FROM: U.S. JUSTICE DEPARTMENT
Monday, January 26, 2015
Attorney General Holder Announces Charges Against Russian Spy Ring in New York City
Spy Ring Attempted to Collect Economic Intelligence and Recruit New York City Residents as Intelligence Sources
Evgeny Buryakov, aka “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Attorney General Eric Holder, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division announced charges today against Evgeny Buryakov, aka “Zhenya,” Igor Sporyshev and Victor Podobnyy in connection with Buryakov’s service as a covert intelligence agent on behalf of the Russian Federation (Russia) in New York City, without notifying the U.S. Attorney General of Buryakov’s status as an agent of Russia, as required by federal law. Buryakov was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in federal court in Manhattan later today. Sporyshev and Podobnyy no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
“These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States,” said Attorney General Holder. “We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
“The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division,” said Assistant Attorney General Carlin. “I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
“Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy,” said U.S. Attorney Bharara. “Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
“This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets,” Assistant Director Coleman. “This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasive today as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the complaint unsealed in Manhattan federal court today:
Buryakov worked in the United States as an agent of Russia’s foreign intelligence agency, known as the SVR. Buryakov operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as NOCs – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Department of Justice records indicate that Buryakov has never notified the U.S. Attorney General that he is, in fact, an agent of Russia.
Sporyshev and Podobnyy are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From Nov. 22, 2010, to Nov. 21, 2014, Sporyshev served as a trade representative of the Russian Federation in New York. From Dec. 13, 2012, to Sept. 12, 2013, Podobnyy served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, Sporyshev and Podobnyy are exempt from notifying the U.S. Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, Buryakov in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of Sporyshev and Podobnyy included, among other things, attempting to recruit New York City residents as intelligence sources for Russia; tasking Buryakov to gather intelligence; and transmitting intelligence reports prepared by Buryakov back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, Sporyshev was responsible for relaying assignments from the SVR to Buryakov, and Sporyshev and Podobnyy were responsible for analyzing and reporting back to the SVR about the fruits of Buryakov’s intelligence-gathering efforts.
The directives from the SVR to Buryakov, Sporyshev and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential U.S. sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, Buryakov, Sporyshev and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (Buryakov), a trade representative of the Russian Federation in New York (Sporyshev) and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy). In particular, the defendants worked to safeguard Buryakov’s work as a NOC.
Sporyshev and Podobnyy acted as covert intermediaries for Buryakov to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, Buryakov was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York City – without potentially alerting others to his association with the SVR. As such, Buryakov required the assistance of other SVR agents, like Sporyshev and Podobnyy, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of Buryakov and Sporyshev engaging in over 48 brief meetings, several of which involved Buryakov passing a bag, magazine or slip of paper to Sporyshev. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between Buryakov and Sporyshev, during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific ticket, book, list or other ordinary item (e.g., umbrella or hat).
Subsequently, at each meeting surveilled by the FBI, Buryakov and Sporyshev met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately 12 occasions the need to meet to transfer “tickets,” Buryakov and Sporyshev, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, Buryakov and Sporyshev used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, Sporyshev and Podobnyy discussed their attempts to recruit U.S. residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York City (University-1), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, Sporyshev and Podobnyy discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, Sporyshev and Podobnyy discussed Podobnyy’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, Podobnyy explained his source recruitment method, which included cheating, promising favors and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, Sporyshev and Podobnyy made clear that they worked for the SVR. For example, on Jan. 31, 2013, Sporyshev and another SVR agent not charged in the complaint (CC-1) had a discussion inside the SVR New York Office about their contracts with the SVR. Sporyshev stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, Sporyshev and Podobnyy discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to Buryakov. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by Buryakov in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, Sporyshev called Buryakov to ask for Buryakov’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the News Organization). Buryakov responded by supplying Sporyshev with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official U.S. Government Documents
In the summer of 2014, Buryakov met numerous times with a confidential source working for the FBI (CS-1). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, Buryakov demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, Buryakov also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about U.S. sanctions against Russia.
* * *
Buryakov, 39, Sporyshev, 40, and Podobnyy, 27, are charged on two counts. The first count charges the defendants with participating in a conspiracy for Buryakov to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a statutory maximum penalty of five years in prison. The second count charges Buryakov with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges Sporyshev and Podobnyy with aiding and abetting that offense. The second count carries a statutory maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The Attorney General is grateful for the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterespionage Section and Assistant U.S. Attorneys Adam Fee, Ian McGinley and Anna M. Skotko for the Southern District of New York’s Terrorism and International Narcotics Unit.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tuesday, January 27, 2015
SECRETARY HAGEL APPLAUDS DEFENSE AGREEMENTS BETWEEN U.S. AND INDIA
FROM: U.S. STATE DEPARTMENT
Hagel Praises New Defense Cooperation Agreements With India
DoD News, Defense Media Activity
WASHINGTON, Jan. 25, 2015 –
Defense Secretary Chuck Hagel issued a statement today applauding agreements on defense cooperation between the United States and India, announced by President Barack Obama and Indian Prime Minister Narendra Modi.
Hagel's statement reads as follows:
"Today, on his historic visit to India, President Obama and Prime Minister Modi announced new, ground-breaking agreements on defense cooperation between India and the United States that promise to open a new chapter in our defense relationship and mark an important milestone in the U.S.-India strategic partnership.
"By finalizing the renewal of our 10-year framework for the U.S.-India Defense Relationship, we will continue to build on the growing momentum in our defense cooperation over the last decade. This renewed framework will support stronger military-to-military engagement, including deeper maritime cooperation and increased opportunities in technology and trade.
"By establishing a new military education partnership, we will help shape the next generation of military leaders in both our nations, fostering relationships that will draw our defense establishments closer together for years to come.
"And by agreeing under the Defense Technology and Trade Initiative (DTTI) to focus on four 'pathfinder' projects; form a working group to explore aircraft carrier technology sharing and design; and explore possible cooperation on development of jet engine technology, we will begin to realize the enormous potential of the U.S.-India defense industrial partnership. We have further strengthened this partnership with an agreement that will allow us to continue science and technology collaboration for the next 15 years.
"Taken together, the president's announcements signal a new depth and sophistication in our defense and security cooperation, ensuring that it continues to be one of the strongest pillars of our nations' broad strategic partnership - a partnership that will help forge security and stability in Asia and across the globe."
Hagel Praises New Defense Cooperation Agreements With India
DoD News, Defense Media Activity
WASHINGTON, Jan. 25, 2015 –
Defense Secretary Chuck Hagel issued a statement today applauding agreements on defense cooperation between the United States and India, announced by President Barack Obama and Indian Prime Minister Narendra Modi.
Hagel's statement reads as follows:
"Today, on his historic visit to India, President Obama and Prime Minister Modi announced new, ground-breaking agreements on defense cooperation between India and the United States that promise to open a new chapter in our defense relationship and mark an important milestone in the U.S.-India strategic partnership.
"By finalizing the renewal of our 10-year framework for the U.S.-India Defense Relationship, we will continue to build on the growing momentum in our defense cooperation over the last decade. This renewed framework will support stronger military-to-military engagement, including deeper maritime cooperation and increased opportunities in technology and trade.
"By establishing a new military education partnership, we will help shape the next generation of military leaders in both our nations, fostering relationships that will draw our defense establishments closer together for years to come.
"And by agreeing under the Defense Technology and Trade Initiative (DTTI) to focus on four 'pathfinder' projects; form a working group to explore aircraft carrier technology sharing and design; and explore possible cooperation on development of jet engine technology, we will begin to realize the enormous potential of the U.S.-India defense industrial partnership. We have further strengthened this partnership with an agreement that will allow us to continue science and technology collaboration for the next 15 years.
"Taken together, the president's announcements signal a new depth and sophistication in our defense and security cooperation, ensuring that it continues to be one of the strongest pillars of our nations' broad strategic partnership - a partnership that will help forge security and stability in Asia and across the globe."
ALLEGED TERRORIST AND MURDERER OF FIVE SOLDIERS, EXTRADITED TO U.S.
FROM: U.S. JUSTICE DEPARTMENT
Friday, January 23, 2015
Alleged Terrorist, Charged with Murder of Five American Soldiers, Extradited to United States
Defendant Allegedly Aided Suicide Bomb Attack on U.S. Base in Iraq
U.S. Attorney Loretta E. Lynch for the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department announced that tomorrow, Jan. 24, 2015, Faruq Khalil Muhammed ‘Isa, aka “Faruq Khalil Muhammad ‘Isa,” “Sayfildin Tahir Sharif,” and “Tahir Sharif Sayfildin,” will have his initial appearance at the federal courthouse in Brooklyn, New York, on charges of conspiring to kill Americans abroad; and providing material support to a terrorist conspiracy to kill Americans abroad. ‘Isa was extradited to the United States from Canada.
According to court documents, the defendant is charged in connection with his support for a multinational terrorist network that conducted multiple suicide bombings in Iraq. According to the complaint, filed on Jan. 14, 2011, in the Eastern District of New York, the defendant assisted in orchestrating an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.
“Today’s extradition demonstrates to those who orchestrate violence against our citizens and our soldiers that there is no corner of the globe from which they can hide from the long reach of the law,” said U.S. Attorney Lynch. “We will continue to use every available means to bring to justice those who are responsible for the deaths of American servicemen and women who paid the ultimate price in their defense of this nation.”
“Faruq Khalil Muhammed ‘Isa is alleged to have helped orchestrate an attack that killed five U.S. soldiers at the Forward Operating Base Marez in Mosul, Iraq, in 2009,” said Assistant Attorney General Carlin. “The families of these five Americans and all who have lost loved-ones to acts of terrorism should know that we will never cease seeking to hold terrorists accountable for their acts. I want to thank the many agents, analysts and prosecutors who are responsible for this matter.”
“As alleged, Faruq Khalil Muhammad ‘Isa was involved in the most callous act: a suicide bombing murdering U.S. soldiers in Iraq,” said Assistant Director in Charge Venizelos. “Our memory is long, and our reach is longer. Today we hope to bring some measure of justice to the families of those five servicemen who sacrificed their lives in defense of this nation.”
“I want to commend the United States Attorney Loretta Lynch and her team for working closely with the NYPD and the FBI to extradite this individual who is allegedly responsible for the death of soldiers sworn to protect and serve,” said Commissioner Bratton. “We hope today’s extradition will bring some closure to the families.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Alexander Solomon and Peter Baldwin, with assistance provided by the Justice Department’s Counterterrorism Section and Office of International Affairs. The department extends its grateful appreciation to the Canadian government for its assistance and cooperation in the extradition.
Friday, January 23, 2015
Alleged Terrorist, Charged with Murder of Five American Soldiers, Extradited to United States
Defendant Allegedly Aided Suicide Bomb Attack on U.S. Base in Iraq
U.S. Attorney Loretta E. Lynch for the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department announced that tomorrow, Jan. 24, 2015, Faruq Khalil Muhammed ‘Isa, aka “Faruq Khalil Muhammad ‘Isa,” “Sayfildin Tahir Sharif,” and “Tahir Sharif Sayfildin,” will have his initial appearance at the federal courthouse in Brooklyn, New York, on charges of conspiring to kill Americans abroad; and providing material support to a terrorist conspiracy to kill Americans abroad. ‘Isa was extradited to the United States from Canada.
According to court documents, the defendant is charged in connection with his support for a multinational terrorist network that conducted multiple suicide bombings in Iraq. According to the complaint, filed on Jan. 14, 2011, in the Eastern District of New York, the defendant assisted in orchestrating an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.
“Today’s extradition demonstrates to those who orchestrate violence against our citizens and our soldiers that there is no corner of the globe from which they can hide from the long reach of the law,” said U.S. Attorney Lynch. “We will continue to use every available means to bring to justice those who are responsible for the deaths of American servicemen and women who paid the ultimate price in their defense of this nation.”
“Faruq Khalil Muhammed ‘Isa is alleged to have helped orchestrate an attack that killed five U.S. soldiers at the Forward Operating Base Marez in Mosul, Iraq, in 2009,” said Assistant Attorney General Carlin. “The families of these five Americans and all who have lost loved-ones to acts of terrorism should know that we will never cease seeking to hold terrorists accountable for their acts. I want to thank the many agents, analysts and prosecutors who are responsible for this matter.”
“As alleged, Faruq Khalil Muhammad ‘Isa was involved in the most callous act: a suicide bombing murdering U.S. soldiers in Iraq,” said Assistant Director in Charge Venizelos. “Our memory is long, and our reach is longer. Today we hope to bring some measure of justice to the families of those five servicemen who sacrificed their lives in defense of this nation.”
“I want to commend the United States Attorney Loretta Lynch and her team for working closely with the NYPD and the FBI to extradite this individual who is allegedly responsible for the death of soldiers sworn to protect and serve,” said Commissioner Bratton. “We hope today’s extradition will bring some closure to the families.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Alexander Solomon and Peter Baldwin, with assistance provided by the Justice Department’s Counterterrorism Section and Office of International Affairs. The department extends its grateful appreciation to the Canadian government for its assistance and cooperation in the extradition.
13 FISHERMEN CHARGED WITH THE ILLEGAL HARVEST AND SALE OF ATLANTIC STRIPED BASS
FROM: U.S. JUSTICE DEPARTMENT
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Thirteen Commercial Fishermen Charged in North Carolina with Illegally Harvesting and Selling Atlantic Striped Bass
Thirteen commercial fishermen in North Carolina and Georgia have been charged in federal court in Raleigh, North Carolina, for their role in the illegal harvest and sale and false reporting of approximately 90,000 pounds of Atlantic striped bass from federal waters off the coast of North Carolina during 2009 and 2010, the Justice Department announced today. The average retail value of the illegally harvested striped bass is approximately $1.1 million.
This investigation began as a result of the U.S. Coast Guard boarding of the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally. The individuals have been charged with violating the Lacey Act, which is a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally. Additionally, 11 of these fishermen also have been charged with filing false reports in connection with the illegally harvested fish. One of the fishermen is also charged with obstruction of a proceeding before a federal agency. Specifically, the indictments allege that the commercial fishermen transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina. In an effort to hide their illegal fishing activities, these fishermen falsely reported harvesting these fish from state waters, where it would have been legal.
“The illegal poaching of striped bass by commercial fishermen can have a huge collective impact on the fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The vast majority of fishermen do respect the law and carefully monitor their harvest to ensure they stay within the well-researched limits. Those who deliberately break the law will be prosecuted.”
