"NO EVIDENCE AGENT ORANGE BURIED ON ARMY POST IN SOUTH KOREA SAYS ARMY

The following excerpt is from the Department of Defense website: 

Team Concludes Agent Orange Investigation in South Korea

By Walter T. Ham IV
Eighth Army Public Affairs

YONGSAN GARRISON, South Korea, Dec. 30, 2011 - A joint U.S.-South Korean investigation team announced that it discovered no evidence of Agent Orange during its probe into claims that the toxic defoliant was buried on Camp Carroll.

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Led by Dr. Gon Ok, Pokyong National University's chief professor, and Army Col. Joseph F. Birchmeier, U.S. Forces Korea engineer, the team concluded its eight-month investigation Dec. 29 at a press conference in South Korea's Chilgok County Office.

The investigation began in May following a report on KPHO TV in Phoenix where U.S. veterans claimed they buried Agent Orange on the military base in southeastern South Korea in 1978.

Birchmeier, the lead U.S. investigator, said the bilateral investigation found no evidence that Agent Orange was buried on Camp Carroll and discovered no risk to public health on the U.S. Army post.

"I want you to know that we have found no definitive evidence that Agent Orange was buried or stored on Camp Carroll," Birchmeier said.

During the investigation, the team interviewed 172 former Korean civilian employees and U.S. soldiers and worked with 32 different government agencies.

A document review revealed that all 380 barrels of Agent Orange brought into South Korea in 1968 were used by the Republic of Korea Army to reduce areas for enemy concealment inside the Korean Demilitarized Zone that same year.

The team also conducted an exhaustive geophysical survey with ground-penetrating radar, electrical resistivity and magnetometers of the area where the Agent Orange allegedly was buried. Based on the results of the geophysical survey, water and soil samples were taken to check for the compounds of Agent Orange and its specific dioxin byproducts.

All samples were tested by South Korean and U.S. scientists. The U.S. Army Corps of Engineers Far East District verified the U.S. analytical results, and Seoul National University, Pohang University of Science and Technology, and Pukyong University analyzed the samples.

The investigation was conducted in consultation with the status-of-forces agreement environmental subcommittee, which will handle future environmental issues.

"Nothing is more important than the health and safety of our people and our Korean neighbors in the surrounding communities," said Army Brig. Gen. David J. Conboy, deputy commanding general for Eighth Army. "This joint investigation was thorough, scientific and complete, and I'm happy to report that there is no threat to public health and no evidence that Agent Orange was buried on the post."

SEC CHARGES MAGYAR TELEKOM PLC. WITH VIOLATING FOREIGN CORRUPT PRACTICES ACT

The following excerpt is from the SEC website:

December 29, 2011
“The Securities and Exchange Commission today charged the largest telecommunications provider in Hungary and three of its former top executives with bribing government and political party officials in Macedonia and Montenegro to win business and shut out competition in the telecommunications industry.
The SEC alleges that three senior executives at Magyar Telekom Plc. orchestrated, approved, and executed a plan to bribe Macedonian officials in 2005 and 2006 to prevent the introduction of a new competitor and gain other regulatory benefits. Magyar Telekom’s subsidiaries in Macedonia made illegal payments of approximately $6 million under the guise of bogus consulting and marketing contracts. The same executives orchestrated a second scheme in 2005 in Montenegro related to Magyar Telekom’s acquisition of the state-owned telecommunications company there. Magyar Telekom paid approximately $9 million through four sham contracts to funnel money to government officials in Montenegro.
Magyar Telekom’s parent company Deutsche Telekom AG also is charged with books and records and internal controls violations of the Foreign Corrupt Practices Act (FCPA).

Magyar Telekom agreed to settle the SEC’s charges by paying more than $31.2 million in disgorgement and pre-judgment interest. Magyar Telekom also agreed to pay a $59.6 million criminal penalty as part of a deferred prosecution agreement announced today by the U.S. Department of Justice. Deutsche Telekom settled the SEC’s charges, and as part of a non-prosecution agreement with the Department of Justice agreed to pay a penalty of $4.36 million.
The three former top executives at Magyar Telekom charged by the SEC for orchestrating the bribery schemes are:
Elek Straub, former Chairman and CEO.

Andras Balogh, former Director of Central Strategic Organization.

