Monday, February 9, 2015

AI AND SAFE SELF-DRIVING CARS

FROM:  NATIONAL SCIENCE FOUNDATION
Programming safety into self-driving cars
UMass researchers improve artificial intelligence algorithms for semi-autonomous vehicles
February 2, 2015

For decades, researchers in artificial intelligence, or AI, worked on specialized problems, developing theoretical concepts and workable algorithms for various aspects of the field. Computer vision, planning and reasoning experts all struggled independently in areas that many thought would be easy to solve, but which proved incredibly difficult.

However, in recent years, as the individual aspects of artificial intelligence matured, researchers began bringing the pieces together, leading to amazing displays of high-level intelligence: from IBM's Watson to the recent poker playing champion to the ability of AI to recognize cats on the internet.

These advances were on display this week at the 29th conference of the Association for the Advancement of Artificial Intelligence (AAAI) in Austin, Texas, where interdisciplinary and applied research were prevalent, according to Shlomo Zilberstein, the conference committee chair and co-author on three papers at the conference.

Zilberstein studies the way artificial agents plan their future actions, particularly when working semi-autonomously--that is to say in conjunction with people or other devices.

Examples of semi-autonomous systems include co-robots working with humans in manufacturing, search-and-rescue robots that can be managed by humans working  remotely and "driverless" cars. It is the latter topic that has particularly piqued Zilberstein's interest in recent years.

The marketing campaigns of leading auto manufacturers have presented a vision of the future where the passenger (formerly known as the driver) can check his or her email, chat with friends or even sleep while shuttling between home and the office. Some prototype vehicles included seats that swivel back to create an interior living room, or as in the case of Google's driverless car, a design with no steering wheel or brakes.

Except in rare cases, it's not clear to Zilberstein that this vision for the vehicles of the near future is a realistic one.

"In many areas, there are lots of barriers to full autonomy," Zilberstein said. "These barriers are not only technological, but also relate to legal and ethical issues and economic concerns."

In his talk at the "Blue Sky" session at AAAI, Zilberstein argued that in many areas, including driving, we will go through a long period where humans act as co-pilots or supervisors, passing off responsibility to the vehicle when possible and taking the wheel when the driving gets tricky, before the technology reaches full autonomy (if it ever does).

In such a scenario, the car would need to communicate with drivers to alert them when they need to take over control. In cases where the driver is non-responsive, the car must be able to autonomously make the decision to safely move to the side of the road and stop.

"People are unpredictable. What happens if the person is not doing what they're asked or expected to do, and the car is moving at sixty miles per hour?" Zilberstein asked. "This requires 'fault-tolerant planning.' It's the kind of planning that can handle a certain number of deviations or errors by the person who is asked to execute the plan."

With support from the National Science Foundation (NSF), Zilberstein has been exploring these and other practical questions related to the possibility of artificial agents that act among us.

Zilberstein, a professor of computer science at the University of Massachusetts Amherst, works with human studies experts from academia and industry to help uncover the subtle elements of human behavior that one would need to take into account when preparing a robot to work semi-autonomously. He then translates those ideas into computer programs that let a robot or autonomous vehicle plan its actions--and create a plan B in case of an emergency.

There are a lot of subtle cues that go into safe driving. Take for example a four-way stop. Officially, the first car to the crosswalk goes first, but in actuality, people watch each other to see if and when to make their move.

"There is a slight negotiation going on without talking," Zilberstein explained. "It's communicating by your action such as eye contact, the wave of a hand, or the slight revving of an engine."

In trials, autonomous vehicles often sit paralyzed at such stops, unable to safely read the cues of the other drivers on the road. This "undecidedness" is a big problem for robots. A recent paper by Alan Winfield of Bristol Robotics Laboratory in the UK showed how robots, when faced with a difficult decision, will often process for such a long period of time as to miss the opportunity to act. Zilberstein's systems are designed to remedy this problem.

"With some careful separation of objectives, planning algorithms could address one of the key problems of maintaining 'live state', even when goal reachability relies on timely human interventions," he concluded.

The ability to tailor one's trip based on human-centered factors--like how attentive the driver can be or the driver's desire to avoid highways--is another aspect of semi-autonomous driving that Zilberstein is exploring.

In a paper with Kyle Wray from the University of Massachusetts Amherst and Abdel-Illah Mouaddib from the University of Caen in France, Zilberstein introduced a new model and planning algorithm that allows semi-autonomous systems to make sequential decisions in situations that involve multiple objectives--for example, balancing safety and speed.

Their experiment focused on a semi-autonomous driving scenario where the decision to transfer control depended on the driver's level of fatigue. They showed that using their new algorithm a vehicle was able to favor roads where the vehicle can drive autonomously when the driver is fatigued, thus maximizing driver safety.

"In real life, people often try to optimize several competing objectives," Zilberstein said. "This planning algorithm can do that very quickly when the objectives are prioritized. For example, the highest priority may be to minimize driving time and a lower priority objective may be to minimize driving effort. Ultimately, we want to learn how to balance such competing objectives for each driver based on observed driving patterns."

It's an exciting time for artificial intelligence. The fruits of many decades of labor are finally being deployed in real systems and machine learning is being adopted widely and for different purposes than anyone had ever realized.

"We are beginning to see these kinds of remarkable successes that integrate decades-long research efforts in a variety of AI topics," said Héctor Muñoz-Avila, program director in NSF's Robust Intelligence cluster.

Indeed, over many decades, NSF's Robust Intelligence program has supported foundational research in artificial intelligence that, according to Zilberstein, has given rise to the amazing smart systems that are beginning to transform our world. But the agency has also supported researchers like Zilberstein who ask tough questions about emerging technologies.

"When we talk about autonomy, there are legal issues, technological issues and a lot of open questions," he said. "Personally, I think that NSF has been able to identify these as important questions and has been willing to put money into them. And this gives the U.S. a big advantage."

-- Aaron Dubrow, NSF

Sunday, February 8, 2015

NASA VIDEO: AURORA TOUCHING SUNRISE

West Wing Week: 02/06/15 or, "To All the DREAMers"

AMBASSADOR PRESSMAN'S COMMENTS ON KOSOVO

FROM:  U.S. STATE  DEPARTMENT
02/06/2015 01:44 PM EST
Ambassador David Pressman
Alternate Representative to the UN for Special Political Affairs
New York, NY
February 6, 2015
AS DELIVERED

Thank you, Mr. President, and thank you Special Representative Zarif for your briefing. We welcome Foreign Ministers ThaÒ«i and DaÄiÄ back to the Council. I commend both countries for their continued dedication to the normalization of relations. We particularly welcome Kosovo’s continuing integration into the community of states as demonstrated by its participation in regional meetings and fora in recent months and, specifically, we congratulate Kosovo on its recognition by the International Olympic Committee and look forward to seeing Kosovo’s athletes competing under the Kosovo flag in Rio de Janeiro in 2016.
 The United States welcomes the successful formation of a government in Kosovo in December 2014. Although this process took time, it represents the first democratic transition of political authority resulting from free and fair elections across the entirety of Kosovo’s territory. This coalition government, and the process that led to its formation, demonstrated the resilience and vitality of Kosovo’s democratic and political institutions. The United States appreciates the leadership of President Jahjaga in helping to facilitate the political dialogue that led to government formation in accordance with Kosovo’s constitution.

The new government, which includes representatives of minority communities, has been tested over the last month by violent protests and by the separation from government service yesterday of the Minister for Communities and Returns. The importance of a fully representative, fully participatory and multi-ethnic government and parliament cannot be understated. With respect to the protests, let’s be clear: All citizens have the democratic right to protest, but violence is illegal and it’s unacceptable. We condemn all acts of vandalism to public and private property and the intimidation of journalists and TV crews. All citizens of Kosovo should exercise their democratic rights and they should do so legally and responsibly.

We encourage the new government to move quickly to address the socio-economic challenges in the country. Economic growth and new employment opportunities will demonstrate to the citizens of Kosovo, regardless of ethnicity, that they have a prosperous and free future at home, stemming the tide of migration out of the country. We additionally encourage efforts by Kosovo to undertake those measures necessary to encourage the return of those displaced both internally and outside of Kosovo as a result of the conflict, including by adjudicating property claims and enforcing court decisions. We will continue to urge Serbia, Kosovo, and all states in the region to increase cooperation at their shared borders. Such cooperation will advance the rule of law, increase security, counter criminal activity, including smuggling and trafficking in persons.

We again condemn the actions of those who seek to oppose the work of building inclusive democracy in Kosovo by committing acts of violence or by sowing tensions, mistrust, and fear between communities. The use of violence against religious pilgrims, as we unfortunately saw in Gjakove/Djakovica on Orthodox Christmas, is clearly unacceptable. All sides must guarantee freedom of movement for local populations. To this end, KFOR and EULEX continue to exercise indispensable roles in facilitating a safe and secure environment.

The United States notes the visit of Prime Minister VuÄiÄ to Kosovo in January and the cooperation of Kosovo authorities to provide protection. This act was another step toward the normalization of relations. The EU-facilitated Kosovo-Serbia Dialogue and implementation of the April 2013 agreement continue to be critical elements of building a strong, inclusive and multi-ethnic democracy in Kosovo. We welcome the forthcoming high-level meetings in Brussels next week and hope that the session on Monday will lead to concrete progress that will directly benefit the citizens of both countries.

The United States commends Serbia and Kosovo for your work, as well, on combatting foreign terrorist fighters, as demonstrated by your attendance at the first ministerial-level plenary session of the counter-ISIL coalition in December in Brussels. Kosovo’s dedication to this effort is also apparent in the recent work to arrest and prosecute foreign terrorist fighters in Kosovo and by the introduction of a law to criminalize participation in such activity.