“The Atlantic Striped Bass fishery is extremely important to the economy of the State of North Carolina as well as our sister States along the Atlantic seaboard, and it represents a success in species recovery thanks to conservation, management, and law-abiding fishermen,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. “Illegal harvesting of this protected species and submitting false reports to federal agencies undermine those efforts and adversely impact our entire coastal communities.”
All of the defendants are licensed by the state of North Carolina and the National Oceanic and Atmospheric Administration (NOAA) to fish in state waters only for striped bass.
In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters. This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s. North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip. Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS). NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
The North Carolina Division of Marine Fisheries, along with other states, has reduced, twenty-five percent, the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
A criminal indictment is not a finding of guilt. An individual charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.
The charges are a result of the investigation by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. These cases are being prosecuted primarily by Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and U.S. Attorney Banumathi Rangarajan.
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Thirteen Commercial Fishermen Charged in North Carolina with Illegally Harvesting and Selling Atlantic Striped Bass
Thirteen commercial fishermen in North Carolina and Georgia have been charged in federal court in Raleigh, North Carolina, for their role in the illegal harvest and sale and false reporting of approximately 90,000 pounds of Atlantic striped bass from federal waters off the coast of North Carolina during 2009 and 2010, the Justice Department announced today. The average retail value of the illegally harvested striped bass is approximately $1.1 million.
This investigation began as a result of the U.S. Coast Guard boarding of the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally. The individuals have been charged with violating the Lacey Act, which is a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally. Additionally, 11 of these fishermen also have been charged with filing false reports in connection with the illegally harvested fish. One of the fishermen is also charged with obstruction of a proceeding before a federal agency. Specifically, the indictments allege that the commercial fishermen transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina. In an effort to hide their illegal fishing activities, these fishermen falsely reported harvesting these fish from state waters, where it would have been legal.
“The illegal poaching of striped bass by commercial fishermen can have a huge collective impact on the fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The vast majority of fishermen do respect the law and carefully monitor their harvest to ensure they stay within the well-researched limits. Those who deliberately break the law will be prosecuted.”
“The Atlantic Striped Bass fishery is extremely important to the economy of the State of North Carolina as well as our sister States along the Atlantic seaboard, and it represents a success in species recovery thanks to conservation, management, and law-abiding fishermen,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. “Illegal harvesting of this protected species and submitting false reports to federal agencies undermine those efforts and adversely impact our entire coastal communities.”
All of the defendants are licensed by the state of North Carolina and the National Oceanic and Atmospheric Administration (NOAA) to fish in state waters only for striped bass.
In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters. This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s. North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip. Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS). NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
The North Carolina Division of Marine Fisheries, along with other states, has reduced, twenty-five percent, the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
A criminal indictment is not a finding of guilt. An individual charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.
The charges are a result of the investigation by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. These cases are being prosecuted primarily by Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and U.S. Attorney Banumathi Rangarajan.
AMBASSADOR SAMANTHA POWER'S REMARKS IN PORT-AU-PRINCE, HATI
FROM: U.S. STATE DEPARTMENT
Remarks at a Press Conference at the End of the Visit of the Security Council to Haiti
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 25, 2015
My name is Samantha Power and I am the American Ambassador to the United Nations and co-lead, with my colleague Cristian from Chile, of this trip. We, the very diverse members of the Security Council, had a very informative and productive visit to Haiti. We will have time in a minute for questions, but I will just share with you a few of the key messages that we heard from the wide array of actors with whom we met.
We are here as a Council, as Cristian has said, to support the Haitian people, not to pick sides, but to come away with a better understanding of how the international community can help Haiti.
We saw, on the one hand, great signs of progress, whether with regard to health or education or the removal of rubble or the resettlement of individuals displaced in the earthquake. But the vast majority of the individuals with whom we met also stressed, alongside this progress, the delicacy and fragility of an election year.
We heard from a large number of actors about the importance of strong checks and balances on governmental power, wherever it is exercised. And the Council stressed in all of our meetings, both with the President and his ministers, and with Senators and opposition parties, our strong support for the strengthening of checks and balances at a time when the Parliament is not performing its traditional role.
It is clear that leadership will have to be exercised in Haiti in a very inclusive and consultative manner in order to maintain the legitimacy of the state.
We heard a great deal about the importance of democratic expression by the people, but also we underscored how important it is that that democratic expression be done in a non-violent manner.
We came away even more convinced about the importance of compromise. Not everyone in Haiti will be able to get exactly what he or she wants in the coming days or in the coming years, but it will be critical that all actors put Haiti first, and put the overall welfare of Haiti before one’s own particular interests.
And two more points and then we’ll open it up for questions. We heard over and over again a message that we ourselves delivered, which is how critical it is that elections be held as soon as is feasible in a fair, transparent and inclusive manner.
People who have grievances or who have complaints about the past can invest their energies constructively in the election process. And we urge those who have complaints and concerns about recent events or about how Haiti got to this moment, to channel their energies into ensuring fair, transparent and inclusive elections.
And finally, we heard consistently about the importance of security as a foundation for Haiti’s democratic development. And here we witnessed today some of the work of the Haitian National Police, who have not only increased their numbers in the last several years, but have also deepened the quality of their policing. And the Security Council expressed its intention to stand in full support for the HNP and for the work, of course, that MINUSTAH is doing in support of the HNP, because the Haitian Police are the future of security in Haiti.
And we heard from government, from civil society, and from most of the opposition parties, great support and appreciation for the role that MINUSTAH has played in helping Haiti, and supporting Haiti through thick and thin and through significant ups and downs in recent years. And although we are getting on an airplane to go back to New York here in a few minutes, the Security Council is going to remain extremely vigilant over events in Haiti, and we encourage all parties in Haiti to get an election road map in place as soon as possible and to govern, and to perform the role of citizen, in a manner that respects and advances the rights of the Haitian people. And with that I think we are here to take your questions.
Remarks at a Press Conference at the End of the Visit of the Security Council to Haiti
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 25, 2015
My name is Samantha Power and I am the American Ambassador to the United Nations and co-lead, with my colleague Cristian from Chile, of this trip. We, the very diverse members of the Security Council, had a very informative and productive visit to Haiti. We will have time in a minute for questions, but I will just share with you a few of the key messages that we heard from the wide array of actors with whom we met.
We are here as a Council, as Cristian has said, to support the Haitian people, not to pick sides, but to come away with a better understanding of how the international community can help Haiti.
We saw, on the one hand, great signs of progress, whether with regard to health or education or the removal of rubble or the resettlement of individuals displaced in the earthquake. But the vast majority of the individuals with whom we met also stressed, alongside this progress, the delicacy and fragility of an election year.
We heard from a large number of actors about the importance of strong checks and balances on governmental power, wherever it is exercised. And the Council stressed in all of our meetings, both with the President and his ministers, and with Senators and opposition parties, our strong support for the strengthening of checks and balances at a time when the Parliament is not performing its traditional role.
It is clear that leadership will have to be exercised in Haiti in a very inclusive and consultative manner in order to maintain the legitimacy of the state.
We heard a great deal about the importance of democratic expression by the people, but also we underscored how important it is that that democratic expression be done in a non-violent manner.
We came away even more convinced about the importance of compromise. Not everyone in Haiti will be able to get exactly what he or she wants in the coming days or in the coming years, but it will be critical that all actors put Haiti first, and put the overall welfare of Haiti before one’s own particular interests.
And two more points and then we’ll open it up for questions. We heard over and over again a message that we ourselves delivered, which is how critical it is that elections be held as soon as is feasible in a fair, transparent and inclusive manner.
People who have grievances or who have complaints about the past can invest their energies constructively in the election process. And we urge those who have complaints and concerns about recent events or about how Haiti got to this moment, to channel their energies into ensuring fair, transparent and inclusive elections.
And finally, we heard consistently about the importance of security as a foundation for Haiti’s democratic development. And here we witnessed today some of the work of the Haitian National Police, who have not only increased their numbers in the last several years, but have also deepened the quality of their policing. And the Security Council expressed its intention to stand in full support for the HNP and for the work, of course, that MINUSTAH is doing in support of the HNP, because the Haitian Police are the future of security in Haiti.
And we heard from government, from civil society, and from most of the opposition parties, great support and appreciation for the role that MINUSTAH has played in helping Haiti, and supporting Haiti through thick and thin and through significant ups and downs in recent years. And although we are getting on an airplane to go back to New York here in a few minutes, the Security Council is going to remain extremely vigilant over events in Haiti, and we encourage all parties in Haiti to get an election road map in place as soon as possible and to govern, and to perform the role of citizen, in a manner that respects and advances the rights of the Haitian people. And with that I think we are here to take your questions.
U.S. AMBASSADOR POWER'S REMARKS IN PORT-AU PRINCE, HAITI
FROM: U.S. STATE DEPARTMENT
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 23, 2015
Thank you. I am Samantha Power, the American Ambassador to the United Nations, and co-lead of this trip with my colleague, the Chilean Ambassador, Cristián Barros.
Each of the 15 individuals standing here have the privilege of representing countries on the UN Security Council and the privilege, in that role, of trying to support the Haitian people in their journey toward stability, prosperity and democracy.
The United Nations, as a community of nations and as MINUSTAH, and the 15 counties here each have stood with the Haitian people through good times and bad times.
Haiti has experienced many challenges throughout its long and rich and vibrant history. What always defines the Haitian people’s response is the spirit of resilience and determination.
We have just had a very important meeting with President Martelly and his Prime Minister and his Cabinet. Over the next two days we will meet with civil society, with opposition parties, with senators and with Haitians outside of Port-au-Prince in Cap-Haitien and here as well, in the capital.
In our meeting with President Martelly, we expressed our collective appreciation for his efforts before the Parliament lapsed to try to (inaudible) consensus in order to maintain the functioning of the Parliament and to pass electoral legislation.
This Council also expressed to President Martelly and his ministers the same disappointment that the Haitian people probably feel, that these efforts to seek consensus and to find a path forward did not prevent the Parliament from lapsing and did not produce the necessary compromise.
We support the President in his efforts to find a solution to the political stalemate and his efforts to ensure fair, transparent and inclusive elections in 2015.
Haiti has made tremendous progress in recent years in terms of health and education, and the President described much of that progress and more, in terms of the development of his country.
The democratic contract between the government and the governed is a critical part of Haiti’s development and we, on the UN Security Council, want to offer Haiti all of the support we can to ensure that elections take place, as they need to, in 2015, and to ensure that all Haitians are invested in the democracy and in the economy and in the development of this rich country.
We are very encouraged by the effort at consultation with the opposition, with civil society, that the President has made, and out of this meeting, even more encouraged by his determination to continue those consultations even after the lapsing of the Parliament.
And it is clear that even as this political stalemate frustrates people in this country, it is not getting in the way of the government continuing to focus on health, on the economy and on the other functions that the Haitian people count on the President and his ministers to advance.
And my last point is simply that we are very pleased that the Provisional Election Council[i] has been formed, which is of course a critical and necessary step to the holding of elections and we hope it is just the beginning of the kinds of mechanisms that can evolve here in this untraditional period where the Parliament is not functioning.
(Of mic)
Simply to say that we…were pleased by the creation of the Provisional Election --
(Of mic)
It is an example of the kind of compromise among civil society, the opposition and the government that will create a path forward.
And lastly, you have our full support on behalf, again, of the broader international community. We are privileged to be here to see what more the United Nations and each of our nations can do to help the Haitian people through another difficult chapter, but one we are confident that they will come out stronger for having been through on the other side. Mèrci.
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 23, 2015
Thank you. I am Samantha Power, the American Ambassador to the United Nations, and co-lead of this trip with my colleague, the Chilean Ambassador, Cristián Barros.
Each of the 15 individuals standing here have the privilege of representing countries on the UN Security Council and the privilege, in that role, of trying to support the Haitian people in their journey toward stability, prosperity and democracy.
The United Nations, as a community of nations and as MINUSTAH, and the 15 counties here each have stood with the Haitian people through good times and bad times.
Haiti has experienced many challenges throughout its long and rich and vibrant history. What always defines the Haitian people’s response is the spirit of resilience and determination.
We have just had a very important meeting with President Martelly and his Prime Minister and his Cabinet. Over the next two days we will meet with civil society, with opposition parties, with senators and with Haitians outside of Port-au-Prince in Cap-Haitien and here as well, in the capital.
In our meeting with President Martelly, we expressed our collective appreciation for his efforts before the Parliament lapsed to try to (inaudible) consensus in order to maintain the functioning of the Parliament and to pass electoral legislation.
This Council also expressed to President Martelly and his ministers the same disappointment that the Haitian people probably feel, that these efforts to seek consensus and to find a path forward did not prevent the Parliament from lapsing and did not produce the necessary compromise.
We support the President in his efforts to find a solution to the political stalemate and his efforts to ensure fair, transparent and inclusive elections in 2015.
Haiti has made tremendous progress in recent years in terms of health and education, and the President described much of that progress and more, in terms of the development of his country.
The democratic contract between the government and the governed is a critical part of Haiti’s development and we, on the UN Security Council, want to offer Haiti all of the support we can to ensure that elections take place, as they need to, in 2015, and to ensure that all Haitians are invested in the democracy and in the economy and in the development of this rich country.
We are very encouraged by the effort at consultation with the opposition, with civil society, that the President has made, and out of this meeting, even more encouraged by his determination to continue those consultations even after the lapsing of the Parliament.
And it is clear that even as this political stalemate frustrates people in this country, it is not getting in the way of the government continuing to focus on health, on the economy and on the other functions that the Haitian people count on the President and his ministers to advance.
And my last point is simply that we are very pleased that the Provisional Election Council[i] has been formed, which is of course a critical and necessary step to the holding of elections and we hope it is just the beginning of the kinds of mechanisms that can evolve here in this untraditional period where the Parliament is not functioning.
(Of mic)
Simply to say that we…were pleased by the creation of the Provisional Election --
(Of mic)
It is an example of the kind of compromise among civil society, the opposition and the government that will create a path forward.
And lastly, you have our full support on behalf, again, of the broader international community. We are privileged to be here to see what more the United Nations and each of our nations can do to help the Haitian people through another difficult chapter, but one we are confident that they will come out stronger for having been through on the other side. Mèrci.
Monday, January 26, 2015
CHAIRMAN JOINT CHIEFS SAYS SEQUESTRATION HURTS U.S. ABILITY TO MEET RESPONSIBILITIES
FROM: U.S. DEFENSE DEPARTMENT
Dempsey: Sequestration is 'Absolutely Crazy'
By Lisa Ferdinando
DoD News, Defense Media Activity
WASHINGTON, Jan. 26, 2015 – Sequestration is "absolutely crazy," will hurt national security and make it "impossible" for the United States to meet its global commitments, according to the chairman of the Joint Chiefs of Staff.
