Weekly Address: DECEMBER 20, 2014

NASA VIDEO: ORION SPACECRAFT RETURNS TO NASA'S KENNEDY SPACE CENTER

JAPAN, AUSTRALIA PROVIDING MAINTENANCE SITES FOR F-35

FROM:  U.S. DEFENSE DEPARTMENT

An F-35C Lightning II joint strike fighter carrier variant prepares to launch from the aircraft carrier USS Nimitz in the Pacific Ocean, Nov. 6, 2014. U.S. Navy photo, courtesy of Lockheed Martin by Andy Wolfe . 

Japan, Australia to Provide F-35 Maintenance Sites in Pacific Region
By Claudette Roulo
DoD News, Defense Media Activity

WASHINGTON, Dec. 17, 2014 – Japan and Australia will be sharing maintenance and upgrade duties for the F-35 Lightning II joint strike fighter based or operating in the Pacific region, the program executive officer for the aircraft announced today.

F-35 heavy air frame maintenance, repair, overhaul and upgrade capabilities will be provided by Japan in the northern Pacific and Australia in the southern Pacific, Air Force Lt. Gen. Christopher C. Bogdan told reporters. Both countries are expected to have their facilities operational no later than 2018.

Initial heavy engine maintenance capability will be provided by Australia by early 2018, he said, and Japan will provide additional capability 3 to 5 years later.

Once Japan’s heavy engine capability is achieved, Bogdan said, the program office will look at the footprint and distribution of F-35's in the Pacific to “see if these decisions are still appropriate and if we have to make any kind of adjustments in terms of the assignment capabilities and moving forward.”
Similar Process in Europe

A similar process will take place in Europe, and all of the assignments will be reviewed every three to five years, he added.

Over the next two years, assignments for other components, systems and repair capabilities will be determined for both Europe and the Pacific, Bogdan noted.
Japan’s final assembly and check-out facility will be quite different from the facilities in Italy and Fort Worth, Texas, the general said.

“Both the plant at Fort Worth and the plant in Italy are expansive in terms of distance on the ground,” he said, but Japan is building vertically. Manufacturing will take place on a number of different floors, Bogdan said, and the aircraft will move through the facility on elevators as it is assembled.

Efficiencies learned through experience at the Fort Worth facility are being incorporated into the Japanese facility as it is constructed, he said.

Just like in Europe, he said, Japan is responsible for the funding and construction of their facility, which will be operated by a Japanese company. Lockheed-Martin will oversee technical aspects of production in Italy and Japan, Bogdan noted, and the U.S. government will oversee security.

Factors Drove Decisions

Geography and operational necessity played a considerable role in the Defense Department’s final decision to place air frame facilities in two locations, the general said.

Seven thousand miles separate the two primary areas where F-35s will be concentrated in the Pacific, Bogdan said. Moving entire aircraft over that distance would require significant amounts of fuel and other support, he said, making it uneconomical. And, he said, “Quite often, some of those airplanes that have to be inducted into a depot are going in there because they need upgrades or there's something wrong.”

Operationally, it didn’t make sense to introduce a long transportation delay into the MRO&U process, the general said.

“If you're having airplanes in the northern Pacific that need a rapid upgrade to respond to a new threat, having to move them 7,000 miles to do that mod in Australia, or vice versa, has an operational impact, because the war fighter won't get the airplane as quickly as he needed to,” he explained.

Geography wasn’t as serious an initial consideration for engines, Bogdan said.
Easier, Quicker, Cheaper

“You can break the engines down into modules, and when you break them down into modules, transportation is much easier, quicker and cheaper,” he said.
As more aircraft arrive in the Pacific theater, Australia’s heavy engine maintenance, repair, overhaul and upgrades capability will eventually be supplemented by Japan, the general said.

“Bringing a Japanese capability online after that represents the fact that as more airplanes come to the Pacific over time, we want to make sure we have enough throughput to get all the engines done in the region in a timely way.”

“This is another example of the continuing expansion of global sustainment opportunities for the international F-35 community,” Bogdan said in a release that accompanied today’s announcement.

“The F-35 international users will remain a vital part of the support structure of the program,” he said. “Their continuing participation is critical to driving down cost and getting the best value for the F-35 team and improving the strength of the global sustainment base for many years to come."

PRESIDENT ANNOUNCES DELEGATION TO ATTEND INAUGUATION OF DILMA ROUSSEFF AS PRESIDENT OF BRAZIL

FROM:  THE WHITE HOUSE 
President Obama Announces Presidential Delegation to the Federative Republic of Brazil to Attend the Inauguration of Her Excellency Dilma Rousseff

President Barack Obama today announced the designation of a Presidential Delegation to Brasilia to attend the Inauguration of Her Excellency Dilma Rousseff as President of the Federative Republic of Brazil on January 1, 2015.

The Honorable Joseph R. Biden, Jr., Vice President of the United States, will lead the delegation.

Members of the Presidential Delegation:

The Honorable Liliana Ayalde, United States Ambassador to the Federative Republic of Brazil, Department of State

The Honorable Roberta S. Jacobson, Assistant Secretary of State for Western Hemisphere Affairs

The Honorable Ricardo Zuniga, Special Assistant to the President and Senior Director for Western Hemisphere Affairs, National Security Council

FDA APPROVES VIEKIRA PAK FOR TREATMENT OF HEPATITIS C

FROM: U.S. FOOD AND DRUG ADMINISTRATION 
FDA approves Viekira Pak to treat hepatitis C

The U.S. Food and Drug Administration today approved Viekira Pak (ombitasvir, paritaprevir and ritonavir tablets co-packaged with dasabuvir tablets) to treat patients with chronic hepatitis C virus (HCV) genotype 1 infection, including those with a type of advanced liver disease called cirrhosis.