Tamas Morvai, former Director of Business Development and Acquisitions.
According to the SEC’s complaints filed in the Southern District of New York, in the wake of legislation intended to liberalize the Macedonian telecommunications market, Magyar Telekom entered into a secret agreement entitled the “Protocol of Cooperation” with senior Macedonian government officials to delay or preclude the issuance of a license to a new competitor and mitigate other adverse effects of the new law. To win their support, Magyar Telekom paid €4.875 million to a third-party intermediary under a series of sham contracts with the intention that the intermediary would forward money to the government officials. Magyar Telekom also promised a Macedonian political party the opportunity to designate the beneficiary of a business venture in exchange for the party’s support.

The SEC further alleges that in Montenegro, Magyar Telekom used intermediaries to pay bribes to government officials in return for their support of Magyar Telekom’s acquisition of the state-owned telecommunications company on terms favorable to Magyar Telekom. At least two Montenegrin government officials involved in the acquisition received payments made through the bogus contracts. A family member of a top Montenegrin government official also received payments.

The SEC’s complaint against Straub, Balogh, and Morvai alleges that they violated Sections 30A and 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 13b2-1 and 13b2-2, and that they aided and abetted violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act. The SEC seeks disgorgement and penalties and the imposition of permanent injunctions. The SEC’s complaint against Magyar Telekom and Deutsche Telekom alleges that Magyar Telekom violated Section 30A of the Exchange Act and that Magyar Telekom and Deutsche Telekom violated Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. Magyar Telekom and Deutsche Telekom consented to the entry of final judgments without admitting or denying the SEC’s allegations. The settlements are subject to court approval.”

GE FUNDING CAPITAL MARKET SERVICES INC. AGREES TO PAY $70 TO SETTLE DEPARTMENT OF JUSTICES CHARGES

The following excerpt is from the Department of Justice website:

“Friday, December 23, 2011GE Funding Capital Market Services Inc. Admits to Anticompetitive Conduct by Former Traders in the Municipal Bond Investments Market and Agrees to Pay $70 Million to Federal and State Agencies

WASHINGTON – GE Funding Capital Market Services Inc. entered into an agreement with the Department of Justice to resolve the company’s role in anticompetitive activity in the municipal bond investments market and agreed to pay a total of $70 million in restitution, penalties and disgorgement to federal and state agencies, the Department of Justice announced today.

As part of its agreement with the department, GE Funding admits, acknowledges and accepts responsibility for illegal, anticompetitive conduct by its former traders.  According to the non-prosecution agreement, from 1999 through 2004, certain former GE Funding traders entered into unlawful agreements to manipulate the bidding process on municipal investment and related contracts, and caused GE Funding to make payments and engage in other related activities in connection with those agreements through at least 2006.  These contracts were used to invest the proceeds of, or manage the risks associated with, bond issuances by municipalities and other public entities.

“GE Funding’s former traders entered into illegal agreements to manipulate the bidding process on municipal investment contracts,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Justice Department’s Antitrust Division.  “This anticompetitive conduct harmed municipalities, as well as taxpayers.  Today’s resolution requires GE Funding to pay penalties, disgorgement and restitution to the victims of its illegal activity.  We will continue to use all the tools at our disposal to uphold our nation’s antitrust laws and ensure competition in the financial markets.”

Under the terms of the agreement, GE Funding agreed to pay restitution to victims of the anticompetitive conduct and to cooperate fully with the Justice Department’s Antitrust Division in its ongoing investigation into anticompetitive conduct in the municipal bond derivatives industry.  To date, the ongoing investigation has resulted in criminal charges against 18 former executives of various financial services companies and one corporation.  Nine of the 18 executives charged have pleaded guilty.  

The Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS) and 25 state attorneys general also entered into agreements with GE Funding requiring the payment of penalties, disgorgement of profits from the illegal conduct and payment of restitution to the victims harmed by the bid manipulation by GE Funding employees, as well as other remedial measures.

As a result of GE Funding’s admission of conduct; its cooperation with the Department of Justice and other enforcement and regulatory agencies; its monetary and non-monetary commitments to the SEC, IRS and state attorneys general; and its remedial efforts to address the anticompetitive conduct, the department agreed not to prosecute GE Funding for the manipulation of bidding for municipal investment and related contracts, provided that GE Funding satisfies its ongoing obligations under the agreement.

JPMorgan Chase & Co., UBS AG and Wachovia Bank N.A. also reached agreements with the Department of Justice and other federal and state agencies to resolve anticompetitive conduct in the municipal bond derivatives market.  On May 4, 2011, UBS AG agreed to pay a total of $160 million in restitution, penalties and disgorgement to federal and state agencies for its participation in the anticompetitive conduct.  On July 7, 2011, JPMorgan agreed to pay a total of $228 million in restitution, penalties and disgorgement to federal and state agencies for its role in the conduct.  On Dec. 8, 2011, Wachovia Bank agreed to pay a total of $148 million in restitution, penalties and disgorgement to federal and state agencies for its participation in the anticompetitive conduct.