The world has changed dramatically since sequestration was passed into law in the Budget Control Act of 2011, Army Gen. Martin E. Dempsey said.
Dempsey spoke Thursday, in an interview aboard his plane as he returned to Washington following a European trip focusing on threats to the continent.
"The combination of the Budget Control Act and the sequestration mechanism will make it impossible for us to meet our global responsibilities," he said.
The sequestration mechanism forces across-the-board government spending cuts, a "mechanical withdrawal" that "doesn't allow you to balance your books," Dempsey said.
"The readiness hole is still the readiness hole. The global security environment is more dangerous and sequestration is still on the books as the law. It's absolutely crazy for this country," the top general said.
A More Dangerous World
The changes in the global environment since 2011 include the emergence of the Islamic State of Iraq and the Levant, Russia's fueling of instability in Ukraine, and a "host of security issues," he said.
"ISIL hadn’t manifested itself as a trans-regional threat," the chairman said. "Russia had not annexed Crimea and violated the sovereignty of Ukraine, and in so doing, by the way, stirred up nationalism and ethnicity in Europe in a very unhelpful way."
In addition, the United States is now engaged in trying to reduce sources of instability in Africa, including the mission supporting the fight against Ebola.
In those years since the law was passed, the world has also seen provocations by North Korean leader Kim Jong Un, Dempsey said.
"All those things require consideration of forward presence, readiness, resourcing, countering technological advances by some of our potential adversaries, and that's changed a great deal," the chairman said. "We're trying to encourage everyone to understand that change."
Sequestration Hurts National Defense
Military leaders in 2010 were predicting that even if the United States withdrew from Iraq and Afghanistan, he said, the military would need three or four years to recover its readiness.
"Because for 10 years we've been focused very narrowly on the counter-insurgency, counter-terror threat and we've lost some of our training edge," Dempsey said.
The United States deferred maintenance on some of its high-end capabilities because of sequestration, he said, including ships, submarines and airplanes.
In a separate interview with DoD News while in Europe last week, the chairman said he would like to have a "conversation with Congress" about reversing the effects of sequestration.
"If they're not reversed, they're going to be imposed in 2016, and they will negatively affect our national security interests," he said.
The chairman added, "Collaboratively we shouldn't allow that to happen."
Dempsey: Sequestration is 'Absolutely Crazy'
By Lisa Ferdinando
DoD News, Defense Media Activity
WASHINGTON, Jan. 26, 2015 – Sequestration is "absolutely crazy," will hurt national security and make it "impossible" for the United States to meet its global commitments, according to the chairman of the Joint Chiefs of Staff.
The world has changed dramatically since sequestration was passed into law in the Budget Control Act of 2011, Army Gen. Martin E. Dempsey said.
Dempsey spoke Thursday, in an interview aboard his plane as he returned to Washington following a European trip focusing on threats to the continent.
"The combination of the Budget Control Act and the sequestration mechanism will make it impossible for us to meet our global responsibilities," he said.
The sequestration mechanism forces across-the-board government spending cuts, a "mechanical withdrawal" that "doesn't allow you to balance your books," Dempsey said.
"The readiness hole is still the readiness hole. The global security environment is more dangerous and sequestration is still on the books as the law. It's absolutely crazy for this country," the top general said.
A More Dangerous World
The changes in the global environment since 2011 include the emergence of the Islamic State of Iraq and the Levant, Russia's fueling of instability in Ukraine, and a "host of security issues," he said.
"ISIL hadn’t manifested itself as a trans-regional threat," the chairman said. "Russia had not annexed Crimea and violated the sovereignty of Ukraine, and in so doing, by the way, stirred up nationalism and ethnicity in Europe in a very unhelpful way."
In addition, the United States is now engaged in trying to reduce sources of instability in Africa, including the mission supporting the fight against Ebola.
In those years since the law was passed, the world has also seen provocations by North Korean leader Kim Jong Un, Dempsey said.
"All those things require consideration of forward presence, readiness, resourcing, countering technological advances by some of our potential adversaries, and that's changed a great deal," the chairman said. "We're trying to encourage everyone to understand that change."
Sequestration Hurts National Defense
Military leaders in 2010 were predicting that even if the United States withdrew from Iraq and Afghanistan, he said, the military would need three or four years to recover its readiness.
"Because for 10 years we've been focused very narrowly on the counter-insurgency, counter-terror threat and we've lost some of our training edge," Dempsey said.
The United States deferred maintenance on some of its high-end capabilities because of sequestration, he said, including ships, submarines and airplanes.
In a separate interview with DoD News while in Europe last week, the chairman said he would like to have a "conversation with Congress" about reversing the effects of sequestration.
"If they're not reversed, they're going to be imposed in 2016, and they will negatively affect our national security interests," he said.
The chairman added, "Collaboratively we shouldn't allow that to happen."
U.S. SENDS BEST WISHES TO PEOPLE OF AUSTRALIA ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
Australia Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 23, 2015
On behalf of President Obama and the American people, it is my pleasure to send the United States’ best wishes to the people of Australia as you celebrate Australia Day on January 26.
Although separated by a great ocean, the United States and Australia are bound together by our robust alliance, shared values, and common culture. And despite the geographic distance between our countries, I always feel at home in Australia—in fact, when I was in Sydney last August for the Australia-U.S. Ministerial, AUSMIN, I was struck by the similarities to my hometown of Boston, which like Sydney is home to a beautiful harbor and historic ships.
As you celebrate Australia Day, know that the United States stands right beside you as a stalwart ally, partner, and friend. Today, as in the past, the United States and Australia are working side by side to address pressing global challenges—from countering violent extremism and fighting the spread of Ebola to bolstering our economies and creating jobs.
2015 is a significant year in the history of our countries: it marks the 10th anniversary of the Australia-U.S. Free Trade Agreement and the 75th anniversary of U.S.-Australia diplomatic relations. But 2015 is also significant for the potential to achieve even more together. I wish all Australians the very best on this Australia Day, and continued success throughout the coming year.
Australia Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 23, 2015
On behalf of President Obama and the American people, it is my pleasure to send the United States’ best wishes to the people of Australia as you celebrate Australia Day on January 26.
Although separated by a great ocean, the United States and Australia are bound together by our robust alliance, shared values, and common culture. And despite the geographic distance between our countries, I always feel at home in Australia—in fact, when I was in Sydney last August for the Australia-U.S. Ministerial, AUSMIN, I was struck by the similarities to my hometown of Boston, which like Sydney is home to a beautiful harbor and historic ships.
As you celebrate Australia Day, know that the United States stands right beside you as a stalwart ally, partner, and friend. Today, as in the past, the United States and Australia are working side by side to address pressing global challenges—from countering violent extremism and fighting the spread of Ebola to bolstering our economies and creating jobs.
2015 is a significant year in the history of our countries: it marks the 10th anniversary of the Australia-U.S. Free Trade Agreement and the 75th anniversary of U.S.-Australia diplomatic relations. But 2015 is also significant for the potential to achieve even more together. I wish all Australians the very best on this Australia Day, and continued success throughout the coming year.
NASA ANNOUNCES FIRST MULTIPLE-PLANET SYSTEM FOUND
FROM: NASA
Astronomers Discover First Multiple-Planet System From K2
January 21, 2015
Astronomers using data from the NASA Kepler spacecraft's reborn K2 mission may have made its first discovery of a star with three exoplanets—planets that orbit stars other than our sun. A paper reporting this discovery has been submitted for publication in The Astrophysical Journal.
Ranging in size from fifty percent larger to a little more than twice the size of Earth, the possible planets orbit a star about half the size and mass of our sun. The outermost planet orbits on the warm edge of the habitable zone, the distance from a star where liquid water might exist on the surface of an orbiting planet.
"We are delighted to see the enthusiastic response for K2. The mission has extended the telescope's search capability to a new part of the sky, marking the first K2 exoplanet discovery less than a month ago, and now the possible discovery of the first K2 multiple-planet system," said Charles Sobeck, Kepler project manager at NASA's Ames Research Center in Moffett Field, CA. "We look forward to the outcome of the peer-review process of this latest result."
The star, called EPIC 2011367065, home to these possible planets is about 150 light-years away in the constellation Leo.
Astronomers Discover First Multiple-Planet System From K2
January 21, 2015
Astronomers using data from the NASA Kepler spacecraft's reborn K2 mission may have made its first discovery of a star with three exoplanets—planets that orbit stars other than our sun. A paper reporting this discovery has been submitted for publication in The Astrophysical Journal.
Ranging in size from fifty percent larger to a little more than twice the size of Earth, the possible planets orbit a star about half the size and mass of our sun. The outermost planet orbits on the warm edge of the habitable zone, the distance from a star where liquid water might exist on the surface of an orbiting planet.
"We are delighted to see the enthusiastic response for K2. The mission has extended the telescope's search capability to a new part of the sky, marking the first K2 exoplanet discovery less than a month ago, and now the possible discovery of the first K2 multiple-planet system," said Charles Sobeck, Kepler project manager at NASA's Ames Research Center in Moffett Field, CA. "We look forward to the outcome of the peer-review process of this latest result."
The star, called EPIC 2011367065, home to these possible planets is about 150 light-years away in the constellation Leo.
CFTC ISSUES ORDER OF REGISTRATION TO BURSA MALAYSIA DERIVATIVES BERHAD
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
January 22, 2015
CFTC Issues Order of Registration for Bursa Malaysia Derivatives Berhad
Washington, DC — The U.S. Commodity Futures Trading Commission (Commission) announced today that is has issued an Order of Registration to Bursa Malaysia Derivatives Berhad (BMD), a Foreign Board of Trade located in Kuala Lumpur, Malaysia. Under the Order, BMD is permitted to provide its identified members or other participants located in the U.S. with direct access to its electronic order entry and trade matching system to trade agricultural commodity, interest rate and security index futures and option contracts.
The Commission issued the Order in accordance with Part 48 of the Commission’s regulations, which provides that such an Order may be issued to a foreign board of trade that possesses, among other things, the attributes of an established, organized exchange and that is subject to continued oversight by a regulator that provides comprehensive supervision and regulation that is comparable to the supervision and regulation exercised by the Commission.
BMD submitted an application for registration that included, among other things, representations that its regulatory regime under its regulatory authority, the Malaysian Securities Commission, satisfies the requirements for registration in Commission regulation 48.7.
Upon review of the application, the Commission has determined that BMD has demonstrated its ability to comply with the requirements of the applicable Commission regulations. Accordingly, the Commission granted BMD an Order of Registration to permit it to provide direct access to its identified members or other participants located in the U.S., subject to the terms and conditions specified in the Order. The terms and conditions applicable to the Order include, among others, that BMD shall comply with Commission regulation 48.8, Conditions of Registration, and any additional conditions that the Commission deems necessary and may impose, after appropriate notice and opportunity to respond. BMD shall also continue to fulfill each of the representations it made in support of the application for registration.
Last Updated: January 22, 2015
January 22, 2015
CFTC Issues Order of Registration for Bursa Malaysia Derivatives Berhad
Washington, DC — The U.S. Commodity Futures Trading Commission (Commission) announced today that is has issued an Order of Registration to Bursa Malaysia Derivatives Berhad (BMD), a Foreign Board of Trade located in Kuala Lumpur, Malaysia. Under the Order, BMD is permitted to provide its identified members or other participants located in the U.S. with direct access to its electronic order entry and trade matching system to trade agricultural commodity, interest rate and security index futures and option contracts.
The Commission issued the Order in accordance with Part 48 of the Commission’s regulations, which provides that such an Order may be issued to a foreign board of trade that possesses, among other things, the attributes of an established, organized exchange and that is subject to continued oversight by a regulator that provides comprehensive supervision and regulation that is comparable to the supervision and regulation exercised by the Commission.
BMD submitted an application for registration that included, among other things, representations that its regulatory regime under its regulatory authority, the Malaysian Securities Commission, satisfies the requirements for registration in Commission regulation 48.7.
Upon review of the application, the Commission has determined that BMD has demonstrated its ability to comply with the requirements of the applicable Commission regulations. Accordingly, the Commission granted BMD an Order of Registration to permit it to provide direct access to its identified members or other participants located in the U.S., subject to the terms and conditions specified in the Order. The terms and conditions applicable to the Order include, among others, that BMD shall comply with Commission regulation 48.8, Conditions of Registration, and any additional conditions that the Commission deems necessary and may impose, after appropriate notice and opportunity to respond. BMD shall also continue to fulfill each of the representations it made in support of the application for registration.
Last Updated: January 22, 2015
DOJ ANTITRUST DIVISION COLLECTED $1.861 BILLION IN CRIMINAL FINES, PENALTIES FOR FISCAL YEAR 2014
FROM: U.S. JUSTICE DEPARTMENT
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, January 22, 2015
Antitrust Division Announces Fiscal Year Total in Criminal Fines Collected
The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained. The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd. The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.
“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division. “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”
15-082
Antitrust Division
Antitrust (including FTC antitrust)
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, January 22, 2015
Antitrust Division Announces Fiscal Year Total in Criminal Fines Collected
The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained. The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd. The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.
“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division. “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”
15-082
Antitrust Division
Antitrust (including FTC antitrust)
Sunday, January 25, 2015
SECRETARY KERRY'S REMARKS TO PRESS IN LAGOS, NIGERIA
FROM: U.S. STATE DEPARTMENT
Remarks at a Press Availability in Lagos, Nigeria
Remarks
John Kerry
Secretary of State
Lagos, Nigeria
January 25, 2015
SECRETARY KERRY: Well, good afternoon, everybody. I am really delighted be here in Nigeria. And I was just admiring the extraordinary view and this wonderful location. I’m particularly pleased to be here at this particular moment, just a few weeks before one of the most important elections that this country has held. And this will be the largest democratic election on the continent. Given the stakes, it’s absolutely critical that these elections be conducted peacefully, that they are credible, transparent, accountable, so that the people of Nigeria can have faith and the world can have faith in the government that flows from it.
So I came here today to deliver a very simple message, and I met with both major candidates in order to underscore that the international community is paying very close attention to this election and that the international community is deeply committed to working with Nigerians going forward with the hopes that they will have an election that is free of violence and capable of instilling confidence in the future.
I was at the World Economic Forum in Davos earlier this weekend where I delivered a speech about the need for a long-term, comprehensive global effort to combat violent extremism, and to address the underlying causes before that extremism takes root. The unfortunate truth is that Nigerians know as well as anyone how desperately that kind of effort is needed. Day after day, the group that calls itself Boko Haram continues to kill scores of innocent civilians and attack villages and military installations in places like Borno, Yobe, and Adamawa states. The United States condemns these attacks which have escalated in recent weeks. And we extend our deepest condolences to the thousands of families that have been impacted, and we deeply regret the toll that this violence has taken on the Nigerian people. We will absolutely continue to support the Nigerian military in its fight against Boko Haram. And as I said in Davos, all of us must work together to advance a strategy that will not only stop groups like Boko Haram, Daesh, and al-Qaida, but that will address the environment from which these groups emerge.
