Wednesday, April 15, 2015

SECRETARY KERRY'S REMARKS WITH GERMAN FOREIGN MINISTER FRANK-WALTER STEINMETER

FROM:  U.S. STATE DEPARTMENT
Remarks With German Foreign Minister Frank-Walter Steinmeier
Remarks
John Kerry
Secretary of State
Lubeck, Germany
April 15, 2015

FOREIGN MINISTER STEINMEIER: A very special welcome to our friend, John Kerry, who came a long way after his hearings in the Congress yesterday evening. It’s sunny weather in Lubeck, but that shouldn’t irritate us because the weather in international politics is quite stormy. The conflict in the eastern Ukraine is only two hours away from here, and we are discussing the situation in Ukraine, the Ukrainian conflict later on. And we are starting today with the stand on our negotiations with Iran. We have to discuss the situation in the Middle East with ISIS, about Iraq and Syria, and new reporting nearly every day about the changing situation in Yemen. We are quite satisfied that the United Nations Security Council yesterday decided about the resolution against arms delivery to the Houthis in Yemen. This is a little bit progress, but we are far away from a situation in which we are able to calm the situation to de-escalate or to find a political solution. We will discuss about the consequences of climate change for foreign policy and the stability of states and international relations, and we will discuss about maritime security here in a city in which we have a great tradition in which the Hanseatic League was founded and in which there is a (inaudible) experience on a regular base international order, and how to deal with situation in which this order is broken by somebody.

So I think it’s a splendid environment for our discussions today. And again, not only a good morning, but welcome here in Lubeck.

Some words?

SECRETARY KERRY: Well, we’re – first of all, let me say what a tremendous pleasure it is to be here in this world heritage city of Lubeck, which, as Frank Steinmeier just said, was the heart of the Hanseatic League and an important precursor to the rule of law. And we’re very, very privileged to be here with the G7, which has a critical voice right now on the major challenges that we face – ISIS, Yemen, the Middle East, Syria, Ukraine, Libya. The voices of every single country here are critical to the resolution of each of these conflicts. And I’m particularly grateful – and I think the other ministers join me in saying a profound thank you to Germany – for Germany’s great leadership. And Germany, together with France, have been absolutely critical to working through the challenge of Ukraine. We look to their leadership, and they’ve provided it.

So we have a lot to talk about today. And of course, looming large is the challenge of finishing the negotiation with Iran over the course of the next two and a half months. Yesterday, there was a compromise reached in Washington regarding congressional input. We are confident about our ability for the President to negotiate an agreement, and to do so with the ability to make the world safer. And again, every partner here has been absolutely critical to our ability to be able to get where we are today. So I’m grateful to be here to be part of this discussion for the period of time I can be, and I’m really grateful to each and every colleague here for the incredible partnership that is represented by the G7 at this point in time. And it’s wonderful particularly to be here in this historic city. Thank you.

NORTH DAKOTA ARMY NATIONAL GUARD BATTLES WILDFIRES

FROM:  U.S. DEFENSE DEPARTMENT
North Dakota Army Guard helicopters battling wildfires
By North Dakota National Guard | April 14, 2015

BISMARCK, N.D. — The North Dakota Army National Guard launched two UH-60 Black Hawk helicopters Monday to help first responders battle a wildfire south of Bismarck, near the residential area of Briardale.

Gov. Jack Dalrymple extended an executive order which authorized the adjutant general, Maj. Gen. David A. Sprynczynatyk, to activate North Dakota National Guard resources in support of local and tribal governments fighting wildfires.

The first Black Hawk launched at 3:57 p.m. CDT from the Guard’s Army Aviation Support Facility south of the Bismarck airport. The second helicopter took off at 5 p.m.

The Black Hawks are assigned to the Bismarck-based Company C, 2nd Battalion, 285th Aviation Regiment and will use 600-gallon water buckets to help control the wildfire.

The helicopters will scoop water out of the Missouri River and will assist as fuel and flying conditions allow or until the mission is complete, according to a National Guard news release.

ISIL LOOSES TERRITORY


FROM:  U.S. DEFENSE DEPARTMENT

Right:  The Islamic State of Iraq and the Levant’s reduced operating areas in Iraq and Syria as of April 2015. DoD photo.

ISIL Loses Control of Once-dominated Iraq Territory
By Terri Moon Cronk
DoD News, Defense Media Activity

WASHINGTON, April 13, 2015 – Some 25 percent to 30 percent of Iraqi territory has been taken back from Islamic State of Iraq and the Levant terrorist group control by coalition forces, Army Col. Steve Warren told reporters today.

Warren, a Pentagon spokesman, showed reporters a color-coded map of key populated sites in northern and central Iraq where ISIL was once the dominant force before Combined Joint Task Force Operation Inherent Resolve pushed the terrorists back.

Overall, he said, the map shows how “the combination of coalition air power and Iraqi ground forces are having an effect on the enemy’s ability to hold territory and to have freedom of maneuver,” he said.

“This equates to approximately 5,000 square miles to 6,000 square miles [of Iraq territory] since the peak of [ISIL] territorial influence in Iraq in August 2014,” Warren noted. “ISIL has lost large areas where it was once dominant.”

Essentially, he added, the ISIL front line has been pushed either west or south, depending on location, he said, in integral areas such as Erbil, Babil, Baghdad and the Kirkuk governances.

Coalition Maintains Pressure on ISIL

“Among other strategic infrastructure and sizeable towns where ISIL has lost territory are Mosul Dam, Zummar and the vicinity of Sinjar Mountain,” Warren said.

The corridor north of Tikrit has been “substantially retaken by friendly forces,” Warren said. With offensive pressure on ISIL, he said he expects Tikrit also will be cleared from ISIL “relatively soon.”

Beiji and a nearby oil refinery is still contested, and will continue to be the focus of airstrikes, he said.

While it is too early to say the tide of the battle is turning in Iraq, Iraqi security forces, along with coalition air power, “have unquestionably inflicted some damage on ISIL and have pushed ISIL back in a somewhat meaningful way,” Warren said.


