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The Center for Empowered Living and Learning (The CELL)  held a reception yesterday in Denver to introduce its inaugural exhibit, entitled “Anyone, Anytime, Anywhere: Understanding the Threat of Terrorism.”

The CELL is a non-profit, non-partisan institution dedicated to educating citizens on the most important issue of our time — terrorism. The exhibit will make available to the public for the first time learning tools that are capable of teaching citizens about the true nature of terrorism and how it affects each and every one of us in our daily lives.

“The CELL is becoming one of the most talked-about institutions to take root in our great city,” said Denver Mayor John Hickenlooper. “The exhibit does a great job of addressing and explaining the difficult subject of terrorism, and while it is a serious experience, The CELL allows individuals to educate and ultimately empower themselves in the goal of terrorism prevention.”

The keynote speaker at Wednesday’s reception was Brian Jenkins, a senior advisor to the RAND Corporation, and an expert in terrorism, counterinsurgency and homeland security. He is a highly-respected author and commentator and was part of The CELL’s content development team. Mayor John Hickenlooper and The CELL founder Larry A. Mizel introduced Jenkins to the audience.

“It is our intent that once people experience The CELL exhibit, they will be more engaged and focused on the need for community involvement and preparedness in response to the current ongoing global terrorism threat,” said Melanie Pearlman, Executive Director of The CELL. “This is an educational and interactive exhibit that uses state-of-the-art multi-media tools, and was created in consultation with world-renowned terrorism experts and designed by Academy Award-winning artists.”

“We are pleased to have introduced the exhibit today in front of many visitors who are here in Denver attending the Democratic National Convention,” said Pearlman. “They might not otherwise get the opportunity to explore this complex subject matter in a state-of-the-art facility,” Pearlman added. During the past three days of the DNC, The CELL has played host to such dignitaries as Senators Daniel K. Inouye and Jim DeMint, Colorado Governor Bill Ritter, as well as CELL contributor and former Mayor of New York City, Rudy Giuliani.

The CELL also intends to begin working with universities, first-responders and law enforcement officials on programs and outreach that will promote greater awareness and more effective means of combating terrorism. Early efforts have already included co-hosting a seminar with the Naval Post Graduate School on preparedness and response coordination for the Democratic National Convention activities here in Denver for local business and first- responder communities.

The design, concept and production of The CELL and its exhibit began in 2004. It will be open to the public beginning Tuesday, September 2, 2008.

The Center for Empowered Living & Learning is located within the Denver Civic Center Cultural Complex, adjacent to the new Denver Art Museum. For more information, please visit http://www.thecell.org/.

Source: Center for Empowered Living and Learning

A Brazilian man was charged by a federal grand jury in New Orleans for his role in a conspiracy to sell a network of computers infected with malicious software, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and Jim Letten, US Attorney for the Eastern District of Louisiana, announced on Friday.

Leni de Abreu Neto, 35, of Taubate, Brazil, is charged with one count of conspiracy to cause damage to computers worldwide. The indictment alleges that more than 100,000 computers worldwide were damaged. If convicted, Neto faces a maximum penalty of five years in prison and up to three years of supervised release. Neto also faces the greater of a $250,000 fine or the gross amount of any pecuniary gain or the gross amount of any pecuniary loss suffered by the victims.

According to the indictment, Neto participated in a conspiracy along with others, including an unindicted coconspirator, Nordin Nasiri, 19, of Sneek, Netherlands, to use, maintain, lease and sell an illegal botnet. As defined in the indictment, a botnet is a network of computers that have been infected by malicious software, commonly referred to as “bot code.”

Bot code is typically designed to permit an operator or controller to instruct infected computers to perform various functions, without the authorization and knowledge of their owners, such as launching denial of service attacks to disable targeted computer systems or sending spam e-mail. Installation of bot code is typically accomplished by “hacking” computers with particular security vulnerabilities. Bot code typically contains commands for infected computers to search local networks or the Internet for other computers to infect, thereby increasing the botnet’s size and power.