Hepatitis C is a viral disease that causes inflammation of the liver that can lead to reduced liver function, liver failure or liver cancer. Most people infected with HCV have no symptoms of the disease until liver damage becomes apparent, which may take decades. According to the Centers for Disease Control and Prevention, about 3.2 million Americans are infected with HCV, and without proper treatment, 15-30 percent of these people will go on to develop cirrhosis.

Viekira Pak contains three new drugs—ombitasvir, paritaprevir and dasabuvir—that work together to inhibit the growth of HCV. It also contains ritonavir, a previously approved drug, which is used to increase blood levels of paritaprevir. Viekira Pak can be used with or without ribavirin, but it is not recommended for patients whose liver is unable to function properly (decompensated cirrhosis).

“The new generation of therapeutics for hepatitis C virus is changing the treatment paradigm for Americans living with the disease,” said Edward Cox, M.D., M.P.H., director of the Office of Antimicrobial Products in the FDA’s Center for Drug Evaluation and Research. “We continue to see the development of new all-oral treatments with very high virologic response rates and improved safety profiles compared to some of the older interferon-based drug regimens.”

Viekira Pak is the fourth drug product approved by the FDA in the past year to treat chronic HCV infection. The FDA approved Olysio (simeprevir) in November 2013, Sovaldi (sofosbuvir) in December 2013 and Harvoni (ledipasvir and sofosbuvir) in October 2014.

Viekira Pak’s efficacy was evaluated in six clinical trials enrolling 2,308 participants with chronic HCV infection with and without cirrhosis. In different trials, participants were randomly assigned to receive Viekira Pak or placebo (sugar pill); Viekira Pak with or without ribavirin; or Viekira Pak with ribavirin for 12 or 24 weeks.

The trials were designed to measure whether the hepatitis C virus was no longer detected in the blood at least 12 weeks after finishing treatment (sustained virologic response, or SVR), indicating that a participant’s HCV infection has been cured. Results from multiple populations, including those considered difficult to treat, showed 91 to 100 percent of participants who received Viekira Pak at the recommended dosing achieved SVR. The recommended dosing for Viekira Pak is two ombitasvir, paritaprevir, ritonavir 12.5 milligrams (mg)/75 mg/50 mg tablets once daily and one dasabuvir 250 mg tablet twice daily.

The most common side effects reported in clinical trial participants were feeling tired, itching, feeling weak or lack of energy, nausea and trouble sleeping.

Viekira Pak is the eleventh new drug product with breakthrough therapy designation to receive FDA approval. The FDA can designate a drug as a breakthrough therapy at the request of the sponsor if preliminary clinical evidence indicates the drug may demonstrate a substantial improvement over available therapies for patients with serious or life-threatening diseases. Viekira Pak was reviewed under the FDA’s priority review program, which provides for an expedited review of drugs that treat serious conditions and, if approved, would provide significant improvement in safety or effectiveness.

Viekira Pak is marketed by AbbVie Inc., based in North Chicago, Illinois. Olysio is marketed by Raritan, New Jersey-based Janssen Pharmaceuticals. Sovaldi and Harvoni are marketed by Gilead Sciences, based in Foster City, California.

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.

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FORMER FEDERAL AGENT PLEADS GUILTY TO STEALING AMMUNITION

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 18, 2014
Former Federal Law Enforcement Agent Pleads Guilty to Theft of Agency's Ammunition

A former special agent with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) pleaded guilty today to theft of government property for stealing thousands of rounds of law enforcement ammunition, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Elton Malone of HHS-OIG’s Special Investigations Branch.

Josef A. Riekers, 44, of Rockwall, Texas, pleaded guilty before Chief U.S. District Judge Jorge A. Solis of the Northern District of Texas, who set a sentencing hearing for April 8, 2015.

According to admissions in his plea agreement, Riekers, who had served as a federal law enforcement agent for over 15 years, stole ammunition from the armory at HHS-OIG’s Dallas regional office.  Riekers then traded the stolen ammunition on Internet forums for other, non-government-issued ammunition that he used for his own personal benefit.

This case was investigated by HHS-OIG’s Special Investigations Branch, with assistance from the Dallas Police Department’s Criminal Intelligence Unit.  The case is being prosecuted by Trial Attorneys Kevin Driscoll and Justin Weitz of the Public Integrity Section.

STATE DEPARTMENT OFFICIAL'S RECENT REMARKS ON NUCLEAR DISARMAMENT

FROM:  U.S. STATE DEPARTMENT 
U.S. Perspectives on the Opportunities and Challenges of Nuclear Disarmament
Remarks
Robert Wood
Special Representative to the Conference on Disarmament 
Geneva Center for Security Policy
Geneva, Switzerland
December 17, 2014

Professor Mohamedou, thank you for that gracious introduction, and for hosting this event. It is an honor to join the ranks of distinguished visitors who have spoken at GCSP venues. Ladies and gentlemen, I also appreciate your interest in American perspectives on the opportunities and challenges of nuclear disarmament.

Disarmament, arms control, and nonproliferation are the focus of my professional life here in Geneva, and nuclear disarmament is under particularly close scrutiny as we approach the 2015 Nuclear Non-Proliferation Treaty Review Conference, which we refer to in the shorthand of this business as the “NPT RevCon.” The last NPT RevCon, in 2010, generated a consensus Action Plan for all States Parties. We put great stock in that historic achievement, we are working on it, and want to see it through. Acknowledging that the pace of nuclear disarmament is under criticism in some quarters, I would underline that the United States remains firmly committed to achieving the peace and security of a world without nuclear weapons – but I would also emphasize that there are no easy solutions to the challenge of advancing nuclear disarmament while also maintaining vital strategic stability and enhancing security for all.