Mr. President, in closing, I would like to stress that while the United States believes the situation in Kosovo remains an important issue, and there is much work to be done to advance the Dialogue. There is important work to be done to discuss issues critical for long-term stability, reconciliation, and development in the region. There is little, however, that such regular briefings contribute to those issues. We reiterate our preference that the Council extend the reporting period for the Secretary-General to every six months.

Thank you, Mr. President.

LOAN MODIFIERS SETTLE FTC CHARGES RELATED TO PREYING ON DISTRESSED CONSUMERS

FROM:  U.S. FEDERAL TRADE COMMISSION
Mortgage Relief Pitchmen Settle FTC Charges That They Deceived Consumers
‘Danielson Law Group,’ Others Preyed on Consumers in Financial Distress

A group of Utah-based defendants claiming to be legal experts in loan modifications have settled Federal Trade Commission charges that they broke the law by conning consumers into paying hefty fees for worthless mortgage relief services. The five proposed orders settling the FTC’s charges ban the defendants, led by Philip J. Danielson and his company, Danielson Law Group, from offering mortgage assistance relief services and from participating in the debt relief industry.

“It’s troubling when anyone takes advantage of homeowners in financial distress,” said Jessica Rich, Director of the Bureau of Consumer Protection. “This scam is particularly offensive because it used an attorney’s legal credentials to create a facade of authenticity.”

The FTC filed its complaint in July 2014, as part of a multi-agency federal and state law enforcement sweep targeting operations that fraudulently pitched loan modifications to consumers. At the FTC’s request, a U.S. district court temporarily halted the operation, which promised legal help to consumers to avoid foreclosure or get relief from unaffordable mortgages but then did little or nothing to help. The court order froze the defendants’ corporate and personal assets pending litigation of the case.

According to the Commission, the defendants lured consumers into paying $500 to $3,900 by falsely promising that attorneys would negotiate loan modifications that would substantially reduce the consumers’ mortgage payments. The defendants touted a success rate that exceeded 90 percent purportedly based on their legal expertise and a pre-qualification process that identified clients that they knew they could help. The complaint also alleged that the defendants used the name Danielson Law Group and other attorney or law firm names to look like they had lawyers all over the country, even though many consumers never met or spoke to an attorney.

The FTC charged the defendants with violating the FTC Act and the Mortgage Assistance Relief Services (MARS) Rule, now known as Regulation O. The Rule bans mortgage foreclosure rescue and loan modification service providers from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable.

Under the proposed settlements announced today, the defendants are banned from participating in the mortgage relief and debt relief industries, and are prohibited from misrepresenting various features of any product or service or making advertising claims that are unsupported by competent and reliable evidence.

The proposed settlements also impose a $28.6 million judgment against all the defendants, reflecting the total amount of fees taken in by the scheme. The proposed judgment will be suspended as to the individual defendants provided they surrender certain of their assets, including a $200,000 house in Utah as required by the settlement orders. If it is later determined that any defendant provided false financial information to the FTC, the full amount of the judgment against them will become due. The proposed settlement also requires relief defendant April Norton to turn over unearned ill-gotten gains that she received from the scheme. The full judgment remains in effect against the corporate defendants.

Today’s settlements also resolves a contempt action the FTC concurrently filed against two individuals named in this case – Philip J. Danielson and Tony D. Norton -- and four companies they controlled, Philip Danielson, LLC; Foundation Business Solutions, LLC; Direct Results Solutions, LLC; and Strata G Solutions, LLC, for violating a 2010 court order in a phony work-at-home scheme that falsely claimed ties to Google Inc.

After a court shut down that scam and prohibited the defendants from making deceptive claims, Danielson and Norton turned their sights to preying on vulnerable homeowners in violation of that order, alleged the FTC. The settlement subjects the contempt defendants to a complete ban from telemarketing activities.

For consumer information about avoiding mortgage and foreclosure rescue scams, see Home Loans.

The Commission vote approving each of the five proposed stipulated final orders was 5-0. They were filed in the U.S. Court for the District of Nevada.

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

2 AUTO PARTS MANUFACTURER EXECS. INDICTED FOR ROLES IN PRICE FIXING CONSPIRACY AND OBSTRUCTIN OF JUSTICE

FROM:  U.S. JUSTICE DEPARTMENT
Thursday, February 5, 2015
Two Japanese Automobile Parts Manufacturer Executives Indicted for Roles in Conspiracy to Fix Prices and for Obstruction of Justice

A Detroit federal grand jury returned a two-count indictment against two executives of a Japanese automotive parts manufacturer for their participation in a conspiracy to fix prices and rig bids of automotive parts and for obstruction of justice for ordering the destruction of evidence related to the conspiracy, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiroyuki Komiya and Hirofumi Nakayama, executives of Mitsuba Corporation, with conspiring to fix the prices of various automotive parts, including windshield wiper systems and components, sold to Honda Motor Company Ltd., Nissan Motor Co. Ltd., Toyota Motor Corp., Chrysler Group, LLC, Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries in the United States and elsewhere.

Komiya and Nakayama are also charged with knowingly and corruptly persuading, and attempting to persuade, employees of Mitsuba to destroy documents and delete electronic data that may contain evidence of antitrust crimes in the United States and elsewhere.

“These charges demonstrate the Antitrust Division’s continued commitment to prosecuting individuals who commit criminal antitrust violations,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s Criminal Enforcement Program.  “Because these same individuals committed the additional crime of obstructing the investigation, they also serve as cautionary tale for those who are tempted to try to thwart the Antitrust Division’s investigative activities by destroying evidence.”

Komiya participated in the conspiracy as Mitsuba Director of Automotive Sales.  In 2007, he was promoted to Executive Managing Officer and Vice President of Sales.  Nakayama was the Office Manager of Mitsuba’s Nagoya sales office.  In 2005, he was promoted to Sales Operating Officer.

The indictment alleges, among other things, that beginning at least as early as April 2000 and continuing until at least February 2010, Komiya, Nakayama and co-conspirators participated in and directed, authorized or consented to the participation of subordinate employees in, meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the price to be submitted to automobile manufacturers.  Upon learning of the existence of this investigation, Komiya and Nakayama also urged their subordinates to delete and destroy documents related to this collusion.

Mitsuba is a corporation organized and existing under the laws of Japan with its principal place of business in Gunma, Japan.  On Nov. 6, 2013, Mitsuba pleaded guilty and agreed to pay a $135 million criminal fine for its role in the conspiracy as well as obstruction of justice.

Including Komiya and Nakayama, 52 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry.  Additionally, 33 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.

Komiya and Nakayama are charged with price fixing and bid rigging 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 for an individual 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.  The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 criminal fine for individuals.

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 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.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.

Komiya et al Indictment

PRESIDENT ANNOUNCES OPPOSITION TO CUTTING RETIREMENT SECURITY FOR CURRENT/FUTURE BENEFICIARIES

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN RESOURCES
President Announces New and Enhanced Initiatives to Support Older Americans
Feb 05, 2015

By: Nora Super, Executive Director, White House Conference on Aging

The President’s 2016 Budget will help ensure that older Americans enjoy not only longer but healthier lives. The Budget makes a number of commitments to enhance, advance, and create opportunity for older Americans, especially in the four focus areas of the 2015 White House Conference on Aging: retirement security, healthy aging, long-term care services and supports, and elder justice.
Let me say a little about a few of the Budget items in each area of focus:
To enhance retirement security, the President is committed to ensuring that Social Security is solvent and viable for the American people, now and in the future.  The Administration will oppose any measures that privatize or weaken the Social Security system and will not accept an approach that slashes benefits for future generations or reduces basic benefits for current beneficiaries.

Additionally, as many as 78 million working Americans - about half the workforce - don't have a retirement savings plan at work. Fewer than 10 percent of those without plans at work contribute to a plan of their own. The President’s Budget expands retirement opportunities for all Americans to help families save and give them better choices to reach a secure retirement.

To support healthy aging, the Budget proposes a set of initiatives to strengthen Medicare by more closely aligning payments with the costs of providing care, encouraging health care providers to deliver better care and better outcomes for their patients, and improving access to care for beneficiaries. In addition, the Budget includes proposals that would build a stronger foundation for Medicare's future.

To provide relief from increased prescription drug costs, the Budget proposes to close the Medicare Part D donut hole for brand drugs by 2017, rather than 2020, by increasing discounts from the pharmaceutical industry. The Budget also proposes to provide the Secretary of Health and Human Services with new authority to negotiate with manufacturers on prices for high cost drugs and biologics covered under the Part D program. These proposals represent a few amongst a range of potential options, and the Administration looks forward to working with Congress to address growing drug costs.

Recognizing the importance of nutrition to healthy aging, the Budget provides over $874 million for Nutrition Services programs, a $60 million increase over the 2015 enacted level, allowing States to provide 208 million meals to over 2 million older Americans nation-wide, helping to halt the decline in service levels for the first time since 2010.  In addition, the Budget helps provide supportive housing for very low-income elderly households, including frail elderly, to allow seniors to age in a stable environment and help them access human services.
To ensure older individuals and people with disabilities receive services in the most appropriate setting, the Budget proposes expanded access to Medicaid home and community-based long-term care services and supports. First, the Budget expands and simplifies eligibility to encourage more States to provide home and community-based care in their Medicaid programs. The Budget proposes expanding and improving the “Money Follows the Person”
Rebalancing demonstration, which helps States provide opportunities for older Americans and people with disabilities to transition back to the community from institutions. The Budget also includes a comprehensive long-term care pilot for up to five States to test, at an enhanced Federal match rate, a more streamlined approach to delivering long-term care services and supports to support greater access and improve quality of care.