The department’s ongoing investigation into the municipal bonds industry is being conducted by the Antitrust Division, the FBI and the IRS-Criminal Investigation.  The department is coordinating its investigation with the SEC, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.  The department thanks the SEC, IRS and state attorneys general for their cooperation and assistance in this matter.”

GE FUNDING CAPITAL MARKET SERVICES CHARGED BY SEC WITH FRAUD REGARDING MUNICIPAL BOND PROCEEDS

The following excerpt is from the SEC website:

“Washington, D.C., Dec. 23, 2011 — The Securities and Exchange Commission today charged GE Funding Capital Market Services with securities fraud for participating in a wide-ranging scheme involving the reinvestment of proceeds from the sale of municipal securities.

GE Funding CMS agreed to settle the SEC’s charges by paying approximately $25 million that will be returned to affected municipalities or conduit borrowers. The firm also entered into agreements with the Department of Justice, Internal Revenue Service, and a coalition of 25 state attorneys general and will pay an additional $45.35 million.

The settlements arise from extensive law enforcement investigations into widespread corruption in the municipal reinvestment industry. In the past year, federal and state authorities have reached settlements with four other financial firms, and 18 individuals have been indicted or pled guilty, including three former GE Funding CMS traders.

“Our in-depth investigations have uncovered pervasive corrupt practices in the municipal securities reinvestment market, and we are requiring financial firms one by one to step up and pay the price for their misconduct,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “More than $743 million has been recovered from financial institutions in these settlements, much of which has been returned to municipalities that have been harmed.”

Elaine C. Greenberg, Chief of the SEC’s Enforcement Division’s Municipal Securities and Public Pensions Unit, added, “GE Funding CMS’s fraudulent practices and misrepresentations undermined the competitive bidding process and negatively impacted the prices that municipalities paid for reinvestment products. The firm’s misconduct deprived municipalities of a conclusive presumption that reinvestment instruments were purchased at fair market value.”

According to the SEC’s complaint filed in U.S. District Court for the District of New Jersey, in addition to fraudulently manipulating bids, GE Funding CMS made improper, undisclosed payments to certain bidding agents in the form of swap fees that were inflated or unearned. These payments were in exchange for the assistance of bidding agents in controlling and manipulating the competitive bidding process.

The SEC alleges that from August 1999 to October 2004, GE Funding CMS illegally generated millions of dollars by fraudulently manipulating at least 328 municipal bond reinvestment transactions in 44 states and Puerto Rico. GE Funding CMS won numerous bids through a practice of “last looks” in which it obtained information regarding competitor bids and either raised a losing bid to a winning bid or reduced its winning bid to a lower amount so that it could make more profit on the transaction. In connection with other bids, GE Funding CMS deliberately submitted non-winning bids to facilitate bids set up in advance by certain bidding agents for other providers to win. GE Funding CMS’s fraudulent conduct also jeopardized the tax-exempt status of billions of dollars in municipal securities because the supposed competitive bidding process that establishes the fair market value of the investment was corrupted.
In settling the SEC’s charges without admitting or denying the allegations, GE Funding CMS agreed to pay a $10.5 million penalty along with disgorgement of $10,625,775 with prejudgment interest of $3,775,987. GE Funding CMS consented to the entry of a final judgment enjoining it from future violations of Section 17(a) of the Securities Act of 1933. The settlement is subject to court approval. The Commission recognizes GE Funding CMS’s cooperation in its investigation.

Other financial institutions charged prior to today’s settlement with GE Funding CMS:
Wachovia Bank N.A. – $148 million settlement with SEC and other federal and state authorities on Dec. 8, 2011.
J.P. Morgan Securities LLC – $228 million settlement with SEC and other federal and state authorities on July 7, 2011.
UBS Financial Services Inc. – $160 million settlement with SEC and other federal and state authorities on May 4, 2011.
Banc of America Securities LLC – $137 million settlement with SEC and other federal and state authorities on Dec. 7, 2010.

The SEC’s investigations have been conducted by Deputy Chief Mark R. Zehner and Assistant Municipal Securities Counsel Denise D. Colliers, who are members of the Municipal Securities and Public Pensions Unit in the Philadelphia Regional Office. The SEC thanks the Antitrust Division of the Department of Justice and the Federal Bureau of Investigation for their cooperation and assistance in this matter.”