So: Where are we now? And most important, where we are going?

As vital as those questions are, it can be easy to lose sight of the significant progress that has been made in this area. Indeed, in the forums in which I routinely work it is regrettably common for some participants to state flatly that “nothing has happened” or “nothing is happening” on nuclear disarmament. This is not the case.

How can such misperceptions persist? It is well known that global stocks of nuclear weapons are at their lowest level in over half a century, far below the levels existing when the NPT entered into force in 1970. This largely reflects very significant treaty-based arms reductions by the United States of America and the Russian Federation. The latest such bilateral arms control treaty, the New START Treaty, entered into force on February 5, 2011, and when it is fully implemented in 2018, New START will limit deployed strategic nuclear warheads to their lowest levels since the 1950s.

Behind these headlines is an ongoing, intense web of daily, practical implementation activities that support strategic stability and transparency, which are conducive to future progress in disarmament. For example, the United States and Russian Federation together continue to implement successfully the New START Treaty. The two sides have exchanged more than 7,700 New START Treaty notifications through the Nuclear Risk Reduction Centers. These notifications include biannual New START Treaty data exchanges, which provide a detailed picture of U.S. and Russian strategic forces. In addition, the Treaty’s on-site inspections continue to enable each side to verify the validity of those data. These exchanges and inspections, together with detailed discussions in the Bilateral Consultative Commission, help build confidence, stability, and predictability. Historically, implementation of strategic arms control treaties with the former Soviet Union and Russia has proceeded without interruption even during the most challenging periods in the bilateral relationship.

The United States also has reduced the role of nuclear weapons in its national security strategy as outlined in the U.S. Nuclear Posture Review (NPR). Specifically, as outlined in the 2010 NPR, the United States will not develop new nuclear warheads, and life extension programs for existing weapons will not support new military capabilities or provide for new military capabilities. Additionally, as reflected in the NPR, the United States has strengthened the negative security assurances that it provides to non-nuclear weapon states who are party to the NPT, and made clear that the United States would only consider the use of nuclear weapons in extreme circumstances to defend the vital interests of the United States or its allies and partners.

Proceeding further to the heart of the matter, we reported earlier this year that over the past two decades alone the United States has dismantled 9,952 nuclear warheads. That works out to dismantling an average of more than one warhead per day, every day, for 20 years. And the work continues. By the way, the dismantlement of just one nuclear warhead is not an easy process – it is extremely demanding work.

I hope that does not surprise you. But unfortunately, since taking up my duties as ambassador here four months ago, I have repeatedly heard the claim that, while non-nuclear weapons states have by and large honored their nonproliferation obligations, nuclear weapons states have abdicated their nuclear disarmament obligations.

I will let other Nuclear Weapons States speak for themselves. I think that the U.S. can be very proud of our own record. Please consider these facts:

• Over all, the United States has slashed its nuclear arsenal from its Cold War high by 85%. 85%. That is not a percentage pulled out of a hat. It is not fiction or fantasy. It is real!

• Before 1991, the U.S. eliminated an entire category of missiles, scrapping all of its intermediate-range and shorter-range ground-launched nuclear- and conventional-capable missiles and their associated launchers and equipment in accordance with the Intermediate Nuclear Forces (INF) Treaty.

• And just since 1991, the United States has reduced its non-strategic nuclear arsenal by approximately 90%.

When we pledge to continue to pursue nuclear disarmament and to keep faith with our NPT Article VI disarmament obligations, those are not empty words. Our responsible approach to disarmament has borne fruit in the form of major reductions in nuclear weapons, fissile material stocks, and infrastructure. Our nuclear complex has been completely transformed from one built for the mass production of fissile material and warheads and the design and testing of new weapons to one dedicated to the maintenance of a steadily shrinking stockpile.

Underpinning all of our efforts, stretching back decades, has been our clear understanding and recognition of the severe consequences of the use of these weapons. That is the message the United States took to the Conference on the Humanitarian Impact of Nuclear Weapons in Vienna last week. We participated to reinforce the message that the practical step-by-step path we have followed so successfully remains the only realistic route to our shared goal of a nuclear weapons-free world. We cannot and will not support efforts to move to a nuclear weapons convention or the false hope of a fixed timeline for the elimination of all nuclear weapons. We cannot support and will oppose any effort to move to an international legal ban on nuclear weapons.

Looking ahead, it remains the policy of the United States to achieve the peace and security of a world without nuclear weapons. And we are facing new challenges as we consider how to responsibly eliminate the last 15% of those weapons. As we move to smaller and smaller numbers, leading to zero globally, we must in turn become rigorously more and more confident and trusting that all are fulfilling their commitments.

In considering future reductions, the United States believes that the focus must be on responsible measures that can be trusted and verified. We will learn from our past experience and continue to move ahead with each step building on the last. While there is no pre-determined sequence of steps, and indeed we should pursue progress on multiple paths, there is no way to skip to the end and forgo the hard work of preparing for the technical and political disarmament challenges that lie ahead. Patience and persistence are needed from all NPT parties both among and beyond the P5.

Earlier this month in Prague, Under Secretary Gottemoeller announced a new International Partnership for Nuclear Disarmament Verification. We propose to work with nuclear-weapon states and non-nuclear-weapon states to better understand the challenges of verifying nuclear disarmament and to develop solutions to address those challenges.