We were very happy to see the Government of Niger host a regional security ministerial meeting last week to discuss how to better coordinate counterterrorism efforts. This is exactly the kind of thing that I suggested is necessary in the comments that I made a couple of days ago. It is very important that the world cooperate more in helping countries where they want to and where they don’t the full capacity to be able to step up and take on lawless terrorist entities.
That is precisely why President Obama has announced that next month in Washington we will host an international summit on combatting violent extremism around the world. It will be held at the WH and at the State Department, it will be at the ministerial, and we hope to bring people together who have been engaged in these fights against the Boko Harams and other entities so we can share best practices, so that we could hear from people about what they need and what they think is necessary in order to be able to summon an even stronger global response.
The fact is that one of the best ways to fight back against Boko Haram and similar groups is by protecting the peaceful, credible, and transparent elections that are essential to any thriving democracy, and certainly, essential to the largest democracy in Africa. It’s imperative that these elections happen on time as scheduled, and that they are an improvement over past elections, and they need to set a new standard for this democracy. That means that Nigerians have to not only reject violence but they have to actually promote peace.
I met with President Jonathan earlier today and separately with General Buhari, and I was encouraged to hear once again from both men that this is exactly what they intend to do to try to press for an election that can be held with the credibility the people of Nigeria want and deserve. As President Jonathan said in his New Year’s message, none of our political ambitions is worth the blood of any of our countrymen, women, and children. And as General Buhari recently tweeted, electoral violence is unacceptable, and every Nigerian life is sacred. Both candidates have also signed on to the so-called Abuja Accord, which commits them to running exclusively issue-based campaigns, refraining from violence before and during and after election day, and speaking out against any violence that does emerge.
These are commitments that we need to see from everyone and they are commitments that need to be kept. Many people are stepping up. For example, Chairman Jega and the thousands of independent national election commission employees are taking concrete steps in order to guarantee that this election is successful. We also urge all of Nigeria’s governors to call for peaceful democratic engagement among their residents, and we ask all parties and all candidates to do the same.
And I would say to everybody that no matter what the outcome, if you have a question, if you have a doubt, if there is someplace where issues may have arisen, it is absolutely vital that whatever differences may exist be resolved through legitimate channels, through the legal channels, which are fundamental to the democratic process. And I urge all of Nigeria’s candidates to do what is best for their country no matter the outcome on election day.
I want to emphasize that for the United States, Nigeria is an increasingly important strategic partner. Nigeria has a critical role to play in the security and prosperity of this continent and beyond. We are committed to helping the electoral process succeed, and last week we sent an electoral security advisor in order to support INEC’s efforts to advise on security concerns and to help develop a risk mapping tool to prepare for any violence that might emerge.
So let me be clear: Anyone who participates in, plans, or calls for widespread or systematic violence against the civilian population must be held accountable, including by ineligibility for an American visa. Violence has no place in democratic elections, and I can guarantee you that the perpetrators of such violence would not be welcome in the United States of America. Nigeria is Africa’s most populous nation and one of the world’s largest democracies. It is blessed with some of the planet’s most valuable and abundant natural resources. Conducting accountable, credible, peaceful elections will help put the Nigerian people on a path to prosperity and regional leadership that is needed in order to address a wide range of challenges in this part of the world, including, obviously, violent extremism.
With this election, Nigeria has an opportunity to put an indelible stamp on the kind of future that Africa wants to see and most importantly that Nigeria wants and deserves. I want to reiterate what President Obama recently said, that he, I, and the American people stand with you as Nigeria’s great democratic exercise unfolds. And we stand ready to work with the Government of Nigeria, the Nigerian people, and whomever they elect next month continue – to continue building on the important partnership that we share.
And with that, I would be delighted to take a couple of questions.
MODERATOR: Our first question comes from (inaudible).
QUESTION: Could you give us a bit more of a response to these attacks by Boko Haram in northeastern Nigeria and how concerned you are about this (inaudible)?
QUESTION: And can you also give us a bit more of a sense of what concrete steps the U.S. is prepared to take with the Nigeria to fight Boko Haram? Because it has been a concern within the Pentagon about the capability or the commitment of the military to fight Boko Haram. And finally, could you give us sense from here that Boko Haram’s kind of spreading to other parts of Africa and aligning (inaudible) the Islamic State or other terrorist groups?
SECRETARY KERRY: Well, let me take the last part of your question first. There’s no specific declaration by Boko Haram of an affiliation with Daesh, but there is evidence that Daesh is making an effort to spread its tentacles throughout a number of countries in the northern part of Africa, and it is obviously a concern that they may try more aggressively to try to spread to countries in the center and southern and other parts of Africa.
The United States is deeply engaged with Nigeria. And I’ve seen the articles that refer to some of the problems with respect to that engagement. Everybody’s heard certain criticisms that have been made. Some of them are just flat-out inaccurate. For instance, we do continue to share intelligence with the Nigerian military and intelligence folks. We do cooperate in many ways. We don’t believe that the level of support provided by the United States or the international community is the limiting factor in the Nigerian Government’s ability to fight Boko Haram.
And with respect to the military assistance that we’re delivering, we are currently helping the Nigerian – helping Nigeria to increase the capability of its military; to improve its counter-incident explosive detection and civil-military operations capacity; and to carry out responsible counterterrorism operations. Now, does it always well as work – work as well as we would like or as well as the Nigerians would like? The answer is no. There are developmental issues in that relationship and in those efforts. But the United States maintains a very significant level of military cooperation with various elements of the Nigerian security forces.
And we’re also providing law enforcement assistance, including by training Nigerian law enforcement officials on counterterrorism investigations and post-blast investigations and crisis management. Right now, we have a team of Nigerian Government crisis management officials in the United States who are participating in a senior crisis management exercise. We have provided equipment and training for the Nigerian intelligence fusion center. And most recently, we’ve worked with Nigeria’s neighbors Cameroon, Chad, and Niger to develop institutional and tactical capabilities that will increase the joint efforts between our countries in order to be more effective.
So bottom line, we want to do more. And that was part of my message to both President Jonathan and General Buhari today. We are prepared to do more, but our ability to do more will depend to some degree on the full measure of credibility, accountability, transparency and peacefulness of this election. And one of the principle reasons that President Obama asked me to come here at this moment is to reinforce to all Nigerians the desire of the United States to be able to engage even more so in the effort to push back against Boko Haram or any other violent extremist group, but the quality of the democratic process is important to contributing to our ability to do so. And that’s exactly why I’m here today.
MODERATOR: Our last question is from Victor Asije of the News Agency of Nigeria.
QUESTION: (Inaudible) and welcome to Nigeria.
SECRETARY KERRY: Thank you.
QUESTION: Are you confident that President Jonathan and General Buhari can be held to their promises – promises they made to you, (inaudible), credible elections, (inaudible) that the U.S. (inaudible)? The other question is this: Now, even after the (inaudible) that the U.S. (inaudible) to discriminate against people from West Africa (inaudible)?
SECRETARY KERRY: Can you repeat the last part? The U.S. is likely to discriminate?
QUESTION: That the U.S. is likely (inaudible) to discriminate against people from West Africa who are (inaudible)?
SECRETARY KERRY: No, I – let me answer that first. I’m personally very proud, and I think every American is very proud, of the extraordinary efforts the United States has made in order to combat the Ebola disease. President Obama made a remarkably courageous and critical decision right up front, when people didn’t know all – publicly, certainly – all of the potential dangers. But when he, by virtue of his briefings and his understanding through his medical advisors, had a strong sense of what was possible, the President committed 4,000 U.S. troops to go to Liberia immediately in order to begin to build the capacity to fight Ebola. We worked extremely closely with our friends and allies, the French and the British particularly, but with many other people – Japan, China. Many countries stepped up as we came together at the United Nations in September, summoned more response, sent people over here, many workers, as you know, who have come back to the United States, and a few of them who came back with Ebola and they were treated, one of whom who died and others who were cured.
We have confidence in the ability of people to be cured. We have confidence that this is – that we are gaining in our capacity to control this; we’ve made enormous strides, and I can guarantee you there will be no discrimination against people from anywhere because this is a disease from which people can be determined to be either cured or free in the first place from any infection. As long as protocols are followed, as long as the screenings are taken, I don’t think anybody has to fear any form or any nature of discrimination. I think the efforts of the United States, frankly, speak volumes against that possibility.
On the first part of your question about the promises of the two leaders, let me make this clear: I think the real question ought to be will the Nigerian people be able to count on the president, whoever it is? The promises to the people of Nigeria – and to the world really, but principally the people of Nigeria – and I think it’s up to the people of Nigeria to make the judgment about whether they’re confident that any particular person or candidate is going to live up to their word. It’s not up to us to make that judgment. The proof will be in what happens in the days ahead.
But I’m here today because President Obama and the American people and the world are looking at Nigeria in this extraordinary exercise of democracy, in this important country in Africa, with the largest democratic election on the continent – and it matters. And that’s why we’re here: to emphasize to everybody, nobody gains by violence. Nobody gains by turning a political disagreement into a killing spree or some other kind of violence. And our hope is that Nigeria will set a remarkable example for the world in this election, and that that will give whoever is President coming out of this election the momentum that he needs in order to be able to define the future that the people of this country so want. And the proof will be in the actions that are taken in the course of the election and afterwards.
So thank you all very, very much. Appreciate it.
Remarks at a Press Availability in Lagos, Nigeria
Remarks
John Kerry
Secretary of State
Lagos, Nigeria
January 25, 2015
SECRETARY KERRY: Well, good afternoon, everybody. I am really delighted be here in Nigeria. And I was just admiring the extraordinary view and this wonderful location. I’m particularly pleased to be here at this particular moment, just a few weeks before one of the most important elections that this country has held. And this will be the largest democratic election on the continent. Given the stakes, it’s absolutely critical that these elections be conducted peacefully, that they are credible, transparent, accountable, so that the people of Nigeria can have faith and the world can have faith in the government that flows from it.
So I came here today to deliver a very simple message, and I met with both major candidates in order to underscore that the international community is paying very close attention to this election and that the international community is deeply committed to working with Nigerians going forward with the hopes that they will have an election that is free of violence and capable of instilling confidence in the future.
I was at the World Economic Forum in Davos earlier this weekend where I delivered a speech about the need for a long-term, comprehensive global effort to combat violent extremism, and to address the underlying causes before that extremism takes root. The unfortunate truth is that Nigerians know as well as anyone how desperately that kind of effort is needed. Day after day, the group that calls itself Boko Haram continues to kill scores of innocent civilians and attack villages and military installations in places like Borno, Yobe, and Adamawa states. The United States condemns these attacks which have escalated in recent weeks. And we extend our deepest condolences to the thousands of families that have been impacted, and we deeply regret the toll that this violence has taken on the Nigerian people. We will absolutely continue to support the Nigerian military in its fight against Boko Haram. And as I said in Davos, all of us must work together to advance a strategy that will not only stop groups like Boko Haram, Daesh, and al-Qaida, but that will address the environment from which these groups emerge.
We were very happy to see the Government of Niger host a regional security ministerial meeting last week to discuss how to better coordinate counterterrorism efforts. This is exactly the kind of thing that I suggested is necessary in the comments that I made a couple of days ago. It is very important that the world cooperate more in helping countries where they want to and where they don’t the full capacity to be able to step up and take on lawless terrorist entities.
That is precisely why President Obama has announced that next month in Washington we will host an international summit on combatting violent extremism around the world. It will be held at the WH and at the State Department, it will be at the ministerial, and we hope to bring people together who have been engaged in these fights against the Boko Harams and other entities so we can share best practices, so that we could hear from people about what they need and what they think is necessary in order to be able to summon an even stronger global response.
The fact is that one of the best ways to fight back against Boko Haram and similar groups is by protecting the peaceful, credible, and transparent elections that are essential to any thriving democracy, and certainly, essential to the largest democracy in Africa. It’s imperative that these elections happen on time as scheduled, and that they are an improvement over past elections, and they need to set a new standard for this democracy. That means that Nigerians have to not only reject violence but they have to actually promote peace.
I met with President Jonathan earlier today and separately with General Buhari, and I was encouraged to hear once again from both men that this is exactly what they intend to do to try to press for an election that can be held with the credibility the people of Nigeria want and deserve. As President Jonathan said in his New Year’s message, none of our political ambitions is worth the blood of any of our countrymen, women, and children. And as General Buhari recently tweeted, electoral violence is unacceptable, and every Nigerian life is sacred. Both candidates have also signed on to the so-called Abuja Accord, which commits them to running exclusively issue-based campaigns, refraining from violence before and during and after election day, and speaking out against any violence that does emerge.
These are commitments that we need to see from everyone and they are commitments that need to be kept. Many people are stepping up. For example, Chairman Jega and the thousands of independent national election commission employees are taking concrete steps in order to guarantee that this election is successful. We also urge all of Nigeria’s governors to call for peaceful democratic engagement among their residents, and we ask all parties and all candidates to do the same.
And I would say to everybody that no matter what the outcome, if you have a question, if you have a doubt, if there is someplace where issues may have arisen, it is absolutely vital that whatever differences may exist be resolved through legitimate channels, through the legal channels, which are fundamental to the democratic process. And I urge all of Nigeria’s candidates to do what is best for their country no matter the outcome on election day.
I want to emphasize that for the United States, Nigeria is an increasingly important strategic partner. Nigeria has a critical role to play in the security and prosperity of this continent and beyond. We are committed to helping the electoral process succeed, and last week we sent an electoral security advisor in order to support INEC’s efforts to advise on security concerns and to help develop a risk mapping tool to prepare for any violence that might emerge.
So let me be clear: Anyone who participates in, plans, or calls for widespread or systematic violence against the civilian population must be held accountable, including by ineligibility for an American visa. Violence has no place in democratic elections, and I can guarantee you that the perpetrators of such violence would not be welcome in the United States of America. Nigeria is Africa’s most populous nation and one of the world’s largest democracies. It is blessed with some of the planet’s most valuable and abundant natural resources. Conducting accountable, credible, peaceful elections will help put the Nigerian people on a path to prosperity and regional leadership that is needed in order to address a wide range of challenges in this part of the world, including, obviously, violent extremism.