The Budget also includes increased discretionary resources for the Aging and Disability Resource Centers (ADRCs) program, which make it easier for Americans nation-wide to learn about and access their health and long-term care services and support options. ADRCs support State efforts to create consumer-friendly entry points into long-term care services at the community level.
The Family Support Initiative will assist family members supporting older adults or people with disabilities across the lifespan. It will complement nearly $50 million in new resources for existing aging programs that are already providing critical help and supports to seniors and their caregivers, such as respite and transportation assistance.

To support evidence-based interventions to reduce elder abuse, neglect and financial exploitation, the Budget includes $25 million in discretionary resources for Elder Justice Act programs authorized under the Affordable Care Act. These resources will support standards and infrastructure to improve detection and reporting of elder abuse; grants to States to pilot a new reporting system; and funding to support a coordinated Federal research portfolio to better understand and prevent the abuse and exploitation of vulnerable adults.

Taken together, these and other initiatives in the Budget will help to change the aging landscape in America to reflect new realities and new opportunities for older Americans, and they will support the dignity, independence, and quality of life of older Americans at a time when we’re seeing a huge surge in the number of older adults.

As many of you are aware, 2015 marks the 50th Anniversary of Medicare, Medicaid, and the Older Americans Act, as well as the 80th Anniversary of Social Security. The commitments made to support older adults in the President’s Budget are a fitting way to mark these anniversaries, and to help fulfill the promise of a better future for older Americans—and for all of us—that is inherent in these landmark pieces of legislation.

THE GENETICS OF ALZHEIMER'S

FROM:  THE NATIONAL SCIENCE FOUNDATION 
Uncovering Alzheimer's complex genetic networks
Researchers from the Mayo Clinic use NSF-supported Blue Waters supercomputer to understand gene expression in the brain
February 3, 2015

The release of the film, "Still Alice," in September 2014 shone a much-needed light on Alzheimer's disease, a debilitating neurological disease that affects a growing number of Americans each year.

More than 5.2 million people in the U.S. are currently living with Alzheimer's. One out of nine Americans over 65 has Alzheimer's, and one out of three over 85 has the disease. For those over 65, it is the fifth leading cause of death.

There are several drugs on the market that can provide relief from Alzheimer's symptoms, but none stop the development of disease, in part because the root causes of Alzheimer's are still unclear.

"We re interested in studying the genetics of Alzheimer's disease," said Mariet Allen, a post-doctoral fellow at the Mayo Clinic in Florida. "Can we identify genetic risk factors and improve our understanding of the biological pathways and cellular mechanisms that can play a role in the disease process?"

Allen is part of a team of researchers from the Mayo Clinic who are using Blue Waters, one of the most powerful supercomputers in the world, to decode the complicated language of genetic pathways in the brain. In doing so, they hope to provide insights into what genes and proteins are malfunctioning in the brain, causing amyloid beta plaques, tau protein tangles and brain atrophy due to neuronal cell loss--the telltale signs of the disease--and how these genes can be detected and addressed.

In the case of late onset Alzheimer's disease (LOAD), it is estimated that as much as 80 percent of risk is due to genetic factors. In recent years, researchers discovered 20 common genetic loci, in addition to the well-known APOE gene, that are found to increase or decrease risk for the disease. (Loci are specific locations of a gene, DNA sequence, or position on a chromosome.) These loci do not necessarily have a causal connection to the disease, but they provide useful information about high-risk patients.

Despite all that doctors have learned in recent years about the genetic basis of Alzheimer's, according to Allen, a substantial knowledge gap still exists. It has been estimated that likely less than 40 percent of genetic risk for LOAD can be explained by known loci. Furthermore, it is not always clear which are the affected genes at these known loci.

In other words, scientists have a long way to go to get a full picture of which genes are involved in processes related to the disease and how they interact.

The Mayo team and their colleagues had been very successful in the past in finding genetic risk factors using a method that matched individual differences in the DNA code--single-nucleotide polymorphisms or SNPs, to phenotypes--the outward appearances of the disease. In particular, the Mayo team focused on identifying SNPs that influence expression of genes in the brain. However, they now hypothesize that the single SNP method may be too simplistic to find all genetic factors, and is likely not an accurate reflection of the complex biological interactions that take place in an organism.

For that reason, the Mayo researchers have recently turned their attention to investigating the brain using genetic interaction (epistasis) studies. Such studies allow researchers to understand the effects of pairs of gene changes on a given phenotype and can uncover additional genetic variants that influence gene expression and disease.

The process involves the analysis of billions of DNA base pairs (the familiar C, G, A and T) to find statistically significant correlations. Importantly, the search is not to discover simple one-to-one connections, since these have largely been found, but to study the interaction effects of pairs of DNA sequence variations.

Solving a problem of this size and complexity requires a huge amount of computational processing time, so the researchers turned to the Blue Waters supercomputer at the National Center for Supercomputing Applications (NCSA).

Supported by the National Science Foundation and the University of Illinois at Urbana-Champaign, Blue Waters allows scientists and engineers across the country to tackle a wide range of challenging problems using massive computing and data processing power. From predicting the behavior of complex biological systems to simulating the evolution of the cosmos, Blue Waters assists researchers whose computing problems are at a scale or complexity that cannot be reasonably approached using any other method.

Allen and her colleagues used Blue Waters to rapidly advance their Alzheimer's epistasis study through NCSA's Private Sector Program, which lets teams outside of academia access the system.

Instead of requiring as much as a year or more of processing on a single workstation or university cluster, the research team was able to do each analysis on Blue Waters in less than two days.

The researchers conducted three sets of analysis to investigate brain gene expression levels in a group of individuals without Alzheimer's, a group of individuals with Alzheimer's and then a combined analysis of both groups together. To date, these analyses have been completed for the almost 14,000 genes expressed in the majority of the brain samples studied.

Through their work with collaborators at NCSA and the University of Illinois at Urbana-Champaign (including Victor Jongeneel and Liudmila Mainzer), the Mayo team overcame many of the challenges that a project of this scope presented.

"The analysis of epistatic effects in large studies, such as ours, requires powerful computational resources and would not be possible without the unique computing capabilities of Blue Waters," wrote project lead Nilufer Ertekin-Taner from the Mayo Clinic.

"The Mayo Clinic project is emblematic of the type of problem that is beginning to emerge in computational medicine," said Irene Qualters, division director of Advanced Computing Infrastructure at NSF. "Through engagement with the Blue Waters project, researchers at Mayo have demonstrated the potential of new analytic approaches in addressing the challenges of a daunting medical frontier."

The team reported on their progress at the Blue Waters Symposium in May 2014. Allen and her colleagues are currently processing and filtering the results so they can be analyzed.

"Recent studies by our collaborators and others have shown that both the risk for late onset Alzheimer's disease and gene expression are likely influenced by epistasis. However little is known about the effect of genetic interactions on brain gene expression specifically and how this might influence risk for neurological diseases such as LOAD," said Allen. "The goal of our study is to address this knowledge gap; something we have been uniquely positioned to do using our existing data and the resources available on Blue Waters."

-- Aaron Dubrow, NSF

Saturday, February 7, 2015

WEEKLY ADDRESS: EVERYONE WHO WORKS HARD SHOULD GET AHEAD

DOD VIDEO: HAGEL MEETS WITH NATO IN BELGIUM


LEADERS STRESS END TO SEQUESTRATION NEEDED FOR MILITARY TO IMPLEMENT NATIONAL SECURITY STRATEGY

FROM:  U.S. DEFENSE DEPARTMENT 
Leaders: Resources Key for National Security Strategy
DoD News, Defense Media Activity

WASHINGTON, Feb. 6, 2015 – Praising President Barack Obama’s 2015 National Security Strategy for recognizing the challenges the nation faces, the Defense Department’s top civilian and military leaders today stressed the need for an end to scheduled sequestration spending cuts to allow the military to do its part in implementing the strategy.

White House officials released the strategy, known as the NSS, today.
Strategy Draws on All Sources of National Power

“President Obama's 2015 National Security Strategy provides a comprehensive blueprint for defending and advancing America's interests at home and around the world,” Defense Secretary Chuck Hagel said in a statement. “It is clear-eyed about our nation's challenges as well as our strategic opportunities.
“The strategy wisely calls for drawing on all the sources of our national power -- including the unrivaled strength and resilience of America's economy, diplomacy, and military, as well as our values -- to strengthen and sustain America's global leadership,” he said.

Bedrock of National Security

The strategy makes clear that a strong military is the bedrock of U.S. national security, Hagel said, adding that the Defense Department stands ready to help in its execution. DoD leaders actively participated in its development, he added, noting that the NSS complements the defense strategy articulated by the 2014 Quadrennial Defense Review.

“Every day, across the globe, the men and women of DoD defend our nation, our fellow citizens and our allies and partners,” the secretary said. “They assure our prosperity, represent our values, and help uphold a rules-based international order.”

The Defense Department needs the resources to continue doing so, Hagel said.
“That is why President Obama and I are urging Congress to end sequestration and approve the defense budget we have submitted for fiscal year 2016 -- so that we preserve our ability to execute our national security and defense strategies, and maintain the military superiority necessary to underwrite America's global leadership for decades to come,” the secretary said.

Complex Threats in a Turbulent World

Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, also issued a statement.

"The United States retains the world's pre-eminent military, but we cannot take it for granted, given the complex threats we face in today's turbulent world,” he said.