This new partnership will draw on the talents of experts around the world, both inside and outside government. It will build on the pathbreaking efforts of the U.K.-Norway initiative, begun in 2007, to investigate ways to address nuclear disarmament verification challenges. The Nuclear Threat Initiative will be a prime partner in organizing this exciting new effort.

The United States is committed to a responsible approach to nuclear disarmament in accordance with our obligations under the Treaty on the Non-Proliferation of Nuclear Weapons. The United States has made it clear that we are ready to engage Russia to discuss the full range of issues related to strategic stability, and that we should take real and important actions that can contribute to creating a more predictable and secure world. We hope that these negotiations will take place when the conditions become more favorable for constructive interaction.

Broadening the aperture, I would underline that NPT Parties have committed as a next step in the multilateral nuclear disarmament sphere to negotiations on a treaty banning the production of fissile material for use in nuclear weapons or other nuclear explosive devices, the Fissile Material Cut-off Treaty (FMCT). This goal was embraced by all NPT Parties. Indeed, the 2010 NPT Action 15 notes that “All States agree that the Conference on Disarmament should . . . begin negotiation of a treaty banning the production of fissile material for use in nuclear weapons. . . .”

Achieving such a ban would support our collective Article VI obligations. The United States regrets that the CD remains in deadlock, unable to agree on a Program of Work that takes us forward and puts us on a path toward FMCT negotiations. It is clear that we still have our work cut out for us. And it is difficult to have a meaningful discussion, to set the stage for productive negotiations in the CD, without a better grasp of the facts, without recognition of what has been accomplished as well as the challenges that remain.

For the United States, the CD remains an essential multilateral institution for the negotiation of arms control and disarmament agreements. As a consensus-based body, it is the ideal venue to deal with the most sensitive national security issues multilaterally. While the United States and many other Member States are frustrated by the inability of the CD to get back to the business of negotiating, we need to find creative ways to energize it and put it back to work.

In conclusion, I would emphasize that it is a welcome fact that there remains strong support among governments and publics for nuclear disarmament. For the United States, the task at hand is to help to channel that support into constructive, effective measures that will strengthen international security while further reducing the number of nuclear weapons. Indeed, the United States has led the international community in responsibly reducing nuclear arsenals in a safe and practical step-by-step manner, and we remain firmly committed to our obligations under the NPT. We welcome contributions by all to this important task, but will firmly resist any efforts to oversimplify the path forward and ignore the real security challenges we face along that path. As President Obama has said, the path to zero will require patience and persistence. It requires a broad strategy aimed at strengthening the nonproliferation regime, preventing nuclear terrorism, and pursuing concrete steps that build a foundation for future progress and lead in the direction of nuclear disarmament. Thank you for your attention.

JUSTICE DEPARTMENT GIVES UPDATE ON SONY INVESTIGATION AND THE "GUARDIANS OF PEACE"

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 19, 2014
Update in Sony Investigation

Today, the FBI would like to provide an update on the status of our investigation into the cyber attack targeting Sony Pictures Entertainment (SPE).  In late November, SPE confirmed that it was the victim of a cyber attack that destroyed systems and stole large quantities of personal and commercial data.  A group calling itself the “Guardians of Peace” claimed responsibility for the attack and subsequently issued threats against SPE, its employees, and theaters that distribute its movies.

The FBI has determined that the intrusion into SPE’s network consisted of the deployment of destructive malware and the theft of proprietary information as well as employees’ personally identifiable information and confidential communications.  The attacks also rendered thousands of SPE’s computers inoperable, forced SPE to take its entire computer network offline, and significantly disrupted the company’s business operations.

After discovering the intrusion into its network, SPE requested the FBI’s assistance.  Since then, the FBI has been working closely with the company throughout the investigation.  Sony has been a great partner in the investigation, and continues to work closely with the FBI. Sony reported this incident within hours, which is what the FBI hopes all companies will do when facing a cyber attack.  Sony’s quick reporting facilitated the investigators’ ability to do their jobs, and ultimately to identify the source of these attacks.

As a result of our investigation, and in close collaboration with other U.S. Government departments and agencies, the FBI now has enough information to conclude that the North Korean government is responsible for these actions.  While the need to protect sensitive sources and methods precludes us from sharing all of this information, our conclusion is based, in part, on the following:

Technical analysis of the data deletion malware used in this attack revealed links to other malware that the FBI knows North Korean actors previously developed.  For example, there were similarities in specific lines of code, encryption algorithms, data deletion methods, and compromised networks.

The FBI also observed significant overlap between the infrastructure used in this attack and other malicious cyber activity the U.S. Government has previously linked directly to North Korea.  For example, the FBI discovered that several Internet protocol (IP) addresses associated with known North Korean infrastructure communicated with IP addresses that were hardcoded into the data deletion malware used in this attack.

Separately, the tools used in the SPE attack have similarities to a cyber attack in March of last year against South Korean banks and media outlets, which was carried out by North Korea.

We are deeply concerned about the destructive nature of this attack on a private sector entity and the ordinary citizens who worked there.  Further, North Korea’s attack on SPE reaffirms that cyber threats pose one of the gravest national security dangers to the United States.  Though the FBI has seen a wide variety and increasing number of cyber intrusions, the destructive nature of this attack, coupled with its coercive nature, sets it apart.  North Korea’s actions were intended to inflict significant harm on a U.S. business and suppress the right of American citizens to express themselves.  Such acts of intimidation fall outside the bounds of acceptable state behavior.  The FBI takes seriously any attempt – whether through cyber-enabled means, threats of violence, or otherwise – to undermine the economic and social prosperity of our citizens.