With this election, Nigeria has an opportunity to put an indelible stamp on the kind of future that Africa wants to see and most importantly that Nigeria wants and deserves. I want to reiterate what President Obama recently said, that he, I, and the American people stand with you as Nigeria’s great democratic exercise unfolds. And we stand ready to work with the Government of Nigeria, the Nigerian people, and whomever they elect next month continue – to continue building on the important partnership that we share.
And with that, I would be delighted to take a couple of questions.
MODERATOR: Our first question comes from (inaudible).
QUESTION: Could you give us a bit more of a response to these attacks by Boko Haram in northeastern Nigeria and how concerned you are about this (inaudible)?
QUESTION: And can you also give us a bit more of a sense of what concrete steps the U.S. is prepared to take with the Nigeria to fight Boko Haram? Because it has been a concern within the Pentagon about the capability or the commitment of the military to fight Boko Haram. And finally, could you give us sense from here that Boko Haram’s kind of spreading to other parts of Africa and aligning (inaudible) the Islamic State or other terrorist groups?
SECRETARY KERRY: Well, let me take the last part of your question first. There’s no specific declaration by Boko Haram of an affiliation with Daesh, but there is evidence that Daesh is making an effort to spread its tentacles throughout a number of countries in the northern part of Africa, and it is obviously a concern that they may try more aggressively to try to spread to countries in the center and southern and other parts of Africa.
The United States is deeply engaged with Nigeria. And I’ve seen the articles that refer to some of the problems with respect to that engagement. Everybody’s heard certain criticisms that have been made. Some of them are just flat-out inaccurate. For instance, we do continue to share intelligence with the Nigerian military and intelligence folks. We do cooperate in many ways. We don’t believe that the level of support provided by the United States or the international community is the limiting factor in the Nigerian Government’s ability to fight Boko Haram.
And with respect to the military assistance that we’re delivering, we are currently helping the Nigerian – helping Nigeria to increase the capability of its military; to improve its counter-incident explosive detection and civil-military operations capacity; and to carry out responsible counterterrorism operations. Now, does it always well as work – work as well as we would like or as well as the Nigerians would like? The answer is no. There are developmental issues in that relationship and in those efforts. But the United States maintains a very significant level of military cooperation with various elements of the Nigerian security forces.
And we’re also providing law enforcement assistance, including by training Nigerian law enforcement officials on counterterrorism investigations and post-blast investigations and crisis management. Right now, we have a team of Nigerian Government crisis management officials in the United States who are participating in a senior crisis management exercise. We have provided equipment and training for the Nigerian intelligence fusion center. And most recently, we’ve worked with Nigeria’s neighbors Cameroon, Chad, and Niger to develop institutional and tactical capabilities that will increase the joint efforts between our countries in order to be more effective.
So bottom line, we want to do more. And that was part of my message to both President Jonathan and General Buhari today. We are prepared to do more, but our ability to do more will depend to some degree on the full measure of credibility, accountability, transparency and peacefulness of this election. And one of the principle reasons that President Obama asked me to come here at this moment is to reinforce to all Nigerians the desire of the United States to be able to engage even more so in the effort to push back against Boko Haram or any other violent extremist group, but the quality of the democratic process is important to contributing to our ability to do so. And that’s exactly why I’m here today.
MODERATOR: Our last question is from Victor Asije of the News Agency of Nigeria.
QUESTION: (Inaudible) and welcome to Nigeria.
SECRETARY KERRY: Thank you.
QUESTION: Are you confident that President Jonathan and General Buhari can be held to their promises – promises they made to you, (inaudible), credible elections, (inaudible) that the U.S. (inaudible)? The other question is this: Now, even after the (inaudible) that the U.S. (inaudible) to discriminate against people from West Africa (inaudible)?
SECRETARY KERRY: Can you repeat the last part? The U.S. is likely to discriminate?
QUESTION: That the U.S. is likely (inaudible) to discriminate against people from West Africa who are (inaudible)?
SECRETARY KERRY: No, I – let me answer that first. I’m personally very proud, and I think every American is very proud, of the extraordinary efforts the United States has made in order to combat the Ebola disease. President Obama made a remarkably courageous and critical decision right up front, when people didn’t know all – publicly, certainly – all of the potential dangers. But when he, by virtue of his briefings and his understanding through his medical advisors, had a strong sense of what was possible, the President committed 4,000 U.S. troops to go to Liberia immediately in order to begin to build the capacity to fight Ebola. We worked extremely closely with our friends and allies, the French and the British particularly, but with many other people – Japan, China. Many countries stepped up as we came together at the United Nations in September, summoned more response, sent people over here, many workers, as you know, who have come back to the United States, and a few of them who came back with Ebola and they were treated, one of whom who died and others who were cured.
We have confidence in the ability of people to be cured. We have confidence that this is – that we are gaining in our capacity to control this; we’ve made enormous strides, and I can guarantee you there will be no discrimination against people from anywhere because this is a disease from which people can be determined to be either cured or free in the first place from any infection. As long as protocols are followed, as long as the screenings are taken, I don’t think anybody has to fear any form or any nature of discrimination. I think the efforts of the United States, frankly, speak volumes against that possibility.
On the first part of your question about the promises of the two leaders, let me make this clear: I think the real question ought to be will the Nigerian people be able to count on the president, whoever it is? The promises to the people of Nigeria – and to the world really, but principally the people of Nigeria – and I think it’s up to the people of Nigeria to make the judgment about whether they’re confident that any particular person or candidate is going to live up to their word. It’s not up to us to make that judgment. The proof will be in what happens in the days ahead.
But I’m here today because President Obama and the American people and the world are looking at Nigeria in this extraordinary exercise of democracy, in this important country in Africa, with the largest democratic election on the continent – and it matters. And that’s why we’re here: to emphasize to everybody, nobody gains by violence. Nobody gains by turning a political disagreement into a killing spree or some other kind of violence. And our hope is that Nigeria will set a remarkable example for the world in this election, and that that will give whoever is President coming out of this election the momentum that he needs in order to be able to define the future that the people of this country so want. And the proof will be in the actions that are taken in the course of the election and afterwards.
So thank you all very, very much. Appreciate it.
EXECUTIVE AT AUTO PARTS MANUFACTURER INDICTED FOR ROLE IN PRICE FIXING CONSPRIACY
FROM: U.S. JUSTICE DEPARTMENT
JUSTICE NEWS
Department of Justice
Office of Public Affairs
Thursday, January 22, 2015
Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix Prices
A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere. Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.
“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to prosecute those that commit these crimes.”
The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.
JUSTICE NEWS
Department of Justice
Office of Public Affairs
Thursday, January 22, 2015
Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix Prices
A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere. Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.
“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to prosecute those that commit these crimes.”
The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.
DOJ, COLUMBUS, GEORGIA MAKE AGREEMENT ON TREATMENT OF SERIOUSLY MENTALLY ILL PRISONERS
FROM: U.S. JUSTICE DEPARTMENT
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Justice Department and Columbus, Georgia, Agree to Landmark Reforms Regarding the Treatment of Prisoners with Serious Mental Illness
Today, the Justice Department reached an agreement with Columbus, Georgia, that will address the remaining goals of a long-standing consent decree calling for reforms of its mental health system.
Muscogee County has made significant improvements at the Muscogee County Jail in the areas of security, environmental health and safety as well as modest improvements in the provision of medical care following a 1999 federal consent agreement. In order to address the continued deficiencies that remain, with respect to identifying, treating and housing prisoners with severe and persistent mental illness, jail leadership worked collaboratively with the Justice Department to create additional solutions that will improve mental health care without compromising security through a supplemental agreement.
The existing consent decree will remain in place and the supplemental agreement adds crucial safeguards for prisoners with serious mental illness. The supplemental agreement restricts the use of solitary confinement for prisoners with serious mental illness and limits the use of solitary confinement after 14 days. The jail will provide secure mental health and step-down units, and programs to provide prisoners with serious mental illness a total of at least 24 hours structured and unstructured time out-of-cell each week. These and other measures will vastly improve the quality of mental health care services in the Muscogee County Jail, while helping to minimize violence in the facility.
The supplemental agreement also includes robust training requirements. All correctional staff must receive Crisis Intervention Team training, including training on understanding and recognizing psychiatric signs and symptoms to identify prisoners who have or may have serious mental illness, using de-escalation techniques to calm and reassure prisoners who have or may have serious mental illness before resorting to use of force, discipline, or solitary confinement, and making appropriate mental health referrals.
“The Constitution requires that those detained in our nation’s jails and prisons are treated humanely and receive adequate mental health care,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “We are glad to have been able to work with Sheriff Darr, Jail Commander Collins, and Columbus, Georgia, in crafting sensible solutions to address a pressing issue confronting corrections administrators throughout this country: the burgeoning numbers of men and women with mental illness in our correctional institutions.
“These reforms will not only improve mental health care for this vulnerable population, but also enhance security within the facility, and facilitate inmates’ successful reintegration into the community upon release, which will help make our society safer,” said U.S. Attorney Michael Moore for the Middle District of Georgia.
The agreement requires a monitor to oversee implementation of the agreement and issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, and the leadership of Columbus, Georgia, a consolidated government, acting by and through the Sheriff of Muscogee County, in his official capacity, and the Columbus City Manager, in his official capacity, as authorized by the Columbus Council.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Justice Department and Columbus, Georgia, Agree to Landmark Reforms Regarding the Treatment of Prisoners with Serious Mental Illness
Today, the Justice Department reached an agreement with Columbus, Georgia, that will address the remaining goals of a long-standing consent decree calling for reforms of its mental health system.
Muscogee County has made significant improvements at the Muscogee County Jail in the areas of security, environmental health and safety as well as modest improvements in the provision of medical care following a 1999 federal consent agreement. In order to address the continued deficiencies that remain, with respect to identifying, treating and housing prisoners with severe and persistent mental illness, jail leadership worked collaboratively with the Justice Department to create additional solutions that will improve mental health care without compromising security through a supplemental agreement.
The existing consent decree will remain in place and the supplemental agreement adds crucial safeguards for prisoners with serious mental illness. The supplemental agreement restricts the use of solitary confinement for prisoners with serious mental illness and limits the use of solitary confinement after 14 days. The jail will provide secure mental health and step-down units, and programs to provide prisoners with serious mental illness a total of at least 24 hours structured and unstructured time out-of-cell each week. These and other measures will vastly improve the quality of mental health care services in the Muscogee County Jail, while helping to minimize violence in the facility.
The supplemental agreement also includes robust training requirements. All correctional staff must receive Crisis Intervention Team training, including training on understanding and recognizing psychiatric signs and symptoms to identify prisoners who have or may have serious mental illness, using de-escalation techniques to calm and reassure prisoners who have or may have serious mental illness before resorting to use of force, discipline, or solitary confinement, and making appropriate mental health referrals.
“The Constitution requires that those detained in our nation’s jails and prisons are treated humanely and receive adequate mental health care,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “We are glad to have been able to work with Sheriff Darr, Jail Commander Collins, and Columbus, Georgia, in crafting sensible solutions to address a pressing issue confronting corrections administrators throughout this country: the burgeoning numbers of men and women with mental illness in our correctional institutions.
“These reforms will not only improve mental health care for this vulnerable population, but also enhance security within the facility, and facilitate inmates’ successful reintegration into the community upon release, which will help make our society safer,” said U.S. Attorney Michael Moore for the Middle District of Georgia.
The agreement requires a monitor to oversee implementation of the agreement and issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, and the leadership of Columbus, Georgia, a consolidated government, acting by and through the Sheriff of Muscogee County, in his official capacity, and the Columbus City Manager, in his official capacity, as authorized by the Columbus Council.
COURT IMPOSES MONETARY PENALTY OF OVER $2.1 MILLION AGAINST FOREX TRADERS
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
January 21, 2015
Federal Court in New York Imposes a $2.16 Million Penalty and Permanent Trading Bans against Michael A. Kardonick, Gary R. Shapoff, and Atwood & James for Forex Options Fraud and Misappropriation
Kardonick and Shapoff Are Serving Time in Prison after Pleading Guilty to Related Federal Criminal Charges
Washington DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court in Rochester, New York issued a consent Order against Atwood & James, Ltd. and Atwood & James, SA (collectively, Atwood), which operated out of New York and Brazil, and Michael A. Kardonick, who maintained multiple residences in Brooklyn; New York; Pembrook Pines, Florida; and Rio de Janeiro, and Gary R. Shapoff of Pittsford, New York. Kardonick and Shapoff are currently incarcerated in Federal custody. The court’s Order stems from a CFTC civil Complaint that charged the Defendants with fraudulently soliciting retail clients to trade foreign currency (forex) options and charged Atwood and Kardonick with misappropriating client funds (see CFTC Press Release and Complaint 5605-09, January 27, 2009). None of the Defendants has ever been registered with the CFTC, as required.
The consent Order, issued by the Honorable Charles Siragusa of the U.S. District Court for the Western District of New York, assesses a civil monetary penalty against the Defendants of $2,164,059.57, recognizes the criminal restitution award, and permanently bans Atwood, Shapoff, and Kardonick from registering, trading, soliciting and engaging in any CFTC-regulated activity.
The CFTC Complaint alleged that, from at least 2001 to 2008, Defendants fraudulently solicited funds from members of the general public located throughout the world, including the U.S. and the United Kingdom, to trade forex options. Through an internet website and other means, the Defendants made extraordinary and false claims regarding, among other things, Atwood’s trading abilities.
In fact, according to the Order, Atwood and Kardonick were not successful traders; no trading accounts in the name of Atwood or for the benefit of Atwood clients have been located; and, there was no evidence that Atwood had or has a relationship with a clearing firm. The only known trading accounts were Kardonick’s personal trading accounts, which from 2003 through September 2008 sustained net losses of approximately $1.7 million trading commodity futures and options.
The court’s Order also finds that Kardonick and Shapoff failed to disclose to clients that both have criminal convictions for mail and wire fraud, and that Shapoff was the subject of two CFTC reparations actions in which the allegations included misrepresentation, misuse of customer funds, nondisclosure, and order execution.
Related Criminal Acton
In a related criminal action brought by the U.S. Attorney’s Office for the Western District of New York, Kardonick and Shapoff pleaded guilty to charges of tax evasion and money laundering and are serving prison sentences of 120 months for Kardonick and 60 months for Shapoff.
A criminal restitution order of $2,164,059.57 was issued against Kardonick and Shapoff, jointly and severally.
The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
The CFTC appreciates the cooperation of the U.S. Attorney’s Office, Western District of New York, the FBI Field Western District of New York field office, the Brazilian Comissão de Valores Mobiliarios, and the U.K. Financial Conduct Authority in this matter.
