FROM: NATIONAL SCIENCE FOUNDATION
Revealing the ocean's hidden fertilizer
Tiny marine plants play major role in phosphorus cycle
Phosphorus is one of the most common substances on Earth.
An essential nutrient for every living organism--humans require approximately 700 milligrams per day--we're rarely concerned about consuming enough because it is in most of the foods we eat.
Despite its ubiquity and living organisms' dependence on it, we know surprisingly little about how it moves, or cycles, through the ocean environment.
Scientists studying the marine phosphorous cycle have known that phosphorus was absorbed by plants and animals and released back to seawater in the form of phosphate as these plants and animals decay and die.
But a growing body of research hints that microbes in the ocean transform phosphorus in ways that remain a mystery.
Hidden role of ocean's microbes
A new study by a research team from the Woods Hole Oceanographic Institution (WHOI) and Columbia University reveals for the first time a marine phosphorus cycle that is much more complex than previously thought.
The work also highlights the important but previously hidden role that some microbial communities play in using and breaking down forms of this essential element.
A paper reporting the findings is published this week in the journal Science.
"A reason to be excited about this elegant study is in the paper's last sentence: 'the environmental, ecological and evolutionary controls ...remain completely unknown,'" says Don Rice, program director in the National Science Foundation's (NSF) Division of Ocean Sciences, which funded the research through its Chemical Oceanography Program. "There's still a lot we don't know about the sea."
The work is also supported by an NSF Dimensions of Biodiversity grant.
"This is an exciting new discovery that closes a fundamental knowledge gap in our understanding of the marine phosphorus cycle," says the paper's lead author Ben Van Mooy, a biochemist at WHOI.
Much like phosphorus-based fertilizers boost the growth of plants on land, phosphorus in the ocean promotes the production of microbes and tiny marine plants called phytoplankton, which compose the base of the marine food chain.
Phosphonate mystery
It's been unclear exactly how phytoplankton are using the most abundant forms of phosphorus found in the ocean--phosphates and a strange form of phosphorus called phosphonates.
"Phosphonates have always been a huge mystery," Van Mooy says.
"No one's been able to figure out exactly what they are, and more importantly, if they're made and consumed quickly by microbes, or if they're just lying around in the ocean."
To find out more about phosphonates and how microbes metabolize them, the researchers took samples of seawater at a series of stations during a research cruise from Bermuda to Barbados.
They added phosphate to the samples so they could see the microbes in action.
The research team used ion chromatography onboard ship for water chemistry analyses, which allowed the scientists to observe how quickly microbes reacted to the added phosphate in the seawater.
"The ion chromatograph [IC] separates out the different families of molecules," explains Van Mooy.
"We added radioactive phosphate, then isolated the phosphonate to see if the samples became radioactive, too. It's the radioactive technique that let us see how fast phosphate was transformed to phosphonate."
Enter the microbes
The researchers found that about 5 percent of the phosphate in the shallow water samples was taken up by the microbes and changed to phosphonates.
In deeper water samples, which were taken at depths of 40 and 150 meters (131 feet and 492 feet), about 15 to 20 percent of the phosphates became phosphonates.
"Although evidence of the cycling of phosphonates has been mounting for nearly a decade, these results show for the first time that microbes are producing phosphonates in the ocean, and that it is happening very quickly," says paper co-author Sonya Dyhrman of Columbia University.
"An exciting aspect of this study was the application of the IC method at sea. In near-real-time, we could tell that the phosphate we added was being transformed to phosphonate."
Better understanding of phosphorus cycle
A better understanding of phosphorus cycling in the oceans is important, as it affects the marine food web and, therefore, the ability of the oceans to absorb atmospheric carbon dioxide.
The researchers say that solving the mystery of phosphonates also reinforces the need to identify the full suite of phosphorus biochemicals being produced and metabolized by marine microbes, and what physiological roles they serve for these cells.
"Such work will help us further resolve the complexities of how this critical element is cycled in the ocean," Dyhrman adds.
Grants from the Simons Foundation also supported the work.
-NSF-
Media Contacts
Cheryl Dybas, NSF
Thursday, May 28, 2015
VERY PROMISING QUANTUM DOTS
FROM: NATIONAL SCIENCE FOUNDATION
Many uses in researching quantum dots
These nanoparticles can achieve higher levels of energy when light stimulates them.
It's easier to dissolve a sugar cube in a glass of water by crushing the cube first, because the numerous tiny particles cover more surface area in the water than the cube itself. In a way, the same principle applies to the potential value of materials composed of nanoparticles.
Because nanoparticles are so small, millions of times smaller than the width of a human hair, they have "tremendous surface area," raising the possibility of using them to design materials with more efficient solar-to-electricity and solar-to-chemical energy pathways, says Ari Chakraborty, an assistant professor of chemistry at Syracuse University.
"They are very promising materials," he says. "You can optimize the amount of energy you produce from a nanoparticle-based solar cell."
Chakraborty, an expert in physical and theoretical chemistry, quantum mechanics and nanomaterials, is seeking to understand how these nanoparticles interact with light after changing their shape and size, which means, for example, they ultimately could provide enhanced photovoltaic and light-harvesting properties. Changing their shape and size is possible "without changing their chemical composition," he says. "The same chemical compound in different sizes and shapes will interact differently with light."
Specifically, the National Science Foundation (NSF)-funded scientist is focusing on quantum dots, which are semiconductor crystals on a nanometer scale. Quantum dots are so tiny that the electrons within them exist only in states with specific energies. As such, quantum dots behave similarly to atoms, and, like atoms, can achieve higher levels of energy when light stimulates them.
Chakraborty works in theoretical and computational chemistry, meaning "we work with computers and computers only," he says. "The goal of computational chemistry is to use fundamental laws of physics to understand how matter interacts with each other, and, in my research, with light. We want to predict chemical processes before they actually happen in the lab, which tells us which direction to pursue."
These atoms and molecules follow natural laws of motion, "and we know what they are," he says. "Unfortunately, they are too complicated to be solved by hand or calculator when applied to chemical systems, which is why we use a computer."
The "electronically excited" states of the nanoparticles influence their optical properties, he says.
"We investigate these excited states by solving the Schrödinger equation for the nanoparticles," he says, referring to a partial differential equation that describes how the quantum state of some physical system changes with time. "The Schrödinger equation provides the quantum mechanical description of all the electrons in the nanoparticle.
"However, accurate solution of the Schrödinger equation is challenging because of large number of electrons in system," he adds. "For example, a 20 nanometer CdSe quantum dot contains over 6 million electrons. Currently, the primary focus of my research group is to develop new quantum chemical methods to address these challenges. The newly developed methods are implemented in open-source computational software, which will be distributed to the general public free of charge."
Solar voltaics, "requires a substance that captures light, uses it, and transfers that energy into electrical energy," he says. With solar cell materials made of nanoparticles, "you can use different shapes and sizes, and capture more energy," he adds. "Also, you can have a large surface area for a small amount of materials, so you don't need a lot of them."
Nanoparticles also could be useful in converting solar energy to chemical energy, he says. "How do you store the energy when the sun is not out?" he says. "For example, leaves on a tree take energy and store it as glucose, then later use the glucose for food. One potential application is to develop artificial leaves for artificial photosynthesis. There is a huge area of ongoing research to make compounds that can store energy."
Medical imaging presents another useful potential application, he says.
"For example, nanoparticles have been coated with binding agents that bind to cancerous cells," he says. "Under certain chemical and physical conditions, the nanoparticles can be tuned to emit light, which allows us to take pictures of the nanoparticles. You could pinpoint the areas where there are cancerous cells in the body. The regions where the cancerous cells are located show up as bright spots in the photograph."
Chakraborty is conducting his research under an NSF Faculty Early Career Development (CAREER) award. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $622,123 over five years.
As part of the grant's educational component, Chakraborty is hosting several students from a local high school--East Syracuse Mineoa High School--in his lab. He also has organized two workshops for high school teachers on how to use computational tools in their classrooms "to make chemistry more interesting and intuitive to high school students," he says.
"The really good part about it is that the kids can really work with the molecules because they can see them on the screen and manipulate them in 3-D space," he adds. "They can explore their structure using computers. They can measure distances, angles, and energies associated with the molecules, which is not possible to do with a physical model. They can stretch it, and see it come back to its original structure. It's a real hands-on experience that the kids can have while learning chemistry."
-- Marlene Cimons, National Science Foundation
Investigators
Arindam Chakraborty
Related Institutions/Organizations
Syracuse University
Many uses in researching quantum dots
These nanoparticles can achieve higher levels of energy when light stimulates them.
It's easier to dissolve a sugar cube in a glass of water by crushing the cube first, because the numerous tiny particles cover more surface area in the water than the cube itself. In a way, the same principle applies to the potential value of materials composed of nanoparticles.
Because nanoparticles are so small, millions of times smaller than the width of a human hair, they have "tremendous surface area," raising the possibility of using them to design materials with more efficient solar-to-electricity and solar-to-chemical energy pathways, says Ari Chakraborty, an assistant professor of chemistry at Syracuse University.
"They are very promising materials," he says. "You can optimize the amount of energy you produce from a nanoparticle-based solar cell."
Chakraborty, an expert in physical and theoretical chemistry, quantum mechanics and nanomaterials, is seeking to understand how these nanoparticles interact with light after changing their shape and size, which means, for example, they ultimately could provide enhanced photovoltaic and light-harvesting properties. Changing their shape and size is possible "without changing their chemical composition," he says. "The same chemical compound in different sizes and shapes will interact differently with light."
Specifically, the National Science Foundation (NSF)-funded scientist is focusing on quantum dots, which are semiconductor crystals on a nanometer scale. Quantum dots are so tiny that the electrons within them exist only in states with specific energies. As such, quantum dots behave similarly to atoms, and, like atoms, can achieve higher levels of energy when light stimulates them.
Chakraborty works in theoretical and computational chemistry, meaning "we work with computers and computers only," he says. "The goal of computational chemistry is to use fundamental laws of physics to understand how matter interacts with each other, and, in my research, with light. We want to predict chemical processes before they actually happen in the lab, which tells us which direction to pursue."
These atoms and molecules follow natural laws of motion, "and we know what they are," he says. "Unfortunately, they are too complicated to be solved by hand or calculator when applied to chemical systems, which is why we use a computer."
The "electronically excited" states of the nanoparticles influence their optical properties, he says.
"We investigate these excited states by solving the Schrödinger equation for the nanoparticles," he says, referring to a partial differential equation that describes how the quantum state of some physical system changes with time. "The Schrödinger equation provides the quantum mechanical description of all the electrons in the nanoparticle.
"However, accurate solution of the Schrödinger equation is challenging because of large number of electrons in system," he adds. "For example, a 20 nanometer CdSe quantum dot contains over 6 million electrons. Currently, the primary focus of my research group is to develop new quantum chemical methods to address these challenges. The newly developed methods are implemented in open-source computational software, which will be distributed to the general public free of charge."
Solar voltaics, "requires a substance that captures light, uses it, and transfers that energy into electrical energy," he says. With solar cell materials made of nanoparticles, "you can use different shapes and sizes, and capture more energy," he adds. "Also, you can have a large surface area for a small amount of materials, so you don't need a lot of them."
Nanoparticles also could be useful in converting solar energy to chemical energy, he says. "How do you store the energy when the sun is not out?" he says. "For example, leaves on a tree take energy and store it as glucose, then later use the glucose for food. One potential application is to develop artificial leaves for artificial photosynthesis. There is a huge area of ongoing research to make compounds that can store energy."
Medical imaging presents another useful potential application, he says.
"For example, nanoparticles have been coated with binding agents that bind to cancerous cells," he says. "Under certain chemical and physical conditions, the nanoparticles can be tuned to emit light, which allows us to take pictures of the nanoparticles. You could pinpoint the areas where there are cancerous cells in the body. The regions where the cancerous cells are located show up as bright spots in the photograph."
Chakraborty is conducting his research under an NSF Faculty Early Career Development (CAREER) award. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $622,123 over five years.
As part of the grant's educational component, Chakraborty is hosting several students from a local high school--East Syracuse Mineoa High School--in his lab. He also has organized two workshops for high school teachers on how to use computational tools in their classrooms "to make chemistry more interesting and intuitive to high school students," he says.
"The really good part about it is that the kids can really work with the molecules because they can see them on the screen and manipulate them in 3-D space," he adds. "They can explore their structure using computers. They can measure distances, angles, and energies associated with the molecules, which is not possible to do with a physical model. They can stretch it, and see it come back to its original structure. It's a real hands-on experience that the kids can have while learning chemistry."
-- Marlene Cimons, National Science Foundation
Investigators
Arindam Chakraborty
Related Institutions/Organizations
Syracuse University
Wednesday, May 27, 2015
SEVERAL FIFA OFFICIALS INDICTED FOR ROLES IN CORRUPTING INTERNATIONAL SOCCER
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, May 27, 2015
Nine FIFA Officials and Five Corporate Executives Indicted for Racketeering Conspiracy and Corruption
The Defendants Include Two Current FIFA Vice Presidents and the Current and Former Presidents of the Confederation of North, Central American and Caribbean Association Football (CONCACAF); Seven Defendants Arrested Overseas; Guilty Pleas for Four Individual Defendants and Two Corporate Defendants Also Unsealed
A 47-count indictment was unsealed early this morning in federal court in Brooklyn, New York, charging 14 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants’ participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The guilty pleas of four individual defendants and two corporate defendants were also unsealed today.
The defendants charged in the indictment include high-ranking officials of the Fédération Internationale de Football Association (FIFA), the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of other soccer governing bodies that operate under the FIFA umbrella. Jeffrey Webb and Jack Warner – the current and former presidents of CONCACAF, the continental confederation under FIFA headquartered in the United States – are among the soccer officials charged with racketeering and bribery offenses. The defendants also include U.S. and South American sports marketing executives who are alleged to have systematically paid and agreed to pay well over $150 million in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.
The charges were announced by Attorney General Loretta E. Lynch, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Director James B. Comey of the FBI, Assistant Director in Charge Diego W. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI’s Los Angeles Field Office.
Also earlier this morning, Swiss authorities in Zurich arrested seven of the defendants charged in the indictment, the defendants Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Eugenio Figueredo, Rafael Esquivel and José Maria Marin, at the request of the United States. Also this morning, a search warrant is being executed at CONCACAF headquarters in Miami, Florida.
The guilty pleas of the four individual and two corporate defendants that were also unsealed today include the guilty pleas of Charles Blazer, the long-serving former general secretary of CONCACAF and former U.S. representative on the FIFA executive committee; José Hawilla, the owner and founder of the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and two of Hawilla’s companies, Traffic Sports International Inc. and Traffic Sports USA Inc., which is based in Florida.
“The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,” said Attorney General Lynch. “It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks. And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable. Today’s action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice – and we look forward to continuing to work with other countries in this effort.”
Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland, as well as several other international partners, for their outstanding assistance in this investigation.
“Today’s announcement should send a message that enough is enough,” said Acting U.S. Attorney Currie. “After decades of what the indictment alleges to be brazen corruption, organized international soccer needs a new start – a new chance for its governing institutions to provide honest oversight and support of a sport that is beloved across the world, increasingly so here in the United States. Let me be clear: this indictment is not the final chapter in our investigation.”
