The following is from the Department of Justice website:
“WASHINGTON — Danfoss Flensburg GmbH, formerly Danfoss Compressors GmbH, has agreed to plead guilty and to pay a $3 million criminal fine for its role in an international conspiracy to fix the prices of light commercial compressors, a type of refrigerant compressor used in devices such as water coolers and vending machines, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court in Detroit, Danfoss Flensburg GmbH, a German subsidiary of the Danfoss Group, a Danish corporation, participated in a conspiracy to fix the prices of light commercial compressors sold in the United States and elsewhere from as early as Oct. 14, 2004, and continuing until about Sept. 6, 2007. According to the plea agreement, which is subject to court approval, Danfoss agreed to cooperate with the department’s ongoing refrigerant compressor investigation.
Refrigerant compressors take in low-pressure refrigerant, compress it and then pump out a high-pressure vapor, which condenses and subsequently cools devices such as water coolers and vending machines.
“The department’s investigation into the international conspiracy to fix the prices of refrigerant compressors is ongoing,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “We are committed to ensuring open and fair competition in the refrigerant compressors market.”
According to the charge, Danfoss and co-conspirators carried out the conspiracy by agreeing during meetings and conversations to coordinate prices of light commercial compressors sold in the United States and elsewhere. As a part of the conspiracy, Danfoss and co-conspirators exchanged information on sales of light commercial compressors to monitor and enforce adherence to the agreed-upon prices.
Danfoss is charged with price fixing in violation of the Sherman Act, which carries a maximum $100 million fine for corporations. 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.
Danfoss is the third company to be charged in the department’s investigation of the international conspiracy to fix the prices of refrigerant compressors. On Nov. 15, 2010, Panasonic Corporation pleaded guilty and was sentenced to pay a $49.1 million criminal fine and on Dec. 16, 2010, Embraco North America Inc. pleaded guilty and was sentenced to pay a $91.8 million criminal fine. In addition, on Sept. 27, 2011, three former executives – Ernesto Heinzelmann of Empresa Brasileira de Compressores S.A.; Gerson Verissimo of Tecumseh do Brasil Ltda.; and Naoki Adachi of Panasonic – were charged with participating in a conspiracy to coordinate price increases for refrigerant compressors to customers in the United States and elsewhere.”
Wednesday, October 5, 2011
RBC CAPITAL LLC HAS AGREED TO SETTLE SEC CHARGES WITH $30.4 MILLION
The following is an excerpt from the SEC website:
“Washington, D.C., Sept. 27, 2011 — The Securities and Exchange Commission today charged RBC Capital Markets LLC for misconduct in the sale of unsuitable investments to five Wisconsin school districts and its inadequate disclosures regarding the risks associated with those investments.
According to the SEC’s order instituting administrative proceedings, RBC Capital marketed and sold to trusts created by the school districts $200 million of credit-linked notes that were tied to the performance of synthetic collateralized debt obligations (CDOs). The school districts contributed $37.3 million of district funds to the investments with the remainder of the investment coming from funds borrowed by the trusts. The sales took place despite significant concerns within RBC Capital about the suitability of the product for municipalities like the school districts. Additionally, RBC Capital’s marketing materials failed to adequately explain the risks associated with the investments.
RBC Capital agreed to settle the SEC’s charges by paying a total of $30.4 million that will be distributed in varying amounts to the school districts through a Fair Fund.
Last month, the SEC separately charged St. Louis-based brokerage firm Stifel, Nicolaus & Co. and a former senior executive with fraudulent misconduct in connection with the same sale of the CDO investments to the school districts.
“RBC failed Securities 101 when it sold complex derivatives that were unsuitable to five school districts without fully informing them of the risks,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.
Kenneth R. Lench, Chief of the SEC Division of Enforcement’s Structured and New Products Unit, added, “RBC Capital did not provide these school districts with full and accurate information regarding the risks of these complex structured products. We are pleased that today’s settlement will result in a significant recovery by the school districts.”