FTC CHARGES DEBT BROKERS WITH EXPOSING CONSUMERS' INFORMATION ONLINE

FROM:  U.S. FEDERAL TRADE COMMISSION
 Debt Brokers Settle FTC Charges They Exposed Consumers’ Information Online
Defendants Posted Bank Account Numbers and Other Sensitive Information of 55,000 Consumers

Two debt brokers have agreed to settle Federal Trade Commission charges that they exposed highly sensitive information about tens of thousands of consumers while trying to sell portfolios of consumer debt on a public website. The agreements with the FTC require the defendants to abide by strict new requirements to protect consumers’ sensitive information.

In separate cases filed last year against Cornerstone and Company, LLC and its owner, Brandon Lambert, and Bayview Solutions, LLC and its owner, Aron Tomko, the FTC alleged the debt brokers posted unencrypted documents online containing consumers’ names, addresses, credit card numbers, bank account numbers, and amounts the consumers allegedly owed. The sensitive data was posted on a website geared for debt buyers, sellers, and other members of the debt collection industry, but accessible to anyone with an internet connection.

The FTC’s complaints alleged that by disclosing consumers’ information online, the defendants exposed those consumers to risks ranging from identity theft to “phantom debt” collection. Phantom debt collection involves predatory debt collectors who try to extract payments from consumers without the authority to collect the debts.

In response to the FTC’s lawsuits, a federal court ordered the website hosting the sensitive information to take it down immediately. It also ordered the defendants to notify the affected consumers that their information had been exposed and of steps they could take to protect themselves.

Under the settlements, the defendants must establish and maintain security programs that will protect consumers’ sensitive personal information. In addition, the companies must have their security programs evaluated both initially and every two years by a certified third party.

The Commission votes approving the proposed stipulated final orders were 5-0. The orders are subject to court approval. The FTC filed the proposed stipulated final orders in the U.S. District Court for the District of Columbia.

Buying or selling debts? Check out the FTC’s seven tips for keeping data secure.

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

DOD REPORTS ON AIRSTRIKES ON ISIL IN IRAQ, SYRIA

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

From a Combined Joint Task Force Operation Inherent Resolve News Release
WASHINGTON, April 14, 2015 – U.S. and coalition military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.

Officials reported details of the latest strikes, which took place between 8 a.m. yesterday, and 8 a.m. today, local time, noting that assessments of results are based on initial reports.

Airstrikes in Syria

Fighter aircraft conducted three airstrikes near Kobani, which struck two ISIL tactical units and destroyed four ISIL fighting positions and an ISIL vehicle.
Airstrikes in Iraq

Fighter, attack and remotely piloted aircraft conducted 15 airstrikes in Iraq, approved by the Iraqi Ministry of Defense:

-- Near Beiji, seven airstrikes struck one large and two smaller tactical units, two ISIL excavators, destroyed 11 ISIL buildings, four ISIL vehicles, two ISIL excavators, two ISIL fighting positions, an ISIL warehouse, an ISIL vehicle bomb and an ISIL heavy machine gun.

-- Near Fallujah, three airstrikes destroyed two ISIL bridges and an ISIL checkpoint.

-- Near Mosul, an airstrike struck an ISIL headquarters.

-- Near Ramadi, three airstrikes struck three ISIL tactical units, destroyed four ISIL fighting positions, two ISIL vehicles and an ISIL mortar system.

-- Near Sinjar, an airstrike struck an ISIL tactical unit, destroyed two ISIL buildings, and an ISIL rocket-propelled grenade.

All aircraft returned to base safely.

Part of Operation Inherent Resolve

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

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

FORMER DEA EMPLOYEE PLEADS GUILTY IN CASE INVOLVING GOVERNMENT CREDIT CARDS

FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, April 14, 2015

Former DEA Employee Pleads Guilty to Credit Card Fraud Scheme
A former Drug Enforcement Administration (DEA) employee pleaded guilty today to defrauding the government out of more than $113,000 using fraudulently issued government credit cards, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Michael P. Tompkins of the Justice Department’s Office of the Inspector General in Washington, D.C.

Keenya Meshell Banks, 42, of Upper Marlboro, Maryland, pleaded guilty today before U.S. District Judge Deborah K. Chasanow of the District of Maryland to one count of wire fraud.  A sentencing hearing is scheduled for June 29, 2015.

According to her plea agreement, Banks was employed by the DEA as a Program Manager, and was responsible for the approval and issuance of government credit cards to DEA employees.  While serving in that role, Banks admitted that she submitted dozens of fake credit card applications to JPMorgan Chase & Co. for fictitious DEA employees, using names and identifying information of individuals who did not work at the DEA.  In at least one instance, however, Banks submitted the identifying information of an actual DEA employee.  Through this scheme, Banks obtained at least 32 fraudulent credit cards, which she then used to withdraw more than $113,000 from ATMs in Maryland and Northern Virginia.  As part of plea agreement, Banks agreed to forfeit the proceeds she received as a result of the scheme and to pay full restitution.

The case is being investigated by the Department of Justice Office of Inspector General and is being prosecuted by Trial Attorneys Richard B. Evans and Justin Weitz of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Thomas P. Windom of the  District of Maryland.

CDC ANNOUNCES EBOLA VACCINE TRIAL HAS BEGUN IN SIERRA LEONE

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION
Ebola vaccine trial begins in Sierra Leone
6,000 health and other front-line workers will receive vaccine in five districts of the country

The Centers for Disease Control and Prevention (CDC), in partnership with the Sierra Leone College of Medicine and Allied Health Sciences (COMAHS) and the Sierra Leone Ministry of Health and Sanitation (MoHS), is now enrolling and vaccinating volunteers for the Sierra Leone Trial to Introduce a Vaccine against Ebola (STRIVE). This study will assess the safety and efficacy of the rVSV-ZEBOV candidate Ebola vaccine among health and other frontline workers.