Acting U.S. Attorney Currie extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues abroad, for their tremendous effort in this case.
“As charged in the indictment, the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world,” said Director Comey. “Undisclosed and illegal payments, kickbacks, and bribes became a way of doing business at FIFA. I want to commend the investigators and prosecutors around the world who have pursued this case so diligently, for so many years.”
“When leaders in an organization resort to cheating the very members that they are supposed to represent, they must be held accountable,” said Chief Weber. “Corruption, tax evasion and money laundering are certainly not the cornerstones of any successful business. Whether you call it soccer or football, the fans, players and sponsors around the world who love this game should not have to worry about officials corrupting their sport. This case isn't about soccer, it is about fairness and following the law. IRS-CI will continue to investigate financial crimes and follow the money wherever it may lead around the world, leveling the playing field for those who obey the law.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The Enterprise
FIFA is composed of 209 member associations, each representing organized soccer in a particular nation or territory, including the United States and four of its overseas territories. FIFA also recognizes six continental confederations that assist it in governing soccer in different regions of the world. The U.S. Soccer Federation is one of 41 member associations of the confederation known as CONCACAF, which has been headquartered in the United States throughout the period charged in the indictment. The South American confederation, called CONMEBOL, is also a focus of the indictment.
As alleged in the indictment, FIFA and its six continental confederations, together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
As alleged in the indictment, one key way the enterprise derives revenue is to commercialize the media and marketing rights associated with soccer events and tournaments. The organizing entity that owns those rights – as FIFA and CONCACAF do with respect to the World Cup and Gold Cup, their respective flagship tournaments – sells them to sports marketing companies, often through multi-year contracts covering multiple editions of the tournaments. The sports marketing companies, in turn, sell the rights downstream to TV and radio broadcast networks, major corporate sponsors and other sub-licensees who want to broadcast the matches or promote their brands. The revenue generated from these contracts is substantial: according to FIFA, 70% of its $5.7 billion in total revenues between 2011 and 2014 was attributable to the sale of TV and marketing rights to the 2014 World Cup.
The Racketeering Conspiracy
The indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive well over $150 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
Most of the schemes alleged in the indictment relate to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, including FIFA World Cup qualifiers in the CONCACAF region, the CONCACAF Gold Cup, the CONCACAF Champions League, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, the CONMEBOL Copa América, the CONMEBOL Copa Libertadores and the Copa do Brasil, which is organized by the Brazilian national soccer federation (CBF). Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.
The Indicted Defendants
As set forth in the indictment, the defendants and their co-conspirators fall generally into three categories: soccer officials acting in a fiduciary capacity within FIFA and one or more of its constituent organizations; sports media and marketing company executives; and businessmen, bankers and other trusted intermediaries who laundered illicit payments.
Nine of the defendants were FIFA officials by operation of the FIFA statutes, as well as officials of one or more other bodies:
Jeffrey Webb: Current FIFA vice president and executive committee member, CONCACAF president, Caribbean Football Union (CFU) executive committee member and Cayman Islands Football Association (CIFA) president.
Eduardo Li: Current FIFA executive committee member-elect, CONCACAF executive committee member and Costa Rican soccer federation (FEDEFUT) president.
Julio Rocha: Current FIFA development officer. Former Central American Football Union (UNCAF) president and Nicaraguan soccer federation (FENIFUT) president.
Costas Takkas: Current attaché to the CONCACAF president. Former CIFA general secretary.
Jack Warner: Former FIFA vice president and executive committee member, CONCACAF president, CFU president and Trinidad and Tobago Football Federation (TTFF) special adviser.
Eugenio Figueredo: Current FIFA vice president and executive committee member. Former CONMEBOL president and Uruguayan soccer federation (AUF) president.
Rafael Esquivel: Current CONMEBOL executive committee member and Venezuelan soccer federation (FVF) president.
José Maria Marin: Current member of the FIFA organizing committee for the Olympic football tournaments. Former CBF president.
Nicolás Leoz: Former FIFA executive committee member and CONMEBOL president.
Four of the defendants were sports marketing executives:
Alejandro Burzaco: Controlling principal of Torneos y Competencias S.A., a sports marketing business based in Argentina, and its affiliates.
Aaron Davidson: President of Traffic Sports USA Inc. (Traffic USA).
Hugo and Mariano Jinkis: Controlling principals of Full Play Group S.A., a sports marketing business based in Argentina, and its affiliates.
And one of the defendants was in the broadcasting business but allegedly served as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials:
José Margulies: Controlling principal of Valente Corp. and Somerton Ltd.
The Convicted Individuals and Corporations
The following individuals and corporations previously pleaded guilty under seal:
On July 15, 2013, the defendant Daryll Warner, son of defendant Jack Warner and a former FIFA development officer, waived indictment and pleaded guilty to a two-count information charging him with wire fraud and the structuring of financial transactions.
On Oct. 25, 2013, the defendant Daryan Warner waived indictment and pleaded guilty to a three-count information charging him with wire fraud conspiracy, money laundering conspiracy and the structuring of financial transactions. Daryan Warner forfeited over $1.1 million around the time of his plea and has agreed to pay a second forfeiture money judgment at the time of sentencing.
On Nov. 25, 2013, the defendant Charles Blazer, the former CONCACAF general secretary and a former FIFA executive committee member, waived indictment and pleaded guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion and failure to file a Report of Foreign Bank and Financial Accounts (FBAR). Blazer forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.
On Dec. 12, 2014, the defendant José Hawilla, the owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, waived indictment and pleaded guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice. Hawilla also agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.
On May 14, 2015, the defendants Traffic Sports USA Inc. and Traffic Sports International Inc. pleaded guilty to wire fraud conspiracy.
All money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
* * * *
The indictment unsealed today has been assigned to U.S. District Court Judge Raymond J. Dearie of the Eastern District of New York.
The indicted and convicted individual defendants face maximum terms of incarceration of 20 years for the RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges. In addition, Eugenio Figueredo faces a maximum term of incarceration of 10 years for a charge of naturalization fraud and could have his U.S. citizenship revoked. He also faces a maximum term of incarceration of five years for each tax charge. Charles Blazer faces a maximum term of incarceration of 10 years for the FBAR charge and five years for the tax evasion charges; and Daryan and Daryll Warner face maximum terms of incarceration of 10 years for structuring financial transactions to evade currency reporting requirements. Each individual defendant also faces mandatory restitution, forfeiture and a fine. By the terms of their plea agreements, the corporate defendants face fines of $500,000 and one year of probation.
The government’s investigation is ongoing.
The government’s case is being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, Keith D. Edelman and Brian D. Morris of the Eastern District of New York, with assistance provided by the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
Wednesday, May 27, 2015
Nine FIFA Officials and Five Corporate Executives Indicted for Racketeering Conspiracy and Corruption
The Defendants Include Two Current FIFA Vice Presidents and the Current and Former Presidents of the Confederation of North, Central American and Caribbean Association Football (CONCACAF); Seven Defendants Arrested Overseas; Guilty Pleas for Four Individual Defendants and Two Corporate Defendants Also Unsealed
A 47-count indictment was unsealed early this morning in federal court in Brooklyn, New York, charging 14 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants’ participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The guilty pleas of four individual defendants and two corporate defendants were also unsealed today.
The defendants charged in the indictment include high-ranking officials of the Fédération Internationale de Football Association (FIFA), the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of other soccer governing bodies that operate under the FIFA umbrella. Jeffrey Webb and Jack Warner – the current and former presidents of CONCACAF, the continental confederation under FIFA headquartered in the United States – are among the soccer officials charged with racketeering and bribery offenses. The defendants also include U.S. and South American sports marketing executives who are alleged to have systematically paid and agreed to pay well over $150 million in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.
The charges were announced by Attorney General Loretta E. Lynch, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Director James B. Comey of the FBI, Assistant Director in Charge Diego W. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI’s Los Angeles Field Office.
Also earlier this morning, Swiss authorities in Zurich arrested seven of the defendants charged in the indictment, the defendants Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Eugenio Figueredo, Rafael Esquivel and José Maria Marin, at the request of the United States. Also this morning, a search warrant is being executed at CONCACAF headquarters in Miami, Florida.
The guilty pleas of the four individual and two corporate defendants that were also unsealed today include the guilty pleas of Charles Blazer, the long-serving former general secretary of CONCACAF and former U.S. representative on the FIFA executive committee; José Hawilla, the owner and founder of the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and two of Hawilla’s companies, Traffic Sports International Inc. and Traffic Sports USA Inc., which is based in Florida.
“The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,” said Attorney General Lynch. “It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks. And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable. Today’s action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice – and we look forward to continuing to work with other countries in this effort.”
Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland, as well as several other international partners, for their outstanding assistance in this investigation.
“Today’s announcement should send a message that enough is enough,” said Acting U.S. Attorney Currie. “After decades of what the indictment alleges to be brazen corruption, organized international soccer needs a new start – a new chance for its governing institutions to provide honest oversight and support of a sport that is beloved across the world, increasingly so here in the United States. Let me be clear: this indictment is not the final chapter in our investigation.”
Acting U.S. Attorney Currie extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues abroad, for their tremendous effort in this case.
“As charged in the indictment, the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world,” said Director Comey. “Undisclosed and illegal payments, kickbacks, and bribes became a way of doing business at FIFA. I want to commend the investigators and prosecutors around the world who have pursued this case so diligently, for so many years.”
“When leaders in an organization resort to cheating the very members that they are supposed to represent, they must be held accountable,” said Chief Weber. “Corruption, tax evasion and money laundering are certainly not the cornerstones of any successful business. Whether you call it soccer or football, the fans, players and sponsors around the world who love this game should not have to worry about officials corrupting their sport. This case isn't about soccer, it is about fairness and following the law. IRS-CI will continue to investigate financial crimes and follow the money wherever it may lead around the world, leveling the playing field for those who obey the law.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The Enterprise
FIFA is composed of 209 member associations, each representing organized soccer in a particular nation or territory, including the United States and four of its overseas territories. FIFA also recognizes six continental confederations that assist it in governing soccer in different regions of the world. The U.S. Soccer Federation is one of 41 member associations of the confederation known as CONCACAF, which has been headquartered in the United States throughout the period charged in the indictment. The South American confederation, called CONMEBOL, is also a focus of the indictment.
As alleged in the indictment, FIFA and its six continental confederations, together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
As alleged in the indictment, one key way the enterprise derives revenue is to commercialize the media and marketing rights associated with soccer events and tournaments. The organizing entity that owns those rights – as FIFA and CONCACAF do with respect to the World Cup and Gold Cup, their respective flagship tournaments – sells them to sports marketing companies, often through multi-year contracts covering multiple editions of the tournaments. The sports marketing companies, in turn, sell the rights downstream to TV and radio broadcast networks, major corporate sponsors and other sub-licensees who want to broadcast the matches or promote their brands. The revenue generated from these contracts is substantial: according to FIFA, 70% of its $5.7 billion in total revenues between 2011 and 2014 was attributable to the sale of TV and marketing rights to the 2014 World Cup.
The Racketeering Conspiracy
The indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive well over $150 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
Most of the schemes alleged in the indictment relate to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, including FIFA World Cup qualifiers in the CONCACAF region, the CONCACAF Gold Cup, the CONCACAF Champions League, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, the CONMEBOL Copa América, the CONMEBOL Copa Libertadores and the Copa do Brasil, which is organized by the Brazilian national soccer federation (CBF). Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.
The Indicted Defendants
As set forth in the indictment, the defendants and their co-conspirators fall generally into three categories: soccer officials acting in a fiduciary capacity within FIFA and one or more of its constituent organizations; sports media and marketing company executives; and businessmen, bankers and other trusted intermediaries who laundered illicit payments.
Nine of the defendants were FIFA officials by operation of the FIFA statutes, as well as officials of one or more other bodies:
Jeffrey Webb: Current FIFA vice president and executive committee member, CONCACAF president, Caribbean Football Union (CFU) executive committee member and Cayman Islands Football Association (CIFA) president.
Eduardo Li: Current FIFA executive committee member-elect, CONCACAF executive committee member and Costa Rican soccer federation (FEDEFUT) president.
Julio Rocha: Current FIFA development officer. Former Central American Football Union (UNCAF) president and Nicaraguan soccer federation (FENIFUT) president.
Costas Takkas: Current attaché to the CONCACAF president. Former CIFA general secretary.
Jack Warner: Former FIFA vice president and executive committee member, CONCACAF president, CFU president and Trinidad and Tobago Football Federation (TTFF) special adviser.
Eugenio Figueredo: Current FIFA vice president and executive committee member. Former CONMEBOL president and Uruguayan soccer federation (AUF) president.
Rafael Esquivel: Current CONMEBOL executive committee member and Venezuelan soccer federation (FVF) president.
José Maria Marin: Current member of the FIFA organizing committee for the Olympic football tournaments. Former CBF president.
Nicolás Leoz: Former FIFA executive committee member and CONMEBOL president.
Four of the defendants were sports marketing executives:
Alejandro Burzaco: Controlling principal of Torneos y Competencias S.A., a sports marketing business based in Argentina, and its affiliates.
Aaron Davidson: President of Traffic Sports USA Inc. (Traffic USA).
Hugo and Mariano Jinkis: Controlling principals of Full Play Group S.A., a sports marketing business based in Argentina, and its affiliates.
And one of the defendants was in the broadcasting business but allegedly served as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials:
José Margulies: Controlling principal of Valente Corp. and Somerton Ltd.
The Convicted Individuals and Corporations
The following individuals and corporations previously pleaded guilty under seal:
On July 15, 2013, the defendant Daryll Warner, son of defendant Jack Warner and a former FIFA development officer, waived indictment and pleaded guilty to a two-count information charging him with wire fraud and the structuring of financial transactions.
On Oct. 25, 2013, the defendant Daryan Warner waived indictment and pleaded guilty to a three-count information charging him with wire fraud conspiracy, money laundering conspiracy and the structuring of financial transactions. Daryan Warner forfeited over $1.1 million around the time of his plea and has agreed to pay a second forfeiture money judgment at the time of sentencing.
On Nov. 25, 2013, the defendant Charles Blazer, the former CONCACAF general secretary and a former FIFA executive committee member, waived indictment and pleaded guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion and failure to file a Report of Foreign Bank and Financial Accounts (FBAR). Blazer forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.
On Dec. 12, 2014, the defendant José Hawilla, the owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, waived indictment and pleaded guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice. Hawilla also agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.
On May 14, 2015, the defendants Traffic Sports USA Inc. and Traffic Sports International Inc. pleaded guilty to wire fraud conspiracy.
All money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
* * * *
The indictment unsealed today has been assigned to U.S. District Court Judge Raymond J. Dearie of the Eastern District of New York.