MINE SAFETY DISCLOSURES COVERED UNDER DODD-FRANK ACT

DODD-FRANK ON MINE SAFETY

The following excerpt is from the SEC website:

“Washington, D.C., December 21, 2011 – The Securities and Exchange Commission has adopted new rules outlining how mining companies must disclose the mine safety information required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Under Section 1503 of the Dodd-Frank Act, mining companies are required to include information about mine safety and health in the quarterly and annual reports they file with the SEC. The Dodd-Frank Act disclosure requirements are based on the safety and health requirements that apply to mines under the Federal Mine Safety and Health Act of 1977, which is administered by the Mine Safety and Health Administration (MSHA).
The new SEC rules, which take effect 30 days after publication in the Federal Register, specifically require those companies to provide mine-by-mine totals for the following:
Significant and substantial violations of mandatory health or safety standards under section 104 of the Mine Act for which the operator received a citation from MSHA

Orders under section 104(b) of the Mine Act

Citations and orders for unwarrantable failure of the mine operator to comply with section 104(d) of the Mine Act

Flagrant violations under section 110(b)(2) of the Mine Act

Imminent danger orders issued under section 107(a) of the Mine Act

The dollar value of proposed assessments from MSHA

Notices from MSHA of a pattern of violations or potential to have a pattern of violations under section 104(e) of the Mine Act

Pending legal actions before the Federal Mine Safety and Health Review Commission

Mining-related fatalities
The accompanying instructions specify that a mining company must report the total penalties assessed in the reporting period, even if the company is contesting an assessment. For legal actions, mining companies are instructed to report the number instituted and resolved during the reporting period, report the number pending on the last day of the reporting period, and categorize the actions based on the type of proceeding.
In addition, the Dodd-Frank Act added a requirement for U.S. companies to file a Form 8-K when they receive notice from MSHA of an imminent danger order under section 107(a) of the Mine Act; notice of a pattern of violations under section 104(e) of the Mine Act, or notice of the potential to have a pattern of such violations. The new SEC rules specify that the Form 8-K must be filed within four business days and include the type of notice received, the date it was received, and the name and location of the mine involved. The new rules specify that a late filing of the Form 8-K will not affect a company's eligibility to use Form S-3 short-form registration.”

DOJ WILL REQUIRE EXELON CORP. AND CONSTELLATION ENERGY TO DIVEST 3 ELECTRIC PLANTS BEFORE MERGER

The following excerpt is from the Department of Justice Website:

“WASHINGTON — The Department of Justice announced that it will require Exelon Corporation and Constellation Energy Group Inc. to divest three electricity generating plants in Maryland in order to proceed with their $7.9 billion merger.  The department said that the transaction, as originally proposed, would substantially lessen competition for wholesale electricity, ultimately increasing electricity prices for millions of consumers in the mid-Atlantic region.

The department’s Antitrust Division filed a civil lawsuit today in U.S. District Court in Washington, D.C., to block the proposed transaction.  At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns and the lawsuit.
 “Competition in wholesale electricity markets is vital to the economic well-being of consumers and businesses,” said Sharis A. Pozen, Acting Assistant Attorney General for the Antitrust Division.  “These divestitures will preserve that critical competition for the benefit of electricity customers throughout the mid-Atlantic.”

According to the complaint, the merger would create one of the largest electricity companies in the United States with total assets of $72 billion and annual revenues of $33 billion, and would combine the assets of two large competitors in the mid-Atlantic region.  Together, the companies would own between 22 and 28 percent of the generating capacity in the densely populated mid-Atlantic area encompassing Delaware, the District of Columbia, New Jersey, eastern Pennsylvania, and parts of Maryland and Virginia.  The department said that the combination of the assets would enhance the incentive and ability of the merged firm to raise wholesale electricity prices and reduce output.

Under the terms of the proposed settlement, the merged firm must divest three electricity plants, which in total provide more than 2,600 megawatts of generating capacity.  The plants to be divested are Brandon Shores and H.A. Wagner in Anne Arundel County, Md., and C.P. Crane in Baltimore County, Md.
Exelon is incorporated in Pennsylvania and has its headquarters in Chicago.  Exelon owns the PECO utility of Philadelphia and the Commonwealth Edison utility of Chicago.  Exelon had $18.6 billion of revenues in 2010.

Constellation is incorporated in Maryland and has its headquarters in Baltimore.  Constellation owns the BG&E utility of Baltimore.  Constellation had $14.3 billion of revenues in 2010.”