The NSS recognizes this reality with its charge to maintain the U.S. military edge and readiness, Dempsey added, by continuing to insist on reforms and necessary investment in military forces and their families.

“In particular, I welcome the NSS's call to working with Congress to end sequestration so that we can maintain the military the American people deserve and expect," the chairman said.

WHITE HOUSE FACT SHEET ON NATIONAL SECURITY IN 2015

FROM:  THE WHITE HOUSE
February 06, 2015
Fact Sheet: The 2015 National Security Strategy
Fact Sheet:  The 2015 National Security Strategy

Today, the United States is stronger and better positioned to seize the opportunities of a still new century and safeguard our interests against the risks of an insecure world.  The President’s new National Security Strategy provides a vision and strategy for advancing the nation’s interests, universal values, and a rules-based international order through strong and sustainable American leadership.  The strategy sets out the principles and priorities that describe how America will lead the world toward greater peace and a new prosperity.

We will lead with purpose, guided by our enduring national interests and values and committed to advancing a balanced portfolio of priorities worthy of a great power.

We will lead with strength, harnessing a resurgent economy, increased energy security, an unrivaled military, and the talent and diversity of the American people.

We will lead by example, upholding our values at home and our obligations abroad.

We will lead with capable partners, mobilizing collective action and building partner capacity to address global challenges.

We will lead with all instruments of U.S. power, leveraging our strategic advantages in diplomacy, development, defense, intelligence, science and technology, and more.

We will lead with a long-term perspective, influencing the trajectory of major shifts in the security landscape today in order to secure our national interests in the future.

We will advance the security of the United States, its citizens, and U.S. allies and partners by:

Maintaining a national defense that is the best trained, equipped, and led force in the world while honoring our promises to service members, veterans, and their families.

Working with Congress to end the draconian cuts imposed by sequestration that threaten the effectiveness of our military and other instruments of power.
Reinforcing our homeland security to keep the American people safe from terrorist attacks and natural hazards while strengthening our national resilience.
Transitioning to a sustainable global security posture that combines our decisive capabilities with local partners and keeps pressure on al-Qa’ida, ISIL, and their affiliates.

Striving for a world without nuclear weapons and ensuring nuclear materials do not fall into the hands of irresponsible states and violent non-state actors.
Developing a global capacity to prevent, detect, and rapidly respond to biological threats like Ebola through the Global Health Security Agenda.

Confronting the urgent crisis of climate change, including through national emissions reductions, international diplomacy, and our commitment to the Green Climate Fund.

We will advance a strong, innovative, and growing U.S. economy in an open international economic system that promotes opportunity and prosperity by:

Strengthening American energy security and increasing global access to reliable and affordable energy to bolster economic growth and development worldwide.
Opening markets for U.S. goods, services, and investment and leveling the playing field for American workers and businesses to boost our economic competitiveness.

Advancing a trade agenda – including the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership – that creates good American jobs and shared prosperity.

Leading efforts to reduce extreme poverty, food insecurity, and preventable deaths with initiatives such as Feed the Future and the President’s Emergency Plan for AIDS Relief.

Proving new sustainable development models like the President’s Power Africa Initiative.

We will advance respect for universal values at home and around the world by:

Holding ourselves to the highest possible standard by living our values at home even as we do what is necessary to keep our people safe and our allies secure.
Promoting and defending democracy, human rights, and equality while supporting countries such as Tunisia and Burma that are transitioning from authoritarianism.

Empowering future leaders of government, business, and civil society around the world, including through the President’s young leaders initiatives.
Leading the way in confronting the corruption by promoting adherence to standards of accountable and transparent governance.

Leading the international community to prevent and respond to human rights abuses and mass atrocities as well as gender-based violence and discrimination against LGBT persons.

We will advance an international order that promotes peace, security, and oppor­tunity through stronger cooperation to meet global challenges by:

Working with partners to reinforce and update the rules of the road, norms, and institutions that are foundational to peace, prosperity, and human dignity in the 21st century.

Strengthening and growing our global alliances and partnerships, forging diverse coalitions, and leading at the United Nations and other multilateral organizations.
Rebalancing to Asia and the Pacific through increased diplomacy, stronger alliances and partnerships, expanded trade and investment, and a diverse security posture.

Strengthening our enduring commitment to a free and peaceful Europe by countering aggression and modernizing the NATO alliance to meet emerging threats.

Pursuing a stable Middle East and North Africa by countering terrorism, preventing Iran from obtaining a nuclear weapon, and reducing the underlying sources of conflict.

Building upon the success of the U.S.-Africa Leaders’ Summit by investing in Africa’s economic, agricultural, health, governance, and security capacity.
Promoting a prosperous, secure, and democratic Western Hemisphere by expanding integration and leveraging a new opening to Cuba to expand our engagement.

AG HOLDER'S REMARKS AT OAKLAND LAW ENFORCEMENT COMMUNITY MEETING

FROM:  U.S. JUSTICE DEPARTMENT
Attorney General Eric H. Holder Jr. Delivers Remarks at Oakland Law Enforcement Community Meeting
Oakland, CAUnited States ~ Thursday, February 5, 2015
Remarks as prepared for delivery

Thank you all for being here.  I particularly want to thank Congresswoman [Barbara] Lee, Mayor [Libby] Schaaf, and Chief of Police [Sean] Whent for welcoming me to Oakland today, as well as our outstanding U.S. Attorney for the Northern District of California, Melinda Haag, for her help in pulling together this important meeting.

      I also want to thank all of the assembled law enforcement, faith, student, and community leaders for joining me to talk about the work that’s underway here in Oakland – and the important steps that we must take together to reduce crime while building community trust.

      It is a privilege to join you in advancing this discussion this afternoon, and to have the opportunity to help shine a light on the remarkable work you perform each and every day.

      I’d particularly like to recognize the tireless efforts of the men and women of the Oakland Police Department, who stand on the front lines of our work to improve public safety.

      I know I speak for my Justice Department colleagues, and for everyone here, when I say that the bravery this work requires – and the dangers that are inherent in it – are never far from our minds.

      As the brother of a retired police officer, I know in a deeply personal way how courageous these public servants are.  I have seen the tremendous and often-unheralded sacrifices that they and their loved ones are routinely called upon to make.

      I have also seen the destructive consequences that too often accompany any loss of trust between our brave law enforcement officers and the communities they are entrusted to serve and protect.

      Recent events have cast a stark light on rifts that have emerged throughout the country.  And that’s why I’ve been traveling the nation in recent months to hold roundtable discussions – like this one – aimed at bringing people of all backgrounds and perspectives together to restore trust where it has been eroded, and to build trust where it never existed.

      I am especially mindful, as we gather today, of the devastating and barbaric attack that we suffered in New York City in December.  The terrible losses of Officers [Wenjian] Liu and [Rafael] Ramos – members of New York’s finest – shocked the nation.  They serve as tragic reminders of the dangers that all of our officers regularly face.  And this incident has lent new urgency to our ongoing, national conversation.

      Over the past six years, through the Office of Community Oriented Policing Services and other components, the Department of Justice has taken significant steps to provide our law enforcement officers with access to the tools and support they need to do their jobs as safely and effectively as possible.  Going forward, we will continue to make good on our deep commitment to building understanding and cooperation between our officers and the communities they serve.

      Before we open today’s discussion, I’d like to provide you all with a brief update on some of the constructive steps we’re taking to do just that, to help address these urgent issues in cities and towns across America, and to advance this broad, inclusive dialogue at the national level.

      We cannot squander this opportunity to have the kind of dialogue - I think - is needed to begin the kind of change we need in this nation.

      In December, the Administration took a series of actions to take this commitment to a new level – by improving the way local authorities acquire equipment from the federal government; by proposing investments in body-worn cameras, expanded training, and additional resources for facilitating community engagement; by strengthening guidance on profiling by federal law enforcement agents conducting law enforcement activities; and by convening a new Task Force on 21st Century Policing – led by Philadelphia Police Commissioner Charles Ramsey and former Assistant Attorney General Laurie Robinson – to examine ways to promote effective crime strategies while building public trust.

      Ultimately, all of these efforts will advance the cause that brings us together today – promoting safer, more effective law enforcement for the people of Oakland, and for millions of others throughout the country.

      The people of this great city deserve an outstanding, world-class police force that works alongside local residents to protect public safety.  Oakland’s brave officers deserve the cutting-edge tools, the very latest training, and the steadfast support they need to do their jobs with maximum safety, efficacy, and fairness.

        As this work unfolds, I want you to know that the Justice Department will continue to rely on your leadership, your expertise, and your unique perspectives to help ensure that we can bridge longstanding divisions between law enforcement and the communities they serve.

      This is a great community that has, I think, shown itself to be a leader of so many things on the national level.

      In partnership with you, and through the leadership of U.S. Attorney Haag – who will be our lasting presence on the ground here in Oakland, helping to drive these efforts forward – I believe we can all be confident in where this work will take us.

      I am eager to hear from all of you on how we can best achieve these goals.  I appreciate your guidance and engagement.  And I look forward to everything we’ll accomplish together in the critical days ahead.

EX-IM BANK CHAIRMAN MAKES STATEMENT ON EXPORT DATA

FROM:  U.S. EXPORT-IMPORT BANK 
Export-Import Bank Chairman Fred P. Hochberg Statement on the Release of Export Data from the Commerce Department
U.S. Sets Record for Fifth Consecutive Year

Washington, D.C. – Ex-Im Bank Chairman and President Fred P. Hochberg issued the following statement with respect to the FY 2014 export data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. According to BEA, the United States exported a record $2.345 trillion of goods and services in FY 2014, which represents a 2.9 percent increase and a record high for the fifth consecutive year.