The indicted and convicted individual defendants face maximum terms of incarceration of 20 years for the RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges. In addition, Eugenio Figueredo faces a maximum term of incarceration of 10 years for a charge of naturalization fraud and could have his U.S. citizenship revoked. He also faces a maximum term of incarceration of five years for each tax charge. Charles Blazer faces a maximum term of incarceration of 10 years for the FBAR charge and five years for the tax evasion charges; and Daryan and Daryll Warner face maximum terms of incarceration of 10 years for structuring financial transactions to evade currency reporting requirements. Each individual defendant also faces mandatory restitution, forfeiture and a fine. By the terms of their plea agreements, the corporate defendants face fines of $500,000 and one year of probation.
The government’s investigation is ongoing.
The government’s case is being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, Keith D. Edelman and Brian D. Morris of the Eastern District of New York, with assistance provided by the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
PRESIDENT OBAMA AND NATO SECRETARY GENERAL DISCUSS ISSUES AT WHITE HOUSE
FROM: U.S. DEFENSE DEPARTMENT
Obama, Stoltenberg Discuss NATO Meeting Highlights
By Cheryl Pellerin
DoD News, Defense Media Activity
WASHINGTON, May 26, 2015 – President Barack Obama and NATO Secretary General Jens Stoltenberg discussed critical issues being addressed by the alliance during a press briefing here today after a bilateral meeting at the White House.
In what Obama called a “challenging and important time for NATO,” the two discussed Ukraine, NATO’s role in addressing global challenges, the way forward in Afghanistan and more this afternoon at the White House.
“We had a chance to discuss the situation in Ukraine and the increasingly aggressive posture that Russia has taken, and we affirmed that NATO is the cornerstone not just of transatlantic security but in many ways is the cornerstone for global security,” Obama said in remarks after the meeting.
In Wales, he said, NATO officials affirmed the intentions of the alliance to uphold its Article 5 obligations and put in place a host of measures to reassure frontline states and the Readiness Action plan, which is now being implemented.
Responding Swiftly
According to NATO, the plan will insure the alliance is ready to respond swiftly and firmly to new security challenges, and it provides a comprehensive package of measures to respond to changes in the security environment in and near Europe.
“We also reaffirmed the importance of implementing the Minsk Agreement and ensuring that Ukraine is able to enjoy the same territorial integrity and sovereignty as any other country,” said Obama, adding that the United States would continue to support Ukraine through the NATO-Ukraine partnership that predates the crisis in Crimea and now in eastern Ukraine.
In addition to its traditional roles, NATO is recognizing a range of global challenges, the president said.
“We are working closely with NATO allies to make sure that we are partnering with other countries to address issues of counterterrorism,” he added, including providing assistance in the fight against the Islamic State of Iraq and the Levant, and addressing the challenges that exist in Libya.
Defense Capacity Building
Obama said such missions require increased defense capacity building with countries like Iraq or Gulf Cooperation Council countries, and the African Union.
“It also means that we have to think about whether we are deploying and arranging our assets effectively to meet that goal,” Obama added.
Obama and Stoltenberg also discussed how NATO is positioned and how best to ensure that the alliance finishes the job with respect to Afghanistan.
NATO members will meet at the Warsaw, Poland, NATO Summit in July 2016, the president added, “[and] we’ll have an opportunity to assess how we will continue to support the Afghan National Security Forces, now that we have transitioned out of our combat mission, to make sure that they can … secure and protect their own country.”
Resources, Training, Assistance
Obama said that will require resources, training and assistance from the United States and from all NATO countries.
In his remarks, Stoltenberg thanked Obama for his leadership “in a time where we really needed U.S. leadership,” and for launching the European Reassurance Initiative, which the secretary general said “has been of great importance when it comes to U.S. presence in Europe.”
The U.S. military presence in Europe is the key to [reassuring] all allies, he added.
“I have traveled around the alliance, and all the places I have gone I have met U.S. servicemen and women,” Stoltenberg said.
America Stands with Europe
The message they send is the same, he added -- that America stands with Europe, Europe and America stand together, and NATO will defend and protect all allies against enemy threat.
“This is even more important because we are facing new threats, new challenges, coming both from the east and from the south,” Stoltenberg said. “And … we are adapting, we are responding, we are increasing the readiness and the preparedness of our forces.”
Obama said there are many challenges ahead.
“The one thing that we know is that NATO is going to be a central component of [our ability] to meet those challenges,” he said.
“And as the strongest alliance in the history of the world,” the president added, “we need to make sure that each member-country is properly resourcing and committing to the NATO missions that have been set forth.”
Obama, Stoltenberg Discuss NATO Meeting Highlights
By Cheryl Pellerin
DoD News, Defense Media Activity
WASHINGTON, May 26, 2015 – President Barack Obama and NATO Secretary General Jens Stoltenberg discussed critical issues being addressed by the alliance during a press briefing here today after a bilateral meeting at the White House.
In what Obama called a “challenging and important time for NATO,” the two discussed Ukraine, NATO’s role in addressing global challenges, the way forward in Afghanistan and more this afternoon at the White House.
“We had a chance to discuss the situation in Ukraine and the increasingly aggressive posture that Russia has taken, and we affirmed that NATO is the cornerstone not just of transatlantic security but in many ways is the cornerstone for global security,” Obama said in remarks after the meeting.
In Wales, he said, NATO officials affirmed the intentions of the alliance to uphold its Article 5 obligations and put in place a host of measures to reassure frontline states and the Readiness Action plan, which is now being implemented.
Responding Swiftly
According to NATO, the plan will insure the alliance is ready to respond swiftly and firmly to new security challenges, and it provides a comprehensive package of measures to respond to changes in the security environment in and near Europe.
“We also reaffirmed the importance of implementing the Minsk Agreement and ensuring that Ukraine is able to enjoy the same territorial integrity and sovereignty as any other country,” said Obama, adding that the United States would continue to support Ukraine through the NATO-Ukraine partnership that predates the crisis in Crimea and now in eastern Ukraine.
In addition to its traditional roles, NATO is recognizing a range of global challenges, the president said.
“We are working closely with NATO allies to make sure that we are partnering with other countries to address issues of counterterrorism,” he added, including providing assistance in the fight against the Islamic State of Iraq and the Levant, and addressing the challenges that exist in Libya.
Defense Capacity Building
Obama said such missions require increased defense capacity building with countries like Iraq or Gulf Cooperation Council countries, and the African Union.
“It also means that we have to think about whether we are deploying and arranging our assets effectively to meet that goal,” Obama added.
Obama and Stoltenberg also discussed how NATO is positioned and how best to ensure that the alliance finishes the job with respect to Afghanistan.
NATO members will meet at the Warsaw, Poland, NATO Summit in July 2016, the president added, “[and] we’ll have an opportunity to assess how we will continue to support the Afghan National Security Forces, now that we have transitioned out of our combat mission, to make sure that they can … secure and protect their own country.”
Resources, Training, Assistance
Obama said that will require resources, training and assistance from the United States and from all NATO countries.
In his remarks, Stoltenberg thanked Obama for his leadership “in a time where we really needed U.S. leadership,” and for launching the European Reassurance Initiative, which the secretary general said “has been of great importance when it comes to U.S. presence in Europe.”
The U.S. military presence in Europe is the key to [reassuring] all allies, he added.
“I have traveled around the alliance, and all the places I have gone I have met U.S. servicemen and women,” Stoltenberg said.
America Stands with Europe
The message they send is the same, he added -- that America stands with Europe, Europe and America stand together, and NATO will defend and protect all allies against enemy threat.
“This is even more important because we are facing new threats, new challenges, coming both from the east and from the south,” Stoltenberg said. “And … we are adapting, we are responding, we are increasing the readiness and the preparedness of our forces.”
Obama said there are many challenges ahead.
“The one thing that we know is that NATO is going to be a central component of [our ability] to meet those challenges,” he said.
“And as the strongest alliance in the history of the world,” the president added, “we need to make sure that each member-country is properly resourcing and committing to the NATO missions that have been set forth.”
RECENT AIRSTRIKES AGAINST ISIL REPORTED BY DOD
FROM: U.S. DEFENSE DEPARTMENT
Anti-ISIL Airstrikes Continue in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, May 26, 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
Attack, bomber and fighter aircraft conducted seven airstrikes in Syria, all near Hasakah, striking four ISIL tactical units, an ISIL natural gas production plant and an ISIL headquarters and destroying four ISIL fighting positions, two ISIL vehicles and an ISIL mortar position.
Airstrikes in Iraq
Attack, fighter and remotely piloted aircraft conducted 12 airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Beiji, an airstrike struck an ISIL tactical unit, destroying an ISIL excavator.
-- Near Fallujah, four airstrikes struck two ISIL tactical units, destroying four ISIL homemade explosives resupply vehicles and an ISIL armored vehicle.
-- Near Hit, an airstrike struck an ISIL tactical unit, destroying an ISIL resupply vehicle.
-- Near Mosul, three airstrikes struck two ISIL tactical units and an ISIL rocket-firing position, destroying two ISIL heavy machine guns, an ISIL building and an ISIL vehicle.
-- Near Sinjar, an airstrike struck an ISIL tactical unit, destroying two ISIL buildings and two ISIL heavy machine guns.
-- Near Tal Afar, two airstrikes struck an ISIL tactical unit and an ISIL heavy machine gun, destroying two ISIL fighting positions and an ISIL mortar position.
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, officials said.
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.
U.S. DOL SUES COMPANY OVER MISSING EMPLOYEE DEDUCTIONS
FROM: U.S. LABOR DEPARTMENT
Houston Company Sued Over Missing Employee Deductions
The department has sued a Houston-based environmental engineering firm and its owner over missing 401(k) plan retirement monies and health insurance premiums deducted from employees' wages. The Employee Benefits Security Administration alleges AARC Environmental Inc. and Kishore Chainani violated the Employee Retirement Income Security Act of 1974 by failing to forward employee contributions and loan repayments of more than $78,000 to the company's 401(k) plan. The defendant also failed to forward more than $40,000 in employee and employer premiums to the group health plan, resulting in lapses in health coverage for their employees.
Houston Company Sued Over Missing Employee Deductions
The department has sued a Houston-based environmental engineering firm and its owner over missing 401(k) plan retirement monies and health insurance premiums deducted from employees' wages. The Employee Benefits Security Administration alleges AARC Environmental Inc. and Kishore Chainani violated the Employee Retirement Income Security Act of 1974 by failing to forward employee contributions and loan repayments of more than $78,000 to the company's 401(k) plan. The defendant also failed to forward more than $40,000 in employee and employer premiums to the group health plan, resulting in lapses in health coverage for their employees.
NEUROSURGEON PLEADS GUILTY TO PERFORMING UNNECESSARY SURGERIES
FROM: U.S. JUSTICE DEPARTMENT
Friday, May 22, 2015
Detroit-Area Neurosurgeon Admits Causing Serious Bodily Injury to Patients in $11 Million Health Care Fraud Scheme
A Detroit-area neurosurgeon pleaded guilty in two separate criminal cases that resulted in serious bodily injury to his patients and more than $11 million in Medicare, Medicaid and private insurance companies.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Service Office of Inspector General (HHS-OIG), Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Detroit Field Office made the announcement.
“Disregarding his Hippocratic oath to do no harm, Dr. Sabit enriched himself by performing unnecessary, invasive spinal surgeries and implanting costly and unnecessary medical devices, all at the expense of his patients’ health and welfare,” said Assistant Attorney General Caldwell. “Doctors who sell their medical judgment and ethics for personal profit endanger the lives and safety of vulnerable patients who count on their advice to make life-altering decisions. The Criminal Division of the Department of Justice will continue to prioritize the prosecution of doctors whose criminal behavior puts patients at risk.”
“This case of health care fraud is particularly egregious because Dr. Sabit caused serious bodily injury to his patients by acting out of his own greed instead of the best interests of his patients,” said U.S. Attorney McQuade. “Not only did he steal $11 million in insurance proceeds, but he also betrayed his trust to patients by lying to them about the procedures that were medically necessary and that were actually performed.”
Aria O. Sabit, M.D., 39, of Birmingham, Michigan, entered his guilty pleas in both criminal cases at a hearing before U.S. District Judge Paul D. Borman of the Eastern District of Michigan. Sabit pleaded guilty to four counts of health care fraud, one count of conspiracy to commit health care fraud and one count of unlawful distribution of a controlled substance, resulting in losses to Medicare, Medicaid and various private insurance companies. A sentencing hearing is scheduled for Sept. 15, 2015.
According to court documents, Sabit was a licensed neurosurgeon who owned and operated the Michigan Brain and Spine Physicians Group with various locations in the Eastern District of Michigan, including Southfield, Michigan, Clinton Township, Michigan, and Dearborn, Michigan, which opened in approximately April 2011.
During his guilty plea today, Sabit admitted that he derived significant profits by convincing patients to undergo spinal fusion surgeries with instrumentation (meaning specific medical devices designed to stabilize and strengthen the spine), which he never rendered, and subsequently billing public and private healthcare benefit programs for those fraudulent services.
Sabit further admitted he operated on patients and dictated in his operative reports—that he knew would later be used to support his fraudulent insurance claims—that he had performed spinal fusion with instrumentation, which he never performed. This invasive surgery caused serious bodily injury to the patients. Sabit admitted that his operative reports and treatment records contained false statements about the procedures performed, and the instrumentation used in the procedures. Sabit also admitted that, on occasion, he would implant cortical bone dowels and falsely dictate in his operative reports that he had implanted instrumentation. Sabit, then fraudulently billed public and private health care programs for instrumentation, when in fact the implants were tissue. Sabit admitted he failed to render services in relation to lumbar and thoracic fusion surgeries, including in certain instances, billing for implants that were not provided.
Sabit also admitted that, prior to moving to Michigan, he was a resident of Ventura, California, and a licensed neurosurgeon in California. He admitted that in approximately February 2010, he became involved with Apex Medical Technologies LLC (Apex) while he was on the staff of a California hospital.
Apex was owned by another neurosurgeon and three non-physicians who operated Apex as a physician-owned distributorship and paid neurosurgeons lucrative illegal kickbacks tied directly to the volume and complexity of the surgeries that the surgeons performed, and the number of Apex spinal implant devices the surgeons used in their spine surgeries.
In exchange for the opportunity to invest in Apex and share in its profits, Sabit admitted that he agreed to convince his hospital to buy spinal implant devices from Apex and use a sufficient number of Apex spinal implant devices in his spine surgeries. Sabit further admitted that he and Apex’s co-owners used Apex to operate an illegal kickback scheme. In doing so, they concealed Sabit’s involvement in Apex from outsiders. Sabit then required the hospitals and surgical centers where he and his fellow neurosurgeon performed surgeries to purchase spinal implant devices from Apex.
Sabit admitted that his involvement in Apex, and the financial incentives provided to him by Apex and his co-conspirators, caused him to compromise his medical judgment and cause serious bodily injury to his patients by performing medically unnecessary spine surgeries on some of the patients in whom he implanted Apex spinal implant devices. Sabit admitted that on a few occasions, the money he made from using Apex spinal implant devices motivated him either to refer patients in for spine surgery who did not medically need surgery or refer his patients for more complex surgeries, such as multi-level spine fusions, that they did not need.
Sabit also admitted that the financial incentives provided to him by Apex and his co-conspirators caused him to “over instrument” his patients (meaning Sabit used more spinal implant devices than were medically necessary to treat his patients) in order to generate more sales revenue for Apex, which resulted in serious bodily injury to his patients.
