F.A.A. to Review Rules on Use of Electronic Devices

The following is an excerpt from an article in 

The New York Times
Wednesday, August 29, 2012

F.A.A. to Review Rules on Use of Electronic Devices

By JAD MOUAWAD

Air travelers carrying smartphones, digital tablets and other electronic devices have long complained about having to turn off their gadgets until reaching an altitude of 10,000 feet.

On a clear day with no air traffic, that could mean shutting off the devices for 20 minutes or so. But if a flight is delayed, this form of electronic solitary confinement can last a lot longer — and pose a significant hardship for those desperate to connect.

“People are addicted to their phones and there is a lot of dead time when you are taxiing or in the air,” said Anne Banas, the executive editor of SmarterTravel.com, a consumer travel Web site.

Now the Federal Aviation Administration may be softening a bit on the restrictions, taking a first step in possibly accommodating the growing pervasiveness of digital technology.

The agency has initiated a review of its policies about electronic devices in all phases of flight, including takeoff and landing. The F.A.A. said Monday that it would set up a group composed of technology manufacturers, plane makers, pilots and flight attendants to examine the issues this fall. The group would report back within six months.

Their mission will be to figure out whether electronic devices can cause interference with the cockpit and when to allow their use without compromising safety. The F.A.A. said it was not considering lifting the prohibition on the use of cellphones during flight.

For more, visit www.nytimes.com.

Brocade Convenes Federal Agencies, Partners and Luminaries to Discuss the Most Critical IT Challenges

Press release:

Brocade Convenes Federal Agencies, Partners and Luminaries to Discuss the Most Critical IT Challenges

Share on facebookShare on twitterShare on diggShare on stumbleuponShare on newsvineShare on redditShare on emailShare on print

Cloud Computing, Data Center Consolidation and Alternative Acquisition Models Top Discussion Topics at the First Brocade Federal Forum

WASHINGTON, DC--(Marketwire - Aug 21, 2012) - Today marks the first day of the 2012 Brocade Federal Forum, which will provide an opportunity for Federal IT professionals, technology partners, systems integrators and industry luminaries to further explore and discuss key IT challenges and opportunities for the US Federal government. The two-day event is being hosted by Brocade (NASDAQ: BRCD), a leading provider of innovative solutions for the world's most demanding service provider, data center and campus networks. 

The forum is designed to help Federal agencies that are facing significant IT challenges and opportunities, including new mandates to increase efficiencies, maximize existing resources, modernize infrastructure and adopt cloud computing while simultaneously eliminating redundant technologies and processes.

In response to these challenges top-level Brocade executives will share their perspectives on how the government can navigate this new era in networking and leverage the many benefits that result from the changing IT infrastructure.

Specific topics of discussion will include:

• Network transformation
• Cloud mandates
• Data center consolidation
• Evolving acquisition models

"With uncertain budgets, a CIO office focused on modernization and unfunded mandates, US Federal IT professionals are facing one of the most complex IT environments ever," said Anthony Robbins, vice president of federal sales, Brocade. "They need as much support as possible to help make the best decisions for their agency."

The objective of the 2012 Brocade Federal Forum is to extend the discussion from stated challenges to specific implementation examples, complete with common pitfalls and projected cost models. During the forum, speakers will outline state-of-the-art solutions and how they complement the legacy environments in which most Federal IT professionals currently work.

immixGroup is the Platinum Sponsor of the 2012 Brocade Federal Forum. Since 1997, immixGroup has helped hundreds of large and emerging companies grow and manage their public sector business while providing its government customers with reliable access to leading commercial technologies through the contract vehicles and partners they prefer.

Other sponsors include: Arrow, Avnet, Tech Data, Westcon, HDS, NetApp, PacStar and CDW-G.