In December, the United States exported $194.9 billion of goods and services. This figure represents a decrease from November’s $196.4 billion exports total, which was revised slightly upward.

“These export numbers are a testament to the quality and innovation of American goods and services, but they don’t mean we can rest on our laurels,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “The thousands of U.S. businesses, small and large, that count on Ex-Im Bank being there to support them to win export sales and add good-paying jobs here in America can’t afford an unforced error that would threaten the positive momentum demonstrated by today’s news.”

NSF ARTICLE ON UP IN THE AIR WIND TURBINES

FROM:  NATIONAL SCIENCE FOUNDATION
Floating wind turbines bring electricity where it's needed

Altaeros Energies' research into advanced materials enables new heights for wind energy
Aiming high

Most wind turbine manufacturers are competing to build taller turbines to harness more powerful winds above 500 feet, or 150 meters. Altaeros is going much higher with their novel Buoyant Airborne Turbine--the BAT. The Altaeros BAT can reach 2,000 feet, or 600 meters.

At this altitude, wind speeds are faster and have five to eight times greater power density. As a result, the BAT can generate more than twice the energy of a similarly rated tower-mounted turbine.

The BAT's key enabling technologies include a novel aerodynamic design, custom-made composite materials, and an innovative control system. The helium-inflatable shell channels wind through a lightweight wind turbine. The shell self-stabilizes and produces aerodynamic lift, in addition to buoyancy. Multiple high-strength tethers hold the BAT in place and a single conductive tether transmits power to a mobile ground station.

The BAT's automated control system ensures safe and efficient operation, the highlight of which is the capability to adjust altitude autonomously for optimal power output. The first BAT model is approximately 15 by 15 meters, is containerized, and does not require a crane or foundation for installation.

Reaching customers

Diesel generators are the standard in power generation for rural and off-grid areas. However, diesel fuel is expensive to deliver to these locations, and diesel generators, though inexpensive to install, are expensive to operate and maintain.

As a result, remote customers typically pay more than 30 cents per kilowatt-hour for electricity. The BAT has the potential to bring affordable wind energy to these communities and industries. The first model will provide enough electricity for a small community, or about a dozen American homes.

Combined with significant increases in energy output and the ability to install the unit in 24 hours, the BAT substantially reduces the cost of energy and time to reach customers' energy needs. In the future, Altaeros expects to deploy the BAT alongside first responders in emergency response situations when access to the electric grid is unavailable.

Much like other tethered balloons, the Altaeros BAT can lift communication, Internet and sensory equipment alongside the turbine to provide additional services for customers. The addition of payload equipment does not affect the BAT's performance.

Scaling up

Altaeros was founded in 2010 at the Massachusetts Institute of Technology. The company has received NSF Small Business Innovation Research (SBIR) grants (Phase I and Phase II) to test a novel low-cost, high-performance fabric suitable for the BAT's shell, and to develop its modular wind turbine for power performance and ease of installation.

Altaeros recently received Series A funding of $7 million dollars for the continued development and commercialization of its technology.

"The new products being developed by the team at Altaeros are exciting because they have the potential to offer a new method for energy generation which is portable, reliable, quick to deploy, and environmentally-friendly," said Ben Schrag, NSF SBIR program director. "This technology has the potential to avoid many of the key challenges facing traditional wind turbines."

-- Cecile Gonzalez, NSF cjgonzal@nsf.gov
-- Sarah Bates, (703) 292-7738 sabates@nsf.gov
Investigators
Ben Glass
Related Institutions/Organizations
Altaeros Energies, Inc.

Friday, February 6, 2015

DOJ ANNOUNCES SIX CHARGED WITH PROVIDING MATERIAL SUPPORT TO TERRORISTS

FROM:  U.S. DEPARTMENT OF JUSTICE
Friday, February 6, 2015
Six Defendants Charged with Conspiracy and Providing Material Support to Terrorists

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Richard Callahan of the Eastern District of Missouri and Special Agent in Charge William P. Woods of the FBI’s St. Louis Division announced that a federal indictment was unsealed earlier today charging six individuals with terrorist related crimes.  Charged in the indictment are:  Ramiz Zijad Hodzic, 40, his wife Sedina Unkic Hodzic, 35, and Armin Harcevic, 37, all of St. Louis County, Missouri; Nihad Rosic, 26, of Utica, New York; Mediha Medy Salkicevic, 34 of Schiller Park, Illinois; and Jasminka Ramic, 42, of Rockford, Illinois.  All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists.  Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country.

All six individuals are natives of Bosnia who immigrated to the United States.  Three have become naturalized citizens of the United States and the remaining three have either refugee or legal resident status.  Five of the defendants are in the United States and have been arrested.  A sixth defendant is overseas.

If convicted, the crimes of conspiring to provide material support and providing material support carry penalties ranging up to 15 years imprisonment for each count and/or fines up to $250,000.  The crime of conspiring to kill and maim persons in a foreign country carries a penalty of up to life in prison.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

“Today’s charges and arrests underscore our resolve to identify, thwart, and hold accountable individuals within the United States who seek to provide material support to terrorists and terrorist organizations operating in Syria and Iraq,” said Assistant Attorney General Carlin.  “Preventing the provision of supplies, money, and personnel to foreign terrorist organizations like ISIL remains a top priority of the National Security Division and our partners in the law enforcement and intelligence communities.  I want to thank the many agents, analysts and prosecutors responsible for this case.”

“The indictment unsealed today epitomizes the FBI's commitment to disrupting and holding accountable those who seek to provide material support to terrorists and terrorist organizations,” said Special Agent in Charge Woods.  “This case underscores the clear need for continued vigilance in rooting out those who seek to join or aid terrorist groups that threaten our national security.”

This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies.  The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.    

SECRETARY KERRY'S STATEMENT ON NATIONAL SECURITY BLUEPRINT

FROM:  U.S. STATE DEPARTMENT 
The National Security Strategy
Press Statement
John Kerry
Secretary of State
Washington, DC
February 6, 2015

This National Security Strategy is a blueprint to leverage America's leadership in a more complicated world than many people would have ever imagined.

It's ambitious and achievable. It's a pragmatic, clear-eyed assessment of both the challenges we face and the full arsenal of our power to confront them through moral, diplomatic, economic, development, and military tools. It's a strategy to promote our values in a world where no ocean, no fence, and no firewall can shield us from the reality of threats across the globe.

In the 21st Century, next door is everywhere.

Whether the opportunities and threats are old or new, from proliferation to violent extremism to global climate change, this strategy reflects the fact that America needs to lead, we will lead, and we are leading.

It's a vision of an America that energizes and galvanizes alliances and partnerships and puts our credibility and our capacity on the line to get things done.

For the State Department, it's also a clarion call for the resources that back up our mission. The investments are relatively small but couldn't pay bigger dividends for our country and our people.

Strong and sustainable leadership of a rules-based international order isn’t a favor we do for other countries – it’s a strategic imperative for America. And with this strategy, we are putting ourselves in the strongest possible position to lead and to get things done that simply couldn’t happen without our leadership and our engagement.

DOD VIDEO: 4 TRAINING SITES READY FOR ANTI-ISIL


FEB. 5 WAS ANNIVERSARY OF APOLLO 14 LANDING

FROM:  NASA 

On Feb. 5. 1971, the Apollo 14 crew module landed on the moon. The crew members were Captain Alan Bartlett Shepard, Jr. (USN), commander; Major Stuart Allen Roosa (USAF), command module pilot; and Commander Edgar Dean Mitchell (USN), lunar module pilot. In this photo, Shepard stands by the Modular Equipment Transporter (MET). The MET was a cart for carrying around tools, cameras and sample cases on the lunar surface. Shepard can be identified by the vertical stripe on his helmet. After Apollo 13, the commander's spacesuit had red stripes on the helmet, arms, and one leg, to help identify them in photographs. Image Credit: NASA.

IRS SAYS EXCESSIVE FUEL TAX CREDIT CLAIMS ON LIST OF "DIRTY DOZEN" TAX SCAMS

FROM:  U.S. INTERNAL REVENUE SERVICE
Excessive Claims for Fuel Tax Credits Make the IRS “Dirty Dozen” List of Tax Scams for the 2015 Filing Season

WASHINGTON — The Internal Revenue Service today warned that taxpayers should watch for improper claims for fuel tax credits, one of the “Dirty Dozen” tax scams for the 2015 filing season.

“We will do everything we can to stop erroneous claims for the fuel tax credit and catch scammers promoting them,” said IRS Commissioner John Koskinen. “The IRS is also concerned about identity thieves trying to use this credit to inflation their bogus claims for refunds.”

Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time but many of these schemes peak during filing season as people prepare their returns or people to help with their taxes.

Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000. Furthermore, illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

The fuel tax credit is generally limited to off-highway business use or use in farming.  Consequently, the credit is not available to most taxpayers. But yet, the IRS routinely finds unscrupulous preparers who have enticed sizable groups of taxpayers to erroneously claim the credit to inflate their refunds.

Fuel Tax Credit Scams

The federal government taxes gasoline, diesel fuel, kerosene, alternative fuels and certain other types of fuel. Certain commercial uses of these fuels are nontaxable. Individuals and businesses that purchase fuel for one of those purposes can claim a tax credit by filing Form 4136, Credit for Federal Tax Paid on Fuels.