The FBI stands ready to assist any U.S. company that is the victim of a destructive cyber attack or breach of confidential business information.  Further, the FBI will continue to work closely with multiple departments and agencies as well as with domestic, foreign, and private sector partners who have played a critical role in our ability to trace this and other cyber threats to their source.  Working together, the FBI will identify, pursue, and impose costs and consequences on individuals, groups, or nation states who use cyber means to threaten the United States or U.S. interests.

West Wing Week: 12/19/14 or, "Todos Somos Americanos"

SECRETARY KERRY CONDEMNS CYBER-ATTACKS BY NORTH KOREA

FROM:  U.S. STATE DEPARTMENT
Condemning Cyber-Attack by North Korea
Press Statement
John Kerry
Secretary of State
Washington, DC
December 19, 2014

The United States condemns North Korea for the cyber-attack targeting Sony Pictures Entertainment and the unacceptable threats against movie theatres and moviegoers. These actions are a brazen attempt by an isolated regime to suppress free speech and stifle the creative expression of artists beyond the borders of its own country.

Freedom of expression is at the center of America’s values and a founding principle of our Bill of Rights. We’re a country where artists openly mock and criticize the powerful, including our own government. We don’t always like what they say about us or about others, and sometimes we’re even deeply offended. But those offenses have always taken a backseat to freedom of expression. That’s why the United States is and always will be a staunch advocate for and protector of the right of artists to express themselves freely and creatively. Whatever one’s system of government or views about free expression, there is absolutely no justification whatsoever for an attack like this.

We are deeply concerned about the destructive nature of this state sponsored cyber-attack targeting a commercial entity and its employees in the United States. These lawless acts of intimidation demonstrate North Korea’s flagrant disregard for international norms. Threats in cyberspace pose one of the greatest national security challenges to the United States, and North Korea’s actions – intended to inflict significant economic damage and suppress free speech – are well beyond the bounds of acceptable state behavior in cyberspace. This provocative and unprecedented attack and subsequent threats only strengthen our resolve to continue to work with partners around the world to strengthen cybersecurity, promote norms of acceptable state behavior, uphold freedom of expression, and ensure that the Internet remains open, interoperable, secure and reliable. We encourage our allies and partners to stand with us as we defend the values of all of our people in the face of state-sponsored intimidation.

12/18/14: WHITE HOUSE PRESS BRIEFING

U.S. CONGRATULATES PEOPLE OF MAURITIUS ON ELECTIONS

FROM:  U.S. STATE DEPARTMENT 
United States Congratulates Mauritius on Successful Elections
Press Statement
John Kerry
Secretary of State
Washington, DC
December 18, 2014

On behalf of the American people, I congratulate the people of Mauritius on the peaceful transition of power that resulted from the successful elections held on December 10. Mauritius’ series of free, fair, democratic, and peaceful elections stand as a model for the rest of the world. Prime Minister Jugnauth returns to lead Mauritius with a wealth of experience, and the U.S. government looks forward to working with him and his cabinet of ministers and continuing our valued partnership with Mauritius.

NASA AMES RESEARCH CENTER CELEBRATES 75TH ANNIVERSARY

FROM:  NASA 

December 20, 2014 marks NASA Ames Research Center's 75th Anniversary. The center was established in 1939 as the second laboratory of the National Advisory Committee for Aeronautics, and was named for the chair of the NACA, Joseph S. Ames. It was located at Moffett Field in Sunnyvale, California, now at the heart of Silicon Valley. The Laboratory was renamed the NASA Ames Research Center with the formation of NASA in 1958.  This June 2, 1943 photograph shows the construction of the Ames full-scale 40- by 80-foot wind tunnel, with a side view of the entrance cone and a blimp in the background.  Image Credit: NASA.

U.S. CONTRACTOR'S FORMER EMPLOYEE INDICTED FOR BRIBERY

FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, December 16, 2014

Former Employee of U.S. Contractor in Afghanistan Indicted for Bribery
A former employee of a U.S. contractor was indicted today in the Eastern District of Texas for allegedly soliciting and accepting bribes in exchange for his influence in awarding U.S. government-funded contracts in Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John Malcolm Bales of the Eastern District of Texas.

George E. Green, 57, of Carrollton, Texas, was charged with conspiracy to structure financial transactions to avoid currency transaction reporting requirements, wire fraud and receipt of bribes in connection with a program receiving federal funds.

According to the indictment, Green was the former director of contracts, procurement and grants for International Relief and Development Inc. (IRD), and was part of a cooperative agreement between IRD and the U.S. Agency for International Development (USAID) that sought to promote long-term agricultural development in specific areas in Afghanistan.

The indictment alleges that while working for IRD in Afghanistan, Green solicited and received bribes totaling $66,000 from a representative of an Afghan firm that contracted with IRD.  Some of those bribe payments were allegedly wired directly to an Italian automobile dealer for Green’s benefit.  After returning to Texas, Green allegedly attempted to conceal the bribe proceeds by engaging in a conspiracy to structure cash deposits into his bank and credit card accounts to avoid mandatory cash reporting requirements.  Additionally, even after leaving IRD, Green allegedly continued to solicit bribes from the Afghan firm by falsely claiming that he still had the ability to influence the contracting process.

The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the Office of Special Inspector General for Afghanistan Reconstruction (SIGAR), FBI and USAID Office of Inspector General.  The case is being prosecuted by Trial Attorney Mark H. Dubester on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas.