The Michigan case was investigated by the FBI, HHS-OIG and ICE. The California case—which was subsequently transferred to the Eastern District of Michigan—was investigated by the FBI and HHS-OIG. The Michigan case is being prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Philip A. Ross of the Eastern District of Michigan. The California case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan, and is being prosecuted by Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Dustin Davis and Blanca Quintero of the Criminal Division’s Fraud Section.
Sabit is also a defendant in two civil False Claims Act cases brought by the Department of Justice in the U.S. District Court of the Central District of California.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Friday, May 22, 2015
Detroit-Area Neurosurgeon Admits Causing Serious Bodily Injury to Patients in $11 Million Health Care Fraud Scheme
A Detroit-area neurosurgeon pleaded guilty in two separate criminal cases that resulted in serious bodily injury to his patients and more than $11 million in Medicare, Medicaid and private insurance companies.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Service Office of Inspector General (HHS-OIG), Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Detroit Field Office made the announcement.
“Disregarding his Hippocratic oath to do no harm, Dr. Sabit enriched himself by performing unnecessary, invasive spinal surgeries and implanting costly and unnecessary medical devices, all at the expense of his patients’ health and welfare,” said Assistant Attorney General Caldwell. “Doctors who sell their medical judgment and ethics for personal profit endanger the lives and safety of vulnerable patients who count on their advice to make life-altering decisions. The Criminal Division of the Department of Justice will continue to prioritize the prosecution of doctors whose criminal behavior puts patients at risk.”
“This case of health care fraud is particularly egregious because Dr. Sabit caused serious bodily injury to his patients by acting out of his own greed instead of the best interests of his patients,” said U.S. Attorney McQuade. “Not only did he steal $11 million in insurance proceeds, but he also betrayed his trust to patients by lying to them about the procedures that were medically necessary and that were actually performed.”
Aria O. Sabit, M.D., 39, of Birmingham, Michigan, entered his guilty pleas in both criminal cases at a hearing before U.S. District Judge Paul D. Borman of the Eastern District of Michigan. Sabit pleaded guilty to four counts of health care fraud, one count of conspiracy to commit health care fraud and one count of unlawful distribution of a controlled substance, resulting in losses to Medicare, Medicaid and various private insurance companies. A sentencing hearing is scheduled for Sept. 15, 2015.
According to court documents, Sabit was a licensed neurosurgeon who owned and operated the Michigan Brain and Spine Physicians Group with various locations in the Eastern District of Michigan, including Southfield, Michigan, Clinton Township, Michigan, and Dearborn, Michigan, which opened in approximately April 2011.
During his guilty plea today, Sabit admitted that he derived significant profits by convincing patients to undergo spinal fusion surgeries with instrumentation (meaning specific medical devices designed to stabilize and strengthen the spine), which he never rendered, and subsequently billing public and private healthcare benefit programs for those fraudulent services.
Sabit further admitted he operated on patients and dictated in his operative reports—that he knew would later be used to support his fraudulent insurance claims—that he had performed spinal fusion with instrumentation, which he never performed. This invasive surgery caused serious bodily injury to the patients. Sabit admitted that his operative reports and treatment records contained false statements about the procedures performed, and the instrumentation used in the procedures. Sabit also admitted that, on occasion, he would implant cortical bone dowels and falsely dictate in his operative reports that he had implanted instrumentation. Sabit, then fraudulently billed public and private health care programs for instrumentation, when in fact the implants were tissue. Sabit admitted he failed to render services in relation to lumbar and thoracic fusion surgeries, including in certain instances, billing for implants that were not provided.
Sabit also admitted that, prior to moving to Michigan, he was a resident of Ventura, California, and a licensed neurosurgeon in California. He admitted that in approximately February 2010, he became involved with Apex Medical Technologies LLC (Apex) while he was on the staff of a California hospital.
Apex was owned by another neurosurgeon and three non-physicians who operated Apex as a physician-owned distributorship and paid neurosurgeons lucrative illegal kickbacks tied directly to the volume and complexity of the surgeries that the surgeons performed, and the number of Apex spinal implant devices the surgeons used in their spine surgeries.
In exchange for the opportunity to invest in Apex and share in its profits, Sabit admitted that he agreed to convince his hospital to buy spinal implant devices from Apex and use a sufficient number of Apex spinal implant devices in his spine surgeries. Sabit further admitted that he and Apex’s co-owners used Apex to operate an illegal kickback scheme. In doing so, they concealed Sabit’s involvement in Apex from outsiders. Sabit then required the hospitals and surgical centers where he and his fellow neurosurgeon performed surgeries to purchase spinal implant devices from Apex.
Sabit admitted that his involvement in Apex, and the financial incentives provided to him by Apex and his co-conspirators, caused him to compromise his medical judgment and cause serious bodily injury to his patients by performing medically unnecessary spine surgeries on some of the patients in whom he implanted Apex spinal implant devices. Sabit admitted that on a few occasions, the money he made from using Apex spinal implant devices motivated him either to refer patients in for spine surgery who did not medically need surgery or refer his patients for more complex surgeries, such as multi-level spine fusions, that they did not need.
Sabit also admitted that the financial incentives provided to him by Apex and his co-conspirators caused him to “over instrument” his patients (meaning Sabit used more spinal implant devices than were medically necessary to treat his patients) in order to generate more sales revenue for Apex, which resulted in serious bodily injury to his patients.
The Michigan case was investigated by the FBI, HHS-OIG and ICE. The California case—which was subsequently transferred to the Eastern District of Michigan—was investigated by the FBI and HHS-OIG. The Michigan case is being prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Philip A. Ross of the Eastern District of Michigan. The California case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan, and is being prosecuted by Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Dustin Davis and Blanca Quintero of the Criminal Division’s Fraud Section.
Sabit is also a defendant in two civil False Claims Act cases brought by the Department of Justice in the U.S. District Court of the Central District of California.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, May 26, 2015
YEMENI NATIONAL AND AL-QAEDA MEMBER PLEADS GUILTY TO CONSPIRING TO KILL U.S. SOLDIERS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, May 26, 2015
Senior Member of Al-Qaeda Pleads Guilty to Conspiring to Kill U.S. Soldiers in Iraq and Afghanistan and Providing Material Support to Al-Qaeda
Defendant Tried to Lure American Solders to a Compound in Afghanistan that Was Rigged with Explosives; Also Facilitated the Entry of an American Citizen into Al-Qaeda
Earlier today, Saddiq al-Abbadi, 40, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, providing and conspiring to provide material support to al-Qaeda and using a machine gun in furtherance of those crimes.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office. Today’s guilty plea proceeding took place before U.S. District Court Judge Nicholas G. Garaufis of the Eastern District of New York. At sentencing, al-Abbadi faces a maximum of life imprisonment.
“With the guilty plea entered today, Saddiq al-Abbadi will be held accountable for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.”
“The defendant was a high-level al-Qaeda operative with ties to the terrorist group’s senior leadership in both Pakistan and Yemen,” said Acting U.S. Attorney Currie. “He fought in battles against U.S. troops in Iraq and Afghanistan, tried to kill U.S. troops in Afghanistan by luring them to a compound rigged with explosives, and helped an American citizen gain entry to al-Qaeda. We stand resolute in our commitment to bring to justice those who would try to harm members of our military or who assist al-Qaeda’s efforts to kill Americans at home or abroad.”
“With today’s guilty plea, Al-Abbadi admitted to directly supporting the mission of a designated terrorist organization through planning an operation designed to kill U.S. forces and for engaging in recruitment efforts on behalf of al-Qaeda,” said Assistant Director in Charge McCabe. “This plea is due in no small part to the many FBI Special Agents, intelligence analysts, and linguists from the Washington and New York Field Offices as well as our interagency and international partners who spent countless hours investigating terrorism actors and al-Abbadi’s actions. The FBI will not rest until we find and hold accountable those who provide support to terrorist groups and ensure that they are brought to justice.”
According to court filings, al-Abbadi traveled from his home country of Yemen to Iraq where, from approximately late 2005 through early 2007, he fought alongside al-Qaeda affiliated battalions against U.S. troops stationed in Iraq.
In early 2008, al-Abbadi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan in order to fight for al-Qaeda in Pakistan and Afghanistan. While in the FATA, al-Abbadi – who had longstanding ties to senior members of al-Qaeda’s Yemen-based affiliate known as al-Qaeda in the Arabian Peninsula (AQAP) – engaged directly with senior al-Qaeda leadership in Pakistan, including Sheikh Saeed al-Masri, the then-third ranking member of al-Qaeda.
During the late spring and summer of 2008, Al-Abbadi crossed from Pakistan into Afghanistan for the purpose of fighting and killing members of the U.S. military stationed in Afghanistan. In June 2008, he planned an operation designed to lure U.S. forces to a compound in Ghazni, Afghanistan, that was rigged with explosives set to detonate upon their entry. When U.S. forces arrived at the compound, they found rocket-propelled grenades and artillery rounds littered about. One soldier observed wiring running from the exterior gate to the inside of the compound and recognized the trap. The military evacuated and subsequently leveled the compound.
In addition to fighting against the U.S. military, al-Abbadi used his connections with al-Qaeda’s leadership to help U.S. citizen Bryant Neal Vinas gain entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island, New York, in the hopes of joining al-Qaeda and fighting against U.S. military forces in Afghanistan. As a result of al-Abbadi’s assistance, Vinas was allowed to join al-Qaeda. After participating in al-Qaeda’s military training program, Vinas developed a plan with senior al-Qaeda external operations leadership to conduct an attack on the Long Island Railroad in New York. Vinas was arrested before he could carry out this attack.
Assistant Attorney General Carlin extended his grateful appreciation to the FBI. The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section and by the Office of International Affairs.
Tuesday, May 26, 2015
Senior Member of Al-Qaeda Pleads Guilty to Conspiring to Kill U.S. Soldiers in Iraq and Afghanistan and Providing Material Support to Al-Qaeda
Defendant Tried to Lure American Solders to a Compound in Afghanistan that Was Rigged with Explosives; Also Facilitated the Entry of an American Citizen into Al-Qaeda
Earlier today, Saddiq al-Abbadi, 40, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, providing and conspiring to provide material support to al-Qaeda and using a machine gun in furtherance of those crimes.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office. Today’s guilty plea proceeding took place before U.S. District Court Judge Nicholas G. Garaufis of the Eastern District of New York. At sentencing, al-Abbadi faces a maximum of life imprisonment.
“With the guilty plea entered today, Saddiq al-Abbadi will be held accountable for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.”
“The defendant was a high-level al-Qaeda operative with ties to the terrorist group’s senior leadership in both Pakistan and Yemen,” said Acting U.S. Attorney Currie. “He fought in battles against U.S. troops in Iraq and Afghanistan, tried to kill U.S. troops in Afghanistan by luring them to a compound rigged with explosives, and helped an American citizen gain entry to al-Qaeda. We stand resolute in our commitment to bring to justice those who would try to harm members of our military or who assist al-Qaeda’s efforts to kill Americans at home or abroad.”
“With today’s guilty plea, Al-Abbadi admitted to directly supporting the mission of a designated terrorist organization through planning an operation designed to kill U.S. forces and for engaging in recruitment efforts on behalf of al-Qaeda,” said Assistant Director in Charge McCabe. “This plea is due in no small part to the many FBI Special Agents, intelligence analysts, and linguists from the Washington and New York Field Offices as well as our interagency and international partners who spent countless hours investigating terrorism actors and al-Abbadi’s actions. The FBI will not rest until we find and hold accountable those who provide support to terrorist groups and ensure that they are brought to justice.”
According to court filings, al-Abbadi traveled from his home country of Yemen to Iraq where, from approximately late 2005 through early 2007, he fought alongside al-Qaeda affiliated battalions against U.S. troops stationed in Iraq.
In early 2008, al-Abbadi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan in order to fight for al-Qaeda in Pakistan and Afghanistan. While in the FATA, al-Abbadi – who had longstanding ties to senior members of al-Qaeda’s Yemen-based affiliate known as al-Qaeda in the Arabian Peninsula (AQAP) – engaged directly with senior al-Qaeda leadership in Pakistan, including Sheikh Saeed al-Masri, the then-third ranking member of al-Qaeda.
During the late spring and summer of 2008, Al-Abbadi crossed from Pakistan into Afghanistan for the purpose of fighting and killing members of the U.S. military stationed in Afghanistan. In June 2008, he planned an operation designed to lure U.S. forces to a compound in Ghazni, Afghanistan, that was rigged with explosives set to detonate upon their entry. When U.S. forces arrived at the compound, they found rocket-propelled grenades and artillery rounds littered about. One soldier observed wiring running from the exterior gate to the inside of the compound and recognized the trap. The military evacuated and subsequently leveled the compound.
In addition to fighting against the U.S. military, al-Abbadi used his connections with al-Qaeda’s leadership to help U.S. citizen Bryant Neal Vinas gain entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island, New York, in the hopes of joining al-Qaeda and fighting against U.S. military forces in Afghanistan. As a result of al-Abbadi’s assistance, Vinas was allowed to join al-Qaeda. After participating in al-Qaeda’s military training program, Vinas developed a plan with senior al-Qaeda external operations leadership to conduct an attack on the Long Island Railroad in New York. Vinas was arrested before he could carry out this attack.
Assistant Attorney General Carlin extended his grateful appreciation to the FBI. The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section and by the Office of International Affairs.
F-35B LIGHTNING II MAKES VERTICAL TAKEOFF FRO USS WASP
FROM: U.S. NAVY
 |
| 150520-M-XX999-003 ATLANTIC OCEAN (May 20, 2015) An F-35B Lightning II Joint Strike Fighter lands on the flight deck of the amphibious assault ship USS Wasp (LHD 1) during short take-off, vertical landing operations. (U.S. Marine Corps photo by Lance Cpl. Remington Hall/Released.) |
U.S. CONGRATULATES PEOPLE OF GEORGIA ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
On the Occasion of Georgia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
May 22, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Georgia as you celebrate your Independence Day on May 26.
We greatly value our strong partnership with Georgia. The United States is firmly committed to Georgia’s territorial integrity and sovereignty within its internationally recognized borders. We strongly support Georgia’s Euro-Atlantic aspirations. We are committed to helping Georgia implement its European Union Association Agreement and advance on the path toward NATO membership. And we honor the dedication and sacrifices of your troops serving around the world, including in Afghanistan.
On this day of celebration, I wish the Georgian people peace, unity, and prosperity.
On the Occasion of Georgia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
May 22, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Georgia as you celebrate your Independence Day on May 26.
We greatly value our strong partnership with Georgia. The United States is firmly committed to Georgia’s territorial integrity and sovereignty within its internationally recognized borders. We strongly support Georgia’s Euro-Atlantic aspirations. We are committed to helping Georgia implement its European Union Association Agreement and advance on the path toward NATO membership. And we honor the dedication and sacrifices of your troops serving around the world, including in Afghanistan.
On this day of celebration, I wish the Georgian people peace, unity, and prosperity.