Speakers at this forum will include:

• Ron Broersma, Chief Engineer, Defense Research and Engineering Network (DREN)
• Shawn McCarthy, Government Insights Research Director, IDC
• Charles McClam, Deputy CIO, USDA
• Jason Miller, Executive Editor, WFED Federal News Radio
• Tim Schmidt, CIO, Department of Transportation
• Rick Howard, Research Director, Gartner
• Simon Szykman, CIO, Department of Commerce

Additional Resources and Forum Content

• http://brocadefederalforum.com
• Visit the Agenda page for a full list of sessions.
• Follow Brocade on Twitter at @BRCDcomm or Facebook at http://www.facebook.com/brocade or join the LinkedIn Group: Brocade Federal.
• Follow the conversation at #BrocadeFederal

Social Media Tags: Brocade, Federal Forum, #BrocadeFederal, cloud computing, virtualization, data center

About BrocadeBrocade (NASDAQ: BRCD) networking solutions help the world's leading organizations transition smoothly to a world where applications and information reside anywhere. (www.brocade.com)

Government and advertisers have different ideas about 'Do Not Track' - The Hill's Hillicon Valley

The Obama administration and the technology industry have touted the creation of a "Do Not Track" button to help consumers protect their privacy online, but the government and advertisers are not on the same page about what the button will do.

The Federal Trade Commission first proposed a Do Not Track button in 2010. The concept is modeled on the agency's popular "Do Not Call" list, which allows consumers to opt out of receiving telemarketing calls.

FTC Chairman Jon Leibowitz urged Web companies to voluntarily set up a system for users to opt out of online tracking and warned that legislation could be necessary if they failed to act.

Last month, all of the major Web browsers promised to create a Do Not Track feature, and the Digital Advertising Alliance, a coalition of advertising trade groups, said that by the end of the year, they would stop displaying targeted ads to users who had selected the feature in their browsers.

The commitment was announced as part of the White House's unveiling of its "Privacy Bill of Rights" – a set of principles about how companies should handle users' personal data.

Leibowitz praised the companies for "stepping up" to his challenge and said the feature would ensure "consumers have greater choice and control over how they are tracked online."

But Mike Zaneis, general counsel of the Interactive Advertising Bureau, a member of the Digital Advertising Alliance, said the name "Do Not Track" is a "complete misnomer."

For more, click the link below:

Government and advertisers have different ideas about 'Do Not Track' - The Hill's Hillicon Valley

South Sound Doctor Sentenced to More Than 12 Years in Prison for Health Care Fraud, Tax Crimes, and Drug Distribution

South Sound Doctor Sentenced to More Than 12 Years in Prison for Health Care Fraud, Tax Crimes, and Drug Distribution 
Doctor’s Mother Also Sentenced for Health Care Fraud and Tax Crimes

U.S. Attorney’s OfficeMarch 29, 2012

Western District of Washington(206) 553-7970

Antoine Johnson, 41, a former resident of Aberdeen, Washington, and his mother, Lawanda Johnson, 63, were sentenced today in U.S. District Court in Tacoma for more than two dozen federal felonies connected with their operation of four health care clinics in Western Washington, announced U.S. Attorney Jenny A. Durkan. The Johnsons were convicted in November 2011, following a three-week jury trial. Antoine Johnson was sentenced to 151 months in prison, three years of supervised releajse, and $1,281,873 in restitution for 24 counts of health care fraud, four counts of filing false income tax returns, and five counts of illegal drug distribution. Lawanda Johnson was sentenced to 87 months in prison, three years of supervised release, and $1,227,746 in restitution for 24 counts of health care fraud and six counts of filing false income tax returns. Orders of criminal forfeiture of funds were also entered. Sentencing them to the high end of the guidelines range, U.S. District Judge Ronald B. Leighton said the Johnsons “manipulated the standard of care for patients, they have manipulated the rules of reimbursement, they manipulated the Hippocratic Oath, they manipulated the Justice system...they have invented more excuses than they distributed pills.”

“Antoine Johnson not only defrauded taxpayers, he betrayed his oath as a doctor to ‘do no harm.’ Instead of healing his patients, he fed their addiction for narcotic painkillers to satisfy his own greed,” said U.S. Attorney Jenny A. Durkan. “Mother and son ruined many lives, sent the bill to taxpayers, and then filed false tax returns.”