CFTC Division of Enforcement staff members responsible for this case are James H. Holl III, Katherine M. Driscoll, Kara Mucha, Michelle Bougas, Rick Glaser, and Gretchen L. Lowe.
* * * * * *
CFTC’s Foreign Currency (Forex) Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Media Contact
Dennis Holden
January 21, 2015
Federal Court in New York Imposes a $2.16 Million Penalty and Permanent Trading Bans against Michael A. Kardonick, Gary R. Shapoff, and Atwood & James for Forex Options Fraud and Misappropriation
Kardonick and Shapoff Are Serving Time in Prison after Pleading Guilty to Related Federal Criminal Charges
Washington DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court in Rochester, New York issued a consent Order against Atwood & James, Ltd. and Atwood & James, SA (collectively, Atwood), which operated out of New York and Brazil, and Michael A. Kardonick, who maintained multiple residences in Brooklyn; New York; Pembrook Pines, Florida; and Rio de Janeiro, and Gary R. Shapoff of Pittsford, New York. Kardonick and Shapoff are currently incarcerated in Federal custody. The court’s Order stems from a CFTC civil Complaint that charged the Defendants with fraudulently soliciting retail clients to trade foreign currency (forex) options and charged Atwood and Kardonick with misappropriating client funds (see CFTC Press Release and Complaint 5605-09, January 27, 2009). None of the Defendants has ever been registered with the CFTC, as required.
The consent Order, issued by the Honorable Charles Siragusa of the U.S. District Court for the Western District of New York, assesses a civil monetary penalty against the Defendants of $2,164,059.57, recognizes the criminal restitution award, and permanently bans Atwood, Shapoff, and Kardonick from registering, trading, soliciting and engaging in any CFTC-regulated activity.
The CFTC Complaint alleged that, from at least 2001 to 2008, Defendants fraudulently solicited funds from members of the general public located throughout the world, including the U.S. and the United Kingdom, to trade forex options. Through an internet website and other means, the Defendants made extraordinary and false claims regarding, among other things, Atwood’s trading abilities.
In fact, according to the Order, Atwood and Kardonick were not successful traders; no trading accounts in the name of Atwood or for the benefit of Atwood clients have been located; and, there was no evidence that Atwood had or has a relationship with a clearing firm. The only known trading accounts were Kardonick’s personal trading accounts, which from 2003 through September 2008 sustained net losses of approximately $1.7 million trading commodity futures and options.
The court’s Order also finds that Kardonick and Shapoff failed to disclose to clients that both have criminal convictions for mail and wire fraud, and that Shapoff was the subject of two CFTC reparations actions in which the allegations included misrepresentation, misuse of customer funds, nondisclosure, and order execution.
Related Criminal Acton
In a related criminal action brought by the U.S. Attorney’s Office for the Western District of New York, Kardonick and Shapoff pleaded guilty to charges of tax evasion and money laundering and are serving prison sentences of 120 months for Kardonick and 60 months for Shapoff.
A criminal restitution order of $2,164,059.57 was issued against Kardonick and Shapoff, jointly and severally.
The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
The CFTC appreciates the cooperation of the U.S. Attorney’s Office, Western District of New York, the FBI Field Western District of New York field office, the Brazilian Comissão de Valores Mobiliarios, and the U.K. Financial Conduct Authority in this matter.
CFTC Division of Enforcement staff members responsible for this case are James H. Holl III, Katherine M. Driscoll, Kara Mucha, Michelle Bougas, Rick Glaser, and Gretchen L. Lowe.
* * * * * *
CFTC’s Foreign Currency (Forex) Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Media Contact
Dennis Holden
Saturday, January 24, 2015
DOD NEWS REPORTS NATO FOCUSES ON RUSSIAN AGGRESSION AGAINST UKRAINE
Right: Army Gen. Martin E. Dempsey, left, chairman of the Joint Chiefs of Staff, and German Chief of Defense Army Gen. Volker Wieker talk between NATO's Military Committee conference and the chiefs of defense quarterly meeting in Brussels, Jan. 21, 2015. DoD photo by D. Myles Cullen.
NATO Focuses on Russian Violations of Ukraine's Sovereignty
By Lisa Ferdinando
DoD News, Defense Media Activity
ABOARD A U.S. MILITARY AIRCRAFT, Jan. 22, 2015 – NATO is focused on strategies to deal with its two biggest threats -- Russian aggression to its east, and the threat of terrorism from its south, the chairman of the Joint Chiefs of Staff said today.
Army Gen. Martin E. Dempsey and other alliance defense chiefs today concluded two days of talks at NATO headquarters in Brussels.
Russian aggression, Dempsey said, has "changed sovereign borders with the use of coercion." And the recent terrorist attacks in Paris underscore the "very real threat of terrorism that comes up into NATO's southern flank."
There was consensus among the military chiefs that NATO must confront these threats, he said.
NATO Needs to Address Both Threats
"I thought this would be the most important meeting of its kind that I've had with NATO since I've been chairman, and in my judgment it proved to be just that," the chairman said in an interview on his plane back to Washington.
"We came to an agreement that NATO really does have to address both threats, and that NATO has the capability and the resources to address them both," Dempsey said. "We don't have to pick which threat is more serious."
While Dempsey declined to discuss details of the most recent allegations of Russia violating September’s Minsk ceasefire agreement, he did underscore the seriousness in which NATO views the Russian aggression.
"It is indicative of efforts on the part of Russia to support separatists in, frankly, violation of Ukrainian sovereignty," Dempsey said. "We're very concerned about it."
Eastern Europeans are very unsettled about the threats to the east, and the southern Europeans are very unsettled about the threats to the south, Dempsey said.
U.S. and European officials have expressed concern about the return of foreign fighters through NATO's southern flank, and the threat that those extremists pose to Europe.
NATO to Evolve Strategy to Address Threats
The defense chiefs also discussed the strategic concept, crafted in 2010, that informs NATO's defense planning. Global security has changed "pretty dramatically" in those four years, Dempsey said.
NATO will evolve its strategies to deal with the threats to its east and south, and the military chiefs will make recommendations on the way the NATO military arm is organized and resourced, he said.
Dempsey said it is important to demonstrate "our resolve and our reassurance" to NATO's Baltic and Eastern European allies through the Readiness Action Plan, NATO's response to the Russian aggression.
Alliance officials say the Readiness Action Plan will significantly enhance NATO’s readiness and responsiveness and ensure that NATO forces remain ready. In the interim, NATO has established a “very high readiness” joint task force coordinated by Air Force Gen. Philip M. Breedlove, NATO’s supreme allied commander for Europe.
NATO has bolstered its presence in Eastern Europe, while the United States has conducted a variety of reassurance measures to include airborne exercises in Poland and the Baltic nations.
"We have the very real requirement to reassure our allies, to increase the readiness of NATO's forces, and to adapt some of the organizations that provide NATO rapid response and the NATO command structures," Dempsey said.
The defense chiefs did "really big lifting" to address the near-term requirements on readiness and assurance, he added, and on the longer-term approach to the threats to east and south.
Pleased With Transition in Afghanistan
Dempsey said the defense chiefs were pleased with the successful transition from the combat International Security Assistance Force mission to the Resolute Support mission that trains, advises, assists and builds capacity.
Flexibility is needed in the strategy for Afghanistan, Dempsey said, encouraging the allies to "stay committed at the regional level through the fighting season of 2015." It is prudent to stay at the regional level militarily through the year, he added.
Dempsey, who said the alliance has a great ally in Afghan President Ashraf Ghani, said the strategy must consider both conditions on the ground and a timetable for progress.
"Milestones based on time are an important goal, so that you have something to reach for and to plan for and to resource for," he said. "It just seems to me that in these kinds of missions, it is useful to have both a timetable but then be willing to assess and reassess and assess again the conditions."
The United States has demonstrated flexibility, he said.
"Initially we were supposed to be at 9,800 [troops in Afghanistan] by the end of 2014, but our NATO allies had some challenges in resourcing, and so we've left an additional 1,000 there into the spring, to allow NATO to catch up with its resourcing challenges."
SATELLITE VIEW OF GREELAND'S LEIDY GLACIER
Caption Credit: Located in the northwest corner of Greenland, Leidy Glacier is fed by ice from the Academy Glacier (upstream and inland). As Leidy approaches the sea, it is diverted around the tip of an island that separates the Olriks Fjord to the south and Academy Cove to the north. The resulting crisscross pattern is simply the result of ice flowing along the path of least resistance.
This view of the region pictured above was acquired August 7, 2012, by the Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) on NASA's Terra satellite. In April 2012, the feature caught the attention of a NASA pilot, who snapped this picture from the cockpit of a high-flying ER-2 aircraft during a research flight over the Greenland ice cap.
FTC ANNOUNCES SUMMARY JUDGEMENT AGAINST DISH NETWORK FOR TELEMARKETING VIOLATIONS
FROM: U.S. FEDERAL TRADE COMMISSION
Court Grants Partial Summary Judgment in FTC Case against Dish Network, Finding the Company Liable for Tens of Millions of Telemarketing Violations
The U.S. District Court for the Central District of Illinois has found Dish Network liable for tens of millions of calls that violated the Federal Trade Commission’s Telemarketing Sales Rule (TSR), including Do Not Call, entity-specific, and abandoned-call violations. The opinion, which was issued on December 12, 2014, represents a partial summary judgment win in the case the Department of Justice filed on behalf of the Federal Trade Commission against Dish in March 2009.
The FTC’s complaint alleges that Dish initiated, or caused a telemarketer to initiate, outbound telephone calls to phone numbers on the National Do Not Call (DNC) Registry, in violation of the TSR. Dish markets its programming directly, through telemarketing vendors it contracts with to engage in telemarketing, and through authorized dealers or retailers.
In the current ruling, the court found Dish liable for 4,094,099 calls it or its vendors made to numbers on the Registry and for 2,730,842 calls its retailers made to numbers on the Registry. The court found that the government met its burden to hold Dish liable for the retailers’ calls since: 1) Dish retained the retailers, 2) Dish authorized the retailers to market Dish products and services, and 3) the retailers violated the TSR by initiating Dish telemarketing calls to numbers on the Registry.
The complaint also alleges that Dish initiated, or caused other telemarketers to initiate, an outbound call to a person who had previously said that they do not wish to receive such a call, in violation of the “entity-specific” provision of the TSR. On this count, the court ruled that Dish is liable for 1,043,595 calls to consumers whose telephone numbers were on Dish’s internal do-not-call list or were marked “DNC” by Dish’s telemarketing vendor. The court left the issue of whether Dish is liable for any entity-specific violations relating to its retailers to be determined at trial.
In addition, the complaint alleges that Dish abandoned or caused telemarketers to abandon outbound telephone calls, in violation of the “abandoned-call” provision of TSR. On this count the court ruled that Dish is liable for 49,738,073 abandoned calls that Dish and three of its retailers made. The court found that Dish is liable for both its own calls, and for causing these retailers’ abandoned calls.
Finally, the court issued several findings in favor of the four state co-plaintiffs in the case against Dish. For example, the court found that the company made outbound telephone calls to residents of the states whose numbers were on the DNC Registry.
The Department of Justice filed the complaint at the FTC’s request in March 2009. DOJ, on behalf of the FTC, is jointly litigating the case with four state co-plaintiffs -- California, Illinois, Ohio, and North Carolina. The states allege that Dish violated the Telephone Consumer Protection Act and state law by calling numbers on the Do Not Call Registry and by making telemarketing robocalls to consumers.
Court Grants Partial Summary Judgment in FTC Case against Dish Network, Finding the Company Liable for Tens of Millions of Telemarketing Violations
The U.S. District Court for the Central District of Illinois has found Dish Network liable for tens of millions of calls that violated the Federal Trade Commission’s Telemarketing Sales Rule (TSR), including Do Not Call, entity-specific, and abandoned-call violations. The opinion, which was issued on December 12, 2014, represents a partial summary judgment win in the case the Department of Justice filed on behalf of the Federal Trade Commission against Dish in March 2009.
The FTC’s complaint alleges that Dish initiated, or caused a telemarketer to initiate, outbound telephone calls to phone numbers on the National Do Not Call (DNC) Registry, in violation of the TSR. Dish markets its programming directly, through telemarketing vendors it contracts with to engage in telemarketing, and through authorized dealers or retailers.
In the current ruling, the court found Dish liable for 4,094,099 calls it or its vendors made to numbers on the Registry and for 2,730,842 calls its retailers made to numbers on the Registry. The court found that the government met its burden to hold Dish liable for the retailers’ calls since: 1) Dish retained the retailers, 2) Dish authorized the retailers to market Dish products and services, and 3) the retailers violated the TSR by initiating Dish telemarketing calls to numbers on the Registry.
The complaint also alleges that Dish initiated, or caused other telemarketers to initiate, an outbound call to a person who had previously said that they do not wish to receive such a call, in violation of the “entity-specific” provision of the TSR. On this count, the court ruled that Dish is liable for 1,043,595 calls to consumers whose telephone numbers were on Dish’s internal do-not-call list or were marked “DNC” by Dish’s telemarketing vendor. The court left the issue of whether Dish is liable for any entity-specific violations relating to its retailers to be determined at trial.
In addition, the complaint alleges that Dish abandoned or caused telemarketers to abandon outbound telephone calls, in violation of the “abandoned-call” provision of TSR. On this count the court ruled that Dish is liable for 49,738,073 abandoned calls that Dish and three of its retailers made. The court found that Dish is liable for both its own calls, and for causing these retailers’ abandoned calls.
Finally, the court issued several findings in favor of the four state co-plaintiffs in the case against Dish. For example, the court found that the company made outbound telephone calls to residents of the states whose numbers were on the DNC Registry.
The Department of Justice filed the complaint at the FTC’s request in March 2009. DOJ, on behalf of the FTC, is jointly litigating the case with four state co-plaintiffs -- California, Illinois, Ohio, and North Carolina. The states allege that Dish violated the Telephone Consumer Protection Act and state law by calling numbers on the Do Not Call Registry and by making telemarketing robocalls to consumers.
PUNEET TALWAR'S REMARKS ON US.-VIETNAM RELATIUONSHIP
FROM: THE STATE DEPARTMENT
Arms Control and International Security: The U.S.-Vietnam Relationship: Advancing Peace and Prosperity in 2015
01/23/2015 05:44 AM EST
The U.S.-Vietnam Relationship: Advancing Peace and Prosperity in 2015
Remarks
Puneet Talwar
Assistant Secretary, Bureau of Political-Military Affairs
Diplomatic Academy of Vietnam
Hanoi, Vietnam
January 23, 2015
As prepared
Thank you very much. Cam on.