“A safe and effective vaccine would be a very important tool to stop Ebola in the future, and the frontline workers who are volunteering to participate are making a decision that could benefit health care professionals and communities wherever Ebola is a risk,” said CDC Director Tom Frieden, M.D., M.P.H.  “We hope this vaccine will be proven effective but in the meantime we must continue doing everything necessary to stop this epidemic —find every case, isolate and treat, safely and respectfully bury the dead, and find every single contact.”

STRIVE will enroll about 6,000 health and other frontline workers. It will be conducted in Western Area Urban district, which includes Freetown, Western Area Rural district, and certain chiefdoms in Bombali, Port Loko, and Tonkolili districts. These study locations were selected because they have been heavily affected by the Ebola outbreak in the past few months.

“We are happy to be partnering with MoHS and CDC on this important study, which may help to prevent future cases of Ebola,” said Mohamed Samai, M.B., Ch.B., Ph.D., acting Provost of COMAHS and the study’s principal investigator. “It brings me hope and pride that my country can take from this devastating epidemic something that may benefit people around the world.”

When participants enroll in the study, they will be assigned randomly to one of two timeframes for vaccination – either immediately or about six months later. All study participants will receive the vaccine and be followed closely for six months. The study will evaluate if and how well the vaccine worked by comparing rates of Ebola virus disease in those who are vaccinated to those who have not yet received the vaccine.

SEC CHARGES MAN WITH FRAUD INVOLVING MILITARY PERSONNEL

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
04/14/2015 10:15 AM EDT

The Securities and Exchange Commission today announced fraud charges and an asset freeze against a man living in central Texas accused of telling false tales about his stockbroking experience to lure current and former U.S. military personnel into investing with him.

The SEC alleges that Leroy Brown Jr. touted his own military connection as an Army veteran while soliciting members of the military and other investors through his firm LB Stocks and Trades Advice LLC.  Brown falsely assured investors, including some stationed at nearby Fort Hood, that he had many years of experience in the securities markets.  He specifically claimed to have all the necessary licenses and registrations to conduct securities business.  In reality, Brown is not a licensed securities professional and his firm is not registered with the SEC, Financial Industry Regulatory Authority, or any state regulator.  Brown and his firm have no evident experience with investments.

The SEC further alleges that Brown falsely guaranteed investors that he would double or triple their money within 120 days.

“Trust is a bedrock principle to our military, and we allege that Brown exploited his own military experience and abused that trust for his own personal gain,” said David Woodcock, Director of the SEC’s Fort Worth Regional Office.  “Investment fraud is always wrong, but it’s especially pernicious when perpetrated against those who have sacrificed so much for our freedom.”

The SEC’s complaint, filed yesterday in U.S. District Court for the Western District of Texas, charges Brown and LB Stocks and Trades Advice with securities fraud and conducting an unregistered securities offering.  The SEC is seeking financial penalties and disgorgement of ill-gotten gains as well as permanent injunctive relief.  The court has issued an order temporarily freezing all assets of Brown and LB Stocks and Trades Advice.

The SEC’s investigation was conducted by Chris Ahart and Melvin Warren of the Fort Worth Regional Office, and the case was supervised by Jim Etri.  The SEC’s litigation is being led by B. David Fraser.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Texas, the U.S. Secret Service, and the Texas Department of Public Safety - Criminal Investigations Division.

4 CONVICTED AND SENTENCED IN BLACKWATER FATAL SHOOTINGS CASE

 FROM:  U.S. JUSTICE DEPARTMENT
Monday, April 13, 2015
Four Former Blackwater Employees Sentenced to Decades in Prison for Fatal 2007 Shootings in Iraq

One former security guard for Blackwater USA was sentenced today to a term of life in prison, and three others were each sentenced to prison terms of 30 years and one day for their roles in the Sept. 16, 2007, shooting at Nisur Square in Baghdad, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.

The sentencing, in the U.S. District Court for the District of Columbia, was announced by the U.S. Attorney’s Office for the District of Columbia and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.

The defendants are Nicholas Abram Slatten, 31, of Sparta, Tennessee; Paul Alvin Slough, 35, of Keller, Texas; Evan Shawn Liberty, 32, of Rochester, New Hampshire; and Dustin Laurent Heard, 33, of Maryville, Tennessee.  All were found guilty by a jury on Oct. 22, 2014, following a two and one-half-month trial.  They were sentenced by the Honorable Senior Judge Royce C. Lamberth of the District of Columbia.

Slatten, who was accused of firing the first shots, was sentenced to life in prison.  The jury had found him guilty of one count of first-degree murder.

Slough, Liberty and Heard were each sentenced to prison terms of 30 years and one day.  The jury had found Slough guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter and one firearms offense.  Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter and one firearms offense.  Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter and one firearms offense.

At a day-long sentencing hearing, Judge Lamberth said that the sentences reflected the seriousness of the crimes and the large number of victims.  He said that the U.S. government “should be commended for finding and exposing the truth of what happened in Nisur Square.”

In a statement, the U.S. Attorney’s Office said the prosecution reflected the commitment of the American justice system to the rule of law and expressed hope that the sentencing of the four defendants will bring some comfort to survivors of the shootings and the family members of those who died or were injured.  “In killing and maiming unarmed civilians, these defendants acted unreasonably and without justification,” the statement said.  “In combination, the sheer amount of unnecessary human loss and suffering attributable to the defendants’ criminal conduct on Sept.16, 2007, is staggering.”

“These sentencings are the result of the enduring resolve by law enforcement to protect victims of violent crime,” said Assistant Director in Charge McCabe.  “Because this crime scene was so large and required international travel, both by witnesses and by investigators, this case required a tremendous amount of resources, time and investigative expertise.  The results of this case demonstrate that the FBI will investigate violations of U.S. law no matter where they occur in order to bring justice to innocent victims.”

Another Blackwater security guard, Jeremy P. Ridgeway, pleaded guilty in December 2008 to voluntary manslaughter and attempt to commit manslaughter.  Ridgeway, who testified as a government witness in the trial, has not yet been sentenced.

The defendants worked for Blackwater USA, a private security contractor that was paid by the U.S. government to provide protective services to U.S. officials.