According to testimony at trial and records in the case, in 2008, law enforcement investigated information obtained by the Grays Harbor County Drug Task Force and the Washington State Medicaid Fraud Control Unit that the clinics were dispensing a high number of prescriptions for narcotic pain medications without examining the patients. Antoine Johnson was the only medical doctor employed by the four clinics, the “Broadway Clinic” in Aberdeen and the “Johnson Family Practice” clinics in Tacoma, Lakewood, and Lacey. Dr. Johnson churned out prescriptions for Schedule II controlled substances such as Oxycodone and Methadone. Evidence introduced at trial indicated that these clinics had thousands of patients and over half of those patients were prescribed controlled substances by Dr. Johnson. These prescriptions were refilled for months and years at a time. Often, the patients would come to the clinic, get their weight and blood pressure taken by a nursing assistant, and then pick up a Schedule II prescription that had been pre-signed by Dr. Johnson. Sometimes a family member of a patient would pick up a prescription for another family member but was required to pay a $75 or $100 fee to the clinic for the signed prescription.

“One of the things Mr. Johnson claimed he did was serve disadvantaged communities, but he actually caused them great harm,” said Laura M. Laughlin, Special Agent in Charge of the FBI Seattle office. “Mr. Johnson turned patients into addicts and facilitated others in drug dealing. This is an egregious case of someone who is well placed to heal and treat deserving people but instead used his medical license to advance his greed at the expense of his neighbors’ health.”

The health care fraud investigation began following an audit by the Washington State Department of Social and Health Services (DSHS) of Medicaid billing practices at the clinics. Testimony and evidence at trial showed that the clinics, through their business manager, Lawanda Johnson, and their only medical doctor, Antoine Johnson, consistently billed for a higher level of service than was actually provided. Evidence introduced at trial showed that the clinic routinely billed Medicaid and Labor and Industries for high-level service even though a patient was only in the clinic for a refill of a controlled substance medication and only had the patients’ vitals taken.

“Dr. Johnson and his mother inflated bills for office visits and had taxpayers pick up the tab. Worse yet, too often, little or no medical services were provided other than writing prescriptions for highly addictive pain pills,” said Ivan Negroni, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services region serving Washington. “As in this case, we will work in tight coordination with state and other federal agencies to shut off the flow of dangerous prescription drugs.”

“Today’s sentencing of Dr. Johnson and his mother sends a clear message to rogue physicians who dispense medications to patients without regard for their health, while stealing our nation’s precious healthcare dollars,” said Kenneth J. Hines, the IRS Special Agent in Charge of the Pacific Northwest. “IRS will investigate when greed is the motivation for medical professionals to betray their patients. Our role in this case included determining the total amount of loss to the American taxpayer from both the tax and health care frauds.”

The Johnsons closed their clinics and left the United States shortly after search warrants were executed at the four clinics and the residence of Lawanda Johnson in January 2009. The pair fled the United States, driving to Canada, from where they flew to Scotland and then to Madagascar. The United States State Department worked with the FBI and Madagascar authorities, resulting in the return of the Johnsons to the United States, where they were arrested and held for trial. The Department of Health revoked Dr. Johnson’s license to practice medicine while the Johnsons were in Madagascar. Dr. Johnson’s efforts to contest the revocation of his license upon his return to the United States were unsuccessful.

The case was investigated by the FBI, the Health and Human Services Office of the Inspector General (HHS-OIG), and the Internal Revenue Service Criminal Investigations (IRS-CI).

The case is being prosecuted by Assistant United States Attorneys Susan Loitz and Brian Werner.

For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at 206-553-4110 or Emily.Langlie@USDOJ.Gov.