FTC SAYS COURTS HALT DEBT COLLECTION OPERATIORS WHO ALLEGEDLY SENT THREATENING, DECEPTIVE TEXT MESSAGES
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Halts Three Debt Collection Operations That Allegedly Threatened and Deceived Consumers via Illegal Text Messages
At the Federal Trade Commission’s request, federal courts in New York and Georgia have temporarily halted three debt collection operations that allegedly violated federal law by threatening and deceiving consumers via text messages, emails, and phone calls. The FTC seeks to permanently end the unlawful practices.
“Legitimate debt collectors know the rules,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “They can’t harass or lie to you, whether they send a text, email, or call you.”
According to the FTC, the defendants used text messages, emails, and phone calls to falsely threaten to arrest or sue consumers. They also unlawfully contacted friends, family members, and employers, withheld information consumers needed to confirm or dispute debts, and did not identify themselves as debt collectors, as required by law.
The defendants in the law enforcement sweep called “Messaging for Money” are known as Unified Global Group, Premier Debt Acquisitions, and The Primary Group.
The FTC’s complaint against Unified Global Group names several companies through which the defendants operated. According to the FTC, the companies at times sent texts to trick consumers into calling them back. The texts included false statements such as, “YOUR PAYMENT DECLINED WITH CARD ****-****-****-5463 . . . CALL 866.256.2117 IMMEDIATELY,” even though consumers had never arranged to make payments to the defendants. The texts failed to identify the senders as debt collectors. The defendants also used deceptive emails and robocalls, and unlawfully contacted consumers’ friends, families, and co-workers about the supposed debts.
In its complaint against Premier Debt Acquisitions, the FTC alleged that the defendants impersonated state or law enforcement officials, falsely threatened consumers with a lawsuit or arrest, and even falsely threatened to charge some consumers with criminal fraud, garnish their wages, or seize their property. In texts, they claimed they would sue the consumers and threatened to seize their possessions unless they paid. In voicemails, the defendants also falsely claimed a “uniformed officer” was on the way to the consumers’ home, and asked them to “secure any large animals or firearms” before the “officer” arrived.
Premier Debt Acquisitions also sent deceptive emails claiming that making a payment would help a consumer’s credit report, but the defendants had no ability to make good on that claim. They also kept trying to collect after consumers challenged the debt or its amount, without investigating the dispute. In one instance, they persisted despite written evidence that the debt was a result of identity theft and a prior debt collector had marked it fully paid. In other instances, the defendants tried to collect a payment even after they had received it, and hounded one person for two years about someone else’s debt.
The FTC’s complaint against the Primary Group alleged that the defendants sent consumers a series of text messages, typically not disclosing that the company is a debt collector. The defendants threatened consumers with false statements such as “I’m a process server with Primary Solutions, appointed to serve you papers for case [eight-digit number]. . .” and “Please have proper ID and a witness present who can provide a signature. If there’s no reply I’ll have to bring the document to your employer.”
The Unified Global Group defendants are Unified Global Group LLC; ARM WNY LLC, also doing business as Accredited Receivables Management; Audubon Financial Bureau, also doing business as AFB; Domenico D’Angelo, also known as Dominick D’Angelo; and Anthony Coppola. The Premier Debt Acquisitions defendants are Premier Debt Acquisitions LLC, also d/b/a PDA Group LLC; Prizm Debt Solutions LLC, also d/b/a PDS LLC; Samuel Sole and Associates LLC, also d/b/a SSA Group LLC and Imperial Processing Solutions; Charles Glander; and Jacob E. Kirbis. The Primary Group defendants are The Primary Group Inc., formerly known as A Primary Systems Group Inc., also d/b/a Primary Solutions and PSA Investigations; Gail Daniels; and June Fleming.
The FTC has charged the defendants with violating the FTC Act and the Fair Debt Collection Practices Act.
FTC Halts Three Debt Collection Operations That Allegedly Threatened and Deceived Consumers via Illegal Text Messages
At the Federal Trade Commission’s request, federal courts in New York and Georgia have temporarily halted three debt collection operations that allegedly violated federal law by threatening and deceiving consumers via text messages, emails, and phone calls. The FTC seeks to permanently end the unlawful practices.
“Legitimate debt collectors know the rules,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “They can’t harass or lie to you, whether they send a text, email, or call you.”
According to the FTC, the defendants used text messages, emails, and phone calls to falsely threaten to arrest or sue consumers. They also unlawfully contacted friends, family members, and employers, withheld information consumers needed to confirm or dispute debts, and did not identify themselves as debt collectors, as required by law.
The defendants in the law enforcement sweep called “Messaging for Money” are known as Unified Global Group, Premier Debt Acquisitions, and The Primary Group.
The FTC’s complaint against Unified Global Group names several companies through which the defendants operated. According to the FTC, the companies at times sent texts to trick consumers into calling them back. The texts included false statements such as, “YOUR PAYMENT DECLINED WITH CARD ****-****-****-5463 . . . CALL 866.256.2117 IMMEDIATELY,” even though consumers had never arranged to make payments to the defendants. The texts failed to identify the senders as debt collectors. The defendants also used deceptive emails and robocalls, and unlawfully contacted consumers’ friends, families, and co-workers about the supposed debts.
In its complaint against Premier Debt Acquisitions, the FTC alleged that the defendants impersonated state or law enforcement officials, falsely threatened consumers with a lawsuit or arrest, and even falsely threatened to charge some consumers with criminal fraud, garnish their wages, or seize their property. In texts, they claimed they would sue the consumers and threatened to seize their possessions unless they paid. In voicemails, the defendants also falsely claimed a “uniformed officer” was on the way to the consumers’ home, and asked them to “secure any large animals or firearms” before the “officer” arrived.
Premier Debt Acquisitions also sent deceptive emails claiming that making a payment would help a consumer’s credit report, but the defendants had no ability to make good on that claim. They also kept trying to collect after consumers challenged the debt or its amount, without investigating the dispute. In one instance, they persisted despite written evidence that the debt was a result of identity theft and a prior debt collector had marked it fully paid. In other instances, the defendants tried to collect a payment even after they had received it, and hounded one person for two years about someone else’s debt.
The FTC’s complaint against the Primary Group alleged that the defendants sent consumers a series of text messages, typically not disclosing that the company is a debt collector. The defendants threatened consumers with false statements such as “I’m a process server with Primary Solutions, appointed to serve you papers for case [eight-digit number]. . .” and “Please have proper ID and a witness present who can provide a signature. If there’s no reply I’ll have to bring the document to your employer.”
The Unified Global Group defendants are Unified Global Group LLC; ARM WNY LLC, also doing business as Accredited Receivables Management; Audubon Financial Bureau, also doing business as AFB; Domenico D’Angelo, also known as Dominick D’Angelo; and Anthony Coppola. The Premier Debt Acquisitions defendants are Premier Debt Acquisitions LLC, also d/b/a PDA Group LLC; Prizm Debt Solutions LLC, also d/b/a PDS LLC; Samuel Sole and Associates LLC, also d/b/a SSA Group LLC and Imperial Processing Solutions; Charles Glander; and Jacob E. Kirbis. The Primary Group defendants are The Primary Group Inc., formerly known as A Primary Systems Group Inc., also d/b/a Primary Solutions and PSA Investigations; Gail Daniels; and June Fleming.
The FTC has charged the defendants with violating the FTC Act and the Fair Debt Collection Practices Act.
CDC REPORTS ON CIGARETTE SMOKING AND SMOKELESS TOBACCO USE AMONG ADULTS
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION
State-specific Prevalence of Current Cigarette Smoking and Smokeless Tobacco Use Among Adults Aged ≥18 years — United States, 2011–2013
These findings underscore the importance of effective population-based interventions focused on reducing the use of all tobacco products. From 2011 to 2013, there was a decline in current cigarette smoking prevalence in 26 states. During the same period, use of smokeless tobacco significantly increased in Louisiana, Montana, South Carolina, and West Virginia. Additionally, the concurrent use of cigarette smoking and smokeless tobacco significantly increased in Delaware, Idaho, Nevada, New Mexico and West Virginia. The use of more than one tobacco product is concerning because adults who use both cigarettes, and smokeless tobacco have higher levels of nicotine dependence and are less likely to report planning to quit than those who exclusively smoke cigarettes. Evidence-based, statewide tobacco control programs that are comprehensive, sustained, and accountable have been shown to reduce smoking rates, as well as tobacco-related diseases and deaths.
State-specific Prevalence of Current Cigarette Smoking and Smokeless Tobacco Use Among Adults Aged ≥18 years — United States, 2011–2013
These findings underscore the importance of effective population-based interventions focused on reducing the use of all tobacco products. From 2011 to 2013, there was a decline in current cigarette smoking prevalence in 26 states. During the same period, use of smokeless tobacco significantly increased in Louisiana, Montana, South Carolina, and West Virginia. Additionally, the concurrent use of cigarette smoking and smokeless tobacco significantly increased in Delaware, Idaho, Nevada, New Mexico and West Virginia. The use of more than one tobacco product is concerning because adults who use both cigarettes, and smokeless tobacco have higher levels of nicotine dependence and are less likely to report planning to quit than those who exclusively smoke cigarettes. Evidence-based, statewide tobacco control programs that are comprehensive, sustained, and accountable have been shown to reduce smoking rates, as well as tobacco-related diseases and deaths.
STATE DEPARTMENT OFFICIAL'S REMARKS TO AIA ANNUAL MEETING
FROM: THE STATE DEPARTMENT
Remarks to the AIA Annual Spring Board of Governors Meeting
Remarks
Puneet Talwar
Assistant Secretary, Bureau of Political-Military Affairs
Williamsburg, VA
May 21, 2015
Good morning, everyone. It’s a privilege to be here and let me thank David Joyce and Marilyn Hewson for inviting me here today.
As all of you know, at the State Department – in the Political-Military Affairs Bureau and the Economic and Business Affairs Bureau – we have re-energized our outreach to industry, and as part of that push we are glad to have such a strong presence here today.
It’s also a real pleasure to be here with my colleagues, Admiral Rixey and Assistant Secretary Jadotte – we work closely together on defense trade and so many other issues as well.
In the face of multiple crises around the world, today I’d like to speak about how America is leading in the context of today’s security environment, and how government and industry can work together – particularly in the arena of defense trade advocacy.
As President Obama has said, the question we face given the array of threats and opportunities across the globe, “is not whether America leads in the world, but how.”
There are two fundamental facts in today’s geostrategic environment that, I think, drive our leadership today.
The first is that the world’s greatest challenges do not affect any one nation alone. Terrorism; climate change; public health; territorial aggression – these are issues that affect many, if not all countries.
And the second truth is that no single nation can solve these problems alone. Of course, the United States has a unique leadership position in the world, and people look to us to step up. But we also have to recognize that even if we did everything perfectly on terrorism; even if we reduced our greenhouse gas emissions to zero… it wouldn’t be enough.
That’s why President Obama has put so much emphasis on strengthening our alliances and partnerships around the globe. Because we need our partners to step up so we can solve these problems together, in a durable and lasting way.
Defense trade is an important tool for us to be able to do that… whether it’s building the capabilities of the Israeli Defense Forces or the Iraqi Security Forces; whether it’s empowering our partners in South America or Southeast Asia.
That’s why our work together – between government and industry – is so critical. The fact is, we benefit from the American brand that you help build overseas. American companies create the most innovative, most effective solutions to meet our partners’ needs. And you have all made American products the gold standard in the defense industry. As Secretary Kerry said this week at Boeing, “the world wants what America makes.” We in government would be foolish if we did not use that to our advantage as we press forward on our national security interests.
And likewise, you in industry benefit from having U.S. leadership that’s trusted and strong, clear and coherent. The truth is that we each have a stake in each other’s success.
So when we decide that security cooperation with a foreign partner will further our national security, it’s deeply in our interest to work in an organized, collaborative, and proactive way to advocate for American interests and yes, American industry.
Now, many of you know that there are serious challenges in today’s defense trade market. It’s a competitive marketplace with other technology. The defense budget is tight here at home. Other governments can be more aggressive and often have fewer restrictions on what they are willing to sell and to whom.
We also realize that our licensing and regulatory system is imperfect… that sometimes the waits are too long or the process too opaque. And that’s exactly why we are implementing Export Control Reform – to unshackle ourselves from Cold War regulations and adapt to the 21st century… to focus our efforts on a narrower set of items that really matter… and to provide greater clarity and transparency to you in industry.
But Export Control Reform is not a panacea. Which is why we’re also refining other tools at our disposal.
Today, I’d like to discuss three objectives we have outlined in this area – and three specific actions we are taking to improve our defense trade advocacy.
First, when we in government work together, we are much more effective and powerful. It’s true that there are many players in the security cooperation enterprise and we do a lot to coordinate. I could throw so many acronyms and names at you: the Arms Transfer Technology Steering Group; the Security Cooperation Enterprise Group; the Senior Warfighter Integration Group’s work to expedite procurement.
But there are instances – specific sales – that require a tailored, unified effort to advocacy. That’s why we are building a single group, the Defense Advocacy Working Group, to identify areas that require heightened communication and an extra advocacy effort. At our different agencies, we share the same goals, but we don’t always synchronize our actions as well as we should. One central list and one central advocacy working group will lock in coordination from start to finish.
I’ll give you an example. Over the past year, we’ve piloted this process for our advocacy with Poland, which as many of you know is engaged in a historic $45 billion defense modernization program. Across every agency, we supported and advocated for U.S. solutions to Poland’s missile defense needs. Deputy Assistant Secretary Greg Kausner and Admiral Rixey travelled to Warsaw. You may have seen in the press that the Defense Department put PATRIOTs on display at a strategic time. And we had senior-level engagement to help move the ball forward. And as a result, the successful sale means supporting American jobs at home, deepening interoperability, and strengthening the security of Poland, a stalwart NATO ally.
This approach is proven – and we are now working to build on the success we saw with Poland elsewhere around the world.
Second, we in government need to project power in a more coordinated way at trade shows. Running into each other for the first time at the pavilions just doesn’t cut it. We need to do a better job coordinating our meetings, delivering consistent messages, and identifying areas we want to target. Some of you have likely seen progress already, as we are getting more in sync with each other. We want to build on this progress and are establishing an interagency working group to ensure that this coordination becomes institutionalized. Admiral Rixey’s deputy, Jenn Zakriski and I will be going to the Paris Air Show next month, and we’re looking forward to arriving ready with a common strategy for targeted outreach and advocacy.
Third, we need to be more transparent and responsive to industry. As our partners in the private sector, you should be able to ask us any time about our objectives. And you shouldn’t have to go agency to agency to agency to get answers.
That’s why, starting in July, we are launching a senior-level, quarterly industry outreach forum to have a two-way conversation with you. This quarterly forum will allow us to get input from you, assess upcoming sales, and build an advocacy strategy rooted in unity.
I know these three changes may not seem earth-shattering. But as leaders of large companies, you know that sometimes different arms of your organizations don’t talk to each other as well as they should. You’ve probably spent a lot of time on breaking down stovepipes, and you know it can have a huge impact. When we have all the oars in the water, rowing at the same time, we improve the outcome for all of us.
Yes, these are targeted actions, but we think their impact can be quite significant. Coordinating earlier and more often. Projecting our power, together, at trade shows. And continuing to deepen our engagements with industry.