The indictment alleges that prior to May 2008, Nasiri was responsible for creating a botnet consisting of more than 100,000 computers worldwide, and that Neto used the botnet and paid for the servers on which the botnet was hosted. According to the indictment, between May and July 2008, Neto agreed initially with Nasiri to broker a deal to lease the botnet to a third party. The indictment alleges Neto expected the botnet to be used to send spam through the infected computers. Subsequently, Neto agreed with Nasiri to broker the sale of the botnet and underlying bot code to the third party for 25,000 euros.

Neto was apprehended by Dutch authorities on July 29, 2008, in the Netherlands and is currently in confinement in the Netherlands pending resolution of extradition proceedings. Nasiri was also apprehended by Dutch authorities and is being prosecuted by Dutch authorities in the Netherlands.

The case is being prosecuted by Trial Attorney Jaikumar Ramaswamy of the Criminal Division’s Computer Crime and Intellectual Property Section, with extensive assistance from Senior Counsel Judith Friedman of the Criminal Division’s Office of International Affairs. The case is being investigated by the Cyber Squad of the FBI’s New Orleans field office, with assistance from the Dutch Hi-Tech Crimes Unit and the Cyber Section of the Brazilian Federal Police.

The owner of an international electronics business has pled guilty to one-count arising from a conspiracy to illegally export controlled microprocessors and electronic components to government entities in India that participate in the development of ballistic missiles, space launch vehicles, and fighter jets.

The guilty plea was announced on Tuesday by Kenneth L. Wainstein, Assistant Attorney General for National Security; Jeffrey A. Taylor, US Attorney for the District of Columbia; Joseph Persichini, Jr., Assistant Director in Charge, FBI Washington Field Office; Darryl W. Jackson, Assistant Secretary for Export Enforcement, US Department of Commerce, and Julie Myers, Department of Homeland Security Assistant Secretary for US Immigration and Customs Enforcement (ICE).

Parthasarathy Sudarshan, 47, a resident of Simpsonville, South Carolina, entered his guilty plea in US District Court for the District of Columbia before the Honorable Ricardo Urbina to the felony charge of conspiracy to violate the International Emergency Economic Powers Act and the Export Administration Regulations; and to violate the Arms Export Control Act and the International Traffic in Arms Regulations.

The Honorable Ricardo Urbina is scheduled to sentence Sudarshan on June 16, 2008.

“The defendant participated in a clandestine network that circumvented our export laws and put sophisticated technology in the hands of foreign companies that were listed as endusers of concern for proliferation reasons,” stated US Attorney Taylor.

“With this prosecution, the defendant will no longer be able to make a profit at the expense of our national security. This case also demonstrates the priority our government has placed on combating such networks.”

By fraudulently acquiring and shipping controlled missile technology overseas, this defendant violated both our federal law and our national security. It is fitting that he stands convicted and faces a serious penalty for his criminal conduct,” said Assistant Attorney General Wainstein.

According to court documents filed by the government, Sudarshan did business as Cirrus Electronics (”Cirrus”) and held himself out to be Cirrus’ CEO, Managing Director, and President and Group Head. Cirrus has offices in Simpsonville, South Carolina, Singapore, and Bangalore, India.

Among the recipients of US technology in this case were the Vikram Sarabhai Space Centre (VSSC), an enterprise within the Department of Space of the Government of India, and Bharat Dynamics, Ltd. (BDL), an enterprise within the Ministry of Defence of the Government of India.

The US government has determined that VSSC participates in India’s space launch vehicle program and that BDL participates in India’s development and production of ballistic missiles. As such, both VSSC and BDL are on the Department of Commerce’s Entity List and exports of US-origin commodities to these entities are restricted and require prior authorization in the form of a license from the Department of Commerce.

Between 2002 and 2006, Sudarshan acquired electrical components with applications in missile guidance and firing systems in the United States for VSSC and BDL. In particular, in the case of at least two US vendors, Sudarshan and others at Cirrus provided the US companies with fraudulent certificates that claimed that the endusers of these electrical components were non-restricted entities in India, when, in fact, the items were for VSSC. There were no export licenses for any of the shipments to VSSC and BDL.