4 HITACH LG DATA STORAGE INC. EXECS AGREE TO SERVE JAIL TIME FOR BID RIGGING CONSPIRACY

The following excerpt is from the Department of Justice website:

December 13, 2011
“WASHINGTON — Three Korean Hitachi-LG Data Storage Inc. (HLDS) executives have agreed to plead guilty and to serve prison time in the United States for their participation in a series of conspiracies to rig bids and fix prices for the sale of optical disk drives, the Department of Justice announced today.

According to the felony charges filed today in U.S. District Court in San Francisco, Young Keun Park, Sang Hun Kim and Sik Hur, aka Daniel Hur, conspired with co-conspirators to suppress and eliminate competition by rigging bids for optical disk drives sold to Dell Inc. and Hewlett-Packard Company (HP) and/or fixing prices for optical disk drives sold to Microsoft Corporation.  The three HLDS executives participated in the conspiracies at various times between approximately November 2005 and September 2009.  Under the plea agreement, Park and Kim each have agreed to serve eight months in prison and Hur has agreed to serve seven months in prison.  Each has also agreed to pay a $25,000 criminal fine.  HLDS is a joint venture between Hitachi Ltd., a Japanese corporation, and LG Electronics Inc., a Republic of Korea corporation.

“Today’s plea agreements demonstrate the Antitrust Division’s continued commitment to protect competition in the high tech industry,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The division will continue to pursue and prosecute those who participate in bid-rigging and price-fixing conspiracies that harm businesses and consumers in the optical disk drive industry.”

Optical disk drives are devices such as CD-ROM, CD-RW (ReWritable), DVD-ROM and DVD-RW (ReWritable) that use laser light or electromagnetic waves to read and/or write data and are often incorporated into personal computers and gaming consoles.
Under the plea agreements, which are subject to court approval, Park, Kim and Hur have also agreed to assist the government in its ongoing investigation into the optical disk drive industry.

According to the charges, from approximately November 2005 until September 2009, Park participated in the conspiracies as HLDS’s vice president and chief marketing officer in charge of optical disk drive sales.  The department said that Park had supervisory responsibility for HLDS’s Dell, Microsoft and HP accounts.  The department said that Kim participated in the conspiracies at various times as HLDS’s team leader in charge of the HP and Dell accounts and deputy chief marketing officer from approximately November 2005 until September 2009.  According to the charges, Hur participated in HP-related conspiracies at various times as HLDS’s team leader, account leader and account manager in charge of the HP account from approximately November 2005 until June 2009.

According to the court documents, Dell hosted optical disk drive procurement events in which bidders would be awarded varying amounts of optical disk drive supply depending on where their pricing ranked.  From approximately February 2009 to September 2009, Park and Kim participated in a series of conspiracies involving meetings and conversations with co-conspirators to discuss bidding strategies and prices of optical disk drives.  As part of the conspiracies, Park, Kim and co-conspirators submitted bids at collusive and noncompetitive prices and exchanged information on sales, market share and the pricing of optical disk drives to monitor and enforce adherence to the agreements.
The department said that from approximately June 2007 to March 2008, Park and co-conspirators participated in a conspiracy involving meetings and conversations in Taiwan and the Republic of Korea to discuss and to fix the prices of optical disk drives sold to Microsoft.  As part of the conspiracy, Park and co-conspirators also exchanged information on the sales of optical disk drives to monitor and enforce adherence to the agreed-upon prices.

According to the court documents, HP also hosted optical disk drive procurement events in which participants would be awarded varying amounts of optical disk drive supply depending on where their pricing ranked.  From approximately November 2005 to June 2009, Kim, Park, Hur and co-conspirators participated in a series of conspiracies involving meetings and discussions to predetermine bidding strategies and prices of optical disk drives, resulting in the submission of collusive and noncompetitive bids for HP’s procurement events.  Kim, Par, Hur and co-conspirators also exchanged information on sales, market share and the pricing of optical disk drives to monitor and enforce adherence to the agreements

This is the department’s second round of charges resulting from its ongoing investigation into the optical disk drive industry.  On Nov. 8, 2011, HLDS pleaded guilty in U.S. District Court in San Francisco to 14 counts of violating the federal antitrust laws between approximately June 2004 and September 2009.  HLDS also pleaded guilty to one count of participating in a scheme to defraud in connection with an April 2009 procurement event.  On the same day, HLDS was sentenced to pay a $21.1 million criminal fine and has agreed to assist the department in its ongoing investigation into the optical disk drive industry.
Park, Kim and Hur are charged with multiple violations of the Sherman Act.  Each count carries a maximum fine of $1 million and up to 10 years in prison.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is part of an ongoing joint investigation of the Department of Justice Antitrust Division’s San Francisco Office and the FBI in San Francisco and Houston.”