The tax is on fuels used to power vehicles and equipment on roads and highways. Taxes paid for fuel to power vehicles and equipment used off-road may qualify for the tax credit and may include farm equipment, certain boats, trains and airplanes.

Improper claims for the fuel tax credit generally come in two forms. An individual or business may make an erroneous claim on their otherwise legitimate tax return. Or an identity thief may claim the credit in a broader fraudulent scheme.

The IRS has taken a number of steps to improve compliance processes involving fuel tax credits.

IRS compliance filters are preventing a significant number of questionable fuel tax credit claims from being processed.  For example, new identity theft screening filters have also improved the IRS’s ability to identify questionable fuel tax credit claims during return processing, including preventing the issuance of $33 million in questionable credit claims in 2013.

For the upcoming filing season, the IRS has taken additional steps to identify returns for review that claim fuel tax credits, including broadening the identification criteria to ensure a more comprehensive compliance approach in selecting questionable tax returns.

READOUTS: SECRETARY HAGEL'S MEETINGS WITH GEORGIAN MINISTER OF DEFENSE AND ITALIAN DEFENSE MINISTER

FROM:  THE DEFENSE DEPARTMENT S
Release No: NR-037-15
February 05, 2015
Readout of Secretary Hagel's meetings with the Georgian Minister of Defense Mindia Janelidze

Pentagon Press Secretary Rear Adm. John Kirby provided the following readout:
Secretary of Defense Chuck Hagel met in Brussels today with Georgian Minister of Defense Mindia Janelidze. The meeting took place on the sidelines of the NATO Defense Ministerial conference being held here.

Secretary Hagel thanked the president for his leadership and for the contributions Georgia continues to make in Afghanistan and other peacekeeping missions, as well as to coalition efforts against ISIL in Iraq.

The secretary stressed the United States' commitment to helping improve Georgia's interoperability and readiness, a process that will be greatly enhanced by continued institutional reform in the Georgian government.

The two leaders also discussed the ongoing crisis in Ukraine. They reviewed efforts by allies and partners in the region to reinforce our international commitments and to continue to apply diplomatic and economic pressure on Moscow.

Secretary Hagel reaffirmed the importance of the U.S. partnership with Georgia, and pledged to continue our strong defense cooperation.


Release No: NR-038-15
February 05, 2015
Readout of Secretary Hagel's meeting with Italian Minister of Defense Roberta Pinotti.

Pentagon Press Secretary Rear Adm. John Kirby provided the following readout:
Secretary Hagel met in Brussels today with Italian Minister of Defense Roberta Pinotti. The meeting took place on the sidelines of the NATO Defense Ministerial conference being held here.

Secretary Hagel thanked Minister Pinotti for her leadership and for the contributions Italy continues to make to the alliance and in Afghanistan, as well as to coalition operations in Iraq.

He praised the minister's efforts to help our two militaries maintain a strong defense relationship, as well as Italy's efforts to work closely with other NATO allies across many missions and operations.

The two leaders also discussed a host of regional security issues, including Russia's continued aggression inside Ukraine, the threat posed by ISIL in the Middle East and recent instability in North Africa and the Levant.

Minister Pinotti thanked Secretary Hagel for his leadership as he prepares to leave office, and both leaders reaffirmed the importance of renewed focus by the NATO alliance to address both continental and global security challenges.

$18 MILLION TO BE RETURNED TO CUSTOMERS OF PEREGRINE FINANCIAL GROUP, INC.

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
Federal Court Orders U.S. Bank National Association to Pay $18 Million to Peregrine Customers

U.S. Bank held the Peregrine Financial Group, Inc. customer segregated funds account that Russell Wasendorf, Sr. used to misappropriate customer funds

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on February 4, 2015, Chief Judge Linda R. Reade of the U.S. District Court for the Northern District of Iowa entered a Consent Order imposing a permanent injunction against U.S. Bank National Association (U.S. Bank) and ordering the bank to pay $18 million dollars to be returned to Peregrine Financial Group, Inc. (Peregrine) customers.

At the time of its failure in July 2012, Peregrine was the nation’s second largest non-bank, non-clearing Futures Commission Merchant (FCM).  U.S. Bank maintains branch offices in Cedar Falls, Iowa, where Peregrine and its owner, Russell Wasendorf, Sr. (Wasendorf), were located.  U.S. Bank was a depository for Peregrine and held a customer segregated funds account that Wasendorf used to defraud more than 24,000 Peregrine clients and misappropriate over $215 million of customers’ money.  On July 10, 2012, the CFTC instituted a civil action against Wasendorf and Peregrine, CFTC v. Peregrine Financial Group, Inc. and Russell Wasendorf, Sr., 12-cv-05383 (N.D.IL July 10, 2012) (see CFTC Press Release and CFTC Complaint 6300-12).  Wasendorf was also criminally charged, pled guilty, and on January 23, 2013 was sentenced to 50 years in prison and ordered to pay more than $215 million in restitution.  U.S. v. Russell Wasendorf, Sr., 12-cr-2021(N.D.IA).

During the relevant period of the CFTC’s action, June 2008 through July 2012, Wasendorf withdrew and transferred approximately $36 million from the US Bank customer segregated funds account to persons and entities that were not Peregrine customers and U.S. Bank regularly withdrew its account fees from the customer segregated funds account for both Peregrine and non-Peregrine accounts held at the bank.

The Order enjoins U.S. Bank from committing future violations of the Commodity Exchange Act (CEA) and the CFTC’s Regulations that prohibit any depository institution, like U.S. Bank, from holding, disposing of, or using funds that belong to customers of an FCM as though they belong to anyone other than the customers, and also prohibit the extension of credit based on such funds to anyone other than the customers.

The Order also requires U.S. Bank to pay $18 million to the court-appointed Trustee for Peregrine in In re Peregrine Financial Group, Inc., BK Case No. 12-27488 (N.D.IL) that will be returned to Peregrine customers that held domestic futures accounts.

CFTC Director of Enforcement Aitan Goelman stated: “Russell Wasendorf stole enormous sums of money that Peregrine’s customers entrusted to him.  He is responsible for his crimes.  However, that fact does not excuse U.S. Bank’s failure to meet its own responsibilities to safeguard Peregrine’s customer funds that it held.  As this litigation and its resolution demonstrate, the CFTC will be relentless in pursuing recovery on behalf of innocent investors.”

The court’s Order arises from a Complaint filed by the CFTC on June 5, 2013 charging U.S. Bank with improperly holding and using a Peregrine customer segregated funds account by treating the account like a regular business checking account, thereby allowing Wasendorf to withdraw customer money for non-customer purposes from June 2008 through July 2012 (see CFTC Press Release and Complaint 6601-13, June 5, 2013).

In the Order, the parties adopt the undisputed facts from the court’s November 19, 2014 Summary Judgment Order (see Order under Related Links). There the court found that on August 3, 1992, Peregrine opened an account at a predecessor to U.S. Bank and designated the account a “Peregrine Financial Group, Inc. Customer Segregated Account.”  U.S. Bank provided two letters to Peregrine acknowledging the account contained customer money, would be properly segregated, and maintained in accordance with the CEA.  However, during the relevant period alleged in the CFTC Complaint, no U.S. Bank employee that had responsibility for the customer segregated funds account understood that the account was a customer segregated funds account or understood the meaning of that account designation.  At that time, U.S. Bank had no policies, procedures or training specifically applicable to FCM customers or customer segregated funds.  During the relevant period, Wasendorf withdrew approximately $36 million to persons and entities that were not Peregrine customers and U.S. Bank regularly withdrew its account fees from the customer segregated funds account for both Peregrine and non-Peregrine accounts held at the bank.

After the CFTC initiated its investigation in July 2012, U.S. Bank implemented new policies and procedures specifically applicable to FCM customer segregated funds accounts.

CFTC Division of Enforcement staff members responsible for this action are Robert Howell, Susan Gradman, Joy McCormack, Stephanie Reinhart, Ashley Burden, Jennifer Diamond, Jon Kramer, Elizabeth Pendleton, Scott Williamson, and Rosemary Hollinger.

GUARD RECRUITER AND ASSISTANT CONVICTED IN BRIBERY CASE

FROM:  U.S. JUSTICE DEPARTMENT
Wednesday, February 4, 2015
Texas National Guard Recruiter and Assistant Convicted in Bribery and Fraud Scheme

An Army National Guard recruiter and recruiting assistant were convicted today for their roles in a bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Jammie T. Martin, 37, and Michelle H. Davis, 34, both of Katy, Texas, were convicted today of conspiracy, bribery, wire fraud and aggravated identity theft.  The defendants were indicted on Aug. 7, 2013, and will be sentenced on May 7, 2015, by U.S. District Judge David Hittner of the Southern District of Texas.

From February 2009 through April 2011, Martin served as an Army National Guard recruiter. Davis served as a recruiting assistant with the Guard Recruiting Assistance Program (G-RAP), which was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard.  Both defendants worked out of a Texas National Guard Armory known as the Westheimer Armory.

According to evidence presented at trial, Martin—who, as a recruiter, was ineligible for the G-RAP incentives—provided the personal identifying information of potential soldiers to Davis and at least three other National Guard soldiers.  Davis and the others then falsely claimed they were responsible for referring the potential soldiers to join the military and fraudulently received referral bonus payments through the G-RAP program.  Davis and the others paid approximately half of each fraudulent bonus payment to Martin as a kickback.

To date, this investigation has led to the conviction of 26 individuals, including Martin and Davis.

This case is being investigated by the San Antonio Fraud Resident Agency of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and prosecuted by Trial Attorneys Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John P. Pearson of the Southern District of Texas.