To further conceal from the US government that goods were going to entities in India on the Department of Commerce Entity List, Sudarshan would route the products through its Singapore office and then send the packages on to India.

In addition to supplying VSSC and BDL with components, Sudarshan acquired microprocessors for the Tejas, a fighter jet under development in India. The microprocessors were necessary for the navigation and weapons systems of the Tejas. Because the microprocessors are on the US Munitions List, the State Department must license any export of the products.

On two occasions in 2004 and 2006, Cirrus caused the shipment of a total of 500 microprocessors to the Aeronautical Development Establishment, an enterprise within the Ministry of Defence of the Government of India that was responsible for the development of the Tejas. There were no licenses for these shipments.

“Today’s plea illustrates the FBI’s commitment to ensure the safety and security of our nation’s citizens and our country’s protected national security information and technology,” said FBI Assistant Director in Charge Persichini. “The FBI also recognizes the invaluable investigative assistance provided by the Department of Commerce Office of Export Enforcement.”

“One of the highest enforcement priorities of Commerce’s Bureau of Industry and Security is ensuring that dual-use items don’t end up in dangerous hands,” said Commerce Assistant Secretary Jackson. “The Department of Commerce’s Entity List puts exporters on notice regarding endusers that are of proliferation concern. This case demonstrates that we will take action against those exporters who evade our export control system.”

“The customs laws of the United States are in place to ensure that sensitive technologies do not fall into the wrong hands. When exporters skirt the law or cover up their activities to fill their own pockets, they do so at the expense of national security. We will aggressively pursue these cases and see that those who violate export regulations are prosecuted to the full extent of the law,” said Homeland Security Assistant Secretary Myers.

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org). In addition, he’s the new editor for the House Conservatives Fund’s weblog. Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

In spite of all the talk in both houses of congress about revamping or restructuring the Federal Emergency Management Administration (FEMA), there’s a new Hurricane Katrina scandal brewing in Washington.

Several news organizations, including the Cable News Network (CNN), have uncovered irrefutable evidence that mobile-home trailers used to temporarily house thousands of victims of New Orleans’ devastating hurricane, and subsequent flood, were treated with a toxic substance known as formaldehyde.

For example, CNN ran a story on January 29 that accused FEMA of “twisting science” in a report they created for public consumption. The CNN news story cites an investigation being conducted of the trailers by the Centers for Disease Control (CDC) and that CDC scientists wish to conduct further tests of the formaldehyde-laced trailers.

The CNN report went on to state: “Almost 150,000 households have lived in FEMA trailers at some point since Hurricanes Katrina and Rita devastated the Gulf Coast in 2005. FEMA says about 40,000 families are still living in the travel trailers. Formaldehyde is a preservative used in construction materials like plywood. The Environmental Protection Agency classifies it as a probable human carcinogen, according to the EPA Web site.”

CNN said, “The CDC, did an initial assessment for FEMA that wasn’t intended to address the long-term effects of extended exposure to formaldehyde.” “The original response focused on the acute health effects of formaldehyde exposure — to meet the urgent needs expressed by FEMA in its original request,” said the CDC statement.

“The initial consultation [was] intended to determine effective mitigation measures, and did not discuss long-term health impacts,” a FEMA statement agreed.

“One person [from the CDC] who came to us told us they wouldn’t write the report,” a FEMA spokesperson said. “That person was circumvented and another person at the agency agreed to write a report to say that levels of formaldehyde were safe for a couple of weeks.”

Another cable news organization — MSNBC — ran a story on July 25, 2006 that posed the question “Are FEMA Trailers Toxic Tin Cans,” but apparently there was no reaction to the news that formaldehyde was rampant throughout the makeshift trailer park in New Orleans.

Political strategist Mike Baker asked,”How come CNN reported this and there was no mention of this on Fox News? Is it possible that Fox News is avoiding this in order not to embarrass the Bush administration?”