According to the SEC’s order, the five school districts are Kenosha Unified School District No. 1, Kimberly Area School District, School District of Waukesha, West Allis-West Milwaukee School District, and School District of Whitefish Bay. The board members and business managers for the school districts had no prior experience investing in CDOs or instruments tied to CDOs. Compared to the typical buyers of instruments tied to CDOs, the school districts were not sophisticated investors. The SEC’s order finds that the school districts lacked sufficient knowledge and sophistication to appreciate the nature of such investments.
RBC Capital consented to the entry of the SEC’s order without admitting or denying any of its findings. The order censured RBC Capital and directed that it cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, which among other things prohibit obtaining money by means of an untrue statement of material fact and engaging in any transaction, practice, or course of business that operates as a fraud or deceit upon the purchaser. RBC Capital agreed to pay disgorgement of $6.6 million, prejudgment interest of $1.8 million, and a penalty of $22 million.
The SEC’s investigation was conducted jointly by the Enforcement Division’s Municipal Securities and Public Pensions Unit led by Elaine Greenberg and Mark R. Zehner and Structured and New Products Unit led by Kenneth Lench and Reid Muoio. The investigative attorneys were Kevin Guerrero, Keshia W. Ellis and Ivonia K. Slade in Washington D.C. and Jeffrey A. Shank and Anne C. McKinley along with litigation counsel Steven C. Seeger and Robert M. Moye in the Chicago Regional Office. The broker-dealer examinations team of Marianne E. Neidhart, Scott M. Kalish, George J. Jacobus and Daniel R. Gregus of the Chicago Regional Office provided assistance with the investigation.
Other SEC enforcement actions related to the offer and sale of CDOs include Goldman Sachs, ICP Asset Management, J.P. Morgan, and Wachovia Capital Markets.”
“Washington, D.C., Sept. 27, 2011 — The Securities and Exchange Commission today charged RBC Capital Markets LLC for misconduct in the sale of unsuitable investments to five Wisconsin school districts and its inadequate disclosures regarding the risks associated with those investments.
According to the SEC’s order instituting administrative proceedings, RBC Capital marketed and sold to trusts created by the school districts $200 million of credit-linked notes that were tied to the performance of synthetic collateralized debt obligations (CDOs). The school districts contributed $37.3 million of district funds to the investments with the remainder of the investment coming from funds borrowed by the trusts. The sales took place despite significant concerns within RBC Capital about the suitability of the product for municipalities like the school districts. Additionally, RBC Capital’s marketing materials failed to adequately explain the risks associated with the investments.
RBC Capital agreed to settle the SEC’s charges by paying a total of $30.4 million that will be distributed in varying amounts to the school districts through a Fair Fund.
Last month, the SEC separately charged St. Louis-based brokerage firm Stifel, Nicolaus & Co. and a former senior executive with fraudulent misconduct in connection with the same sale of the CDO investments to the school districts.
“RBC failed Securities 101 when it sold complex derivatives that were unsuitable to five school districts without fully informing them of the risks,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.
Kenneth R. Lench, Chief of the SEC Division of Enforcement’s Structured and New Products Unit, added, “RBC Capital did not provide these school districts with full and accurate information regarding the risks of these complex structured products. We are pleased that today’s settlement will result in a significant recovery by the school districts.”
According to the SEC’s order, the five school districts are Kenosha Unified School District No. 1, Kimberly Area School District, School District of Waukesha, West Allis-West Milwaukee School District, and School District of Whitefish Bay. The board members and business managers for the school districts had no prior experience investing in CDOs or instruments tied to CDOs. Compared to the typical buyers of instruments tied to CDOs, the school districts were not sophisticated investors. The SEC’s order finds that the school districts lacked sufficient knowledge and sophistication to appreciate the nature of such investments.
RBC Capital consented to the entry of the SEC’s order without admitting or denying any of its findings. The order censured RBC Capital and directed that it cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, which among other things prohibit obtaining money by means of an untrue statement of material fact and engaging in any transaction, practice, or course of business that operates as a fraud or deceit upon the purchaser. RBC Capital agreed to pay disgorgement of $6.6 million, prejudgment interest of $1.8 million, and a penalty of $22 million.