The trial began June 17, 2014.  Over the next 10 weeks, the government presented testimony from 71 witnesses, including 30 from Iraq.  This represented the largest group of foreign witnesses ever to travel to the United States for a criminal trial.  The witnesses included 13 people who were wounded in the shootings, as well as relatives of many of those who died.  The government’s witnesses also included nine members of “Raven 23,” the Blackwater team that was on the scene on the day of the shootings.

According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including the four defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad.  When they stopped shooting, 14 Iraqi civilians were dead.  Those killed included 10 men, two women and two boys, ages 9 and 11.  Another 18 victims were injured.

The four defendants and 15 other Blackwater security contractors were assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.”  Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team.  Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.

Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone.  While occupying the southern part of the traffic circle, seven of the 19 members of Raven 23, including the four defendants and Ridgeway fired their weapons resulting in the deaths or injury of the unarmed Iraqi civilians there.  While leaving the traffic circle, Slough continued to fire his weapon resulting in additional deaths and injuries.

Finally, further away, north of the traffic circle, Slough and Ridgeway again fired their weapons resulting in the injury of three more unarmed Iraqi civilians.

The first to be killed was Ahmed Haithem Ahmed Al Rubia’y, 21, an aspiring doctor, who was driving his mother to an appointment.  His mother, Mahassin Mohssen Kadhum Al-Khazali, 44, a medical doctor, also was killed.  Others who died included Ali Mohammed Hafedh Abdul Razzaq, 9, who was traveling with his family; Osama Fadhil Abbas, 52, a businessman who sold used cars and who was enroute to a business meeting; Mohamed Abbas Mahmoud, 47, a delivery truck driver, and his 11-year-old son, Qasim Mohamed Abbas Mahmoud; Sa’adi Ali Abbas Alkarkh, 52, a businessman; Mushtaq Karim Abd Al-Razzaq, 18, an Iraqi soldier who was standing at a military checkpoint; Ghaniyah Hassan Ali, 55, who was traveling with her daughter on a public bus, and who was in the area to get documentation for a trip to holy sites; Ibrahim Abid Ayash, 77, a gardener, who was traveling in another bus; Hamoud Sa’eed Abttan, 33, and his cousin, Usday Ismail Ibrahiem, 27, who were out looking for work with the Iraqi Army; Mahdi Sahib Nasir, 26, a taxi driver, and Ali Khalil Abdul Hussein, 54, a motorcyclist who was commuting to work.

The jury considered charges involving injuries to 14 men and three women.   Because of travel issues, witnesses to support an 18th charge of attempted manslaughter did not appear at the trial and the charge related to that victim’s injuries was dismissed by the government.

This case was investigated by the FBI’s Washington Field Office.  The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.

The case was prosecuted by Special Assistant U.S. Attorneys Anthony Asuncion, Christopher R. Kavanaugh and T. Patrick Martin, and Assistant U.S. Attorneys John Crabb Jr. and David Mudd, of the National Security Section of the U.S. Attorney’s Office of the District of Columbia.  The case was originally indicted by Assistant U.S. Attorneys Jonathan M. Malis and Kenneth Kohl of the District of Columbia.

Tuesday, April 14, 2015

PRESIDENT OBAMA MEETS WITH IRAQI PRIME MINISTER

U.S. EDUCATION DEPARTMENT FINES CORINTHIAN COLLEGES $30 MILLION FOR MISREPRESENTATION

FROM:  U.S. DEPARTMENT OF EDUCATION
U.S. Department of Education Fines Corinthian Colleges $30 million for Misrepresentation
Action complements ongoing steps to protect students and consumers against predatory for-profit colleges
APRIL 14, 2015

The U.S. Department of Education took additional steps today to protect students and taxpayers and crack down on abuses within the for-profit sector by continuing its enforcement actions against Corinthian Colleges Inc. After a comprehensive review, the U.S. Department of Education has confirmed cases of misrepresentation of job placement rates to current and prospective students in Corinthian's Heald College system. The Department found 947 misstated placement rates and informed the company it is being fined about $30 million.

Specifically, the Department has determined that Heald College's inaccurate or incomplete disclosures were misleading to students; that they overstated the employment prospects of graduates of Heald's programs; and that current and prospective students of Heald could have relied upon that information as they were choosing whether to attend the school. Heald College provided the Department and its accreditors this inaccurate information as well.

The Department has also notified Corinthian it intends to deny Corinthian's pending applications to continue to participate in the Title IV federal student aid programs at its Heald Salinas and Stockton locations. Corinthian has 14 days to respond to the Department's notice, after which the Department will issue its final decision. Moreover, the Department has determined that Heald College is no longer allowed to enroll students and must prepare to help its current students either complete their education or continue it elsewhere.

The Obama Administration has led unprecedented efforts to protect consumers from predatory career colleges. It has established new gainful employment regulations to hold career training programs accountable and ensure that students are not saddled with debt they cannot repay. These regulations ensure that programs improve their outcomes for students – or risk losing access to federal student aid. Last year, the Department announced a new federal interagency task force to help ensure proper oversight of for-profit institutions, which will be led by Under Secretary Ted Mitchell.

"This should be a wake-up call for consumers across the country about the abuses that can exist within the for-profit college sector," U.S. Secretary of Education Arne Duncan said of the Department's enforcement action against Corinthian. "We will continue to hold the career college industry accountable and demand reform for the good of students and taxpayers. And we will need Congress to join us in that effort."

"Instead of providing clear and accurate information to help students choose which college to attend, Corinthian violated students' and taxpayers' trust," said Under Secretary Mitchell. "Their substantial misrepresentations evidence a blatant disregard not just for professional standards, but for students' futures. This is unacceptable, and we are holding them accountable."

As part of these ongoing efforts to ensure that career colleges prepare students for the workforce, institutions are required to provide accurate information about their graduates' job placement success and the types of employment their graduates obtained. The Department expects all institutions to adhere to the highest standard of care and diligence in following the requirements of participating in federal student aid programs to ensure colleges are always doing right by students and taxpayers.