DEFENDANTS SETTLE FTC CHARGES OF REMOTELY DEBITING SENIORS' BANK ACCOUNTS

FROM:  FEDERAL TRADE COMMISSION  

Two Defendants in Cross-Border Telemarketing Scheme Settle FTC Charges
Scheme Used Remotely Created Checks to Debit Money from Seniors’ Bank Accounts

Two defendants who participated in an alleged multi-million dollar telemarketing fraud that targeted U.S. seniors and withdrew money from their accounts without authorization have agreed to settle Federal Trade Commission charges. The settlement orders bar them from using remotely created checks drawn on consumers’ bank accounts, require them to obtain consumers’ consent before debiting their accounts, and prohibit them from misrepresenting any goods or services.

The individuals Marc Ferry and Robert Barczai, also will turn over the proceeds of the scheme from their personal and corporate accounts. The FTC has filed for default judgments against the corporate defendants, and summary judgment against the leading individual defendant in the scheme, which took in nearly $11 million between 2010 and March 2014.

“Scammers thought they could cover their tracks by operating across borders, but law enforcement caught up with them,” said Jessica Rich, Director of the Bureau of Consumer Protection. “We’ve shut down their scheme of lying to older people and stealing their money.”

According to the FTC’s March 2014 complaint, defendant Ari Tietolman and his associates established a network of U.S. and Canadian entities to carry out their scam. The defendants used a telemarketing boiler room in Canada, where Tietolman lives, to cold-call seniors claiming to sell fraud protection, legal protection, and pharmaceutical benefit services for $187 to $397.

In some instances, the telemarketers convinced consumers they were affiliated with banks or government entities, leading consumers to disclose their bank account information. The defendants then used that information to create checks drawn on the consumers’ bank accounts. They deposited these “remotely created checks” into corporate accounts set up by defendants Ferry and Barczai in the United States. The U.S.-based defendants then transferred the money to accounts in Canada, the FTC alleged.

The FTC charged the corporate and individual defendants with violating the FTC Act and the agency’s Telemarketing Sales Rule. A U.S. district court temporarily shut down the operation in late March 2014, pending the resolution of the FTC’s action.

Two defendants in the case, Ferry and Barczai, have now agreed to stipulated orders settling the FTC’s charges against them. The order against Ferry bans him from using remotely creating checks and payment orders, requires him to get consumers’ authorization before charging their financial accounts, and prohibits him from making misrepresentations regarding any goods or services. It imposes a judgment of $325,449 against him, which will be partially suspended after he pays the FTC $68,412.

The order against Barczai contains the same conduct provisions as the order against Ferry, and imposes a judgment of $9,655,638, which will be partially suspended after he pays the FTC $21,367.

The Commission vote approving the two proposed stipulated final orders was 5-0. They were filed in the U.S. District Court for the Eastern District of Pennsylvania.

The FTC subsequently filed a memorandum seeking default judgments against the following corporate defendants on January 13: First Consumers LLC; PowerPlay Industries LLC; Standard American Marketing, Inc.; 1166519075 Quebec Inc., doing business as (d/b/a) Landshark Holdings Inc; and 1164047236 Quebec, Inc. d/b/a Madicom, Inc.

Finally, on January 13, the FTC filed a memorandum seeking summary judgment against Tietolman, who ran the operation and collected money funneled into Canada. The FTC alleges that Tietolman controlled the deceptive scheme, and therefore is seeking to permanently bar him from the conduct alleged in the complaint and hold him liable for the $10.7 million in harm he caused defrauded consumers.

The FTC received valuable help throughout this case from the U.S. Postal Inspection Service and the Royal Canadian Mounted Police.

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

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

HUNTING FOR LEPTOSPIRA BACTERIA

FROM:  THE NATIONAL SCIENCE FOUNDATION
Field fever, harvest fever, rat catcher's yellows: Leptospirosis by any name is a serious disease

Infection is more prevalent in lower-income tropical areas
Rat catcher's yellows, field fever, harvest fever, black jaundice.

All are names for the same disease, leptospirosis, an infection caused by corkscrew-shaped bacteria called Leptospira.

Symptoms range from mild--headaches, muscle aches, fever--to more severe conditions, such as meningitis and bleeding from the lungs.

Looking for leptospirosis

"Leptospira bacteria are maintained through a complex transmission cycle," write scientist Claudia Munoz-Zanzi of the University of Minnesota and colleagues in a 2014 paper in the American Journal of Tropical Medicine.

"Humans and other mammals, domestic and wild, become infected after contact with urine from an infected host, or Leptospira-contaminated water or damp soil."

Some 7 to 10 million people contract leptospirosis each year. The disease is most prevalent in tropical areas, but may be found almost anywhere that's warm and wet.

In the developed world, leptospirosis occurs in people involved in outdoor activities, such as canoeing and kayaking in warm places. In developing countries, the disease largely happens to farmers and poorer people who live in cities.

Infection with Leptospira is linked with agricultural practices, fouling of household or recreational water, poor housing and waste disposal, and changes in the density or proximity of infected animals such as rodents, domestic animals like dogs and wildlife.

Rodents most common carriers

Rodents are the most common reservoirs of Leptospira, says Munoz-Zanzi.

With a grant from the National Science Foundation (NSF)-National Institutes of Health-U.S. Department of Agriculture Ecology and Evolution of Infectious Diseases (EEID) program, Munoz-Zanzi is studying the eco-epidemiology of leptospirosis.

Awards through the EEID program fund scientists to study how large-scale environmental events--such as habitat destruction and climate variability--alter the risks of viral, parasitic and bacterial diseases.

Munoz-Zanzi's goal is to improve knowledge of the social, epidemiological and ecological factors influencing leptospirosis in South America. She and colleagues are working to identify intervention strategies to reduce the disease's effect on the health of humans and other animals.

South-central Chile: a perfect home for Leptospira?

The study is taking place in the Los Rios region of south-central Chile. The area's climate is moderate, with an economy that's based on farming, agriculture, forestry and tourism.

Most of the region's human population is concentrated in a few urban centers, with the rest scattered in small towns or villages and farm areas.

Munoz-Zanzi's research involves contrasting leptospirosis in three community types: urban slums, rural villages, and farms.

Initial findings from the research showed that 20 percent of leptospirosis starts with rodents, including rats and mice, inside households and in other environments in populated areas.

Leptospira-carrying rodents turned out to be more abundant in rural villages than slums and farms.

"Social factors can be important causes of diseases," says Sam Scheiner, NSF EEID program director. "This study shows that the type of community can determine the presence of rats and mice that are disease-carriers. The results have implications for the control of many infectious diseases."

Danger in a puddle

"Because Leptospira live in water and soil," Munoz-Zanzi says, "the environment plays a key role in transmission in household pets, farm animals and people."

When the scientists collected water from puddles, containers, animal troughs, rivers, canals and drinking water, all showed contamination with Leptospira.

In households where puddles were found along with signs of rodent infestations, leptospirosis was common.

"However," says Munoz-Zanzi, "that was true only in lower income houses."

Some 19 percent of samples from these households--most from locations with warmer temperatures, and many with dogs as pets--tested positive.

Community setting important

The scientists are now examining leptospirosis in dogs and livestock, as well as in humans. They're integrating molecular, epidemiological and other data to gain insights into patterns of infection in various community types.

"The more we understand about this disease," says Munoz-Zanzi, "the more we realize the importance of the local community setting."

Ongoing efforts, she says, include the use of mathematical models to develop recommendations for disease control that's locally relevant. The scientists hope to provide people living in the most affected areas with tools to decrease the effects of leptospirosis.

In the meantime, how can people avoid contracting the disease?

"Wear protective equipment to prevent contact with potentially infected animals and environments," says Munoz-Zanzi, "wash after any such contact, and reduce rodents in places where people live and work."

Crowded tropical conditions where rats and mice freely run from house to house may herald another unwanted guest: Leptospira.

-- Cheryl Dybas, NSF

Thursday, February 5, 2015

SECRETARY KERRY'S REMARKS WITH UKRAINIAN PRESIDENT POROSHENKO

FROM:  U.S. STATE DEPARTMENT
02/05/2015 12:56 PM EST
Remarks With Ukrainian President Petro Poroshenko After Their Meeting
Remarks
John Kerry
Secretary of State
Bankova
Kyiv, Ukraine
February 5, 2015

PRESIDENT POROSHENKO: Mr. Secretary, we are very pleased to welcome you, as the United States Secretary of State.

SECRETARY KERRY: Thank you.

PRESIDENT POROSHENKO: It’s almost one year passed since your last visit in Kyiv and I still remember the very crucial and positive discussions we had at that time, and the whole world (inaudible) our country faced a critical changes in peace and security caused by the extremely cynical aggression against Ukraine, aggression against fundamental principles of international law, peaceful coexistence, respecting sovereignty and territorial (inaudible) and noninterference (inaudible). Present time become the test – Ukraine-U.S. strategic partnership.

In Ukraine, we highly appreciate the United States invaluable support to our nation and our people through all the time of Ukraine independence. The support has become most evident viewed in the Russian aggression on Crimea and on Donbas. It is important to underline strong and unanimous support of our country both from United States President, United States Administration, United States Congress, and United States Government. And it’s very important by American people. It’s very valuable – this support, Mr. Secretary.

The United States leading role in consideration of the transatlantic solidarity in support of Ukraine is critical for pushing of the peaceful solution, and we are grateful for the consistent engagement of the State Department and you personally, Mr. Secretary, into this effort. And I still remember that the historic Minsk protocol and Minsk memorandum – it was done on the 5th of September, where we met on the – in United Kingdom on the major summit and this is a key element and the main documents of our de-escalation of the situation and development of the peace process.