Again, we have to do these things because it’s in our interest. Because the demands for our leadership are growing. Because we are more engaged in more places than ever before. You can see it in the headlines – whether it’s in the GCC or talks with Iran – but you can also see it in the trendlines that we’re so focused on, in the Asia-Pacific, where 60 percent of the world’s population is… where half of all GDP growth outside the U.S. is expected to come from in the next four years… where over half the world’s maritime commerce flows. And it’s security that underpins the economic growth – and the tremendous potential – that we are seeing in that region.
I could go on, but I’ll turn it over to Admiral Rixey and am happy to take any questions in the Q&A.
Remarks to the AIA Annual Spring Board of Governors Meeting
Remarks
Puneet Talwar
Assistant Secretary, Bureau of Political-Military Affairs
Williamsburg, VA
May 21, 2015
Good morning, everyone. It’s a privilege to be here and let me thank David Joyce and Marilyn Hewson for inviting me here today.
As all of you know, at the State Department – in the Political-Military Affairs Bureau and the Economic and Business Affairs Bureau – we have re-energized our outreach to industry, and as part of that push we are glad to have such a strong presence here today.
It’s also a real pleasure to be here with my colleagues, Admiral Rixey and Assistant Secretary Jadotte – we work closely together on defense trade and so many other issues as well.
In the face of multiple crises around the world, today I’d like to speak about how America is leading in the context of today’s security environment, and how government and industry can work together – particularly in the arena of defense trade advocacy.
As President Obama has said, the question we face given the array of threats and opportunities across the globe, “is not whether America leads in the world, but how.”
There are two fundamental facts in today’s geostrategic environment that, I think, drive our leadership today.
The first is that the world’s greatest challenges do not affect any one nation alone. Terrorism; climate change; public health; territorial aggression – these are issues that affect many, if not all countries.
And the second truth is that no single nation can solve these problems alone. Of course, the United States has a unique leadership position in the world, and people look to us to step up. But we also have to recognize that even if we did everything perfectly on terrorism; even if we reduced our greenhouse gas emissions to zero… it wouldn’t be enough.
That’s why President Obama has put so much emphasis on strengthening our alliances and partnerships around the globe. Because we need our partners to step up so we can solve these problems together, in a durable and lasting way.
Defense trade is an important tool for us to be able to do that… whether it’s building the capabilities of the Israeli Defense Forces or the Iraqi Security Forces; whether it’s empowering our partners in South America or Southeast Asia.
That’s why our work together – between government and industry – is so critical. The fact is, we benefit from the American brand that you help build overseas. American companies create the most innovative, most effective solutions to meet our partners’ needs. And you have all made American products the gold standard in the defense industry. As Secretary Kerry said this week at Boeing, “the world wants what America makes.” We in government would be foolish if we did not use that to our advantage as we press forward on our national security interests.
And likewise, you in industry benefit from having U.S. leadership that’s trusted and strong, clear and coherent. The truth is that we each have a stake in each other’s success.
So when we decide that security cooperation with a foreign partner will further our national security, it’s deeply in our interest to work in an organized, collaborative, and proactive way to advocate for American interests and yes, American industry.
Now, many of you know that there are serious challenges in today’s defense trade market. It’s a competitive marketplace with other technology. The defense budget is tight here at home. Other governments can be more aggressive and often have fewer restrictions on what they are willing to sell and to whom.
We also realize that our licensing and regulatory system is imperfect… that sometimes the waits are too long or the process too opaque. And that’s exactly why we are implementing Export Control Reform – to unshackle ourselves from Cold War regulations and adapt to the 21st century… to focus our efforts on a narrower set of items that really matter… and to provide greater clarity and transparency to you in industry.
But Export Control Reform is not a panacea. Which is why we’re also refining other tools at our disposal.
Today, I’d like to discuss three objectives we have outlined in this area – and three specific actions we are taking to improve our defense trade advocacy.
First, when we in government work together, we are much more effective and powerful. It’s true that there are many players in the security cooperation enterprise and we do a lot to coordinate. I could throw so many acronyms and names at you: the Arms Transfer Technology Steering Group; the Security Cooperation Enterprise Group; the Senior Warfighter Integration Group’s work to expedite procurement.
But there are instances – specific sales – that require a tailored, unified effort to advocacy. That’s why we are building a single group, the Defense Advocacy Working Group, to identify areas that require heightened communication and an extra advocacy effort. At our different agencies, we share the same goals, but we don’t always synchronize our actions as well as we should. One central list and one central advocacy working group will lock in coordination from start to finish.
I’ll give you an example. Over the past year, we’ve piloted this process for our advocacy with Poland, which as many of you know is engaged in a historic $45 billion defense modernization program. Across every agency, we supported and advocated for U.S. solutions to Poland’s missile defense needs. Deputy Assistant Secretary Greg Kausner and Admiral Rixey travelled to Warsaw. You may have seen in the press that the Defense Department put PATRIOTs on display at a strategic time. And we had senior-level engagement to help move the ball forward. And as a result, the successful sale means supporting American jobs at home, deepening interoperability, and strengthening the security of Poland, a stalwart NATO ally.
This approach is proven – and we are now working to build on the success we saw with Poland elsewhere around the world.
Second, we in government need to project power in a more coordinated way at trade shows. Running into each other for the first time at the pavilions just doesn’t cut it. We need to do a better job coordinating our meetings, delivering consistent messages, and identifying areas we want to target. Some of you have likely seen progress already, as we are getting more in sync with each other. We want to build on this progress and are establishing an interagency working group to ensure that this coordination becomes institutionalized. Admiral Rixey’s deputy, Jenn Zakriski and I will be going to the Paris Air Show next month, and we’re looking forward to arriving ready with a common strategy for targeted outreach and advocacy.
Third, we need to be more transparent and responsive to industry. As our partners in the private sector, you should be able to ask us any time about our objectives. And you shouldn’t have to go agency to agency to agency to get answers.
That’s why, starting in July, we are launching a senior-level, quarterly industry outreach forum to have a two-way conversation with you. This quarterly forum will allow us to get input from you, assess upcoming sales, and build an advocacy strategy rooted in unity.
I know these three changes may not seem earth-shattering. But as leaders of large companies, you know that sometimes different arms of your organizations don’t talk to each other as well as they should. You’ve probably spent a lot of time on breaking down stovepipes, and you know it can have a huge impact. When we have all the oars in the water, rowing at the same time, we improve the outcome for all of us.
Yes, these are targeted actions, but we think their impact can be quite significant. Coordinating earlier and more often. Projecting our power, together, at trade shows. And continuing to deepen our engagements with industry.
Again, we have to do these things because it’s in our interest. Because the demands for our leadership are growing. Because we are more engaged in more places than ever before. You can see it in the headlines – whether it’s in the GCC or talks with Iran – but you can also see it in the trendlines that we’re so focused on, in the Asia-Pacific, where 60 percent of the world’s population is… where half of all GDP growth outside the U.S. is expected to come from in the next four years… where over half the world’s maritime commerce flows. And it’s security that underpins the economic growth – and the tremendous potential – that we are seeing in that region.
I could go on, but I’ll turn it over to Admiral Rixey and am happy to take any questions in the Q&A.
Monday, May 25, 2015
DOD REPORTS MORE AIRSTRIKES AGAINST ISIL
FROM: U.S. DEFENSE DEPARTMENT
Airstrikes Against ISIL Targets Continue in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, May 25, 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
Attack, bomber, fighter and remotely piloted aircraft conducted 10 airstrikes in Syria:
-- Near Hasakah, seven airstrikes struck two large and four small ISIL tactical units, destroying four ISIL fighting positions, an ISIL checkpoint, an ISIL excavator, an ISIL vehicle bomb and an ISIL vehicle. No civilian casualties from the airstrikes were observed, officials said, adding that Kurdish fighters reported an ISIL vehicle bomb detonation that resulted in an undetermined number of civilians injured in the area.
-- Near Raqqah, two airstrikes destroyed an ISIL excavator and an ISIL tank.
-- Near Dayr Az Zawr, an airstrike destroyed an ISIL multiple rocket launcher vehicle.
Airstrikes in Iraq
Attack, bomber, fighter and remotely piloted aircraft conducted 25 airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Baghdadi, five airstrikes struck one large and two small ISIL tactical units, destroying four ISIL structures, two ISIL fighting positions, an ISIL armored excavator, an ISIL heavy machine gun and an ISIL vehicle bomb.
-- Near Beiji, three airstrikes destroyed an ISIL dump truck, an ISIL excavator and an ISIL tanker.
-- Near Fallujah, an airstrike destroyed an ISIL anti-aircraft artillery piece and an ISIL fighting position.
-- Near Hit, an airstrike struck an ISIL vehicle-bomb facility.
-- Near Mosul, nine airstrikes struck five ISIL tactical units and an ISIL staging area, destroying four ISIL heavy machine guns, three ISIL buildings, an ISIL armored vehicle, an ISIL excavator and an ISIL vehicle bomb.
-- Near Ramadi, an airstrike struck an ISIL vehicle.
-- Near Sinjar, two airstrikes struck two ISIL tactical units, destroying two ISIL buildings, two ISIL heavy machine guns and an ISIL rocket-propelled grenade.
-- Near Tal Afar, three airstrikes struck two ISIL tactical units and an ISIL vehicle, destroying two ISIL buildings, two ISIL heavy machine guns and two ISIL mortar systems.
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, officials said.
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.
Airstrikes Against ISIL Targets Continue in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, May 25, 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
Attack, bomber, fighter and remotely piloted aircraft conducted 10 airstrikes in Syria:
-- Near Hasakah, seven airstrikes struck two large and four small ISIL tactical units, destroying four ISIL fighting positions, an ISIL checkpoint, an ISIL excavator, an ISIL vehicle bomb and an ISIL vehicle. No civilian casualties from the airstrikes were observed, officials said, adding that Kurdish fighters reported an ISIL vehicle bomb detonation that resulted in an undetermined number of civilians injured in the area.
-- Near Raqqah, two airstrikes destroyed an ISIL excavator and an ISIL tank.
-- Near Dayr Az Zawr, an airstrike destroyed an ISIL multiple rocket launcher vehicle.
Airstrikes in Iraq
Attack, bomber, fighter and remotely piloted aircraft conducted 25 airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Baghdadi, five airstrikes struck one large and two small ISIL tactical units, destroying four ISIL structures, two ISIL fighting positions, an ISIL armored excavator, an ISIL heavy machine gun and an ISIL vehicle bomb.
-- Near Beiji, three airstrikes destroyed an ISIL dump truck, an ISIL excavator and an ISIL tanker.
-- Near Fallujah, an airstrike destroyed an ISIL anti-aircraft artillery piece and an ISIL fighting position.
-- Near Hit, an airstrike struck an ISIL vehicle-bomb facility.
-- Near Mosul, nine airstrikes struck five ISIL tactical units and an ISIL staging area, destroying four ISIL heavy machine guns, three ISIL buildings, an ISIL armored vehicle, an ISIL excavator and an ISIL vehicle bomb.
-- Near Ramadi, an airstrike struck an ISIL vehicle.
-- Near Sinjar, two airstrikes struck two ISIL tactical units, destroying two ISIL buildings, two ISIL heavy machine guns and an ISIL rocket-propelled grenade.
-- Near Tal Afar, three airstrikes struck two ISIL tactical units and an ISIL vehicle, destroying two ISIL buildings, two ISIL heavy machine guns and two ISIL mortar systems.
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, officials said.
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.
U.S. CONDEMNS KILLING OF OPPOSITION PARTY LEADER IN BURUNDI
FROM: U.S. STATE DEPARTMENT
United States Calls for Peaceful Resolution to Crisis in Burundi
Press Statement
Marie Harf
Deputy Department Spokesperson
Washington, DC
May 25, 2015
The United States strongly condemns the May 23 killing of the leader of the opposition party Union for Peace and Development (UPD), Zedi Feruzi, and his bodyguard. We also strongly condemn the May 22 grenade attack in a market that killed several people and wounded many more. These attacks only undermine ongoing efforts to achieve a peaceful resolution to the current crisis through dialogue.
We call on all parties to immediately renounce the use of violence. We urge the Burundian government to conduct timely and credible investigations of the recent attacks to bring to justice those responsible and to take concrete steps to ensure the safety of political actors during the electoral process.
The United States supports the consultative political dialogue facilitated by the UN Special Envoy, Said Djinnit, and envoys from the African Union, the East African Community, and the International Conference on the Great Lakes Region (ICGLR), and we strongly urge all stakeholders to continue to participate in good faith in this dialogue to achieve a peaceful resolution to the crisis. We welcomed the May 18 communique by the ICGLR announcing a heads of state visit to Burundi, which we believe could contribute to facilitating this dialogue.
We call on the Burundian government to provide the political space needed for a peaceful and credible electoral process, including through respect for the freedoms of peaceful assembly and expression. In this regard, we urge the Burundian government to permit the immediate resumption of broadcasts by independent radio stations, end the use of the term “insurgents” to refer to peaceful protesters, and withdraw the proclamation by the Burundian National Security Council prohibiting future demonstrations.
The United States continues to monitor the situation in Burundi closely and is prepared to take additional measures against those who commit, incite or promote violence or other human rights abuses and violations.
United States Calls for Peaceful Resolution to Crisis in Burundi
Press Statement
Marie Harf
Deputy Department Spokesperson
Washington, DC
May 25, 2015
The United States strongly condemns the May 23 killing of the leader of the opposition party Union for Peace and Development (UPD), Zedi Feruzi, and his bodyguard. We also strongly condemn the May 22 grenade attack in a market that killed several people and wounded many more. These attacks only undermine ongoing efforts to achieve a peaceful resolution to the current crisis through dialogue.
We call on all parties to immediately renounce the use of violence. We urge the Burundian government to conduct timely and credible investigations of the recent attacks to bring to justice those responsible and to take concrete steps to ensure the safety of political actors during the electoral process.
The United States supports the consultative political dialogue facilitated by the UN Special Envoy, Said Djinnit, and envoys from the African Union, the East African Community, and the International Conference on the Great Lakes Region (ICGLR), and we strongly urge all stakeholders to continue to participate in good faith in this dialogue to achieve a peaceful resolution to the crisis. We welcomed the May 18 communique by the ICGLR announcing a heads of state visit to Burundi, which we believe could contribute to facilitating this dialogue.
We call on the Burundian government to provide the political space needed for a peaceful and credible electoral process, including through respect for the freedoms of peaceful assembly and expression. In this regard, we urge the Burundian government to permit the immediate resumption of broadcasts by independent radio stations, end the use of the term “insurgents” to refer to peaceful protesters, and withdraw the proclamation by the Burundian National Security Council prohibiting future demonstrations.
The United States continues to monitor the situation in Burundi closely and is prepared to take additional measures against those who commit, incite or promote violence or other human rights abuses and violations.