Seven Plead Guilty in Wide-Ranging Corruption Scheme at the Naval Fleet Readiness Center in San Diego 

U.S. Attorney’s OfficeMarch 28, 2012

Southern District of California(619) 557-5610

United States Attorney Laura E. Duffy announced today that seven individuals, including four Navy officials, Donald Vangundy, Kiet Luc, David Lindsay, and Brian Delaney; and three defense contractors, Michael Graven, John Newman, and Paul Grubiss, each pleaded guilty before United States Magistrate Judge Bernard G. Skomal in connection with a wide-ranging fraud and corruption scheme at the Naval Air Station (NAS) North Island in Coronado, California. As part of the conspiracy, defense contractors provided Navy officials with over one million dollars in personal benefits, including cash, checks, retail gift cards, flat screen television sets, luxury massage chairs, home furniture and appliances, bicycles costing thousands of dollars, model airplanes, and home remodeling services. In return, the Navy officials placed millions of dollars in fraudulent orders with the defense contractors.

Four of the defendants who pleaded guilty were Navy officials employed at the Navy’s Fleet Readiness Center (FRC) located at NAS North Island. All four worked in the Navy’s E2/C2 aircraft program, which is dedicated to maintaining the tactical readiness of the Navy’s E-2 and C-2 aircrafts. The Grumman E-2 Hawkeye is an American all-weather, aircraft carrier-capable tactical airborne early warning aircraft. Since entering combat during the Vietnam War, the E-2 has served the U.S. Navy around the world, acting as the electronic “eyes of the fleet.” The C-2 Greyhound is a derivative of the E-2 Hawkeye, which shares wings and power plants with the E-2, but has a widened fuselage with a rear loading ramp. These aircraft are considered critical components of the U.S. Navy’s carrier air wings.

Among the Navy official defendants, Donald Vangundy oversaw tool control for the E2/C2 program and was promoted to supervise and authorize the purchase and replacement of tools for all FRC programs. Kiet Luc was the liaison and coordinator for tools in the E2/C2 program and was responsible for maintaining and controlling the tool program. David Lindsay was the supervisory production controller for the E2/C2 program, and Brian Delaney was the E2/C2 deputy program manager. Between them, these four former Navy officials received a total of more than $1 million in cash, goods, and services for their personal use, all fraudulently charged to and paid for by the Defense Department.

The remaining three defendants were owners or employees of various defense contractors that provided goods or services for NAS North Island. Michael Graven was the owner and operator of X&D Supply Inc., a contractor located in Carlsbad, California. The Navy paid X&D at least $2.26 million in connection with the fraud. John Newman was a sales manager at (and the former owner of) a defense contractor identified in the charging document as “Company A,” located in Poway, California. The Navy paid Company A at least $3.31 million in connection with the fraud. Paul Grubiss was a sales manager of a defense contractor identified in the charging document as “Company B,” also located in Poway, California. The Navy paid Company B approximately $1 million in connection with the fraud. Also implicated in the scheme was Jesse Denome, the owner of JD Machine Tech Inc.

As part of the scheme, the defense contractors prepared and submitted fraudulent invoices to the Department of Defense, making it appear that they were billing the Department for goods and services within the scope of legitimate government contracts. In fact, the Defense Department was unknowingly paying for, among other things, the cost of personal benefits provided to the Navy officials. Compounding the cost of the fraud, the defense contractors also routinely charged a markup on the fraudulent invoices. Ultimately, the Defense Department paid over $5.5 million in connection with the fraudulent invoices submitted by the defense contractor defendants.

Two of the Navy official defendants, Vangundy and Luc, also pleaded guilty to filing false tax returns for knowingly failing to report the value of the unlawful benefits provided to them by defense contractors. Graven also pleaded guilty to aiding and assisting in the filing of a false tax return by his business, X&D, for knowingly taking improper tax deductions for the illegal payments to the benefit of the Navy official defendants.

According to United States Attorney Duffy, the investigation into possible corruption at NAS North Island was initiated on the basis of citizen complaints. These complaints followed the July 2009 indictment of six individuals on fraud and corruption charges centered at the Space and Naval Warfare Systems Command (SPAWAR). As part of the SPAWAR corruption case, the government publicized a hotline dedicated to the reporting of possible waste, fraud, and abuse related to government and military contracts.

