity for a young Sailor who has a good idea to get that idea heard, and to get it turned into action, is greater [now] than any other time in our Navy's history."

The CRIC was established in 2012 to provide junior leaders with an opportunity to identify and rapidly field emerging technologies that address the Navy's most pressing challenges and aims to find ways to quickly employ them in the fleet.

"Our mantra is 'you have permission to be creative.' We want our people to go out there and dream big dreams and put them into action," said Loper. "We want to see projects like this replicated throughout the fleet. The fusion of the deckplate brainpower with support of the most senior leadership in the Navy is going to keep us moving forward throughout the 21st century."

DOD VIDEO: ADMIRAL LOCKLEAR GIVES VIEW ON 2015 BUDGET

HOMELAND SECURITY CHIEF'S STATEMENT ON PASSAGE OF CYBERSECURITY LEGISLATION

FROM:  U.S. DEPARTMENT OF HOMELAND SECURITY 
Statement by Secretary Johnson on the Passage of Critical Cybersecurity Legislation
Release Date: December 11, 2014
For Immediate Release
Congress passed four pieces of legislation critical to cybersecurity.

S. 2519, the National Cybersecurity Protection Act of 2014, passed by the Senate yesterday and the House today, will enhance the ability of the Department of Homeland Security to work with the private sector on cybersecurity. The bill provides explicit authority for this Department to provide assistance to the private sector in identifying vulnerabilities and restoring their networks following an attack. The bill also establishes in law this Department's National Cybersecurity and Communications Integration Center as a federal civilian interface with the private sector for purposes of cybersecurity information sharing.

S. 2521, the Federal Information Security Modernization Act of 2014, passed by the Senate Monday and the House yesterday, codifies the responsibility of this Department to assist other federal civilian departments and agencies in each of their own cybersecurity activities, and administer implementation of government-wide cyber security policies.

S. 1691, the Border Patrol Agent Pay Reform Act of 2014 (passed yesterday; about which I issued a separate statement earlier today) includes language to enhance this Department’s ability to hire and pay a cybersecurity workforce. Similarly, H.R. 2952, the Cybersecurity Workforce Assessment Act, provides that this Department undertake an assessment of its cybersecurity workforce and update Congress on the steps taken to enhance it.

On behalf of the men and women of this Department, I appreciate the bipartisan support by Congress for our cybersecurity mission. I also thank Congress for passage of H.R. 4007, the Protecting and Securing Chemical Facilities from Terrorists Act of 2014, which authorizes and improves the Chemical Facility Anti-Terrorism Standards program administered by this Department. Congress this week has shown great overall support for this Department and its missions.

I thank the Congress for its bipartisan support for these bills. I also salute the leadership of Senators Tom Carper and Tom Coburn, and Representatives Michael McCaul, Patrick Meehan, Bennie Thompson, and Yvette Clarke, and their staffs, in pushing these bills through to passage, and for their support of the men and women of the Department of Homeland Security.

CHIEF TECH OFFICER SENTENCED IN CASE INVOLVING DIGITAL CURRENCIES AND ORGANIZED CRIME

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 12, 2014

Chief Technology Officer of Liberty Reserve Sentenced to Five Years in Prison
The former chief technology officer of Liberty Reserve was sentenced today to serve five years in prison for conspiring to operate an unlicensed money transmitting business that processed more than $16 billion through Liberty Reserve’s digital currency system.  The Court found that Marmilev understood the illegal nature of Liberty Reserve’s business and that he knew that a wide array of criminal enterprises used Liberty Reserve to further their criminal activity.

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

“Marmilev used his technical expertise to create a virtual currency business that was used extensively by criminals throughout the world,” said Assistant Attorney General Caldwell.  “Marmilev boasted that the crime group was beyond the reach of U.S. law enforcement, but he couldn’t have been more wrong.  Today’s prison sentence shows that those who hide their illegal activities on-line and off-shore will be caught and sent to prison.”

“Mark Marmilev spent years designing and maintaining the technological architecture that allowed Liberty Reserve to operate a global payment processor and money transfer system that catered to criminals,” said Manhattan U.S. Attorney Preet Bharara.  “Now, he will pay for that crime with five years in federal prison.”

Mark Marmilev, 35, of Brooklyn, New York, pleaded guilty on Sept. 11, 2014, for his role in designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services.  In addition to the prison sentence, U.S. District Judge Denise L. Cote also ordered Marmilev to pay a $250,000 fine.

According to allegations contained in the indictment, and statements made in other court documents filed in Manhattan federal court and related court proceedings:

Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.”  Liberty Reserve was created, structured, and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes.  It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity because it provided an infrastructure that enabled cybercriminals to conduct anonymous and untraceable financial transactions.

Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than five million user accounts worldwide, including more than 600,000 accounts associated with users in the United States, and processed tens of millions of transactions through its system, totaling more than $16 billion in funds.  These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.

According to court documents, Marmilev was a longtime associate of Liberty Reserve founder Arthur Budovsky, and he served as Liberty Reserve’s chief technology officer.  In that role, Marmilev was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure.  Marmilev also promoted Liberty Reserve to criminals on the Internet, where, using aliases, he touted Liberty Reserve’s lack of anti-money laundering policies and its tolerance for “shady businesses.”

In conjunction with the sentencing, a civil forfeiture complaint was filed today seeking the forfeiture of Gourmet Boutique, a retail grocery business located in Brooklyn, New York, and the forfeiture of Marmilev’s interest in Grimaldi’s, a pizzeria located in the Coney Island area of Brooklyn, New York; according to the complaint, Marmilev purchased these business interests using more than $1.6 million in Liberty Reserve proceeds.

This case is being investigated by the Internal Revenue Service-Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance fromthe United States Secret Service’s New York Electronic Crimes Task Force.  The Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police’s Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office also provided assistance.

This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.

Trial Attorney Kevin Mosley of AFMLS and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.

WOMAN SENTENCED FOR SMUGGLING HUMANS INTO U.S.

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 12, 2014
Costa Rican Woman Sentenced to Prison for Role in Human Smuggling Conspiracy

A citizen and resident of Costa Rica was sentenced today to 30 months in prison for her leadership role in a conspiracy to smuggle undocumented migrants to the United States.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE- HSI) Washington, D.C., Field Office made the announcement.  U.S. District Judge Ursula M. Ungaro of the Southern District of Florida imposed the sentence.

Mercedes Morera Roche, 49, of Costa Rica, was extradited to the United States from Panama on Aug. 21, 2014, to face human smuggling charges.  Roche pleaded guilty on Oct. 6, 2014, to conspiracy to smuggle more than 25 undocumented migrants from Cuba to the United States.

According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented migrants to the United States.  Roche admitted that in some cases, she provided fraudulent passports so that undocumented migrants could fly to the United States with the help of corrupt foreign airline and immigration officials.  Roche directed the migrants to destroy the fraudulent documents during the flights to the United States, and instructed the migrants about what to do and say to U.S. immigration authorities upon landing.  In other cases, Roche coordinated the smuggling of undocumented migrants over land routes through Latin America and Mexico into the United States.  Roche solicited payments of up to $10,000 for each undocumented migrant.

The investigation was pursued under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates with and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

The investigation was conducted by ICE- HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center.  Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama.  Extradition assistance was provided by the Criminal Division’s Office of International Affairs, INTERPOL Washington and the United States Marshals Service.  The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs.  This case was prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.

U.S. DOL VIDEO ON PAID FAMILY LEAVE