But then Baker adds that FEMA was a poorly run agency during the Clinton Administration, as well. He points to FEMA’s response to Hurricane Floyd, a storm that devastated the Carolinas in 1995. “It took three weeks for FEMA to actually send help to those people in distress. In fact, Rev. Jesse Jackson complained on CNN that the Clinton Administration disregarded the suffering of thousands of people — black and white,” said Baker.

Political pundit and conservative strategist Rachel Marsden added, “Is it any wonder that poor people — especially African-Americans — have a strong distrust of government officials, especially at the federal level.”

She also finds it appalling that members of congress such as Senators Joe Lieberman (D-CT) and Olympia Snow (R-ME) want to take a failing bureaucracy and actually make it bigger. Marsden claims that these liberals wish to create a paramilitary organization that will enter states having an emergency.

“Remember the aftermath of Hurricane Katrina? The federal cops entered New Orleans and disarmed law-abiding citizens thereby leaving them vulnerable to looters and thugs. Do we want those kinds of agents working for FEMA?” she asked.

According to CNN report seen on TV, people were complaining of eyes burning, choking, etc. while inside these FEMA trailers, even a CNN reporter said on TV he experienced similar eyes burning while covering the story.  Also, neighbors living near FEMA trailer storage area, when the wind blew from these storage areas toward their homes they could smell the formaldehyde, even though they lived blocks away.

CNN also reported that FEMA was selling these trailers to the public at 40 cents on the dollar, and then, after everyone was complaining about the formaldehyde odor, they wound up buying the trailers back.

“Can’t the government do anything right? How much did this blunder cost the taxpayers?” asked pundit Rachel Marsden.

“CNN also mentioned that these trailers, now rotting in storage lots, cost the government over $1.6 Billion,” she said/

In a Sun Herald article Rep. Bob Etheridge (D-NC) claims his state was a “bull’s-eye” for hurricanes. He pointed to a FEMA memorandum that warned agency employees of formaldehyde concerns in 2006.

“If FEMA knew health hazards [existed], why weren’t people in the trailers warned in ‘06?” he asked.

Carlos Castillo, a FEMA assistant administrator, told lawmakers the agency wasn’t aware of problems until May 2007. “We have a very active program to provide information to occupants of trailers,” he said, adding that trailer residents were hand-delivered information, according to the Sun Herald news story.

“When FEMA first began to receive reports about formaldehyde concerns from occupants of travel trailers, the response was on a one-by-one basis and was immediate. As FEMA came to realize the scope of the issues, the agency has been taking aggressive action to share information with the public and address concerns about formaldehyde,” according to government officials.

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org). Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations. He’s also served on the National Drug Task Force and trained police and security officers throughout the country. Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com. He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com. He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc. His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us

There are 37 research reactors in the United States, mostly located on college campuses. Of these, 33 reactors are licensed and regulated by the Nuclear Regulatory Commission.

Four are operated by the Department of Energy and are located at three national laboratories. Although less powerful than commercial nuclear power reactors, research reactors may still be attractive targets for terrorists.

The US House of Representatives requested the Government Accountability Office to examine the basis on which DOE and NRC established the security and emergency response requirements for DOE and NRC-licensed research reactors, and to examine the progress that the National Nuclear Security Administration (NNSA) has made in converting US research reactors that use highly enriched uranium to low enriched uranium fuel.

The DOE developed the security and emergency response requirements for its research reactors using its Design Basis Threat — a process that establishes a baseline threat for which minimum security measures should be developed. These research reactors benefit from the greater security required for the national laboratories where they are located, which store weapons-usable nuclear materials.

The DOE also has concluded that the consequences of an attack at some of its research reactors could be severe, causing radioactivity to be dispersed over many square miles and requiring the evacuation of nearby areas. As a result, all facilities where DOE reactors are located have extensive plans and procedures for responding to security incidents.

NRC based its security and emergency response requirements largely on the regulations it had in place before September 2001. NRC decided that the security assessment it conducted between 2003 and 2006 showed that these requirements were sufficient. While it was conducting this assessment, NRC worked with licensees to improve security when weaknesses were detected.