United States Attorney Duffy lauded the citizens who came forward and the coordinated efforts of the law enforcement agencies that participated in this long-running investigation, known as “Country Store,” including the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Internal Revenue Service-Criminal Investigation, the Naval Criminal Investigative Service, and the General Services Administration (GSA)-Office of Inspector General. In doing so, she emphasized that federal law enforcement agencies in the Southern District of California were committed to rooting out corruption in defense contracts and purchasing, which cheats the American taxpayer and our nation’s military readiness.

U.S. Attorney Duffy noted that the investigation is ongoing and urged anyone with information relating to waste, fraud, and abuse in government contracting to contact the Procurement Fraud Working Group hotline at sandiego.procurementfraud@usdoj.gov or to call 1-877-NO-BRIBE.

FBI Special Agent in Charge Keith Slotter commented, “Public corruption is the FBI’s number one criminal priority. It seriously undermines the people’s trust in their government and gives an unfair economic advantage to those who trade the public’s interest for their own personal gain. The FBI thoroughly investigates allegations of public corruption, and we remind the public to notify us, as they are sometimes the one person that can make a difference.”

Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service, Western Field Office said, “We are extremely pleased at this outcome, which yet again sends the message that corruption will be vigorously investigated and prosecuted. While the vast majority of Navy officials and contractors are honest in their work, some choose to abuse the public trust. This investigation clearly attests that those who compromise the integrity of the United States will face their day of reckoning. Corruption of this nature strikes at the heart of our national security and erodes public confidence. The Defense Criminal Investigative Service will use all tools available—our ability to track worldwide financial dealings, our advanced cyber capabilities, our worldwide law enforcement alliances—to protect taxpayers’ interests.”

Leslie P. DeMarco, Special Agent in Charge of IRS-Criminal Investigation (IRS-CI), Los Angeles Field Office said, “The Navy officials and defense contractors sought illicit opportunities to profit or gain other personal advantages at the expense of other law abiding businesses and taxpayers. Bribery and corruption schemes corrode the American financial and tax system. Today’s actions enforce IRS-CI’s commitment to work with our law enforcement partners, leveraging resources, to investigate and put an end to fraud by government officials.”

Geoffrey Cherrington, Assistant Inspector General for Investigations of GSA’s Inspector General’s Office stated, “The results of this case clearly demonstrate the tireless efforts of our special agents and our partners in law enforcement to protect the taxpayer. If you commit fraud, we are watching.”

The pleas are subject to final acceptance by United States District Judge Roger T. Benitez at or before sentencing. Sentencing for all seven of the defendants is currently scheduled for July 2, 2012, before Judge Benitez.

Defendants

Donald Vangundy, age 54, Chula Vista, California
Kiet Luc, age 53, San Diego, California
Brian Delaney, age 55, La Mesa, California
David Lindsay, age 57, San Diego, California
John Newman, age 51, Poway, California
Michael Graven, age 43, Carlsbad, California
Paul Grubiss, age 39, Wickliffe, Ohio

Summary of Charges

Count one: conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (all defendants)—maximum penalties: 20 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.

Count two: conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371 (defendants Vangundy and Grubiss)—maximum penalties: five years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.

Count three: filing a false tax return, in violation of Title 26, United States Code, Section 7206(1) (defendant Vangundy)—maximum penalties: three years in prison, $250,000 fine, term of supervised release of one year, restitution, costs of prosecution, and $100 special assessment.

Count four: filing a false tax return, in violation of Title 26, United States Code, Section 7206(1) (defendant Luc)—maximum penalties: three years in prison, $250,000 fine, term of supervised release of one year, restitution, costs of prosecution, and $100 special assessment.

Count five: aiding and assisting in a false tax return, in violation of Title 26, United States Code, Section 7206(2) (defendant Graven)—maximum penalties: three years in prison, $250,000 fine, term of supervised release of one year, restitution, costs of prosecution, and $100 special assessment.

Investigating Agencies

Federal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service-Criminal Investigation
Naval Criminal Investigative Service
General Services Administration-Office of Inspector General

Florida Man Pleads Guilty to Computer Intrusion and Wiretapping Scheme Targeting Celebrities 

U.S. Attorney’s OfficeMarch 26, 2012

Central District of California(213) 894-2434

LOS ANGELES—A Florida man pleaded guilty today to a series of cyber-related crimes relating to his hacking into the personal e-mail accounts of more than 50 individuals associated with the entertainment industry.