RECENT DOD PHOTOS AT BAGRAM AIRFIELD, AFGHANISTAN
FROM: U.S. DEFENSE DEPARTMENT
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| A U.S. Air Force F-16 Fighting Falcon aircraft lands at Bagram Airfield, Afghanistan, May 13, 2015. The pilot is assigned to the 555th Expeditionary Fighter Squadron from Aviano Air Base, Italy. U.S. Air Force photo by Tech. Sgt. Joseph Swafford. |
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| An Afghan air force C-130H Hercules aircraft takes off from Bagram Airfield, Afghanistan, May 13, 2015. U.S. Air Force photo by Tech. Sgt. Joseph Swafford. |
"FLAGS IN" AT ARLINGTON NATIONAL CEMETERY
FROM: U.S. DEFENSE DEPARTMENT
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| Carrying bundles of small Amercian flags in backpacks, soldiers march out to their assigned sections during “Flags In” at Arlington National Cemetery in Arlington, Va., May 21, 2015. U.S. Army photo by Spc. Steven Hitchcock. |
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| A total of 228,000 American flags stand at every headstone during “Flags In” at Arlington National Cemetery in Arlington, Va., May 21, 2015. U.S. Army photo by Rachel Larue. |
Sunday, May 24, 2015
U.S. CONDEMNS VIOLENCE IN NORTHERN MALI
FROM: U.S. STATE DEPARTMENT
Violence and Human Rights Violations in Mali
Press Statement
Marie Harf
Deputy Department Spokesperson
Washington, DC
May 23, 2015
The United States condemns the ongoing violence in northern Mali, including reports of summary executions of civilians in Tin Hama, and other human rights abuses and violations. We call on all parties to respect human rights and international humanitarian law, recommit to applicable cease-fire agreements and begin implementation of the May 15 Agreement for Peace and Reconciliation in Mali. The United States reiterates its strong support for the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) and calls for the investigation of these alleged human rights violations, to ensure perpetrators are held accountable.
Violence and Human Rights Violations in Mali
Press Statement
Marie Harf
Deputy Department Spokesperson
Washington, DC
May 23, 2015
The United States condemns the ongoing violence in northern Mali, including reports of summary executions of civilians in Tin Hama, and other human rights abuses and violations. We call on all parties to respect human rights and international humanitarian law, recommit to applicable cease-fire agreements and begin implementation of the May 15 Agreement for Peace and Reconciliation in Mali. The United States reiterates its strong support for the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) and calls for the investigation of these alleged human rights violations, to ensure perpetrators are held accountable.
SECRETARY CARTER SAID IRAQI FORCES FAILED TO FIGHT
FROM: U.S. DEFENSE DEPARTMENT
Carter: Iraqi Forces Failed to Fight for Ramadi
By Terri Moon Cronk
DoD News, Defense Media Activity
WASHINGTON, May 24, 2015 – Islamic State of Iraq and the Levant extremists took control of Ramadi last week when Iraqi forces failed to fight for the city and instead withdrew, Defense Secretary Ash Carter said in an interview broadcast on CNN’s “State of the Union” program this morning.
“What apparently happened is the Iraqi forces just showed no will to fight,” Carter told Barbara Starr, CNN’s Pentagon correspondent. Iraqi security forces must have the will to fight and defend themselves against ISIL extremists, he added.
Iraqi Forces Vastly Outnumbered ISIL Fighters
Iraq’s forces were not outnumbered in the fight for Ramadi when ISIL gained control of the city, the secretary said. “[They] vastly outnumbered the opposing force, and yet they failed to fight,” the secretary said. “They withdrew from the site, and that says to me -- and I think most of us -- that we have an issue with the will of Iraqis to fight ISIL and defend themselves.”
U.S. military forces can provide the Iraqis with equipment and training, but “we obviously can’t give them the will to fight,” Carter said. With equipment, training, coalition support and some time, the secretary added, he hopes the Iraqis will develop that will.
Only Iraqis can defeat ISIL in their own country, the secretary told Starr. “If there comes a time where we need to change the kind of support we’re giving to the Iraqi forces, we’ll make that recommendation,” he said.
Airstrikes Work, But Iraqi Forces Are Necessary
U.S. military and coalition forces have made regular airstrikes against ISIL and its facilities in Iraq since August, but those airstrikes have limitations, the secretary noted. “Airstrikes are effective, but neither they nor anything we do can substitute for the Iraqi forces’ will to fight,” Carter said.
U.S. forces can participate in ISIL’s defeat, the secretary said. “But we can’t make Iraq run as a decent place where people live,” he added. “We can’t sustain the victory.”
No Plans for U.S. Controllers
Carter denied that the Defense Department has recommended putting U.S. forward air controllers –- military personnel who direct fighter pilots to targets -- on the ground in Iraq.
“What happened in Ramadi was a failure of the Iraqi forces to fight,” Carter said. DoD’s efforts, he added, are devoted to providing Iraqi ground forces with equipment, training, “and to try to encourage their will to fight so that our campaign enabling them can be successful, both in defeating ISIL and keeping ISIL defeated in a sustained way.”
Carter: Iraqi Forces Failed to Fight for Ramadi
By Terri Moon Cronk
DoD News, Defense Media Activity
WASHINGTON, May 24, 2015 – Islamic State of Iraq and the Levant extremists took control of Ramadi last week when Iraqi forces failed to fight for the city and instead withdrew, Defense Secretary Ash Carter said in an interview broadcast on CNN’s “State of the Union” program this morning.
“What apparently happened is the Iraqi forces just showed no will to fight,” Carter told Barbara Starr, CNN’s Pentagon correspondent. Iraqi security forces must have the will to fight and defend themselves against ISIL extremists, he added.
Iraqi Forces Vastly Outnumbered ISIL Fighters
Iraq’s forces were not outnumbered in the fight for Ramadi when ISIL gained control of the city, the secretary said. “[They] vastly outnumbered the opposing force, and yet they failed to fight,” the secretary said. “They withdrew from the site, and that says to me -- and I think most of us -- that we have an issue with the will of Iraqis to fight ISIL and defend themselves.”
U.S. military forces can provide the Iraqis with equipment and training, but “we obviously can’t give them the will to fight,” Carter said. With equipment, training, coalition support and some time, the secretary added, he hopes the Iraqis will develop that will.
Only Iraqis can defeat ISIL in their own country, the secretary told Starr. “If there comes a time where we need to change the kind of support we’re giving to the Iraqi forces, we’ll make that recommendation,” he said.
Airstrikes Work, But Iraqi Forces Are Necessary
U.S. military and coalition forces have made regular airstrikes against ISIL and its facilities in Iraq since August, but those airstrikes have limitations, the secretary noted. “Airstrikes are effective, but neither they nor anything we do can substitute for the Iraqi forces’ will to fight,” Carter said.
U.S. forces can participate in ISIL’s defeat, the secretary said. “But we can’t make Iraq run as a decent place where people live,” he added. “We can’t sustain the victory.”
No Plans for U.S. Controllers
Carter denied that the Defense Department has recommended putting U.S. forward air controllers –- military personnel who direct fighter pilots to targets -- on the ground in Iraq.
“What happened in Ramadi was a failure of the Iraqi forces to fight,” Carter said. DoD’s efforts, he added, are devoted to providing Iraqi ground forces with equipment, training, “and to try to encourage their will to fight so that our campaign enabling them can be successful, both in defeating ISIL and keeping ISIL defeated in a sustained way.”
TWO CALIFORNIA RESIDENTS CHARGED WITH CONSPIRING TO PROVIDE MATERIAL SUPPORT TO ISIL
FROM: U.S. JUSTICE DEPARTMENT
Friday, May 22, 2015
Two California Men Arrested on Charges of Conspiring to Provide Material Support to ISIL
Two California men, one of whom attempted to travel to the Middle East to allegedly join ISIL, have been arrested on charges of conspiring to provide material support to the designated foreign terrorist group the Islamic State of Iraq and the Levant (ISIL), announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Stephanie Yonekura of the Central District of California.
Muhanad Badawi, 24, and Nader Elhuzayel, 24, both of Anaheim, California, were arrested late Thursday afternoon by the FBI. Badawi and Elhuzayel were charged in a criminal complaint filed today in U.S. District Court of the Central District of California, and both men are expected to make their initial court appearance this afternoon.
The affidavit in support of the criminal complaint outlines a scheme in which Badawi and Elhuzayel used social media to discuss ISIL and terrorist attacks, expressed a desire to die as martyrs and made arrangements for Elhuzayel to leave the United States to join ISIL.
According to the affidavit, on May 3, 2015, Elhuzayel saw a tweet from Elton Simpson, one of the two gunmen who were killed trying to attack a conference in Garland, Texas. In this tweet, Simpson stated that he and his “bro” had pledged allegiance to the leader of ISIL. In response, Elhuzayel tweeted his support for the attempted attack and praised Simpson as a “martyr.”
In recorded conversations last month, Badawi and Elhuzayel “discussed how it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we.” When Badawi expressed concerns about ISIL struggling due to airstrikes by Coalition forces, Elhuzayel responded that they had to be patient and “can you imagine when al-Qaeda joins with Islamic State”? According to the affidavit, Badawi responded: “We will be huge.” The two men also discussed local Muslim leaders and Elhuzayel complained that these leaders were not “legitimate” because they believed in democracy and were not fighting for an Islamic State.
The men discussed where in the Middle East they would rather be, and Elhuzayel said he wanted to fight and did not want to be in the United States, according to the conversations recounted in the affidavit.
On May 7, Badawi allowed Elhuzayel to use his credit card to purchase a one-way airline ticket for travel from Los Angeles to Tel Aviv, Israel, via Istanbul, Turkey, on a Turkish Airlines flight scheduled to depart on May 21. Badawi indicated that he would be traveling to the Middle East in the future, according to the affidavit.
Elhuzayel was arrested at Los Angeles International Airport. According to the allegations in the complaint, Elhuzayel admitted after being read Miranda rights that he planned to disembark in Istanbul to join ISIL and did not intend to travel on to Israel.
If convicted of the charge in the criminal complaint, Badawi and Elhuzayel each would face a statutory maximum sentence of 15 years in prison for conspiring to provide material support to ISIL.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation in this case was conducted by members of the FBI’s Joint Terrorism Task Force in Orange County, California.
Friday, May 22, 2015
Two California Men Arrested on Charges of Conspiring to Provide Material Support to ISIL
Two California men, one of whom attempted to travel to the Middle East to allegedly join ISIL, have been arrested on charges of conspiring to provide material support to the designated foreign terrorist group the Islamic State of Iraq and the Levant (ISIL), announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Stephanie Yonekura of the Central District of California.
Muhanad Badawi, 24, and Nader Elhuzayel, 24, both of Anaheim, California, were arrested late Thursday afternoon by the FBI. Badawi and Elhuzayel were charged in a criminal complaint filed today in U.S. District Court of the Central District of California, and both men are expected to make their initial court appearance this afternoon.
The affidavit in support of the criminal complaint outlines a scheme in which Badawi and Elhuzayel used social media to discuss ISIL and terrorist attacks, expressed a desire to die as martyrs and made arrangements for Elhuzayel to leave the United States to join ISIL.
According to the affidavit, on May 3, 2015, Elhuzayel saw a tweet from Elton Simpson, one of the two gunmen who were killed trying to attack a conference in Garland, Texas. In this tweet, Simpson stated that he and his “bro” had pledged allegiance to the leader of ISIL. In response, Elhuzayel tweeted his support for the attempted attack and praised Simpson as a “martyr.”
In recorded conversations last month, Badawi and Elhuzayel “discussed how it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we.” When Badawi expressed concerns about ISIL struggling due to airstrikes by Coalition forces, Elhuzayel responded that they had to be patient and “can you imagine when al-Qaeda joins with Islamic State”? According to the affidavit, Badawi responded: “We will be huge.” The two men also discussed local Muslim leaders and Elhuzayel complained that these leaders were not “legitimate” because they believed in democracy and were not fighting for an Islamic State.
The men discussed where in the Middle East they would rather be, and Elhuzayel said he wanted to fight and did not want to be in the United States, according to the conversations recounted in the affidavit.
On May 7, Badawi allowed Elhuzayel to use his credit card to purchase a one-way airline ticket for travel from Los Angeles to Tel Aviv, Israel, via Istanbul, Turkey, on a Turkish Airlines flight scheduled to depart on May 21. Badawi indicated that he would be traveling to the Middle East in the future, according to the affidavit.
Elhuzayel was arrested at Los Angeles International Airport. According to the allegations in the complaint, Elhuzayel admitted after being read Miranda rights that he planned to disembark in Istanbul to join ISIL and did not intend to travel on to Israel.
If convicted of the charge in the criminal complaint, Badawi and Elhuzayel each would face a statutory maximum sentence of 15 years in prison for conspiring to provide material support to ISIL.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation in this case was conducted by members of the FBI’s Joint Terrorism Task Force in Orange County, California.
SEC ANNOUNCES FINAL JUDGEMENT AGAINST CHINA VALVES TECHNOLOGY, INC., AND SENIOR OFFICERS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23266 / May 20, 2015
Securities and Exchange Commission v. China Valves Technology, Inc., et al., Civil Action No. 1:14-cv-01630 (U.S. District Court for the District of Columbia)
SEC Obtains Final Judgments Against China Valves Technology, Inc. and Two Senior Officers in Fraud Case
The Securities and Exchange Commission ("Commission") announced today that on May 13, 2015, the Honorable Reggie B. Walton of the United States District Court for the District of Columbia entered final judgments by consent against defendants China Valves Technology, Inc. ("China Valves"), its Chairman and former CEO, Siping Fang ("Fang"), and its CFO, Renrui Tang ("Tang"). The final judgments: (i) permanently enjoin the defendants from future violations of the anti-fraud, reporting, recordkeeping, and internal controls provisions of the federal securities laws; (ii) order China Valves, Fang, and Tang to pay civil penalties of $575,000, $75,000, and $40,000, respectively; (iii) bar Fang from serving as an officer and director for five years; and (iv) bar Tang from serving as an officer and director for three years. The Commission today also issued an order pursuant to Rule 102(e)(3)(i) denying Tang the privilege of appearing or practicing as an accountant before the Commission with the right to apply for reinstatement after three years.
The case is the latest from the SEC's Cross-Border Working Group that focuses on companies with substantial foreign operations that are publicly traded in the U.S. China Valves was a China-based U.S. issuer formed through a reverse merger in 2007. On March 4, 2015, the Commission issued an order revoking the registration of China Valves securities pursuant to Section 12(j) of the Exchange Act.
The Commission's complaint, filed on September 29, 2014, alleged that China Valves, Fang, Tang, and Jianbao Wang ("Wang"), China Valves's former CEO, intentionally misled investors about the nature of China Valves's 2010 acquisition of Watts Valve Changsha Co., Ltd. ("Changsha Valve") in an effort to mask the subsidiary's prior investigation of violations of the Foreign Corrupt Practices Act ("FCPA") and China Valves's decision to pay sales commissions to employees that potentially violated the FCPA. The complaint further alleged that, in 2011, China Valves materially overstated income and understated liabilities incurred by a wholly-owned subsidiary, Shanghai Pudong Hanwei Valve Co., Ltd ("Hanwei Valve"), when it mischaracterized certain value added tax payments in an attempt to hide the purchase of a valve that it intended to reverse engineer.