The SEC’s investigation was conducted jointly by the Enforcement Division’s Municipal Securities and Public Pensions Unit led by Elaine Greenberg and Mark R. Zehner and Structured and New Products Unit led by Kenneth Lench and Reid Muoio. The investigative attorneys were Kevin Guerrero, Keshia W. Ellis and Ivonia K. Slade in Washington D.C. and Jeffrey A. Shank and Anne C. McKinley along with litigation counsel Steven C. Seeger and Robert M. Moye in the Chicago Regional Office. The broker-dealer examinations team of Marianne E. Neidhart, Scott M. Kalish, George J. Jacobus and Daniel R. Gregus of the Chicago Regional Office provided assistance with the investigation.
Other SEC enforcement actions related to the offer and sale of CDOs include Goldman Sachs, ICP Asset Management, J.P. Morgan, and Wachovia Capital Markets.”
Tuesday, October 4, 2011
ADMINISTRATOR JACKSON SPEAKS ON TRADE AGREEMENTS
October 4, 2011
The following is from an EPA e-mail:
WASHINGTON - EPA Administrator Lisa P. Jackson issued the following statement on the trade agreements submitted to Congress yesterday by the President:
"These agreements serve President Obama's top priority of creating jobs across the US and contain an equal commitment to enforcing environmental standards. The health and environmental commitments will continue to foster opportunities for America's leading environmental technology industry, which exports innovative pollution control technology to countries around the world. These trade agreements will make it easier for American inventors and innovative manufacturers to sell their 'Made in the USA' products in the global marketplace while holding all parties to the same level of accountability for meeting environmental commitments as for the other commitments.”
FORMER EXECUTIVES INDICTED IN COMPRESSOR PRICE-FIXING CASE
The following excerpt is from the Department of Justice website:
Tuesday, September 27, 2011
“Former Executives from Panasonic Corp., Whirlpool Corp. Subsidiary and Tecumseh Products Co. Subsidiary Indicted in Compressor Price-Fixing Conspiracy
First Executives Charged in Ongoing Investigation into the Worldwide Refrigerant Compressors Market
WASHINGTON — A Detroit federal grand jury returned an indictment today against three former executives from Panasonic Corporation, a Whirlpool Corporation subsidiary and a Tecumseh Products Company subsidiary for their role in an international conspiracy to fix the prices of refrigerant compressors, which are used in refrigerators and freezers in homes and businesses, the Department of Justice announced.
The indictment, returned today in U.S. District Court in Detroit, charges Ernesto Heinzelmann, former president and chief executive officer of Empresa Brasileira de Compressores S.A. (Embraco), a division of Whirlpool S.A.; Gerson Veríssimo, former president of Tecumseh do Brasil Ltda., a subsidiary of Tecumseh Products Company; and Naoki Adachi, general manager of global sales & SE group, refrigeration devices division at Panasonic Corporation, with conspiring to suppress and eliminate competition by coordinating price increases for refrigerant compressors to customers in the United States and elsewhere. Heinzelmann and Veríssimo are charged with participating in the conspiracy from at least as early as Oct.14, 2004, until on or about Dec. 31, 2007. Adachi is charged with participating in the conspiracy from at least as early as May 10, 2006, until on or about Dec. 31, 2007. Heinzelmann, Veríssimo and Adachi are the first executives charged in the ongoing investigation into the worldwide refrigerant compressors market.
Refrigerant compressors take in low-pressure refrigerant, compress it and then pump out a high-pressure vapor, which condenses and subsequently cools devices such as refrigerators and freezers.
“Cracking down on international price fixing cartels has been and will continue to be among the most significant priorities for the Antitrust Division,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Our investigation into the refrigerant compressors industry has already resulted in two companies – Panasonic and Embraco North America – pleading guilty and paying a total of $140.9 million in criminal fines. Our investigation is continuing.”
According to the indictment, Heinzelmann, Veríssimo and Adachi carried out the conspiracy by participating in or directing the participation of subordinate employees in meetings and conversations to coordinate price increases of refrigerant compressors in the United States and elsewhere. As part of the conspiracy, Heinzelmann, Veríssimo, Adachi and co-conspirators sold and accepted payments for the compressors at collusive and non-competitive prices.
Heinzelmann, Veríssimo and Adachi are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
On Nov. 15, 2010, Panasonic Corporation pleaded guilty and was sentenced to pay a $49.1 million criminal fine, and on Dec.16, 2010, Embraco North America Inc. pleaded guilty and was sentenced to pay a $91.8 million criminal fine.”