Christopher Chaney, 35, of Jacksonville, Florida, pleaded guilty to nine felony counts of a 28-count first superseding indictment, including unauthorized access to protected computers in furtherance of wiretapping and wire fraud, unauthorized damage to protected computers resulting in more than $5,000 loss and physical harm, and wiretapping. At the conclusion of the hearing, United States District Court Judge S. James Otero ordered Chaney taken into custody.

During the hearing, Chaney admitted that from at least November 2010 to October 2011, he hacked into the e-mail accounts of Scarlett Johansson, Mila Kunis, Renee Olstead, and others by taking the victims’ e-mail addresses, clicking on the “Forgot your password?” feature, and then re-setting the victims’ passwords by correctly answering their security questions using publicly available information he found by searching the Internet. Once Chaney gained exclusive control of the victims’ e-mail accounts, he was able to access all of their e-mail boxes. While in the accounts, Chaney also went through their contact lists to find e-mail addresses of potential new hacking targets.

In pleading guilty to the wiretapping charges, Chaney admitted that, for most victims, he also changed their e-mail account settings by inserting his alias e-mail address into the forwarding feature so that a duplicate copy of all incoming e-mails to the victims—including any attachments—would be sent virtually simultaneously to Chaney without the victims’ knowledge. Most victims did not check their account settings, so even after they regained control of their e-mail accounts, Chaney’s alias address remained in their account settings. As a result, for many victims, copies of their incoming e-mails, including attachments, were sent to Chaney for weeks or months without their knowledge, causing Chaney to receive thousands of victim e-mails. In addition, when a victim reset his/her password to regain control of the account, Chaney sometimes hacked into the account again and reset the password, sometimes multiple times, in order to continue illegally accessing that victim’s account.

Chaney admitted that as his hacking scheme became more extensive, he began using a proxy service called “Hide My IP” because he knew what he was doing was illegal and wanted to “cover his tracks” so that law enforcement agents could not trace the hacking back to his home computer. Even after his home computers were seized by law enforcement agents pursuant to a federal search warrant, but before he was arrested, Chaney used another computer to hack into another victim’s e-mail account.

Chaney further admitted that as a result of his hacking scheme, he obtained numerous private communications, private photographs, and confidential documents from the victims’ e-mail accounts. The confidential documents included business contracts, scripts, letters, driver’s license information, and Social Security information. On several occasions, after hacking into victim accounts, Chaney sent e-mails from the hacked accounts to friends of the victims, fraudulently posing as the victims to request more private photographs. Chaney downloaded many of the confidential documents and photographs he stole to his home computer, where he saved them on his hard drive in separate computer file folders. Chaney e-mailed many of the stolen photographs to others, including another hacker and two gossip websites. As a result, some of those stolen photographs, several of which were explicit, were later posted on the Internet.

“Today’s guilty pleas shine a bright light on the dark underworld of computer hacking,” said United States Attorney André Birotte, Jr., whose office prosecuted the case. “This case demonstrates that everyone, even public figures, should take precautions to shield their personal information from the hackers that inhabit that dark underworld. It also demonstrates that the Department of Justice will take whatever steps are necessary to protect Americans from harm in cyberspace.”

“Mr. Chaney’s admission to compromising victim accounts, utilizing both technically and socially engineered means, demonstrates the persistence and extent to which a hacker will go to obtain private information,” said Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case sends an important message to all users of Internet-accessible media that practicing good computer security makes us less vulnerable to this type of attack. The FBI remains committed to investigating cyber adversaries who target protected computers, whether of private citizens or the nation’s critical infrastructure.”