However, GAO found that NRC’s assessment contains questionable assumptions that create uncertainty about whether the assessment reflects the full range of security risks and potential consequences of attacks on research reactors. For example, Sandia National Laboratories (SNL) — a contractor NRC used to assist in performing its assessment — found that some NRC-licensed research reactors may not be prepared for certain types of attacks.

However, NRC disagreed with SNL’s finding. In 2006, NRC concluded that the consequences of attacks would result in minimal radiological exposure to the public. In addition, NRC assumed that terrorists would use certain tactics in attacking a reactor but did not fully consider alternative attack scenarios that could be more damaging.

The NRC assumed that a small part of a reactor could be damaged in an attack, resulting in the release of only a small amount of radioactivity. However, according to experts at Idaho National Laboratories and the Department of Homeland Security, it is possible that a larger part of a reactor could be damaged, which could result in the release of larger amounts of radioactivity.

The NNSA has made progress in changing from HEU to LEU fuel in U.S. research reactors but may face difficulty in converting some of the remaining research reactors. Since 1978, NNSA has converted eight currently operating U.S. research reactors, including two in 2006.

Also, the NNSA plans to convert 10 more U.S. research reactors by September 2014 — five of which are scheduled for conversion by 2009. However, NNSA faces difficulties in converting the remaining five reactors because these reactors cannot operate with the currently available LEU fuel. NNSA is now developing a new LEU fuel that will allow the remaining five reactors to operate.

But, according to NNSA, developing this fuel has been problematic, as early efforts experienced failures during testing. NNSA officials acknowledged that further setbacks are likely to delay plans to convert these research reactors.

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org). Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations. He’s also served on the National Drug Task Force and trained police and security officers throughout the country. Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com. He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com. He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc. His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us

A chemist employed by a corporation headquartered in Houston, Texas, involved in researching, developing and supplying fire-proof coating and intumescent products has been indicted and charged with theft of trade secrets and computer fraud, according to United States Attorney Don DeGabrielle and FBI Special Agent in Charge Andrew R. Bland.

Qinggui Zeng, a/k/a Jensen Zeng, 45, a legal permanent resident from the People’s Republic of China, was arrested by FBI agents on January 29, 2008, and ordered detained in federal custody pending further criminal proceedings.

The indictment returned by a federal grand jury in Houston on Wednesday, February 20, 2008, charges Zeng with two counts of theft of trade secrets and one count of computer fraud. Zeng is expected to appear in federal court for arraignment on the charges on a date to be set by the court in the near future.

A “trade secret” is defined under federal law as including all forms and types of information — financial, business, scientific, technical, economic or engineering — that the owner has taken reasonable measures to keep secret, and that has independent economic value because it is not generally known or ascertainable by the public. A confidentiality agreement is an agreement signed by an employee promising not to disclose the confidential, proprietary or trade secret information belonging to his employer.

According to allegations contained in the indictment, Zeng was employed in January 2005 as a formulation chemist by a subsidiary of a worldwide paint and coatings company based in the Netherlands and headquartered in Houston, Texas. The company is a researcher, developer and supplier of an epoxy-based fire-proof coating and intumescent products. The company is the only manufacturing company in the world that had developed proprietary and confidential manufacturing techniques, processes and mixtures that could successfully fabricate an intumescent fire-proofing product which it marketed in interstate commerce. The company took reasonable measures to keep the information secret.

According to the federal indictment, Zeng allegedly signed a confidentiality agreement with his employer and was aware of his responsibility to keep and maintain the confidentiality of his employer’s proprietary interest in trade secrets. Between Nov. 1, 2005, and Jan. 29, 2008, Zeng is accused of accessing without authorization his employer’s protected computer system and obtaining the trade secret formula for the intumescent fire-proofing product with the intent to defraud his employer.

Zeng is accused of downloading the trade secret formula from the company’s database with the intent to convert the trade secret to the benefit of a person other than his employer on or about November 1, 2005, and again on Jan. 29, 2008, and concealing the formula in a box under the insulation in the attic of his residence.