Let me thank Dr. Tuan Hoang for his very kind introduction, and for the important work he has done, both as a former Minister Counselor at Vietnam’s Embassy in the United States, and here in Vietnam, to deepen the bond between our countries.
It’s wonderful to be in Hanoi, a beautiful and bustling city with over one thousand years of history and culture. And I’m especially honored to be here at the Diplomatic Academy of Vietnam, an institution that not only provides thoughtful insight on the major foreign policy issues of today, but also educates the leaders of tomorrow.
I want to also thank Vice Foreign Minister Ha Kim Ngoc and the entire Vietnamese government for such a warm welcome.
Yesterday and earlier today, my team and I held very productive discussions with our counterparts from Vietnam. We brought representation from the State Department, Department of Defense, Department of Justice, Department of Homeland Security, the United States Coast Guard, and United States Pacific Command. And on the Vietnamese side, we met with representatives of the Ministry of Foreign Affairs, the Ministry of National Defense, and the Ministry of Public Security.
As you can tell from the delegations, our discussions were very serious and covered the full range of issues. And I think the scope of these talks over the last two days is the most recent data point on an upward trajectory that shows how far our relationship has come.
I can certainly speak for the American side when I say that this year’s dialogue has set a positive and encouraging tone for 2015, which is an historic year in U.S.-Vietnam relations.
Many of us still remember a time when an event like this one, with a visiting American diplomat speaking at Vietnam’s diplomatic academy, would have been unimaginable. But thanks to the vision and direction from our leaders over the past two decades, here we are.
As the Vietnamese proverb goes, An qua nho ke trong cay, which for those who don’t speak Vietnamese, means, “When eating a fruit, think of the person who planted the tree.”
So this year, as we celebrate the 20th year of normalized ties, let us remember those who planted the seeds of friendship and partnership… who even in the darkest of days, had the courage and vision to see a brighter path ahead.
Twenty years ago, in 1995, President Clinton and President Anh, along with leaders like Senator John McCain and then-Senator John Kerry, ushered in a new chapter in this relationship. Many others, including Secretary Colin Powell and Secretary Hillary Clinton, built on this important groundwork and helped guide us to where we are today.
But change did not just happen at the leader-to-leader level. It also happened at the people-to-people level, with thousands of American and Vietnamese students studying abroad, forging friendships, and exchanging ideas and cultures, dreaming of the future rather than being shackled by the past.
Both our leaders and our peoples took bold steps so that today, all of us could enjoy the fruits of their labor – with more trade between our businesses, more visits between our peoples, and more exchanges between our students.
As we reflect on the tremendous progress we’ve made, today I’d like to talk about where we go from here. To ask how we can build upon the growth we’ve worked so hard to cultivate. The Comprehensive Partnership, launched by President Obama and President Sang in 2013, laid out a blueprint for how we can chart that course together.
I’d like to focus in on three areas of cooperation, all of which support our bilateral ties and underpin America’s overall rebalance to the Asia-Pacific. First, humanitarian cooperation; second, trade and economic cooperation; and third, defense and security cooperation.
The United States has a longstanding relationship with Vietnam on humanitarian issues, some of them the legacies of history. For many years now, we have worked with Vietnam to address the effects of Agent Orange, and to coordinate on issues related to the remains of missing Americans. Indeed, it was our joint effort on these issues that helped lay the foundation for the restoration of ties. And I know that Secretary Kerry, to this day, is proud of the progress we’ve been able to achieve, and how it has set the stage for the much broader partnership that we are seeing today.
We’ve also taken action to alleviate the humanitarian impacts of unexploded ordnance. Cluster munitions and other leftover remnants of war remain a humanitarian concern because they continue to endanger innocent men, women, and particularly children, long after soldiers have laid down their arms. Without a moment’s notice, these weapons can end or alter a life forever.
So our objective is clear. We want to see a Vietnam that is free from the impact of unexploded ordnance, period. And although this won’t happen overnight, with sustained focus and sustained investment, this is a goal we are committed to reaching.
That’s why, since 1993, even before we restored diplomatic ties, the United States began helping to remove unexploded ordnance from Vietnam. We are by far the largest international donor to this effort, and I just met with some of our NGO partners here in Vietnam who are working every day to implement these efforts on the ground. This year, the United States has more than doubled our financial commitment to Vietnam, with a special focus on Quang Tri Province. And next year, we expect to increase funding even more. In the United States, this work is supported across the political spectrum, because it’s the right thing to do.
Our efforts are far from finished, but by uprooting and disarming these deadly remnants of war, we are sowing a safer future for all Vietnamese.
Still, our humanitarian efforts with Vietnam extend far beyond unexploded ordnance. Since 2004, through the President’s Emergency Program for AIDS Relief, we’ve invested over $700 million to support the fight against HIV/AIDS in Vietnam.
Together with Vietnam and our other regional partners, we’re also working on humanitarian efforts throughout the region and the world.
We commend Vietnam for its first ever contribution to a United Nations peacekeeping effort, launched last year. The professionalism of the Vietnamese officers will enhance the effectiveness of the UN Mission in South Sudan. And we look forward to working with you to build on that initial commitment going forward, including by assisting with the construction of Vietnam’s peacekeeping training center, and by preparing your peacekeepers to deploy a military hospital and an engineering unit.
Even as we support humanitarian efforts in faraway places through peacekeeping, we also continue to work with our partners throughout ASEAN, including Vietnam, on disaster relief right here in Southeast Asia. The past few weeks have unfortunately provided yet another example of why this work is so important. When word came of the terrible Air Asia tragedy, the men and women aboard the USS Sampson and USS Fort Worth, along with many others from across the region, stopped what they were doing to join the search. That’s what good friends do. And going forward, we remain steadfast in our commitment to partnering with Vietnam and others in the region to be able to quickly and effectively contribute to disaster relief efforts.
Let me also take a moment to address another issue on our bilateral agenda: human rights. We strongly believe that societies that respect human rights flourish. As Secretary Kerry has said, “Greater openness is a great catalyst for a stronger and more prosperous society. And today Vietnam has a historic opportunity to prove that even further.” Whether it’s an open internet, a more open society, or freer exchange of ideas… the protection of human rights, which includes the freedom to freely express one’s views, is a step towards a stronger, more prosperous, and more inclusive Vietnam.
Over the past two decades, our countries have made great strides not only on our humanitarian agenda, but also on our economic agenda. Let me highlight just a few examples.
Twenty years ago, when we restored our relationship, our bilateral trade was just $451 million. Last year it reached almost $35 billion. During that same time period, the incomes of Vietnamese citizens have quadrupled.
Today, Vietnam exports more goods to the United States than to any other country. Our economic relationship has created thousands of jobs in Vietnam and in the United States.
In every year since normalization in 1995, Vietnam’s GDP has grown by over 4 percent. And in every year since 2000, it has grown by over 5 percent.
And Vietnam’s future looks just as promising, thanks to growing exports, increased tourism here in Vietnam, and a young, vibrant population – where over 40 percent of your people are under the age of 25. Walking along the streets of Hanoi, the youth and energy and promise of Vietnam’s future is palpable.
That brings me to the second area where we can deepen our cooperation this year: the economy and trade. As President Sang said when he visited Washington, DC in July 2013, “Economic trade ties continue to stay at the heart of bilateral relations, serving both as the cornerstone of, and an engine for the overall relationship.”
In 2015, the most important thing we can do to build on this economic progress is to complete the Trans-Pacific Partnership.
TPP would provide the United States, Vietnam, and ten other member states a level playing field to compete in markets that together account for almost 40 percent of global GDP. It would set high standards on labor and the environment, and it would open up new markets for American goods and for Vietnamese goods. Seizing this moment, this year, is an opportunity we should not miss.
The third area of cooperation, in security and defense, is what underpins our economic relationship, our humanitarian work, and our many other areas of cooperation.
The truth is that prosperity and security are inseparable.
With over half the world’s merchant tonnage flowing through the South China Sea; with over 15 million barrels of oil per day and over 100,000 vessels per year passing through the Strait of Malacca; security is essential to the free flow of trade and commerce in Southeast Asia.
And here’s where our cooperation can really make a difference, and where the 2011 Memorandum of Understanding for advancing our bilateral defense cooperation set an excellent foundation. Because all of our security cooperation – whether it’s helping to develop Vietnam’s coast guard, promoting access to sea lanes, countering piracy, promoting disaster response, improving maritime domain awareness in the region, upholding maritime security – all of these activities are designed to underpin our economic relationship.
Working with our regional partners to help them build up their capabilities – whether it’s Vietnam or the Philippines or Malaysia or Indonesia – is a net security benefit and a net economic benefit for the region.
Last year, as you know, Secretary Kerry announced an important revision to our bilateral arms sales policy. As part of the $32.5 million he announced in new regional maritime security assistance, $18 million of that was directed to Vietnam. That investment boosts our shared security, and the prospects for our shared economic growth. And in our dialogue over the past two days, we discussed more ways to help you secure your borders and waterways, and to deepen security in the region.
Our security cooperation is already paying dividends, but there is still more work to do. One area where we are seeing tension is in the South China Sea. We continue to support diplomatic efforts by ASEAN to manage these tensions, including the establishment of a binding Code of Conduct. And we do not hesitate to raise our concerns over these tensions at the highest of levels, including with Chinese leaders.
Our policy is clear. There must be one set of rules in the South China Sea. We believe in freedom of navigation and over flight throughout the region, which is crucial to economic growth. We share a vision where all parties pursue resolution of their territorial and maritime disputes through peaceful means, in accordance with universally recognized principles of international law, including the United Nations Convention on the Law of the Sea.
Within the realm of security cooperation, we can also do more together to counter the proliferation of weapons of mass destruction. We want to see every country adhere to international norms and obligations on weapons of mass destruction, while at the same time making available peaceful uses of nuclear technology. Going forward, our two countries can make strong contributions to counter regional and global proliferation threats.
A final topic in the security arena that is ripe for increased engagement is in the law enforcement and justice sector. We had an excellent conversation on this issue at our meetings here in Vietnam, where we highlighted the robust cooperation we’ve seen on investigations and law enforcement training programs. And we are committed to sustained engagement as Vietnam undertakes legislative efforts to implement its Penal and Criminal Procedure Codes.
As I said at the beginning of my remarks, these three broad areas of cooperation – humanitarian, economic, and security – don’t just build our bilateral ties. They also reinforce our overall rebalance to Asia.
I know that with the many crises unfolding across the world, in the Middle East, in Ukraine, and elsewhere, there are some who wonder whether the United States is still committed to the Asia rebalance. Let me answer that in one word: Yes. We are. President Obama is committed to it. Secretary Kerry is committed to it. I’m committed to it.
But you don’t have to take our word for it. The vast array of ways that we are working together, with you and our many friends throughout the Asia-Pacific – those actions, rather than these words, show that the rebalance is real.
Broadening and deepening our partnership with Vietnam is a critical pillar of the rebalance. And this year holds so much promise and possibility for us to make progress, and it’s our job now to turn those possibilities into action.
Twenty years ago, when President Clinton announced a new direction in our relationship, he reflected on the past but said, “Let the future be our destination.”
So let us continue to work together on these issues – on peacekeeping, unexploded ordnance, and human rights; on growing our trade and investment; and on building a more stable and secure Southeast Asia. So that in five or ten or twenty more years, when the young leaders here today are eating their fruit, they can think of the work we did this year to plant those seeds of cooperation… to build a more prosperous and more peaceful future.
Let me extend, on behalf of the American people, our warmest wishes as Tet approaches. To the future of U.S.-Vietnam relations, hung thinh va ben vung – full of prosperity and long-lasting.
Thank you very. Cam on.
Arms Control and International Security: The U.S.-Vietnam Relationship: Advancing Peace and Prosperity in 2015
01/23/2015 05:44 AM EST
The U.S.-Vietnam Relationship: Advancing Peace and Prosperity in 2015
Remarks
Puneet Talwar
Assistant Secretary, Bureau of Political-Military Affairs
Diplomatic Academy of Vietnam
Hanoi, Vietnam
January 23, 2015
As prepared
Thank you very much. Cam on.
Let me thank Dr. Tuan Hoang for his very kind introduction, and for the important work he has done, both as a former Minister Counselor at Vietnam’s Embassy in the United States, and here in Vietnam, to deepen the bond between our countries.
It’s wonderful to be in Hanoi, a beautiful and bustling city with over one thousand years of history and culture. And I’m especially honored to be here at the Diplomatic Academy of Vietnam, an institution that not only provides thoughtful insight on the major foreign policy issues of today, but also educates the leaders of tomorrow.
I want to also thank Vice Foreign Minister Ha Kim Ngoc and the entire Vietnamese government for such a warm welcome.
Yesterday and earlier today, my team and I held very productive discussions with our counterparts from Vietnam. We brought representation from the State Department, Department of Defense, Department of Justice, Department of Homeland Security, the United States Coast Guard, and United States Pacific Command. And on the Vietnamese side, we met with representatives of the Ministry of Foreign Affairs, the Ministry of National Defense, and the Ministry of Public Security.
As you can tell from the delegations, our discussions were very serious and covered the full range of issues. And I think the scope of these talks over the last two days is the most recent data point on an upward trajectory that shows how far our relationship has come.
I can certainly speak for the American side when I say that this year’s dialogue has set a positive and encouraging tone for 2015, which is an historic year in U.S.-Vietnam relations.
Many of us still remember a time when an event like this one, with a visiting American diplomat speaking at Vietnam’s diplomatic academy, would have been unimaginable. But thanks to the vision and direction from our leaders over the past two decades, here we are.
As the Vietnamese proverb goes, An qua nho ke trong cay, which for those who don’t speak Vietnamese, means, “When eating a fruit, think of the person who planted the tree.”
So this year, as we celebrate the 20th year of normalized ties, let us remember those who planted the seeds of friendship and partnership… who even in the darkest of days, had the courage and vision to see a brighter path ahead.
Twenty years ago, in 1995, President Clinton and President Anh, along with leaders like Senator John McCain and then-Senator John Kerry, ushered in a new chapter in this relationship. Many others, including Secretary Colin Powell and Secretary Hillary Clinton, built on this important groundwork and helped guide us to where we are today.
But change did not just happen at the leader-to-leader level. It also happened at the people-to-people level, with thousands of American and Vietnamese students studying abroad, forging friendships, and exchanging ideas and cultures, dreaming of the future rather than being shackled by the past.
Both our leaders and our peoples took bold steps so that today, all of us could enjoy the fruits of their labor – with more trade between our businesses, more visits between our peoples, and more exchanges between our students.