The Commission's complaint alleged that China Valves, Fang, Wang, and Tang violated the antifraud provisions of the securities laws, Section 10(b) of the Exchange Act of 1934 (Exchange Act) and Rule 10b-5. The complaint further alleged that China Valves violated reporting, recordkeeping, and internal controls provisions of the federal securities laws, Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13. Finally, the complaint alleged that Fang, Wang, and Tang falsely certified that China Valves's filings contained no material misstatements in violation of Exchange Act Rule 13a-14, and aided and abetted China Valves's violations of the reporting and books and records provisions.
China Valves, Fang, and Tang settled the Commission's charges without admitting or denying the charges in the complaint. The litigation is continuing against Wang.
The SEC's continuing investigation has been conducted by Patrick Feeney, Sarah Nilson, Kelly Dragelin, and Janet Yang, and supervised by Melissa Hodgman. Alfred Day leads the litigation team.
Litigation Release No. 23266 / May 20, 2015
Securities and Exchange Commission v. China Valves Technology, Inc., et al., Civil Action No. 1:14-cv-01630 (U.S. District Court for the District of Columbia)
SEC Obtains Final Judgments Against China Valves Technology, Inc. and Two Senior Officers in Fraud Case
The Securities and Exchange Commission ("Commission") announced today that on May 13, 2015, the Honorable Reggie B. Walton of the United States District Court for the District of Columbia entered final judgments by consent against defendants China Valves Technology, Inc. ("China Valves"), its Chairman and former CEO, Siping Fang ("Fang"), and its CFO, Renrui Tang ("Tang"). The final judgments: (i) permanently enjoin the defendants from future violations of the anti-fraud, reporting, recordkeeping, and internal controls provisions of the federal securities laws; (ii) order China Valves, Fang, and Tang to pay civil penalties of $575,000, $75,000, and $40,000, respectively; (iii) bar Fang from serving as an officer and director for five years; and (iv) bar Tang from serving as an officer and director for three years. The Commission today also issued an order pursuant to Rule 102(e)(3)(i) denying Tang the privilege of appearing or practicing as an accountant before the Commission with the right to apply for reinstatement after three years.
The case is the latest from the SEC's Cross-Border Working Group that focuses on companies with substantial foreign operations that are publicly traded in the U.S. China Valves was a China-based U.S. issuer formed through a reverse merger in 2007. On March 4, 2015, the Commission issued an order revoking the registration of China Valves securities pursuant to Section 12(j) of the Exchange Act.
The Commission's complaint, filed on September 29, 2014, alleged that China Valves, Fang, Tang, and Jianbao Wang ("Wang"), China Valves's former CEO, intentionally misled investors about the nature of China Valves's 2010 acquisition of Watts Valve Changsha Co., Ltd. ("Changsha Valve") in an effort to mask the subsidiary's prior investigation of violations of the Foreign Corrupt Practices Act ("FCPA") and China Valves's decision to pay sales commissions to employees that potentially violated the FCPA. The complaint further alleged that, in 2011, China Valves materially overstated income and understated liabilities incurred by a wholly-owned subsidiary, Shanghai Pudong Hanwei Valve Co., Ltd ("Hanwei Valve"), when it mischaracterized certain value added tax payments in an attempt to hide the purchase of a valve that it intended to reverse engineer.
The Commission's complaint alleged that China Valves, Fang, Wang, and Tang violated the antifraud provisions of the securities laws, Section 10(b) of the Exchange Act of 1934 (Exchange Act) and Rule 10b-5. The complaint further alleged that China Valves violated reporting, recordkeeping, and internal controls provisions of the federal securities laws, Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13. Finally, the complaint alleged that Fang, Wang, and Tang falsely certified that China Valves's filings contained no material misstatements in violation of Exchange Act Rule 13a-14, and aided and abetted China Valves's violations of the reporting and books and records provisions.
China Valves, Fang, and Tang settled the Commission's charges without admitting or denying the charges in the complaint. The litigation is continuing against Wang.
The SEC's continuing investigation has been conducted by Patrick Feeney, Sarah Nilson, Kelly Dragelin, and Janet Yang, and supervised by Melissa Hodgman. Alfred Day leads the litigation team.
CDC SAYS SIGNIFICANT CORRELATION FOUND BETWEEN SEVERE VISION LOSS AND POVERTY
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION
Geographic Disparity of Severe Vision Loss in the United States, 2009–2013
An analysis of U.S. county-level data found a significant correlation between severe vision loss and poverty. Southern states had the highest prevalence of severe vision loss and poverty. Severe vision loss (SVL) often affects activities of daily living, leads to depression and social isolation, and increases the risk of falls and injuries. Limited data and research are available at the local levels, where interventions and policy decisions to reduce the burden of vision loss and eliminate disparities are often developed and implemented. After examining county-level data from the American Community Survey, SVL prevalence was strongly correlated with poverty. The majority of counties in the top 25 percent for both SVL and poverty were primarily in the southern United States.
Geographic Disparity of Severe Vision Loss in the United States, 2009–2013
An analysis of U.S. county-level data found a significant correlation between severe vision loss and poverty. Southern states had the highest prevalence of severe vision loss and poverty. Severe vision loss (SVL) often affects activities of daily living, leads to depression and social isolation, and increases the risk of falls and injuries. Limited data and research are available at the local levels, where interventions and policy decisions to reduce the burden of vision loss and eliminate disparities are often developed and implemented. After examining county-level data from the American Community Survey, SVL prevalence was strongly correlated with poverty. The majority of counties in the top 25 percent for both SVL and poverty were primarily in the southern United States.
MANUFACTURER OF WET WIPES SETTLES FLUSHABLE ISSUE WITH FTC
FROM: U.S. FEDERAL TRADE COMMISSION
Wet Wipe Manufacturer Agrees To Substantiate “Flushability” Advertising Claims under Settlement with FTC
Nice-Pak Products Were also Sold under Costco, CVS, and Target’s Private Labels
Under a settlement with the Federal Trade Commission, Nice-Pak Products, Inc., a manufacturer of wet wipes, has agreed to stop advertising moist toilet tissue as flushable unless it can substantiate that the product is safe to flush. Similarly, Nice-Pak agreed to not claim that its moist toilet tissue is safe for sewer and septic tanks unless it has substantiation for those claims.
In addition, Nice-Pak will stop providing trade customers, such as retailers, with information to make such unsubstantiated claims. Costco, CVS, Target, and BJ’s Wholesale Club were Nice-Pak customers that sold the formulation of the company’s moist toilet tissue that was the subject of the complaint under their own private labels.
Nice-Pak logo, 'breaks apart after flushing'“The evidence didn’t back up Nice-Pak’s claims that their wipes were safe to flush,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If you claim a product is flushable, it needs to flush in the real world, without clogging household plumbing or sewer and septic systems.”
According to the FTC’s complaint, Nice-Pak violated the FTC Act by misrepresenting that a certain formulation of its wipes: 1) are safe for sewer systems; 2) are safe for septic systems; 3) break apart shortly after being flushed; and 4) are safe to flush. The FTC also alleges Nice-Pak provided the means and instrumentalities for retailers and others that marketed the product under their own label to make similar misrepresentations. The company’s tests did not reflect, real world household plumbing or septic conditions, the FTC alleged.
The proposed administrative consent order settling the FTC charges prohibits Nice-Pak from misrepresenting that any wipe is safe to flush, unless it can substantiate that the wipe will disperse in a “sufficiently short amount of time” after flushing to prevent clogging and/or damage to household plumbing, sewage lines, septic systems, and other standard wastewater treatment equipment. The test must also replicate the physical conditions of the environment where the wipes will be disposed.
In addition, the proposed order prohibits Nice-Pak from making representations about the benefits, performance, or efficacy of moist toilet tissue, unless the statements are not misleading and the company relies on competent and reliable evidence, which in some instances must be competent and reliable scientific evidence, to support the claims made. The proposed order also prohibits Nice-Pak from providing the means and instrumentalities to anyone else to make the prohibited misrepresentations.
The Commission vote issuing the complaint and approving the proposed consent order was 5-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through June 19, 2015, after which the Commission will decide whether to make the proposed consent order final. Comments can be submitted electronically.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
Wet Wipe Manufacturer Agrees To Substantiate “Flushability” Advertising Claims under Settlement with FTC
Nice-Pak Products Were also Sold under Costco, CVS, and Target’s Private Labels
Under a settlement with the Federal Trade Commission, Nice-Pak Products, Inc., a manufacturer of wet wipes, has agreed to stop advertising moist toilet tissue as flushable unless it can substantiate that the product is safe to flush. Similarly, Nice-Pak agreed to not claim that its moist toilet tissue is safe for sewer and septic tanks unless it has substantiation for those claims.
In addition, Nice-Pak will stop providing trade customers, such as retailers, with information to make such unsubstantiated claims. Costco, CVS, Target, and BJ’s Wholesale Club were Nice-Pak customers that sold the formulation of the company’s moist toilet tissue that was the subject of the complaint under their own private labels.
Nice-Pak logo, 'breaks apart after flushing'“The evidence didn’t back up Nice-Pak’s claims that their wipes were safe to flush,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If you claim a product is flushable, it needs to flush in the real world, without clogging household plumbing or sewer and septic systems.”
According to the FTC’s complaint, Nice-Pak violated the FTC Act by misrepresenting that a certain formulation of its wipes: 1) are safe for sewer systems; 2) are safe for septic systems; 3) break apart shortly after being flushed; and 4) are safe to flush. The FTC also alleges Nice-Pak provided the means and instrumentalities for retailers and others that marketed the product under their own label to make similar misrepresentations. The company’s tests did not reflect, real world household plumbing or septic conditions, the FTC alleged.
The proposed administrative consent order settling the FTC charges prohibits Nice-Pak from misrepresenting that any wipe is safe to flush, unless it can substantiate that the wipe will disperse in a “sufficiently short amount of time” after flushing to prevent clogging and/or damage to household plumbing, sewage lines, septic systems, and other standard wastewater treatment equipment. The test must also replicate the physical conditions of the environment where the wipes will be disposed.
In addition, the proposed order prohibits Nice-Pak from making representations about the benefits, performance, or efficacy of moist toilet tissue, unless the statements are not misleading and the company relies on competent and reliable evidence, which in some instances must be competent and reliable scientific evidence, to support the claims made. The proposed order also prohibits Nice-Pak from providing the means and instrumentalities to anyone else to make the prohibited misrepresentations.
The Commission vote issuing the complaint and approving the proposed consent order was 5-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through June 19, 2015, after which the Commission will decide whether to make the proposed consent order final. Comments can be submitted electronically.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
FEDERAL FUNDING FOR RESEARCH AND DEVELOPMENT FELL IN FY 2013
FROM: NATIONAL SCIENCE FOUNDATION
Latest figures show decline in federal funding for R&D, equipment, facilities in FY 2013
Projections show rising federal agency obligations in FY 2014 and FY 2015
Federal agency funding for research and development and R&D plant (facilities and fixed equipment used for R&D) fell by 9 percent in fiscal year 2013, according to a new InfoBrief from the National Center for Science and Engineering Statistics (NCSES).
NCSES found that total federal agency obligations dropped from $141 billion to $127 billion between fiscal 2012 and fiscal 2013. Funding dropped by 4 percent for research, 14 percent for development and 11 percent for R&D plant, according to the NCSES report.
The fiscal 2013 figures represent the most recent actual data available. Estimates project that combined funding for R&D and R&D plant will rise by 3 percent ($4 billion) in fiscal 2014 and 2 percent ($3 billion) in fiscal 2015.
Changes in agency obligation levels between fiscal 2012 and fiscal 2013 include the following:
14 percent drop ($10 billion) at the Department of Defense, which accounted for just over half of all federal R&D obligations in fiscal 2013
6 percent drop ($2 billion) at the Department of Health and Human Services, which accounted for 23 percent of federal R&D obligations
3 percent drop at NASA, which accounted for 8 percent of federal R&D obligations
1 percent drop at the Department of Energy, which accounted for 8 percent of federal R&D obligations
4 percent drop at the National Science Foundation (NSF), which accounted for 4 percent of federal R&D obligations
NCSES found that federal obligations for basic research declined by 4 percent. Basic research obligations are estimated to increase by 6 percent in fiscal 2014, then decrease by less than 1 percent in fiscal 2015.
Latest figures show decline in federal funding for R&D, equipment, facilities in FY 2013
Projections show rising federal agency obligations in FY 2014 and FY 2015
Federal agency funding for research and development and R&D plant (facilities and fixed equipment used for R&D) fell by 9 percent in fiscal year 2013, according to a new InfoBrief from the National Center for Science and Engineering Statistics (NCSES).
NCSES found that total federal agency obligations dropped from $141 billion to $127 billion between fiscal 2012 and fiscal 2013. Funding dropped by 4 percent for research, 14 percent for development and 11 percent for R&D plant, according to the NCSES report.
The fiscal 2013 figures represent the most recent actual data available. Estimates project that combined funding for R&D and R&D plant will rise by 3 percent ($4 billion) in fiscal 2014 and 2 percent ($3 billion) in fiscal 2015.
Changes in agency obligation levels between fiscal 2012 and fiscal 2013 include the following:
14 percent drop ($10 billion) at the Department of Defense, which accounted for just over half of all federal R&D obligations in fiscal 2013
6 percent drop ($2 billion) at the Department of Health and Human Services, which accounted for 23 percent of federal R&D obligations
3 percent drop at NASA, which accounted for 8 percent of federal R&D obligations
1 percent drop at the Department of Energy, which accounted for 8 percent of federal R&D obligations
4 percent drop at the National Science Foundation (NSF), which accounted for 4 percent of federal R&D obligations
NCSES found that federal obligations for basic research declined by 4 percent. Basic research obligations are estimated to increase by 6 percent in fiscal 2014, then decrease by less than 1 percent in fiscal 2015.
REAL ESTATE INVESTOR PLEADS GUILTY TO BID RIGGING, FRAUD CONSPIRACIES AT FORECLOSURE AUCTIONS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, May 19, 2015
Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud Conspiracies at Public Foreclosure Auctions
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges against Eric Hulsman were filed on March 27, 2015, in the U.S. District Court of the Northern District of Georgia in Atlanta. According to court documents, from at least as early March 6, 2007, and continuing at least until Dec. 6, 2011, in Fulton County, Georgia, and from at least as early as Jan. 2, 2007, and continuing at least until Jan. 1, 2008, in DeKalb County, Georgia, Hulsman conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions. Hulsman was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton and DeKalb properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Homeowners and lenders in Fulton and DeKalb counties deserved free and fair public real estate foreclosure auctions,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The defendant conspired with others to keep for themselves money that should have gone to those homeowners and lenders. The division remains committed to rooting out this kind of anticompetitive conduct at foreclosure auctions.”
The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Fulton and DeKalb county public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“Today’s guilty plea of another real estate investor engaged in unfair bidding practices is further evidence of the FBI’s support for the U.S. Department of Justice’s Antitrust Division in ensuring that public foreclosure auctions remain a level playing field for all,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “Anyone with information regarding such criminal activities as seen in this case should promptly call their nearest FBI field office.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine in an amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
Including Hulsman, eight cases have been filed as a result of the ongoing investigation being conducted by Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
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