The indictment also alleges Zeng formed his own business in October 2007 for the purpose of marketing intumescent fire-proofing coating.

Each count of theft of trade secrets carries a maximum punishment of 10 years imprisonment and a $250,000 fine upon conviction. Computer fraud and abuse carries maximum punishment of five years imprisonment and a $250,000 fine upon conviction.

The investigation leading to the charges against Zeng are the result of an investigation conducted by the Houston office of the FBI. The case will be prosecuted by Special Assistant United States Attorney Bret Davis.

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org). Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations. He’s also served on the National Drug Task Force and trained police and security officers throughout the country. Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com. He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com. He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc. His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us

On Tuesday, a jury returned guilty verdicts on all counts against defense contractor Brent Roger Wilkes, who was accused of bribing former GOP Congressman Randall “Duke” Cunningham, according to documents obtained by the National Association of Chiefs of Police.

Wilkes was found guilty of conspiracy, bribery, honest services wire fraud, and money laundering. The defendent was ordered to pay $636,116 in forfeiture, and $501,300 in fines and special assessments. The Court ordered Wilkes remanded immediately into custody to begin serving his sentence.

According to Assistant US Attorneys Sanjay Bhandari, Valerie H. Chu, Jason A. Forge and Phillip L.B. Halpern, who prosecuted the case, Wilkes provided more than $700,000 in bribes to Cunningham over nearly a decade. In return, Cunningham illegally directed more than $80 million in defense contract funds to Wilkes’s company, ADCS, Inc., located in Poway, California. Wilkes’s illicit profits totaled tens of millions of dollars.

United States Attorney Karen P. Hewitt said, “The citizens of San Diego and, indeed, the nation at large, are well served by the sentence imposed today. It reflects the egregiousness of the corrupt conduct in which Brent Wilkes engaged and marks one more step in the restoration of the public’s confidence in the integrity of our system of government and those who participate in it. Brent Wilkes has earned every day of the sentence he received.”

Hewitt commended the outstanding work of the agents from the Federal Bureau of Investigation, the Internal Revenue Service and the Defense Criminal Investigative Service, who investigated this case.

FBI Special Agent in Charge, Keith Slotter commented, “Public corruption at any level denies the American public of the honest services the public expects and deserves from our representatives. Today’s sentencing serves notice that the FBI will continue to root out corruption at all levels to protect the freedoms and services the public deserves.”

“[Tuesday's] sentencing sends a clear message to the American public that those individuals who attempt to buy our elected officials for their own personal financial gain will be fully prosecuted,” said Debra D. King, Special Agent in Charge, IRS-Criminal Investigation, Los Angeles Field Office.

“IRS Criminal Investigation will aggressively follow the money trail and do our part to combat public corruption,” she said.

“The American taxpayer expects the Department of Defense (DoD) to manage a procurement system that is free of bribery and corruption. The corrupt behavior of our public officials and DoD contractors misappropriates precious dollars in products and services destined for our soldiers, sailors, airmen, and marines. This investigation demonstrates the most egregious case of bribery and corruption between a sitting U.S. Congressman and a DoD contractor that I have ever witnessed in my career,” said Rick Gwin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office.

According to case records, the breakdown of the charges is as follows:

COUNT 1 Conspiracy to commit Bribery, Honest Services Fraud, and Money laundering, in violation of Title 18, United States Code, Section 371, which is punishable by 5 years in prison and/or a $250,000 fine.

COUNTS 2-11 Honest Services Wire Fraud, in violation of Title 18, United States Code, Sections 1343 and 1346, which is punishable by 20 years in prison and/or a $250,000 fine.

COUNT 13 Bribery of a Public Official in violation of Title 18, United States Code, Section 371, which is punishable by 15 years in prison and/or the greater of a $250,000 fine or three times the monetary equivalent of the bribe.

COUNT 14 Money Laundering (“concealment”) in violation of Title 18, United States Code, Section 1956(a)(1)(A)(I), which is punishable by 20 years in prison and/or the greater of a $500,000 fine or twice the value of the property involved in the transaction.