Today, we are facing another growing escalation of violence by terrorists directly supporting by Moscow, their refusal to fulfill obligation of the Minsk agreement, their barbarian attack on the civilian population, which led to multiple casualties every day. (Inaudible) Volnovakha, tragedy in Mariupol, tragedy in the Debaltseve, where they’re killing civilian people, is absolutely unacceptable in the 21st century in the center of Europe.

Nadiya Savchenko – illegal imprisonment, captain of the Ukrainian army, defending their own land, their own motherland, was captured, imprisoned, and today is the – her 55th day of the exhausted hunger strike and refusal (inaudible) her relatives is terrible violation of the human rights committed by Russia. This issue were a point of our discussion with the Secretary Kerry. We are working to find out ways for peaceful settlement and deprive Ukrainian people from ongoing horror on the aggression. This is a priority for all community of the civilized nation, for every civilized society.

At the same time, we are strengthening our security cooperation, a number of means could be used to enhance such cooperation. However, to find out the most effective way, the most effective medicine for the (inaudible) to help him to recover the principal task. A comprehensive support of reform in Ukraine also was discussed today, and we thank United States for the assistance, for the advisors, and for their cooperation. We are already demonstrating the most important and most urgent sphere of the Ukraine who need (inaudible). This is the fight against corruption, this is the rule of law, this is the build-up independent court and judge system, this is the building of the effective investment climate, and development of the democracy and freedom.

And in this particular sphere, this is crucially important our cooperation with the United States and we thank you for the – for this cooperation. Because the comprehensive support of Ukraine, also the crucial direction in Ukrainian-American partnership, which is equal important, it means political, economic, financial consulting support, and we are receiving maximum possible assistance from our American partners.

Today as you know, we have a mission of the International Monetary Fund most probably in the next hours, even not days, they finish their mission and they prepared a memorandum. And the effective cooperation with the IMF, with our reliable partner, such as United States, European Union, Japan, Canada, Australia, South Korea – all the countries of the world who are demonstrating their readiness to support Ukraine in this difficult time is vitally important for us.

And I thank Secretary Kerry for – and United States Administration for the decision to provide Ukraine with a significant economic assistance, both previous and (inaudible). I think this is very important for us, and the fact that Secretary Kerry come not with empty hands and this is just – today was the additional increasing of the financial support is very important and is right timeframe in need (inaudible).

And as the President of Ukraine, I can once more reaffirm my strong support of speedy implementation for the systematic reform, fighting corruption, rearranging all state governance to ensure priority of democratic society. These changes are the key prerequisite for a successful and democratic Ukraine, as well as prosperous and safe life for our citizens.

And today, voting of the – in the Ukrainian parliament and support my constitutional proposal, more than constitutional majority, for the removing the immunity of the members of parliament and immunity of the judges and helping us to fight against corruption. This is another step and another evidence of the – our decisive efforts to build up the new country with the European values, with the – based on the principle of freedom and democracy. And this is the same way how we can demonstrate our cooperation with the United States (inaudible).

SECRETARY KERRY: Well, thank you very much Mr. President. First of all, thank you for welcoming me here today and thank you very, very much for the great leadership that you personally, your government, my friend, your foreign minister, who I’ve worked with closely in many meetings in the last year. And you are right, it is just about a year since I was here. And I want you to know that today I am here specifically to bring you the support and friendship and goodwill of the President of the United States, of the Administration, but most importantly the American people. The people of the United States share unwavering support for the Ukrainian people as they continue to display a very courageous journey towards democracy, towards freedom, independence, and most importantly towards the protection of the appropriate respect due for the sovereignty of your country. Your people have bravely and relentlessly pursued a sovereign democratic future; we admire that and we respect it.

I would emphasize to President Putin and to those Russians who obviously express concerns about the road that you’re on that we don’t view this as a zero-sum game. We have never viewed it that way. This is not meant to be nor should it be a divide between East and West. This is about rule of law. It’s about the norms by which nation-states behave. And it’s about the fundamental respect for the integrity of the sovereignty of Ukraine.

This morning, President Poroshenko and I had an opportunity to be able to discuss the necessary and promising reform steps that the President has been leading. This is a program that the Ukrainian Government is undertaking now. Even in the difficult circumstances of the conflict that is taking place, you just heard President Poroshenko restate his personal commitment and the steps that he is taking in order to implement these reforms in Ukraine. We spent some time talking about his political path ahead, the unity of his government, the commitment of his government to protect the interests of the people of Ukraine, but also we talked about the largest threat that Ukraine faces today, and that is Russia’s continued aggression in the east. There’s no other way to call it.

We’re not seeking a conflict with Russia; no one is – not President Poroshenko, not the United States, not the European community. That’s not what this is about. We are very hopeful that Russia will take advantage of our broad-based, uniform acceptance of the notion that there is a diplomatic solution that is staring everybody in the face. That’s what we want. We want a diplomatic resolution. But we cannot close our eyes to tanks that are crossing the border from Russia and coming into Ukraine. We can’t close our eyes to Russian fighters in unmarked uniforms crossing the border and leading individual companies of so-called separatists in battle. We can’t close our eyes to modern rockets and modern radar capacity and other capacity that has crossed the border in order to prosecute this conflict across sovereign lines, across international borders, against all the promises that were made in the Minsk ceasefire agreement.

So we want a peaceful resolution. And President Obama has asked me to come here and he has asked Vice President Biden and me to join together over this weekend in Munich in direct conversations where we will meet again with President Poroshenko, where we will meet with our European allies and friends in an effort to underscore our choice is diplomacy, our choice is a peaceful resolution. But Russia needs to make its choices, and those choices are not just declared by words; they have to be declared by actions. And that means engaging in a series of steps that will uphold the Minsk Agreement which was entered into last year and which they signed up to.

Regrettably, the violence in Donbas has accelerated since then, not diminished. Innocent people are dying every single day – innocent people, people caught in a barrage of artillery that comes into Mariupol, which has no business whatsoever being dragged into this conflict; families cowering in their basements with their children to avoid the shelling. So it is imperative that everybody make the right choices here. Russia needs to demonstrate its commitment to ending the bloodshed once and for all. And we would ask that it does so by honoring the agreement that it signed, the Minsk agreement. Everybody knows what the actions are that were expected from that agreement. It’s not complicated. And Russia needs to now cease this military support for the separatists and bring people to the table in an effort to achieve a lasting political solution.

So in order for this conflict to be resolved, certain things need to happen. The Russians need to undertake certain steps, and the separatists who act with their input have to also support those steps. First of all, there must be an immediate commitment now to a real ceasefire which is not just a piece of paper and words, but which is followed up by specific actions.

Namely, pull back the heavy weapons from the ceasefire line, from the border, beyond the range of artillery, beyond the range of certain munitions to be able to do harm to civilians. That would be the first confidence-building measure that would begin to allow for peaceful resolution. Second, remove foreign troops and heavy equipment from Ukraine. Which leads you to the third step: Respect the international border; close that border to the movement of these materials and tanks, which are the fundamental means by which this continued war is prosecuted, and by doing so, restore Ukrainian sovereignty, respect Ukrainian sovereignty. It is fully possible to be able to work through the interests that Russia has expressed about the people in Donetsk and Luhansk and to have those issues worked through, but the way to do it is not by fostering greater violence.

Both sides need to release the hostages who are currently detained, and in addition, it is important to note that President Poroshenko this morning, in my conversations with him, pointed out that he remains committed to supporting the special status law which is currently on the books, which provides greater economic and municipal and political rights to those particular to the Donbas area. And that’s important to remember – that he has also committed to pursuing real constitutional reform, and he is committed to holding new free and fair elections in Donbas, and if these steps are respected, it is fully appropriate to also expect that the full measure of the Minsk agreement can then also be respected and implemented. That is the outline of peace. And the United States of America, President Obama, is deeply committed to helping to assist all the parties to come together in an effort to try to achieve this. The fact that Chancellor Merkel and President Hollande are visiting Kyiv today underscores that together, the United States, France, Germany, and the rest of our international partners stand united with Ukraine in calling on Russia to take the steps that I just outlined, and to take those steps without delay. And that is exactly how this conflict can come to an end.

That is our choice. The Ukrainian people, President Poroshenko, the United States, European allies and friends, we are convinced that if diplomacy is given meaning beyond the piece of paper and the words that are on it, through the actions that follow to implement what those words lay out, there could be peace. So this is a critical moment for this region, for this country, and for the prospects of peace. It is really possible that this conflict could come to an end, but only starting with a ceasefire, moving the heavy equipment back, and beginning to deal with the real issues that we all know are on the table.

That is also the only way that Russia’s international isolation is going to be ended and eased, and it’s the only way that the Ukrainian people in all parts of this country will finally achieve the peace that they so deserve.

Let me just say that when I came here a year ago, I was deeply moved by my visit, deeply moved by the people that I met near the Maidan, as I visited the site where so many people were killed by snipers at that pivotal turning point in the struggle for freedom. It is really enormously impressive what the people of Ukraine have accomplished, broadly speaking, over the course of this year. They held an election under the most difficult circumstances, a peaceful transfer of power, the finding of a new government, a government that has worked hard in unity to try to end this conflict. And we hope that in the next days it may be possible, finally, to try to find a road ahead, and Mr. President, we’re grateful to you for your steadfast leadership and for the effort to reform things even in the middle of this conflict, which you have remained so committed to.

So we thank you for that, and I look forward to seeing you in Munich in a day or so. Thank you, sir.

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