After initial concerns about Corinthian Colleges' job placement rates were raised in January 2014, the Department has taken a series of steps to protect students and hold Corinthian accountable, including increasing the Department's financial oversight of Corinthian and requiring the company to sell or close all of its programs. The Department also mandated the establishment of an independent monitor – under the leadership of former U.S. Attorney Patrick Fitzgerald – to ensure Corinthian met its obligations to the Department, including proper, limited use of federal student aid dollars and providing valid information to students regarding their options during Corinthian's transition. The majority of Corinthian's campuses were sold to the nonprofit Zenith Education Group, which agreed to provide a number of new consumer protections, such as providing refund and withdrawal opportunities to students in poorly-performing programs, and has taken steps to strengthen programs and improve affordability, including by reducing tuition. The sale allowed most students to continue pursuing their career goals without disruption, and the Department and the Consumer Financial Protection Bureau have since worked to provide more than $480 million in loan forgiveness for borrowers who took out Corinthian's high-cost private student loans.

In its investigation of Corinthian Colleges, the Department found numerous causes for concern with practices throughout the Heald College system. Some examples include:

Heald paid temporary agencies to hire its graduates to work at temporary jobs on its own campuses – and counted these graduates as placed. For example, Heald paid companies to hire graduates for temporary positions as short as two days, asked them to perform tasks like moving computers and organizing cables, and then counted those graduates as "placed in field."

Heald College counted placements that were clearly out of the student's field of study as in-field placements. For example, one campus classified a 2011 graduate of an Accounting program as employed in the field based upon a food service job she started at Taco Bell in June 2006. Another campus counted a 2011 Business Administration graduate as placed in the field based upon a seasonal clerk position she obtained in Macy's Shipping and Receiving Department during November 2010, which the student stated ended prior to her graduation.

Heald College failed to disclose that it counted as "placed" those graduates whose employment began prior to graduation, and in some cases even prior to the graduate's attendance at Heald. The Department's analysis revealed that, according to Corinthian's own data for 2012 graduates, over one-third of the graduates reported to have been "placed in field" started their jobs prior to January 1, 2012, and over one-quarter started their jobs prior to January 1, 2011. And in follow-up interviews with some of those students, they told the Department that their jobs were not related to their field of study, nor had they received promotions or increased responsibilities or otherwise progressed in those jobs because of their Heald education.

In some of its disclosures, Heald failed to state that it had excluded students from its placement rate calculations who the college said had deferred employment for one reason or another. In one case, a criminal justice program claimed a placement rate of 100 percent, but it had classified almost 60 percent of the graduates as unavailable for employment. In another case, a medical assisting program claimed a placement rate of 100 percent based upon 51 graduates having been placed, but it had classified almost 43 percent, or 38 of the 89 total graduates of the program, as unavailable for employment.

Throughout this process, the Department has sought a wind down of Corinthian Colleges that protects students, safeguards the investment taxpayers have made in their success, and creates opportunities for students to finish what they started. In the coming days, the Department will provide more information to Corinthian's students to help answer questions about their federal student aid and their options. The Department is also working on a process to help federal student loan borrowers submit a defense to repayment of their federal student loans.

"We have kept students at the heart of every decision we have made about Corinthian, and we will continue to do so as we move forward," Under Secretary Mitchell said. "When our borrowers bring claims to us that their school committed fraud or other violations of state law against them, we will give them the relief that they are entitled to under federal law and regulations."

U.S. CYBER COMMANDER AND NSA CHIEF COMMENTS ON CYBER OPERATIONS

FROM:  U.S. DEFENSE DEPARTMENT
Cybercom Chief Discusses Importance of Cyber Operations
By Jim Garamone
DoD News, Defense Media Activity

NATIONAL HARBOR, Md., April 14, 2015 – Cyber is an operational domain, and military leaders are going to have to understand its importance and the opportunities and challenges of operating in the domain, Navy Adm. Michael S. Rogers said here today.

Rogers, the commander of U.S. Cyber Command, director of the National Security Agency, and chief of the Central Security Service, spoke at the Navy League’s 50th annual Sea-Air-Space Exposition. The admiral participated in a panel entitled, “Cyber, Electromagnetic War and Information Dominance.”
Rogers commented on the speed and growth of the cyber domain.

“The world around us is changing,” he said. “The spectrum and the network are converging. That represents vulnerability and opportunity. How do we set ourselves up to take advantage that opportunity while addressing that vulnerability?”

Cyber is an operational domain in which the U.S. military conducts many operations, “many of them like we do in any other operational domain,” Rogers said.

Understanding Cyber Culture

Getting traditional warfighters to understand the importance of cyber operations -- both defense and offense -- requires an understanding of culture and ethos that is more important than just technology, Rogers said.

“We have got to get beyond focusing just on the technical piece here,” Rogers said. “It’s about ethos. It’s about culture. It’s about warfighting. It’s about how do you operationalize a network on a warfighting platform, and what does that mean?”
He added, “It ain’t just a bumper sticker and it’s not just a slogan.”

In the cyber domain, the emphasis on operations will drive how to man, train and equip organizations, the admiral said. It also drives how the organization is structured, he added, and what operational concepts are deployed.

“It’s about how we are going to fight,” he said.

Capitalizing on Information Dominance

The Navy and the other services must put themselves in a position to capitalize on information dominance, the admiral said.

In June, the Navy will mark the 73rd anniversary of the Battle of Midway, said Rogers, noting that Midway changed the tide of World War II in the Pacific. An overmatched U.S. fleet sank four Imperial Japanese Navy aircraft carriers in a desperate battle off the strategic island of Midway.

It was through signals intelligence, code-breaking and communications that then-Navy Adm. Chester Nimitz knew where to position the few U.S. aircraft carriers he had in the region to win the battle.

“As an information warfare officer, as an information dominance officer, I take great pride in the role and capability that our predecessors brought to really make a critical difference in an operational outcome,” Rogers said.

Looking forward, cyber warriors must be able to provide the intelligence to win those battles and more, Rogers said.