FTC ANNOUNCES SETTLEMENT WITH PHONE CRAMMING DEFENDANT

FROM:  U.S. FEDERAL TRADE COMMISSION 

One of the defendants behind a massive landline cramming operation that placed more than $70 million in unauthorized charges on consumers’ phone bills has agreed to settle Federal Trade Commission charges against him.

Nathan M. Sann, one of the defendants in the American eVoice, Ltd. case has agreed to settle the FTC’s charges related to his alleged participation in the scheme. In its complaint, the FTC alleged that the operation placed charges ranging from $9.95 to $24.95 per month on consumers’ landline phone bills for voicemail services they never signed up for and never even knew they had.  The case against the other entities and individuals involved in the scheme is on-going.

Under the terms of his settlement with the FTC, Sann will be banned from placing charges of any kind on consumers’ phone bills. In addition, he will be prohibited from billing consumers for any good or service without their authorization. Sann will also be required to destroy all personal information that he collected from consumers in connection with the cramming operation within 30 days.

The settlement contains a monetary judgment of more than $21 million, which represents the amount of consumer injury attributable to Sann during his involvement with the scam.  The judgment will be suspended due to Sann’s inability to pay upon his surrender of certain personal assets.  Under the terms of the settlement, if Sann has misrepresented his financial condition, the full judgment would become due.

The Commission vote approving the proposed stipulated order was 5-0. The FTC filed the proposed stipulated order in the U.S. District Court for the District of Montana, Missoula Division. It was entered by the court on Nov. 25, 2014.

NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.

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

EPA TAKES ACTION PROTECTING PUBLIC FROM CERTAIN CHEMICALS

FROM:  U.S. ENVIRONMENTAL PROTECTION AGENCY 
FOR IMMEDIATE RELEASE
December 17, 2014

WASHINGTON – The U.S. Environmental Protection Agency (EPA) is taking action to protect the public from certain chemicals that have the potential to cause a range of health effects from cancer to reproductive and developmental harm to people and aquatic organisms.

“We are committed to protecting all Americans from exposure to harmful chemicals used in domestic and imported products,” said Jim Jones, assistant administrator for chemical safety and pollution prevention. “There must be a level playing field for U.S. businesses – which is why we’re targeting harmful chemicals no longer used in the U.S. that find their way into commerce, sometimes through imported products. This final action will give EPA the opportunity to restrict or limit any new uses of these chemicals, including imported goods with these chemicals.”
Today’s action addresses the following chemicals:

Most uses of certain benzidine-based dyes which can be used in textiles, paints and inks and can be converted in the body into a chemical that is known to cause cancer;

Most uses of DnPP, a phthalate, which can be used in PVC plastics and has been shown to cause developmental and/or reproductive effects in laboratory animals; and

Alkanes C 12-13, chloro, a short-chain chlorinated paraffin (SCCP), which can be used as industrial lubricants and are persistent, bioaccumulative and toxic to aquatic organisms at low concentrations and can be transported globally in the environment.

Some of the chemicals in today’s rule have previously been used in consumer products but are not used in the market today. Today’s Significant New Use Rules (SNURs) issued under the Toxic Substances Control Act allow EPA to review any efforts by manufacturers, including importers, to introduce these chemicals into the market and take appropriate action to ensure that human health and the environment are protected. EPA believes that new uses of these chemicals should not be allowed without an opportunity for review and, if necessary, to place restrictions on these chemicals, as warranted.
The action adds nine benzidine-based dyes to an existing SNUR. It closes a loophole to ensure that these chemicals and products containing them, such as clothing, cannot be imported without EPA review and possible restriction. EPA has investigated safer dyes and colorants as alternatives to benzidine as part of its Safer Chemical Ingredients List and Design for the Environment program.

In 2012, EPA required companies to stop manufacturing and importing SCCPs and to pay fines as a result of an enforcement action.

EPA is further evaluating related medium-chain (MCCPs) and long-chain chlorinated paraffins (LCCPs) as part of the TSCA Work Plan for Chemical Assessments.

EPA has added several phthalates to the TSCA Work Plan for Chemical Assessments. If a TSCA Work Plan assessment indicates a potential risk, the agency would determine if risk reduction actions, as appropriate, should be taken.

These final SNURs will require anyone who wishes to manufacture (including import) or process these chemical substances for a significant new use to notify EPA 90 days before starting or resuming new uses of these chemicals. This notice will provide EPA with the opportunity to evaluate the intended use of the chemicals and, if necessary, take action to prohibit or limit the activity.

SEC ALLEGES INVESTMENT FRAUD IN "QUICK-TO-PRODUCTION" GOLD MINE OPERATIONS IN BRAZIL AND PERU

FROM:  U.S. SECURITIES AND EXCHANGE 

The Securities and Exchange Commission announced charges against two individuals and their companies behind an alleged gold mining investment scheme based in Miami.



The SEC Enforcement Division alleges that Michael Crow and Alexandre Clug promised investors a stake in so-called “quick-to-production” gold mines that their company Aurum Mining LLC purported to own and operate in Brazil and Peru.  Crow, who had filed for personal bankruptcy, teamed up with Clug to raise approximately $3.9 million from seniors and other investors in Florida.  Despite highly optimistic statements that the gold mines would yield millions of dollars, the investors never received any money back from their investments.



According to an order instituting an administrative proceeding, Crow and Clug allegedly used a substantial amount of investor funds to cover their monthly salaries, rental of upscale apartments in Lima, and other living or travel expenses.



In a separate order, certified public accountant Angel E. Lana agreed to settle findings that he was involved in the scheme as the CFO of Aurum Mining.