Tuesday, September 27, 2011
“Former Executives from Panasonic Corp., Whirlpool Corp. Subsidiary and Tecumseh Products Co. Subsidiary Indicted in Compressor Price-Fixing Conspiracy
First Executives Charged in Ongoing Investigation into the Worldwide Refrigerant Compressors Market
WASHINGTON — A Detroit federal grand jury returned an indictment today against three former executives from Panasonic Corporation, a Whirlpool Corporation subsidiary and a Tecumseh Products Company subsidiary for their role in an international conspiracy to fix the prices of refrigerant compressors, which are used in refrigerators and freezers in homes and businesses, the Department of Justice announced.
The indictment, returned today in U.S. District Court in Detroit, charges Ernesto Heinzelmann, former president and chief executive officer of Empresa Brasileira de Compressores S.A. (Embraco), a division of Whirlpool S.A.; Gerson Veríssimo, former president of Tecumseh do Brasil Ltda., a subsidiary of Tecumseh Products Company; and Naoki Adachi, general manager of global sales & SE group, refrigeration devices division at Panasonic Corporation, with conspiring to suppress and eliminate competition by coordinating price increases for refrigerant compressors to customers in the United States and elsewhere. Heinzelmann and Veríssimo are charged with participating in the conspiracy from at least as early as Oct.14, 2004, until on or about Dec. 31, 2007. Adachi is charged with participating in the conspiracy from at least as early as May 10, 2006, until on or about Dec. 31, 2007. Heinzelmann, Veríssimo and Adachi are the first executives charged in the ongoing investigation into the worldwide refrigerant compressors market.
Refrigerant compressors take in low-pressure refrigerant, compress it and then pump out a high-pressure vapor, which condenses and subsequently cools devices such as refrigerators and freezers.
“Cracking down on international price fixing cartels has been and will continue to be among the most significant priorities for the Antitrust Division,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Our investigation into the refrigerant compressors industry has already resulted in two companies – Panasonic and Embraco North America – pleading guilty and paying a total of $140.9 million in criminal fines. Our investigation is continuing.”
According to the indictment, Heinzelmann, Veríssimo and Adachi carried out the conspiracy by participating in or directing the participation of subordinate employees in meetings and conversations to coordinate price increases of refrigerant compressors in the United States and elsewhere. As part of the conspiracy, Heinzelmann, Veríssimo, Adachi and co-conspirators sold and accepted payments for the compressors at collusive and non-competitive prices.
Heinzelmann, Veríssimo and Adachi are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
On Nov. 15, 2010, Panasonic Corporation pleaded guilty and was sentenced to pay a $49.1 million criminal fine, and on Dec.16, 2010, Embraco North America Inc. pleaded guilty and was sentenced to pay a $91.8 million criminal fine.”
Monday, October 3, 2011
NINJA VIDEO.NET WILL NO LONGER GIVE AWAY THE STORE
The following is an excerpt from the Department of Justice website:
“Thursday, September 29, 2011
NinjaVideo Founder Pleads Guilty in Virginia to Criminal Copyright Conspiracy
WASHINGTON – Hana A. Beshara, 29, of Las Vegas, pleaded guilty today for her role in founding NinjaVideo.net, a website that provided millions of users with the ability to illegally download infringing copies of copyright-protected movies and television programs in high-quality formats.
The guilty plea was announced by U.S. Attorney Neil H. MacBride for the Eastern District of Virginia , Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Beshara pleaded guilty before U.S. District Judge Anthony J. Trenga in the Eastern District of Virginia to conspiracy and criminal copyright infringement. At sentencing, scheduled for Jan. 6, 2012, Beshara faces a maximum penalty of five years in prison on each count.
According to court documents, Beshara was one of the founders of NinjaVideo.net, which operated from February 2008 until it was shut down by law enforcement in June 2010. The NinjaVideo.net website allowed visitors to download infringing copies of hundreds of television shows and movies, including those still playing in theaters and some that had not yet been released in theaters. Website visitors could download much of the infringing content for free, but visitors who “donated” at least $25 obtained access to private forum boards that contained a wider range of infringing material.
