SEC ANNOUNCES ASSET FREEZE OF FIRM CHARGED WITH PERPETRATING PONZI SCHEME

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today announced an emergency action to freeze the assets of a Las Vegas-based firm and its sole owner charged with perpetrating a Ponzi scheme against thousands of investors living primarily in Japan.

The SEC alleges that Edwin Fujinaga and his company MRI International raised more than $800 million from investors who were told that their money would be used to buy accounts from U.S. medical providers with outstanding balances to collect from insurance companies.  Fujinaga and MRI falsely represented that they purchased the accounts at a discount so they could recover the full amount and turn a profit for investors.  They purchased no such accounts in reality, and merely used investor money to pay the principal and interest due to earlier investors in typical Ponzi fashion.  Investor funds also were used to buy luxury cars and pay Fujinaga’s credit card bills, alimony, and child support.

“Fujinaga deceived and exploited his Japanese investors into believing that they were buying safe investments with a steady return,” said George S. Canellos, Co-Director of the SEC’s Division of Enforcement. “Instead, Fujinaga operated a Ponzi scheme on an enormous scale that financed his own extravagant lifestyle.”

The SEC’s complaint was filed under seal in U.S. District Court for the District of Nevada two weeks ago and unsealed yesterday by the court.  The Honorable James C. Mahan granted the SEC’s request for a temporary restraining order, asset freeze, and other emergency relief against MRI, Fujinaga, and CSA Service Center LLC, which is a company controlled by Fujinaga that is the nominal owner of homes that he occupies in Las Vegas, Beverly Hills, and Hawaii.  CSA Service Center is named as a relief defendant in the SEC’s complaint for the purposes of recovering any ill-gotten assets from the fraud that may be in its possession.

The SEC closely coordinated its investigation with the Financial Services Agency of Japan (JFSA) and the Japanese Securities and Exchange Surveillance Commission (SESC), exchanging documents and other evidence critical to the case.

“Cross-border cooperation can successfully halt fraudsters who attempt to use international boundaries to avoid prosecution,” said Gerald W. Hodgkins, Associate Director in the SEC’s Division of Enforcement.  “The close coordination between the SEC and Japanese regulators was critical to freezing Fujinaga’s assets and foiling his scheme.”

According to the SEC’s complaint, the Ponzi scheme began in October 1998.  Fujinaga, who lives in Las Vegas, operated from there but also had a sales office in Tokyo.  MRI and Fujinaga hosted Japanese investors in the U.S. for solicitation presentations and tours of MRI’s Las Vegas offices.  They told investors they could invest in either U.S. dollars or Japanese yen, and promised returns ranging from 6 to 10.32 percent depending on the size and duration of the investment.  Fujinaga and MRI falsely represented that they used investor money solely and exclusively to buy medical accounts receivable.  Besides misappropriating money between investors, Fujinaga illicitly transferred investor money to MRI’s operating accounts, where it was used to pay for general operating expenses instead of medical accounts.  He also transferred money to other entities he owned that were not in the business of collecting medical account receivables.  Investor funds also were siphoned to another company owned by Fujinaga called The Factoring Company, which bought Fujinaga’s cars and paid his bills.

The SEC’s complaint charges Fujinaga and MRI with violations of the antifraud provisions of the federal securities laws, and the SEC seeks disgorgement of ill-gotten gains, financial penalties, permanent injunctions, and other emergency relief.

The SEC’s investigation, which is continuing, has been conducted by Danette R. Edwards and Thomas C. Swiers and supervised by Gregory G. Faragasso.  The JFSA’s Yuichiro Enomoto, who was detailed to the SEC, provided valuable assistance.  The SEC’s litigation is being led by Richard E. Simpson and Robert I. Dodge.  The SEC appreciates the assistance of the JFSA, SESC, and the State of Nevada Division of Mortgage Lending.

U.S. ARMY COMMANDING GENERAL IN JAPAN SUSPENDED

FROM: U.S. DEPARTMENT OF DEFENSE
Army Suspends Commander in Japan
American Forces Press Service

WASHINGTON, June 7, 2013 - Maj. Gen. Michael T. Harrison Sr. was suspended today of his duties as the commanding general of U.S. Army Japan and I Corps (Forward), according to a Defense Department news release.


Harrison was suspended following actions taken today by Secretary of the Army John M. McHugh and Army Chief of Staff Gen. Ray Odierno due to allegations that Harrison failed in his duties as a commander to report or properly investigate an allegation of sexual assault, the release said.

Maj. Gen. James C. Boozer, the former deputy commanding general of United States Army Europe, will serve as the interim commander until the investigation is complete and the issue resolved, according to the release.

U.S.-JAPAN MEET ON SCIENCE AND TECHNOLOGY COOPERATION

FROM: U.S. STATE DEPARTMENT
U.S.-Japan Joint High-Level Committee Meeting on Science and Technology Cooperation
Media Note
Office of the Spokesperson
Washington, DC
April 30, 2013

　

Dr. John P. Holdren, Assistant to the President and Director of the White House Office of Science and Technology Policy, Ichita Yamamoto, Minister of State for Science and Technology Policy, and Hakubun Shimomura, Minister of Education, Culture, Sports, Science and Technology convened the twelfth Joint High-Level U.S.-Japan Committee (JHLC) meeting in Washington, DC, on April 30. Drawing on over twenty-five years of science cooperation under the U.S.-Japan Science and Technology Agreement, the JHLC provides a regular opportunity to exchange views on some of the most important science and technology endeavors in our countries, and to prioritize future collaboration.