“Investors are entitled to know the whole truth about their investments and those controlling their investments,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “Our case alleges that Crow and Clug used investor money to pay themselves while concealing Crow’s background and Aurum’s failures in Brazil and Peru from investors, including seniors.”



The SEC Enforcement Division alleges that Crow and Clug knew their prospective statements to investors about the gold mining ventures were false and misleading because they were not supported by the conclusions or opinions of Brazilian-based counsel, independent geological experts, or mining analysts.  Among the false representations by Crow and Clug was that Aurum Mining had acquired a 50-percent interest in a Brazilian gold mine with reserves of approximately $400 million worth of gold.



According to the SEC’s order, Crow has twice before been the subject of SEC enforcement actions and has been barred from working in the securities industry or acting as an officer or director of a public company.  The SEC Enforcement Division alleges that Crow and Clug established PanAm Terra Inc. as a public company and raised $400,000 from investors in Florida for purported farmland investment opportunities in South America.  PanAm Terra failed to disclose to investors in its periodic SEC filings that Crow acted as a de facto officer despite being barred from doing so.  The filings also failed to disclose Crow’s bankruptcy.  The SEC Enforcement Division alleges that no farmland was actually purchased and a substantial amount of the money raised was paid to Crow, Clug, and their business associates.



The SEC Enforcement Division further alleges that Crow and Clug operated another company called The Corsair Group through which they brokered the sale of bonds to investors and received more than $10,000 in transaction-based compensation.  The Corsair Group was not registered as a broker-dealer and Crow and Clug were not associated with any registered broker-dealer, and in fact Crow had been barred from associating with any broker-dealer.



The SEC Enforcement Division alleges that Crow, Clug, Aurum Mining, and PanAm Terra violated Section 17(a) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 under the Securities Exchange Act of 1934.  Crow and Clug allegedly aided and abetted and caused the violations by Aurum Mining and PanAm Terra.  In the order, the Enforcement Division alleges additional violations of other provisions of the federal securities laws.  The matter will be scheduled for a public hearing before an administrative law judge for proceedings to adjudicate the Enforcement Division’s allegations and determine what, if any, remedial actions are appropriate.



The SEC’s separate order against Lana found that he solicited his own accounting clients and others to invest in Aurum Mining without regard to the false or misleading representations being made to investors.  Without admitting or denying the findings, Lana agreed to pay a $50,000 penalty and be barred from practicing as an accountant on behalf of any SEC-regulated entity for five years.  He is ordered to cease-and-desist from further violations of Section 17(a) of the Securities Act.



The SEC Enforcement Division’s investigation was conducted by Ibrahim Bah, Nandy Celamy, Sandra Yanez, David Stoelting, and Valerie A. Szczepanik in the New York Regional Office.  The case was supervised by Amelia A. Cottrell, and the Enforcement Division’s litigation will be led by Mr. Stoelting and Mr. Bah.

USDA VIDEO: USDA WEEK IN REVIEW DECEMBER 12

PRESIDENT OBAMA MAKES STATEMENT ON UKRAINE FREEDOM SUPPORT ACT

FROM:  THE WHITE HOUSE PRESIDENT 
December 18, 2014
Statement by the President on the Ukraine Freedom Support Act

Today, I have signed H.R. 5859, the Ukraine Freedom Support Act of 2014, into law. Signing this legislation does not signal a change in the Administration’s sanctions policy, which we have carefully calibrated in accordance with developments on the ground and coordinated with our allies and partners.  At this time, the Administration does not intend to impose sanctions under this law, but the Act gives the Administration additional authorities that could be utilized, if circumstances warranted.

My Administration will continue to work closely with allies and partners in Europe and internationally to respond to developments in Ukraine and will continue to review and calibrate our sanctions to respond to Russia's actions. We again call on Russia to end its occupation and attempted annexation of Crimea, cease support to separatists in eastern Ukraine, and implement the obligations it signed up to under the Minsk agreements.

As I have said many times, our goal is to promote a diplomatic solution that provides a lasting resolution to the conflict and helps to promote growth and stability in Ukraine and regionally, including in Russia.  In this context, we continue to call on Russia's leadership to implement the Minsk agreements and to reach a lasting and comprehensive resolution to the conflict which respects Ukraine’s sovereignty and territorial integrity.  We remain prepared to roll back sanctions should Russia take the necessary steps.

DOJ TAKES ATION TO ADDRESS PATTERN OF EXCESSIVE FORCE AND VIOLENCE AT NYC JAILS ON RIKERS ISLAND

FROM:  U.S JUSTICE DEPARTMENT 
Thursday, December 18, 2014
Department of Justice Takes Legal Action to Address Pattern and Practice of Excessive Force and Violence at NYC Jails on Rikers Island that Violates the Constitutional Rights of Young Male Inmates

Attorney General Eric Holder, Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division and U.S. Attorney Preet Bharara for the Southern District of New York announced today that the United States has taken legal action to ensure that critically important reforms are put in place to address conduct at Rikers Island that has violated the constitutional rights of New York City’s youngest inmates, who are between the ages of 16 and 18 (“young inmates”).  Specifically, the Department of Justice has filed a motion seeking the court’s permission to join and become a plaintiff in a pending class action lawsuit against New York City, Nunez v. City of New York (the “Nunez Action”), which alleges that the Department of Correction (“DOC”) has engaged in a pattern and practice of using unnecessary and excessive force against inmates.  The department has taken this legal step as part of its ongoing effort to ensure that DOC implements all needed institutional reforms promptly, and that these reforms are lasting, verifiable and enforceable through the judicial process.