According to court documents, NinjaVideo.net generated additional income from Internet advertising. Beshara admitted that she negotiated agreements with online advertising entities and received income from them. Beshara admitted that she and her co-conspirators collected more than $500,000 in overall proceeds during the website’s two-and-a-half years of operation, with Beshara personally receiving more than $200,000. As part of her plea agreement, Beshara agreed to forfeit assets seized by ICE’s Homeland Security Investigations (HSI) in June 2010, including cash, an investment brokerage account, two bank accounts, a Paypal account and one Internet advertising account.
Beshara, who referred to herself as “Queen Phara” and “the face and the name behind Ninja,” was the day-to-day administrator of NinjaVideo.net, according to court documents. In that role, Beshara supervised the website and at times directed the release of infringing copies of specific movies and television shows, including through uploads of copyrighted works by members of the group to computer servers around the world and in the Eastern District of Virginia.
According to the statement of facts, Beshara frequently released podcasts to communicate with the millions of visitors to NinjaVideo.net. In one such podcast, which Beshara entitled “The NinjaVideo Manifesto,” Beshara boasted about NinjaVideo’s “zero hour releases on TV and movies” – meaning that the website made infringing content available as soon as the legitimate product was released.
On Sept. 9, 2011, Beshara and four other alleged co-conspirators were indicted on six charges related to their work with NinjaVideo.net. Co-defendant Matthew David Howard Smith pleaded guilty on Sept. 23, 2011, to conspiracy and criminal copyright infringement, and will be sentenced on Dec. 16, 2011. The remaining three defendants are scheduled for a jury trial on Feb. 6, 2012.
The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Lindsay A. Kelly for the Eastern District of Virginia and Trial Attorney Glenn Alexander of the Criminal Division’s Computer Crime & Intellectual Property Section.
The investigation was conducted by the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. This criminal investigation is a part of the IPR Center’s groundbreaking In Our Sites Operation, which targets the online sale of counterfeit and pirated commodities. As a task force, the IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.
To report IP theft or to learn more about the IPR Center, visit
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. “www.IPRCenter.gov .
“Thursday, September 29, 2011
NinjaVideo Founder Pleads Guilty in Virginia to Criminal Copyright Conspiracy
WASHINGTON – Hana A. Beshara, 29, of Las Vegas, pleaded guilty today for her role in founding NinjaVideo.net, a website that provided millions of users with the ability to illegally download infringing copies of copyright-protected movies and television programs in high-quality formats.
The guilty plea was announced by U.S. Attorney Neil H. MacBride for the Eastern District of Virginia , Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Beshara pleaded guilty before U.S. District Judge Anthony J. Trenga in the Eastern District of Virginia to conspiracy and criminal copyright infringement. At sentencing, scheduled for Jan. 6, 2012, Beshara faces a maximum penalty of five years in prison on each count.
According to court documents, Beshara was one of the founders of NinjaVideo.net, which operated from February 2008 until it was shut down by law enforcement in June 2010. The NinjaVideo.net website allowed visitors to download infringing copies of hundreds of television shows and movies, including those still playing in theaters and some that had not yet been released in theaters. Website visitors could download much of the infringing content for free, but visitors who “donated” at least $25 obtained access to private forum boards that contained a wider range of infringing material.
According to court documents, NinjaVideo.net generated additional income from Internet advertising. Beshara admitted that she negotiated agreements with online advertising entities and received income from them. Beshara admitted that she and her co-conspirators collected more than $500,000 in overall proceeds during the website’s two-and-a-half years of operation, with Beshara personally receiving more than $200,000. As part of her plea agreement, Beshara agreed to forfeit assets seized by ICE’s Homeland Security Investigations (HSI) in June 2010, including cash, an investment brokerage account, two bank accounts, a Paypal account and one Internet advertising account.
Beshara, who referred to herself as “Queen Phara” and “the face and the name behind Ninja,” was the day-to-day administrator of NinjaVideo.net, according to court documents. In that role, Beshara supervised the website and at times directed the release of infringing copies of specific movies and television shows, including through uploads of copyrighted works by members of the group to computer servers around the world and in the Eastern District of Virginia.