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org). Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations. He’s also served on the National Drug Task Force and trained police and security officers throughout the country. Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com. He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com. He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc. His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us

The Los Alamos National Laboratory, which is operated by the National Nuclear Security Administration, is responsible for, among other things, designing nuclear weapons.

Over the past decade, security personnel documented numerous security, safety, and project management weaknesses at NNSA’s nuclear weapons complex, including LANL. In particular, during the Clinton Administration LANL has experienced a series of high-profile security incidents that drew attention to the laboratory’s inability to account for and control classified information and maintain a safe work environment.

In July 2004, LANL’s director declared a suspension — or stand-down — of laboratory operations to address immediate concerns, including the loss of classified computer disks. During the stand-down, laboratory teams identified more than 3,400 security and safety issues.

As a result of systemic management concerns, and the fact that the laboratory contractor –the University of California — did not adequately address these problems, the Department of Energy (DOE) decided in 2003 to allow other organizations to compete for the management contract at LANL.

The University of California, which had been the exclusive management and operating contractor since the 1940s, was replaced in June 2006 by Los Alamos National Security, LLC, (LANS). LANS is a consortium of contractors that includes Bechtel National, Inc.; the University of California; BWX Technologies, Inc.; and the Washington Group International, Inc.

Congress asked General Accountability Office security analysts to provide information detailing recent security, safety, and management problems at LANL. The GAO provided Congressional staffers with information on these issues.

As requested, the GAO report provides information on security incidents that compromised or potentially compromised classified information, incidents involving the loss of or failure to properly account for special nuclear material (highly enriched uranium or plutonium) and radiological material, nuclear safety concerns at the laboratory, safety accidents involving LANL employees or contractor personnel, and project management weaknesses that may have resulted in significant cost overruns.

According to the GAO’s preliminary report, LANL experienced 57 reported security incidents involving the compromise or potential compromise of classified information from October 1, 2002, through June 30, 2007, according to DOE’s ITAC database.

Thirty-seven (or 65 percent) of these reported incidents posed the most serious threat to US national security interests. Of the remaining 20 incidents, 9 involved the confirmed or suspected unauthorized disclosure of secret information, which posed a significant threat to U.S. national security interests. The remaining 11 reported security incidents involved the confirmed or suspected unauthorized disclosure of confidential information, which posed threats to DOE security interests.

Examples of the most serious types of security incidents reported by DOE include the following:

* LANL could not account for nine classified removable electronic media items, including data disks, during the relocation of these items to a different on-site facility. DOE concluded that these items were likely destroyed prior to their relocation.

* A law enforcement search of a LANL subcontractor’s home in Los Alamos, New Mexico, recovered classified information in the form of a USB “thumb drive” and documents. The subcontractor, who possessed a DOE security clearance, had removed the information from a highly classified facility at the laboratory.

In response to the last incident, in July 2007, enforcement actions were taken by DOE, including the issuance of a preliminary notice of violation to the University of California with a proposed civil penalty in the amount of $3 million, a separate preliminary notice of violation to LANS with a proposed civil penalty in the amount of $300,000, and a Secretarial Compliance Order to LANS.

The preliminary notice of violation cited both the University of California and LANS for serious violations of DOE’s classified information and cyber security requirements. In response to security weaknesses in the handling and processing of classified data, LANL officials told analysts that they have implemented a number of measures to strengthen controls since June 2006, including destroying an estimated 1.4 million “legacy” classified documents; reducing the number of accountable electronic classified items from 87,000 to 4,472; reducing the number of vaults and vault-type rooms holding classified data from 142 to 114; and consolidating classified material and classified processing operations into a “Super Vault Type Room.”

There were no reported incidents involving the loss or diversion of special nuclear or radiological material from LANL from October 1, 2002, through June 30, 2007. However, a number of security concerns with the inventory and accounting of these materials have been documented, most recently in a DOE Inspector General report issued in September 2007.

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org). Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations.  He’s also served on the National Drug Task Force and trained police and security officers throughout the country.   Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com. He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com.   He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc.  His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us