"With this filing, the Department of Justice is taking an important step to ensure the safety and constitutional rights of young people incarcerated at Rikers Island," said Attorney General Holder.  "We've seen alarming evidence of unnecessary and excessive use of force against juveniles, as well as a systemic failure to protect them from violence and deeply troubling -- and potentially scarring -- use of solitary confinement.  This action allows the Justice Department to seek necessary reforms to remedy these unlawful conditions, to ensure fair treatment, and to provide all incarcerated young people with the protections, and opportunities to build better futures, that they deserve."

“Today we are taking legal action to ensure that critically important reforms are put in place to address the culture of violence and overuse of punitive segregation at Rikers Island that has violated the constitutional rights of New York City’s youngest inmates,” said Acting Assistant Attorney General Gupta.  “We stand ready to work with the city to remedy these deeply disturbing conditions for the safety of confined youth, remedies that will ultimately also promote public safety and the safety of correctional officers.”

“Sometimes it’s the case that bureaucracy can get in the way of reform-minded thinking and comprehensive cultural change,” said U.S. Attorney Bharara.  “We hope that won’t be the case here.  We welcome the aspirations articulated by Commissioner Ponte but we hope those aspirations will find concrete expression in the form of permanent, enforceable, and verifiable terms in a court-approved settlement agreement.  The devil, as they say, is in the details and we have come to the conclusion that joining the pending case as a formal party is the best and most efficient way to get those details done.  That is why we are now taking the steps necessary to carry out our responsibility under the law.  Given the longstanding sad state of affairs at Rikers Island, our impatience is more than understandable.  As I’ve said before, one way or another, we will get enduring and enforceable reform at Rikers Island.”

On August 4, 2014, the department issued a report that concluded that “a deep-seated culture of violence is pervasive throughout the adolescent facilities at Rikers, and DOC staff routinely use force not as a last resort, but instead as a means to control the adolescent population and punish disorderly or disrespectful behavior.”  The report urged the city to adopt and implement over 70 specific remedial measures.  Although DOC’s new leadership has taken some positive steps in response to the report with respect to the 16 and 17-year old population, including reducing the inmate-to-staff ratio, developing new programming, and moving towards eliminating the use of punitive segregation, much more needs to be done.

The department’s proposed 36-page complaint-in-intervention (“complaint”), filed today along with a motion to intervene in the Nunez action, alleges that the city has engaged in a pattern and practice of violating the constitutional rights of young inmates, and that the city’s deliberate indifference to these constitutional rights has caused these inmates serious physical, psychological, and emotional harm.  Like the August 4, 2014, report, the complaint focuses on use of force by staff, inmate-on-inmate violence, and the use of punitive segregation.

Specifically, the complaint alleges:

Staff use force against young inmates with alarming frequency.In Fiscal Year 2014, there were 553 reported staff use of force incidents involving young inmates at the Robert D.Davoren Center (“RNDC”) and the Eric M.Taylor Center (“EMTC”), the two facilities that housed most young inmates.These incidents resulted in 1,088 injuries.

Inmate-on-inmate fights and assaults are pervasive in large part because inmates are inadequately supervised by inexperienced and poorly trained officers.In Fiscal Year 2014, there were 657 reported inmate-on-inmate fights involving young inmates at RNDC and EMTC.

Staff use of force and inmate-on-inmate fights and assaults have resulted in an alarming number of serious injuries to young inmates, including broken jaws, broken orbital bones, broken noses, long bone fractures, and lacerations requiring stitches.

Staff frequently punch, strike, or kick young inmates in the head or facial area.

Force is used as a means to punish young inmates, and staff unnecessarily continue to use force against inmates who already have been restrained.

Force is used in response to inmate verbal taunts and insults.

Specialized response teams, including probe and cell extraction teams, use excessive force.

Staff regularly tell inmates to “stop resisting,” even though the inmate has been completely subdued, to justify the use of force.

Use of excessive force is common in areas outside video surveillance coverage.DOC recently transferred many 18-year old inmates to housing units that have no video surveillance at all.

The complaint further alleges that, notwithstanding a long and troubled history of pervasive use of force against inmates at Rikers, the city has for years failed to address systemic deficiencies, including:

Failure to ensure that use of force is accurately reported, and allowing a powerful code of silence to persist.

Failure to conduct thorough and comprehensive investigations into use of force incidents.

Failure to appropriately discipline staff for using excessive and unnecessary force.

Failure to ensure that inmates are adequately supervised.

Failure to implement an adequate age-appropriate classification system.

Failure to provide staff with effective training on the proper use of force and how to appropriately manage youth.

In addition, the complaint asserts that the city has engaged in a pattern and practice of placing young inmates in punitive segregation at an alarming rate and for excessive periods of time.

Since issuing its report in August, the U.S. Attorney’s Office has had several meetings with the city’s Law Department regarding the U.S. Attorney’s Office proposed remedial measures.  Some of these discussions have included attorneys representing the Nunez plaintiffs, who have been engaging in settlement discussions with the city for several months.  However, thus far, although there has been some constructive dialogue, the city has been unwilling to commit to an enforceable agreement including the type of reforms and oversight that are necessary to fully address the long-standing problems at Rikers and safeguard the constitutional rights of inmates.

U.S.  Attorney Bharara thanked the Board of Correction for its continuing assistance in connection with this matter.

This case is being handled by the Office’s Civil Rights Unit.  Assistant U.S. Attorneys Jeffrey K. Powell and Emily E. Daughtry are in charge of the case.