According to the statement of facts, Beshara frequently released podcasts to communicate with the millions of visitors to NinjaVideo.net. In one such podcast, which Beshara entitled “The NinjaVideo Manifesto,” Beshara boasted about NinjaVideo’s “zero hour releases on TV and movies” – meaning that the website made infringing content available as soon as the legitimate product was released.
On Sept. 9, 2011, Beshara and four other alleged co-conspirators were indicted on six charges related to their work with NinjaVideo.net. Co-defendant Matthew David Howard Smith pleaded guilty on Sept. 23, 2011, to conspiracy and criminal copyright infringement, and will be sentenced on Dec. 16, 2011. The remaining three defendants are scheduled for a jury trial on Feb. 6, 2012.
The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Lindsay A. Kelly for the Eastern District of Virginia and Trial Attorney Glenn Alexander of the Criminal Division’s Computer Crime & Intellectual Property Section.
The investigation was conducted by the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. This criminal investigation is a part of the IPR Center’s groundbreaking In Our Sites Operation, which targets the online sale of counterfeit and pirated commodities. As a task force, the IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.
To report IP theft or to learn more about the IPR Center, visit
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. “www.IPRCenter.gov .
Sunday, October 2, 2011
MORGAN STANLEY SETTLES ANTITRUST VIOLATIONS MILLION IN
The following is an excerpt from the Department of Justice blogsite:
“Derivative Contract Led to Higher Prices for Electricity Generating Capacity in New York City”
“WASHINGTON — The Department of Justice today announced a settlement with Morgan Stanley that requires Morgan to pay $4.8 million for violating the antitrust laws by entering into an agreement with KeySpan Corporation that restrained competition in the New York City electricity capacity market. The department said the agreement likely resulted in a price increase for electricity retailers, which, in turn, led to increased electricity prices for consumers. The department’s Antitrust Division today filed a civil antitrust complaint in U.S. District Court for the Southern District of New York and submitted a proposed settlement that, if approved by the court, would resolve the lawsuit. The settlement provides for disgorgement of profits for a violation of the antitrust laws and requires Morgan to pay $4.8 million to the United States. The department previously entered into a settlement with KeySpan that required the company to disgorge $12 million in profits for its role in the agreement, which was approved by the court in February 2011.
“This settlement with a major financial institution will signal to the financial services community that use of derivatives for anticompetitive ends will not be tolerated,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Disgorgement of ill-gotten gains, as was paid here, is an effective Antitrust Division tool to remedy harm to competition.”
According to the complaint, in January 2006, KeySpan and Morgan executed a financial derivative for New York City capacity while Morgan simultaneously entered into an off-setting derivative with Astoria Generating Company, KeySpan’s largest competitor in the capacity market. The agreements effectively transferred to KeySpan a financial interest in Astoria’s capacity, thereby ensuring that KeySpan would withhold substantial output from the capacity market and increase prices. For its part, Morgan earned revenues by retaining the spread between the fixed prices of the two derivative agreements. The anticompetitive effects of the Morgan/KeySpan agreement lasted until March 2008, when regulatory conditions eliminated KeySpan’s ability to affect the market price of electricity capacity.
New York City’s electricity generating capacity market was created to ensure that sufficient generation capacity exists to meet expected electricity needs. Electricity retailers serving consumers in the city are required to purchase capacity from generators in amounts related to their expected peak energy demand. Electricity generators offer to sell their capacity to electricity retailers in regularly held auctions.
Morgan Stanley is a Delaware corporation with its principal place of business in New York City. Morgan provides diversified financial services, operating a global asset management business, investment banking services and a global securities business, including a commodities trading division.
The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to William Stallings, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th St. N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.”
FISH AFFECTED BY TOXINS FROM DEEPWATER HORIZON OIL SPILL
The following is an excerpt from the National Science Foundation website:
September 26, 2011
“Despite low concentrations of oil constituents in Gulf of Mexico waters from the Deepwater Horizon spill, fish were dramatically affected by toxic components of the oil.
So found a team led by scientists Fernando Galvez and Andrew Whitehead of Louisiana State University (LSU).
The researchers published their results this week in the journal Proceedings of the National Academy of Sciences (PNAS).