How much better it would be in the future, he posited, “if we could not only provide those operational commanders great situational and environmental awareness, but what if we could provide commanders the ability to attempt to bring non-kinetic fires to bear, to give commanders assured command and control, because opponents are going to be contesting our command and control?”

Rogers said he’s pleased with the progress the maritime services have made in regard to cyber and the spectrum. But more needs to be done, he added.
The services, he said, need to factor cyber into every decision.
“Now we are in a totally different operational world,” he said.

SECRETARY KERRY'S PRESS STATEMENT ON RESCINDING CUBA'S TERRORISM DESIGNATION

FROM:  U.S. STATE DEPARTMENT
Recommendation to Rescind Cuba's Designation as a State Sponsor of Terrorism
Press Statement
John Kerry
Secretary of State
Washington, DC
April 14, 2015

In December 2014, as a critical component of establishing a new direction for U.S.–Cuba relations, the President directed the State Department to launch a review of Cuba’s designation as a State Sponsor of Terrorism and provide a report to him within six months. Last week, the State Department submitted a report to the White House recommending, based on the facts and the statutory standard, that President Obama rescind Cuba’s designation as a State Sponsor of Terrorism.

This recommendation reflects the Department’s assessment that Cuba meets the criteria established by Congress for rescission. While the United States has had, and continues to have, significant concerns and disagreements with a wide range of Cuba’s policies and actions, these concerns and disagreements fall outside of the criteria for designation as a State Sponsor of Terrorism. This review focused on the narrow questions of whether Cuba provided any support for international terrorism during the previous six months, and whether Cuba has provided assurances that it will not support acts of international terrorism in the future, consistent with the statutory standard for rescission.

Circumstances have changed since 1982, when Cuba was originally designated as a State Sponsor of Terrorism because of its efforts to promote armed revolution by forces in Latin America. Our Hemisphere, and the world, look very different today than they did 33 years ago. Our determination, pursuant to the facts, including corroborative assurances received from the Government of Cuba and the statutory standard, is that the time has come to rescind Cuba’s designation as a State Sponsor of Terrorism.

NASA VIDEO: SPACE TO GROUND 04/10/2015

U.S., AFRICAN UNION TO LAUNCH AFRICAN CDC

FROM:  U.S. CENTERS FOR DISEASE CONTROL AND PREVENTION
African Union and U.S. CDC Partner to Launch African CDC
The African CDC will be a public health institute supporting the whole continent of Africa

Washington, DC –A Memorandum of Cooperation (MOC) signed today by U.S. Secretary of State John Kerry and Nkosazana Dlamini Zuma, M.B. Ch.B., chairperson of the African Union Commission, formalizes a collaboration between the African Union Commission and the U.S. Centers for Disease Control and Prevention in creating the African Centres for Disease Control and Prevention (African CDC).

“The West African Ebola epidemic reaffirmed the need for a public health institute to support African ministries of health and other health agencies in their efforts to prevent, detect, and respond to any disease outbreak,” said CDC Director Tom Frieden, M.D., M.P.H. “This memorandum solidifies the commitment by the United States to advance public health across Africa and global health security.”

The need for an African CDC was recognized at the African Union Special Summit on HIV and AIDS, TB, and Malaria in Abuja in July 2013. The concept has since moved through various stages of development, stakeholder review, and approval. The African CDC is slated to launch later this year with the establishment of an African Surveillance and Response Unit, which will include an Emergency Operations Center.

“The African Centres for Disease Control and Prevention (African CDC) will help African countries effectively monitor public health, respond to public health emergencies, address complex health challenges, and build needed capacity,”  Dr. Dlamini-Zuma said.

The African CDC Surveillance and Response Unit will provide technical expertise and response coordination during emergencies. Through the AU Support for Ebola Outbreak in West Africa (ASEOWA) mission, the African Union sent over 800 medical volunteers and public health responders to fight the Ebola epidemic in Guinea, Liberia, and Sierra Leone from September 2014 to February 2015. With the African CDC in place, these volunteers and others can be organized to form a deployable force ready to serve Member States during future health emergency responses on the continent.


About the African Union The African Union spearheads Africa’s development and integration in close collaboration with African Union Member States, the Regional Economic Communities and African citizens. The AU’s vision is to accelerate progress towards an integrated, prosperous and inclusive Africa, at peace with itself, playing a dynamic role in the continental and global arena, effectively driven by an accountable, efficient and responsive Commission

ARMY LETHALITY CHIEF PREDICTS FUTURE OF MILITARY ROBOTICS

FROM:  U.S. ARMY

WASHINGTON (April 10, 2015) -- Doctrine drives training and modernization, and new doctrine to be released in January 2016, will provide impetus for growth in the rapidly-evolving field of robotics, Lt. Col. Matt Dooley predicted.

Dooley, chief of the lethality branch at the Army Capabilities Integration Center, discussed the future of robotics in the Army during the National Defense Industrial Association-sponsored Ground Robotics Capabilities Conference and Exhibition, here, April 8.

Dooley said the new doctrine, "U.S. Army Robotics and Autonomous Systems Strategy," will drive science and technology investments, inform acquisition decisions, further the integration of robots throughout the force and codify the path forward.

Currently, there are references to manned-unmanned teaming and science and technology investments in Army Training and Doctrine Command, or TRADOC, Pamphlet 525-3-1, also called the "Army Operating Concept." But those references are in the appendix of that document. Right now, there is no single Army doctrinal manual devoted wholly to robotics.

Robotics consists of both ground and air vehicles, but Dooley's focus at the panel discussion was the ground aspects.

While the sky is full of unmanned air vehicles, Dooley said, squads have yet to see a similar number of systems in use on the ground, although there are some being used for explosive ordnance disposal and improvised explosive device, or IED, clearing operations.

Systems that a squad might find useful, he said, are those that can carry supplies, locate targets, and carry out surveillance and reconnaissance operations.

Dooley stressed, however, that no work is being done to give unmanned ground systems autonomous authority to engage targets.

War is essentially a human endeavor, he said, and the trigger-puller will be the Soldier. Besides that, Department of Defense, or DoD, Directive 3000.09 prohibits robots from using lethal force. The directive reads, in part: "Human-supervised autonomous weapon systems may be used to select and engage targets, with the exception of selecting humans as targets."