As we reflect on the tremendous progress we’ve made, today I’d like to talk about where we go from here. To ask how we can build upon the growth we’ve worked so hard to cultivate. The Comprehensive Partnership, launched by President Obama and President Sang in 2013, laid out a blueprint for how we can chart that course together.
I’d like to focus in on three areas of cooperation, all of which support our bilateral ties and underpin America’s overall rebalance to the Asia-Pacific. First, humanitarian cooperation; second, trade and economic cooperation; and third, defense and security cooperation.
The United States has a longstanding relationship with Vietnam on humanitarian issues, some of them the legacies of history. For many years now, we have worked with Vietnam to address the effects of Agent Orange, and to coordinate on issues related to the remains of missing Americans. Indeed, it was our joint effort on these issues that helped lay the foundation for the restoration of ties. And I know that Secretary Kerry, to this day, is proud of the progress we’ve been able to achieve, and how it has set the stage for the much broader partnership that we are seeing today.
We’ve also taken action to alleviate the humanitarian impacts of unexploded ordnance. Cluster munitions and other leftover remnants of war remain a humanitarian concern because they continue to endanger innocent men, women, and particularly children, long after soldiers have laid down their arms. Without a moment’s notice, these weapons can end or alter a life forever.
So our objective is clear. We want to see a Vietnam that is free from the impact of unexploded ordnance, period. And although this won’t happen overnight, with sustained focus and sustained investment, this is a goal we are committed to reaching.
That’s why, since 1993, even before we restored diplomatic ties, the United States began helping to remove unexploded ordnance from Vietnam. We are by far the largest international donor to this effort, and I just met with some of our NGO partners here in Vietnam who are working every day to implement these efforts on the ground. This year, the United States has more than doubled our financial commitment to Vietnam, with a special focus on Quang Tri Province. And next year, we expect to increase funding even more. In the United States, this work is supported across the political spectrum, because it’s the right thing to do.
Our efforts are far from finished, but by uprooting and disarming these deadly remnants of war, we are sowing a safer future for all Vietnamese.
Still, our humanitarian efforts with Vietnam extend far beyond unexploded ordnance. Since 2004, through the President’s Emergency Program for AIDS Relief, we’ve invested over $700 million to support the fight against HIV/AIDS in Vietnam.
Together with Vietnam and our other regional partners, we’re also working on humanitarian efforts throughout the region and the world.
We commend Vietnam for its first ever contribution to a United Nations peacekeeping effort, launched last year. The professionalism of the Vietnamese officers will enhance the effectiveness of the UN Mission in South Sudan. And we look forward to working with you to build on that initial commitment going forward, including by assisting with the construction of Vietnam’s peacekeeping training center, and by preparing your peacekeepers to deploy a military hospital and an engineering unit.
Even as we support humanitarian efforts in faraway places through peacekeeping, we also continue to work with our partners throughout ASEAN, including Vietnam, on disaster relief right here in Southeast Asia. The past few weeks have unfortunately provided yet another example of why this work is so important. When word came of the terrible Air Asia tragedy, the men and women aboard the USS Sampson and USS Fort Worth, along with many others from across the region, stopped what they were doing to join the search. That’s what good friends do. And going forward, we remain steadfast in our commitment to partnering with Vietnam and others in the region to be able to quickly and effectively contribute to disaster relief efforts.
Let me also take a moment to address another issue on our bilateral agenda: human rights. We strongly believe that societies that respect human rights flourish. As Secretary Kerry has said, “Greater openness is a great catalyst for a stronger and more prosperous society. And today Vietnam has a historic opportunity to prove that even further.” Whether it’s an open internet, a more open society, or freer exchange of ideas… the protection of human rights, which includes the freedom to freely express one’s views, is a step towards a stronger, more prosperous, and more inclusive Vietnam.
Over the past two decades, our countries have made great strides not only on our humanitarian agenda, but also on our economic agenda. Let me highlight just a few examples.
Twenty years ago, when we restored our relationship, our bilateral trade was just $451 million. Last year it reached almost $35 billion. During that same time period, the incomes of Vietnamese citizens have quadrupled.
Today, Vietnam exports more goods to the United States than to any other country. Our economic relationship has created thousands of jobs in Vietnam and in the United States.
In every year since normalization in 1995, Vietnam’s GDP has grown by over 4 percent. And in every year since 2000, it has grown by over 5 percent.
And Vietnam’s future looks just as promising, thanks to growing exports, increased tourism here in Vietnam, and a young, vibrant population – where over 40 percent of your people are under the age of 25. Walking along the streets of Hanoi, the youth and energy and promise of Vietnam’s future is palpable.
That brings me to the second area where we can deepen our cooperation this year: the economy and trade. As President Sang said when he visited Washington, DC in July 2013, “Economic trade ties continue to stay at the heart of bilateral relations, serving both as the cornerstone of, and an engine for the overall relationship.”
In 2015, the most important thing we can do to build on this economic progress is to complete the Trans-Pacific Partnership.
TPP would provide the United States, Vietnam, and ten other member states a level playing field to compete in markets that together account for almost 40 percent of global GDP. It would set high standards on labor and the environment, and it would open up new markets for American goods and for Vietnamese goods. Seizing this moment, this year, is an opportunity we should not miss.
The third area of cooperation, in security and defense, is what underpins our economic relationship, our humanitarian work, and our many other areas of cooperation.
The truth is that prosperity and security are inseparable.
With over half the world’s merchant tonnage flowing through the South China Sea; with over 15 million barrels of oil per day and over 100,000 vessels per year passing through the Strait of Malacca; security is essential to the free flow of trade and commerce in Southeast Asia.
And here’s where our cooperation can really make a difference, and where the 2011 Memorandum of Understanding for advancing our bilateral defense cooperation set an excellent foundation. Because all of our security cooperation – whether it’s helping to develop Vietnam’s coast guard, promoting access to sea lanes, countering piracy, promoting disaster response, improving maritime domain awareness in the region, upholding maritime security – all of these activities are designed to underpin our economic relationship.
Working with our regional partners to help them build up their capabilities – whether it’s Vietnam or the Philippines or Malaysia or Indonesia – is a net security benefit and a net economic benefit for the region.
Last year, as you know, Secretary Kerry announced an important revision to our bilateral arms sales policy. As part of the $32.5 million he announced in new regional maritime security assistance, $18 million of that was directed to Vietnam. That investment boosts our shared security, and the prospects for our shared economic growth. And in our dialogue over the past two days, we discussed more ways to help you secure your borders and waterways, and to deepen security in the region.
Our security cooperation is already paying dividends, but there is still more work to do. One area where we are seeing tension is in the South China Sea. We continue to support diplomatic efforts by ASEAN to manage these tensions, including the establishment of a binding Code of Conduct. And we do not hesitate to raise our concerns over these tensions at the highest of levels, including with Chinese leaders.
Our policy is clear. There must be one set of rules in the South China Sea. We believe in freedom of navigation and over flight throughout the region, which is crucial to economic growth. We share a vision where all parties pursue resolution of their territorial and maritime disputes through peaceful means, in accordance with universally recognized principles of international law, including the United Nations Convention on the Law of the Sea.
Within the realm of security cooperation, we can also do more together to counter the proliferation of weapons of mass destruction. We want to see every country adhere to international norms and obligations on weapons of mass destruction, while at the same time making available peaceful uses of nuclear technology. Going forward, our two countries can make strong contributions to counter regional and global proliferation threats.
A final topic in the security arena that is ripe for increased engagement is in the law enforcement and justice sector. We had an excellent conversation on this issue at our meetings here in Vietnam, where we highlighted the robust cooperation we’ve seen on investigations and law enforcement training programs. And we are committed to sustained engagement as Vietnam undertakes legislative efforts to implement its Penal and Criminal Procedure Codes.
As I said at the beginning of my remarks, these three broad areas of cooperation – humanitarian, economic, and security – don’t just build our bilateral ties. They also reinforce our overall rebalance to Asia.
I know that with the many crises unfolding across the world, in the Middle East, in Ukraine, and elsewhere, there are some who wonder whether the United States is still committed to the Asia rebalance. Let me answer that in one word: Yes. We are. President Obama is committed to it. Secretary Kerry is committed to it. I’m committed to it.
But you don’t have to take our word for it. The vast array of ways that we are working together, with you and our many friends throughout the Asia-Pacific – those actions, rather than these words, show that the rebalance is real.
Broadening and deepening our partnership with Vietnam is a critical pillar of the rebalance. And this year holds so much promise and possibility for us to make progress, and it’s our job now to turn those possibilities into action.
Twenty years ago, when President Clinton announced a new direction in our relationship, he reflected on the past but said, “Let the future be our destination.”
So let us continue to work together on these issues – on peacekeeping, unexploded ordnance, and human rights; on growing our trade and investment; and on building a more stable and secure Southeast Asia. So that in five or ten or twenty more years, when the young leaders here today are eating their fruit, they can think of the work we did this year to plant those seeds of cooperation… to build a more prosperous and more peaceful future.
Let me extend, on behalf of the American people, our warmest wishes as Tet approaches. To the future of U.S.-Vietnam relations, hung thinh va ben vung – full of prosperity and long-lasting.
Thank you very. Cam on.
SEC ALLEGES FORMER EXECUTIVE AT ENGINEERING FIRM BRIBED FOREIGN OFFICIAL
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Former Executive at Tampa-Based Engineering Firm With FCPA Violations
01/22/2015 10:40 AM EST
The Securities and Exchange Commission today charged a former officer at a Tampa, Fla.-based engineering and construction firm with violating the Foreign Corrupt Practices Act (FCPA) by offering and authorizing bribes and employment to foreign officials to secure Qatari government contracts.
The SEC also announced a deferred prosecution agreement (DPA) with The PBSJ Corporation that defers FCPA charges for a period of two years and requires the company to comply with certain undertakings. PBSJ must immediately pay $3.4 million in financial remedies as part of the agreement, which reflects the company’s significant cooperation with the SEC investigation. PBSJ is now known as The Atkins North America Holdings Corporation and no longer offers public stock in the U.S.
An SEC investigation found that Walid Hatoum, who has agreed to settle the SEC’s charges, offered to funnel funds to a local company owned and controlled by a foreign official in order to secure two multi-million Qatari government contracts for PBSJ in 2009. The foreign official subsequently provided Hatoum and PBSJ’s international subsidiary with access to confidential sealed-bid and pricing information that enabled the PBSJ subsidiary to tender winning bids for a hotel resort development project in Morocco and a light rail transit project in Qatar.
“Hatoum offered and authorized nearly $1.4 million in bribes disguised as ‘agency fees’ intended for a foreign official who used an alias to communicate confidential information that assisted PBSJ,” said Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit. “PBSJ ignored multiple red flags that should have enabled other officers and employees to uncover the bribery scheme at an earlier stage. But once discovered, the company self-reported the potential FCPA violations and cooperated substantially.”
According to the SEC’s order instituting a settled administrative proceeding against Hatoum, he also offered employment to a second foreign official in return for assistance as the bribery scheme began to unravel and PBSJ lost the hotel resort contract. Even though the bribes themselves were not consummated before the scheme was uncovered by the company, PBSJ earned approximately $2.9 million in illicit profits because it continued work on the light rail project until a replacement company could be found.
Under the DPA, PBSJ agreed to pay disgorgement and interest of $3,032,875 and a penalty of $375,000. PBSJ took quick steps to end the misconduct after self-reporting to the SEC, and the company voluntarily made witnesses available for interviews and provided factual chronologies, timelines, internal summaries, and full forensic images to cooperate with the SEC’s investigation.
The SEC’s order against Hatoum finds that he violated the anti-bribery, internal accounting controls, books and records, and false records provisions of the Securities Exchange Act of 1934. Without admitting or denying the findings, Hatoum agreed to pay a penalty of $50,000.
The SEC’s investigation was conducted by FCPA Unit members Tracy L. Price and Jim Valentino. The SEC appreciates the assistance of the Justice Department’s Fraud Section and the Federal Bureau of Investigation.
SEC Charges Former Executive at Tampa-Based Engineering Firm With FCPA Violations
01/22/2015 10:40 AM EST
The Securities and Exchange Commission today charged a former officer at a Tampa, Fla.-based engineering and construction firm with violating the Foreign Corrupt Practices Act (FCPA) by offering and authorizing bribes and employment to foreign officials to secure Qatari government contracts.
The SEC also announced a deferred prosecution agreement (DPA) with The PBSJ Corporation that defers FCPA charges for a period of two years and requires the company to comply with certain undertakings. PBSJ must immediately pay $3.4 million in financial remedies as part of the agreement, which reflects the company’s significant cooperation with the SEC investigation. PBSJ is now known as The Atkins North America Holdings Corporation and no longer offers public stock in the U.S.
An SEC investigation found that Walid Hatoum, who has agreed to settle the SEC’s charges, offered to funnel funds to a local company owned and controlled by a foreign official in order to secure two multi-million Qatari government contracts for PBSJ in 2009. The foreign official subsequently provided Hatoum and PBSJ’s international subsidiary with access to confidential sealed-bid and pricing information that enabled the PBSJ subsidiary to tender winning bids for a hotel resort development project in Morocco and a light rail transit project in Qatar.
“Hatoum offered and authorized nearly $1.4 million in bribes disguised as ‘agency fees’ intended for a foreign official who used an alias to communicate confidential information that assisted PBSJ,” said Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit. “PBSJ ignored multiple red flags that should have enabled other officers and employees to uncover the bribery scheme at an earlier stage. But once discovered, the company self-reported the potential FCPA violations and cooperated substantially.”
According to the SEC’s order instituting a settled administrative proceeding against Hatoum, he also offered employment to a second foreign official in return for assistance as the bribery scheme began to unravel and PBSJ lost the hotel resort contract. Even though the bribes themselves were not consummated before the scheme was uncovered by the company, PBSJ earned approximately $2.9 million in illicit profits because it continued work on the light rail project until a replacement company could be found.
Under the DPA, PBSJ agreed to pay disgorgement and interest of $3,032,875 and a penalty of $375,000. PBSJ took quick steps to end the misconduct after self-reporting to the SEC, and the company voluntarily made witnesses available for interviews and provided factual chronologies, timelines, internal summaries, and full forensic images to cooperate with the SEC’s investigation.
The SEC’s order against Hatoum finds that he violated the anti-bribery, internal accounting controls, books and records, and false records provisions of the Securities Exchange Act of 1934. Without admitting or denying the findings, Hatoum agreed to pay a penalty of $50,000.
The SEC’s investigation was conducted by FCPA Unit members Tracy L. Price and Jim Valentino. The SEC appreciates the assistance of the Justice Department’s Fraud Section and the Federal Bureau of Investigation.
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