Galvez, Whitehead and colleagues undertook a combined field and laboratory study. It showed widespread effects of the Deepwater Horizon oil spill on fish in Louisiana marshes.
Gene expression in tissues of the fish studied--in this case killifish--was predictive of oil spill responses such as developmental abnormalities and death, say the biologists.
"It also indicated impairment of fish reproduction," says Whitehead.
The study was funded by a National Science Foundation (NSF) rapid response grant.
"Joining remote-sensing of the spill with gene expression data from wild-caught killifish, these scientists have captured the effects of low-level exposure to pollutants on the long-term health of fish," says George Gilchrist, acting deputy director of NSF's Division of Environmental Biology, which funded the research.
"It's a landmark study in applying genomic technology to wild animal populations under stress."
Fish gill tissues, important for maintaining critical fish body functions, appeared damaged and had altered protein expression.
These effects persisted long after visible oil disappeared from a marsh's surface.
Developing fish embryos exposed to field-collected waters had similar cellular responses, Whitehead says.
"This is of concern because early life-stages of many organisms are particularly sensitive to the toxic effects of oil," says Whitehead, "and because marsh contamination occurred during the spawning season of many species."
A major message of the previous Exxon Valdez oil spill in Alaska, he says, "is that sub-lethal biological effects, especially those linked with reproduction, are most predictive of the long-term effects of oil in many fish species, such as herring and salmon."
The Gulf of Mexico study shows similar early signals of sub-lethal effects after the Deepwater Horizon oil spill.
The scientists are following up with research examining more direct effects of oil exposure on fish reproduction, development and growth.
Other co-authors of the paper are Benjamin Dubansky, Charlotte Bodinier, Scott Miles, Chet Pilley, Vandana Raghunathan, Jennifer Roach, and Nan Walker of LSU; Tzintzuri Garcia and Ronald Walter of Texas State University and Charles Rice of Clemson University.
The research was also funded by the Gulf of Mexico Research Initiative.”
September 26, 2011
“Despite low concentrations of oil constituents in Gulf of Mexico waters from the Deepwater Horizon spill, fish were dramatically affected by toxic components of the oil.
So found a team led by scientists Fernando Galvez and Andrew Whitehead of Louisiana State University (LSU).
The researchers published their results this week in the journal Proceedings of the National Academy of Sciences (PNAS).
Galvez, Whitehead and colleagues undertook a combined field and laboratory study. It showed widespread effects of the Deepwater Horizon oil spill on fish in Louisiana marshes.
Gene expression in tissues of the fish studied--in this case killifish--was predictive of oil spill responses such as developmental abnormalities and death, say the biologists.
"It also indicated impairment of fish reproduction," says Whitehead.
The study was funded by a National Science Foundation (NSF) rapid response grant.
"Joining remote-sensing of the spill with gene expression data from wild-caught killifish, these scientists have captured the effects of low-level exposure to pollutants on the long-term health of fish," says George Gilchrist, acting deputy director of NSF's Division of Environmental Biology, which funded the research.
"It's a landmark study in applying genomic technology to wild animal populations under stress."
Fish gill tissues, important for maintaining critical fish body functions, appeared damaged and had altered protein expression.
These effects persisted long after visible oil disappeared from a marsh's surface.
Developing fish embryos exposed to field-collected waters had similar cellular responses, Whitehead says.
"This is of concern because early life-stages of many organisms are particularly sensitive to the toxic effects of oil," says Whitehead, "and because marsh contamination occurred during the spawning season of many species."
A major message of the previous Exxon Valdez oil spill in Alaska, he says, "is that sub-lethal biological effects, especially those linked with reproduction, are most predictive of the long-term effects of oil in many fish species, such as herring and salmon."
The Gulf of Mexico study shows similar early signals of sub-lethal effects after the Deepwater Horizon oil spill.
The scientists are following up with research examining more direct effects of oil exposure on fish reproduction, development and growth.
Other co-authors of the paper are Benjamin Dubansky, Charlotte Bodinier, Scott Miles, Chet Pilley, Vandana Raghunathan, Jennifer Roach, and Nan Walker of LSU; Tzintzuri Garcia and Ronald Walter of Texas State University and Charles Rice of Clemson University.
The research was also funded by the Gulf of Mexico Research Initiative.”
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