That restriction does not negate the tremendous capabilities robots bring to the battlefield, Dooley said.

ROBOTIC ANTI-ARMOR SYSTEM PREVIEW

Dooley was carrying a draft of the doctrine, which is being reviewed by various stakeholders - so he could not go into any detail about what is in it. But he did provide overall themes.

Robotic Anti-Armor System, or RAS, will tie robotics in with future expeditionary maneuver capabilities that will enable mutual support and mission command across extended distances, where forces are widely dispersed, he said.

Robotics will help Soldiers make contact with the enemy under conditions favorable to Soldiers, while presenting multiple dilemmas to the enemy. The human will always be in the loop when deciding to use lethal force, he said.

The new doctrinal manual will also cover the value of robots in force protection, he said, which brings up a critical question. What cost will the Army and the United States be willing to pay to develop robotics systems that can demonstrably save lives? It is "a morale and ethical decision" that will have to be made, he said.

Dooley explained that very expensive widgets can be added to robotics that would increase force protection, but a cost and a capabilities curve will need to be drawn to determine just how much Soldier protection the nation is willing to pay for.

Safeguards will also need to be built into such systems, he said, citing the DoD guidance which reads: "Semi-autonomous weapon systems that are onboard or integrated with unmanned platforms must be designed such that, in the event of degraded or lost communications, the system does not autonomously select and engage individual targets or specific target groups that have not been previously selected by an authorized human operator."

PRICKLY QUESTION

With the floor open for questions, a representative from industry asked why the Army would consider spending limited resources to develop robotics capabilities that will likely end up "flawed." Additionally, he said, the Army has already been successful using contractors to drive supply convoys, so there is not likely a need for autonomous or semi-autonomous vehicles.

"The Army will need to articulate what levels [of protection] we get from our investments," Dooley said, and demonstrate that such autonomous robotics systems are not "pie-in-the-sky" investments.

Retired Army Lt. Col. Joe Bell, also on the panel, said "there's an urgent need to reduce risk [to Soldiers] today," not 10 years hence. "That's our No. 1 motivator."

Bell, now involved in the commercial defense industry, laid out a business model for robotics, saying it can cost $200,000 to armor some vehicles, not including storing and maintaining the armor kits. That would have to be factored into the cost-benefit analysis of using an autonomous or semi-autonomous vehicle.

A semi-autonomous system used in a leader-follower configuration would also save lives, because if the vehicle hit a mine or took enemy fire, no one would be killed.

Bell said if current technology were applied to a leader-follower system, as few as two Soldiers could convoy four to eight trucks.

Although there would be fewer Soldiers for the enemy to target, that also brings up the problem of less firepower. This issue could be addressed, he said, through mission command, meaning the commander would need to closely monitor the situation and have backup tactics, techniques and procedures in place to handle the unexpected.

Jim Parker, another panelist, argued against the notion that robotics is too expensive or not ready for development.

He said the Army is already making robotics work. At Fort Bragg, North Carolina, and at the U.S. Military Academy at West Point, New York, for instance, autonomous vehicles are being tested to shuttle visitors and personnel around the installations.

Parker said that such incremental improvements will serve as building blocks toward the ultimate goal of off-road, difficult-weather and terrain negotiation. Parker is the associate director for Ground Vehicle Robotics, Army Tank Automotive Research, Development and Engineering Center.

INTERNATIONAL LOTTERY FRAUDSTER WHO TARGETED SENIOR CITIZENS, PLEADS GUILTY

FROM:  U.S. JUSTICE DEPARTMENT
Friday, April 10, 2015
First Jamaican Man Extradited to the United States in Connection with International Lottery Scheme Pleads Guilty

A Jamaican man pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.

Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States.  The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.

“Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”

“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes.  In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”

Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited.  On Feb. 12, Barrett was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.

As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, Barrett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings.  Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings.  Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve.  In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.      

At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution.  Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud.  On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.  

Acting Assistant Attorney General Mizer and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service.  The case is being prosecuted by Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida.

TWO CARDIOVASCULAR TESTING LABS SETTLE FALSE CLAIMS ACCUSATIONS AND WILL PAY $48.5 MILLION

FROM:  U.S. JUSTICE DEPARTMENT
Thursday, April 9, 2015
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary Testing
United States Sues Two Other Companies and Three Individuals for Similar Violations

Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia, and Singulex Inc., of Alameda, California, have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today.  Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million.  The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.

“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division.  “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”

As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles.  In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex.  As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs.  The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.

“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina.  “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”

“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia.  “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests.  This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”

As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).  Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.

“Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.

The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The whistleblowers’ share of the settlements has yet to be determined.  The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions.  The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.

Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest.

The government’s actions illustrate its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of South Carolina, the District of Columbia and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.

The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.).  The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.

COURT ORDERS TEMPORARY HALT TO COMPANY COERCING PEOPLE TO PAY DEBTS THEY DON'T OWE

FROM:  U.S. FEDERAL TRADE COMMISSION
FTC, Illinois Attorney General Halt Chicago Area Operation Charged With Illegally Pressuring Consumers to Pay ‘Phantom’ Debts

The Federal Trade Commission and the Illinois Attorney General’s Office have obtained a court order temporarily halting a fake debt collection scam located in Aurora, Illinois, a western suburb of Chicago. The defendants are charged with illegally using threats and intimidation tactics to coerce consumers to pay payday loan debts they either did not owe, or did not owe to the defendants.

The FTC’s case against K.I.P., LLC, Charles Dickey, and Chantelle Dickey is the agency’s seventh ‘phantom’ debt collector matter.

 “This company scared and tricked people into paying debts they didn’t owe,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Working with terrific partners like the Illinois Attorney General, we will keep going after phantom debt scams like this one and shutting them down.”

“The defendants have threatened and intimidated their way into stealing hundreds of thousands of dollars from unsuspecting people all across the country,” Illinois Attorney General Lisa Madigan said. “Between our two offices, we have hundreds of complaints. It is clear they must be stopped.”