Each charge of unauthorized access to a protected computer carries a maximum of five years in prison, each charge of unauthorized damage to a protected computer carries a maximum charge of 10 years in prison, and each charge of wiretapping carries a maximum of five years in prison. As a result of all of today’s guilty pleas, Chaney faces a total statutory maximum sentence of 60 years in federal prison. In addition to the possible prison term, as part of his plea agreement filed in federal court, Chaney agreed to forfeit his computers and related devices seized during the investigation, to pay restitution to all of the victims for any losses they suffered, and to comply with strict restrictions regarding his future use of computers and computer-related devices. In exchange, the government agreed to dismiss the remaining counts, including nine counts of aggravated identity theft, at the time defendant is sentenced.

Chaney is scheduled to be sentenced by United States District Judge S. James Otero on July 23, 2012.

The investigation of this case was led and conducted by the Federal Bureau of Investigation.

F.T.C. Seeks Privacy Legislation

Excerpt from an article in

The New York Times

Tuesday, March 27, 2012

F.T.C. Seeks Privacy Legislation

By TANZINA VEGA and EDWARD WYATT

The government’s chief consumer protection agency said on Monday that it intended to take direct aim at the vast industry that has grown up around the buying and selling of information about American consumers.

The agency, the Federal Trade Commission, called on Congress to enact legislation regulating so-called data brokers, which compile and trade a wide range of personal and financial data about millions of consumers from online and offline sources. The legislation would give consumers access to information collected about them and allow them to correct and update such data.

The agency also sent a cautionary signal to technology and advertising companies regarding a “Do Not Track” mechanism that allows consumers to opt out of having their online behavior monitored and shared. It warned that if companies did not voluntarily provide a satisfactory Do Not Track option, it would support additional laws that mandate it.

The recommendations, part of a sweeping set of guidelines in an F.T.C. report on Monday, represent the government’s latest move to address the issue of consumer privacy.

On one side of the debate are data brokers like Experian and Acxiom, which collect and sell information, and the huge ecosystem of technology and online advertising companies — including Google, Microsoft and Facebook — that target consumers based on their personal preferences.

On the other side are consumer groups and privacy advocates that are concerned about the volume of data being collected and how little control consumers have over that information.

The government’s Do Not Track efforts are likely to collide with the desire of companies to continue the lucrative business of collecting, using and sharing information about the people who use their services. Although these businesses say they support limits on using this information, they generally still want to be able to collect it.

Google Faces Class-Action Lawsuits Over New Privacy Policy

Google faces consumer complaints in federal courts in New York and California that claim that its new privacy policy violates the company's earlier policies which promised that information provided by a user for one service would not be used by another service without the consumer's consent.

The Internet company is being charged in both lawsuits for violation of the Federal Wiretap Act, for wilful interception of communications and aggregation of personal information of its consumers for financial benefit, and the Stored Electronic Communications Act for exceeding its authorized access to consumer communications stored on its systems. Google is also charged with violation of the Computer Fraud Abuse Act, and other counts including state laws.

The plaintiffs in both suits seek to bring nationwide class action on behalf of holders of Google accounts and owners of Android devices from Aug. 19, 2004 to Feb. 29, 2012, who continued to maintain the Google accounts and own the devices after the new privacy policy came into effect on March 1 this year.

For more, click the link below:

http://www.pcworld.com/article/252332/google_faces_classaction_lawsuits_over_new_privacy_policy.html#tk.nl_bdx_h_crawl

UK Citizen & 2 Americans Charged for Conspiring to Defraud US Govt.

United Kingdom Citizen and Two Americans Charged in Alabama for Allegedly Conspiring to Defraud the United States Government 

U.S. Department of JusticeMarch 13, 2012

Office of Public Affairs(202) 514-2007/TDD (202) 514-1888

WASHINGTON—United Kingdom citizen Ahmed Sarchil Kazzaz and his company, Leadstay Company, were charged in an indictment unsealed today in the Northern District of Alabama for their roles in a conspiracy to defraud the United States and pay kickbacks in exchange for receiving subcontracts for a Department of Defense program in Iraq, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama.

Kazzaz, 45, and Leadstay were charged with one count of conspiracy to defraud and commit offenses against the United States; six counts of unlawful kickbacks; one count of wire fraud; and three counts of mail fraud. Kazzaz was arrested on February 14, 2012 in Los Angeles. In addition, two informations filed in the Northern District of Alabama were unsealed today, charging Gaines R. Newell Jr., 52, and Billy Joe Hunt, 57, with conspiracy to commit the federal offenses of kickbacks, wire fraud, and mail fraud, and with filing false tax returns.