According to the complaint, since at least 2010, the defendants used a host of business names to target consumers who obtained or applied for payday or other short-term loans, pressuring them into paying debts that they either did not owe or that the defendants had no authority to collect.

Often armed with sensitive financial information, the defendants would call consumers and demand immediate payment for payday loans that were supposedly delinquent.  To pressure consumers to pay, the defendants threatened that they would:

Garnish consumers’ wages;
Suspend or revoke their drivers’ licenses;
Have them arrested or imprisoned; or
File a lawsuit against them.
In response to the defendants’ repeated calls and alleged threats, many consumers paid the debts, even though they may not have owed them, because they believed the defendants would follow through on their threats or they simply wanted to end the harassing phone calls.

The complaint also charges the defendants with failing to provide consumers with a notice containing: 1) the amount of the debt; 2) the name of the creditor to whom the debt is owed; 3) a statement that unless the consumer disputes the debt, it will be assumed to be valid; 4) a statement that if the consumer does dispute the debt in writing, the defendants will verify the debt is correct; and 5) a statement that upon the consumer’s written request, the defendants will provide the consumer with the name and address of the original creditor if different from the current creditor.

Finally, the complaint charges that the defendants: called consumers at work when they knew such calls were prohibited by consumers’ employers; harassed and abused consumers; used obscene or profane language; and called consumers repeatedly with the intent of annoying or abusing them.

The complaint also alleges that the defendants violated the Illinois Consumer Fraud and Deceptive Business Practices Act and the Illinois Collection Agency Act, and that the defendants are not licensed debt collectors as required by Illinois law.

Defendants named in the case include: K.I.P., LLC; Charles Dickey, individually and as an owner, member, or managing member of K.I.P., LLC, and also doing business as (d/b/a) Ezell Williams and Associates, Corp.; Ezell Williams, LLC; Excel Receivables, Corp.; Second Chance Financial Credit, Corp.; Second Chance Financial, LLC; Payday Loan Recovery Group, LLC; Payday Loan Recovery Group; Payday Loan Recovery; International Recovery Services, LLC; International Recovery Services; and D&R Recovery. The complaint also names Chantelle Dickey, also known as Chantelle Rudd and Chantelle Williams, as an individual and as a manager of K.I.P.

The FTC and the Illinois Attorney General’s Office appreciate the Aurora Police Department, North Aurora Police Department, Better Business Bureau of Chicago and Northern Illinois, and the U.S. Postal Inspection Service Chicago Division for their valuable assistance with this matter.

FIRED DENTAL ASSISTANT TO RECEIVE $85,000 IN CASE INVOLVING DISPOSAL OF CONTAMINATED NEEDLES

FROM:  U.S. LABOR DEPARTMENT  

Court orders dentist to pay $85K to employee fired for safety complaint
Assistant raised dangers of used needles as Dr. N. Terry Fayad allegedly sought cost savings

BOSTON, Mass. — It began when Massachusetts dentist Dr. N. Terry Fayad changed his practice's procedure for disposing of contaminated needles. He told those in his Beverly-based office to first remove the protective caps before dropping them into sharps disposal containers, allegedly to fill the containers with more used needles and reduce the frequency and cost of their disposal.

Concerned that she and her co-workers could be exposed to needle stick injuries and the risk of infection from bloodborne pathogens such as hepatitis and HIV, a dental assistant raised the issue with Fayad. When he dismissed her concern, she filed a complaint with the U.S. Department of Labor's Occupational Safety and Health Administration. After an OSHA inspector visited on Nov. 23, 2010, Dr. Fayad fired her later that day.

A whistleblower investigation followed and, in September 2011, the Department of Labor sued Fayad in the U.S. District Court for the District of Massachusetts. In its complaint, the department charged that the dentist violated the anti-retaliation provisions of the Occupational Safety and Health Act. The suit eventually went to trial before U.S. District Judge George A. O'Toole.

Judge O'Toole has ruled in favor of the department and ordered Fayad's practice, N. Terry Fayad, D.M.D., P.C., to pay the worker $51,644.80 in back wages and ordered both Fayad and the practice to pay her $33,450.26 in compensatory damages. The judge found that the employee's firing by Fayad shortly after OSHA began its inspection was retaliatory and a violation of section 11(c) of the OSH Act.

"This worker suffered needless financial and emotional distress because Dr. Fayad chose to disregard a clear and important principle: Employees have the right to contact OSHA and raise workplace health and safety concerns with their employer without fear of termination or retaliation," said Greg Baxter, OSHA's acting regional administrator for New England. "Employers must pay attention to this verdict. It makes it clear that there will be legal and financial consequences if you retaliate against your employees in this manner."

"The OSH Act gives employees both a right to a safe and healthy workplace, and a right to voice concerns about workplace conditions, without fear of adverse consequences," said Michael Felsen, the department's New England regional solicitor of labor. "This case demonstrates the Labor Department will pursue legal remedies aggressively when employers fire workers or try to intimidate them into silence when they assert those rights."

The court also entered an injunction against Fayad, his P.C., and their agents and employees, preventing them from violating the anti-retaliation provisions of the OSH Act, and directing the defendants to post a notice to their employees stating that they will not in any way discriminate against employees for activities protected by the Act.

The case was tried on the Secretary's behalf by Senior Trial Attorney Kelly Lawson and Trial Attorney Nathan Goldstein of the department's regional Office of the Solicitor in Boston.

OSHA's health inspection resulted in the Fayad practice being cited for violations of OSHA's bloodborne pathogen and hazard communication standards. The violations were corrected and he paid a fine of $11,000 in 2012.

OSHA enforces the whistleblower provisions of the OSH Act and 21 other statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, worker safety, public transportation agency, maritime and securities laws.

Employers are prohibited from retaliating against employees who raise various protected concerns or provide protected information to the employer or to the government. Employees who believe that they suffered retaliation for engaging in protected conduct may file a complaint with the secretary of labor to request an investigation by OSHA's Whistleblower Protection Program.

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