According to the indictment, Kazzaz paid more than $947,500 in unlawful kickbacks to two employees of a prime contractor to the United States government in order to obtain lucrative subcontracts for himself and Leadstay, in connection with the Coalition Munitions Clearance Program (CMCP). CMCP is operated in Iraq by the U.S. Army Corps of Engineers, Huntsville Engineering and Support Center (HESC). HESC, located in the Northern District of Alabama, operated the CMCP to clear out, store, and dispose of weapons that were seized or abandoned in Iraq since the 2003 invasion. HESC awarded a contract to perform this work to an international engineering and construction firm headquartered in Pasadena, California.

The indictment alleges that beginning in about March 2006, Kazzaz entered into a kickback agreement with the California prime contractor’s program manager and deputy program manager, who arranged for the award of subcontracts to Kazzaz and Leadstay to provide materials, heavy equipment and operators for equipment for the CMCP. Kazzaz also allegedly obtained multiple funding increases to those subcontracts. From April 2006 through August 2008, Kazzaz and Leadstay received more than $23 million in U.S. funds for services under the CMCP.

According to the two informations unsealed today, Newell was the program manager in Iraq for the California-based prime contractor to HESC, and Hunt was the deputy program manager. Both are charged with conspiring to solicit and accept kickbacks to award subcontracts under the CMCP program and to commit mail and wire fraud by knowingly and intentionally devising a scheme to defraud the United States. In addition, both are charged with failing to report the kickback income on their federal tax returns.

“Mr. Kazzaz allegedly paid kickbacks to two employees of a California-based contractor in order to secure subcontracts for Department of Defense programs in Iraq,” said Assistant Attorney General Breuer. “Federal contracts must be won or lost based on the merits of the bid, and we will continue to take aggressive steps to hold accountable anyone who tries to play by their own set of rules instead.”

“Government contracts fraud is an insult to all law-abiding taxpayers,” said U.S. Attorney Vance. “These defendants’ conduct was even worse in that they tried to illegally profit from defense contracts in Iraq, where American men and women were willing to put their lives on the line for freedom.”

“These charges clearly demonstrate that we will take firm action against those who make illegal payments while engaged in wartime contracting,” said Stuart W. Bowen, Special Inspector General for Iraq Reconstruction (SIGIR). “SIGIR and its investigative partners will continue our vigorous pursuit of those whose illegal acts undermined the U.S. government’s management of the stabilization and reconstruction effort in Iraq.”

“Individuals and businesses that illegally enrich themselves at the expense of the U.S. taxpayer, especially as wartime profiteers, or those who diminish the combat readiness or effectiveness of the U.S. military, will be aggressively investigated by DCIS and our investigative partners,” said Defense Criminal Investigative Service (DCIS) Special Agent in Charge Chris D. Hendrickson. “The combined investigative effort, the Department of Justice, and the U.S. Attorney’s Office’s work demonstrate the combined federal commitment to combating fraud, waste, and abuse.”

“IRS Criminal Investigation provides financial expertise with our law enforcement partners,” said Special Agent in Charge Leslie P. DeMarco of the Internal Revenue Service Criminal Investigations (IRS-CI) Los Angeles Field Office. “Today’s unsealing of these charges demonstrates our collective efforts in tracing illicit funds internationally to enforce the laws and ensure public trust.”

Kazzaz, Newell and Hunt are also facing criminal forfeiture proceedings.

The cases were investigated by the DCIS, IRS-CI, SIGIR, the FBI, and the U.S. Army Criminal Investigations Division. The cases are being prosecuted by Trial Attorney Catherine Votaw, on detail from SIGIR to the Fraud Section of the Justice Department’s Criminal Division, and Assistant U.S. Attorney David Estes of the Northern District of Alabama.

An indictment and information contain charges, and defendants are innocent until proven guilty.