The JHLC brought together representatives from a wide range of government agencies in both countries to discuss three key topics: research and researcher exchanges; risk communication and scientific analysis for policy decision-making; and leveraging science and technology for economic growth. Among the experts making presentations, the Federal Emergency Management Agency (FEMA), Ministry of Education, Culture, Sports, Science and Technology (MEXT), and Japan’s Cabinet Office discussed lessons learned in emergency management following Hurricane Sandy and the Great East Japan Earthquake. During the meeting, the U.S. Department of Energy and Japan’s MEXT signed an Implementing Arrangement on cooperation in research and development in energy and related fields.

At the JHLC, the United States and Japan reaffirmed the importance of human resource development and international research exchanges, and agreed to continue to enhance research cooperation and exchanges in science and technology. Both sides also endorsed several priority areas for continued research cooperation, including initiatives to enhance energy and natural resource research, develop supercomputing software, increase the use of big data to support disaster prevention and mitigation, and continue to work together to develop critical and advanced materials.

The JHLC participants also reaffirmed the benefit of industry-academia collaboration for innovation, and decided to explore possible cooperation through programs such as MEXT’s Center of Innovation Science and Technology based Radical Innovation (COI STREAM), MEXT’s Entrepreneurship Program, and the National Science Foundation's Innovation Corps (I-Corps).

The United States and Japan also agreed to continue to advance robust collaboration in science and technology-related fields, including exchanging views on possible future partnerships to promote the use of scientific knowledge in policy decision-making and exploring mechanisms to address common challenges in the Asia region.

Following the morning government-to-government meeting, the U.S. Department of State and the Carnegie Endowment for International Peace hosted an Open Forum to extend the U.S.-Japan discussion to include participants from universities, think tanks, and the private sector. JHLC Open Forum participants noted the important societal benefits that accrue from cross-sectoral exchanges and emphasized the importance of continuing these kinds of dialogues.

OSPREY FLEET TO REPLACE HELICOPTERS IN OKINAWA JAPAN

Photo:  Osprey Aircraft.  Credit:  U.S. Air Force.
FROM:  U.S. DEPARTMENT OF DEFENSE


DOD, Japan Move Forward on Osprey Fleet Upgrade
By Cheryl Pellerin
American Forces Press Service
WASHINGTON, June 29, 2012 - Working closely with the Japanese government, the Defense Department will replace CH-46 helicopters used by the 3rd Marine Expeditionary Force in Okinawa with MV-22 Osprey tilt-rotor aircraft for operations beginning in August.

At a Pentagon news conference today, Defense Secretary Leon E. Panetta said U.S. officials have had "very good discussions with our Japanese allies" and have given them assurances regarding concerns about the aircraft's safety record.

"But the important thing, we felt, was to be able to deploy these planes there, and that we will continue to brief them with regards to the operations of these planes," the secretary said.

"Actually, we think we've reached a very good compromise here. ... I think we've been able to relieve their concerns with what we've presented to them," Panetta continued. "But we're going to continue to work with them. The good thing is that our ability to deploy these forces will certainly help us with regards to our whole rebalancing to the Asia-Pacific region."

Recent accidents involving an MV-22 and a CV-22 aircraft raised concerns about the fleet upgrade by the governor of Okinawa, Pentagon Press Secretary George Little said June 20. Senior Defense Department officials briefed a Japanese delegation on the incidents at the Pentagon June 22.

On April 11 in Morocco, an MV-22 crashed while taking part in a bilateral military exercise. There were no casualties. Flight data indicates the aircraft performed as expected. In a statement, DOD officials said the U.S. Marine Corps determined the aircraft did not suffer a mechanical or material failure and there were no problems with the aircraft's safety.

Earlier this month, a CV-22 crashed during a training mission in Navarre, Fla., leaving five crew members injured. A preliminary review uncovered no information that would preclude the aircraft's continued operation, Pentagon officials said.
The Defense Department, including senior U.S. Air Force leaders, stands behind the CV-22's reliability and is convinced the aircraft is safe for operation, officials said in a statement.

The MV-22 Osprey operates with the speed and range of a turboprop, the maneuverability of a helicopter and the ability to carry 24 Marine combat troops. It travels twice as fast and five times farther than previous helicopters.
The Air Force CV-22 Osprey is a special operations variant of the aircraft. It can fly like an airplane and land like a helicopter.

In response to remaining safety concerns, officials said, the MV-22 will not fly in Japan until results of the investigations are presented to the Japanese government in August. During this time, Japan will be the only location worldwide, including the continental United States, where MV-22 flight operations will be suspended, they added.

The MV-22 Osprey has an excellent safety record and has logged more than 115,000 flight hours, the Defense Department statement said. About a third of those flight hours were flown during the last two years, the statement continued, and the Osprey achieved these flight hours performing combat operations, humanitarian assistance, training, and test and evaluation missions.

Basing the Osprey in Okinawa will strengthen the U.S. ability to provide for the defense of Japan, perform humanitarian assistance and disaster relief operations, and fulfill other alliance roles, the Pentagon statement said.

U.S. SECRETARY OF DEFENSE PANETTA ON ASIA-PACIFIC SHIFT

FROM:  AMERICAN FORCES PRESS SERVICES

Panetta Describes U.S. Shift in Asia-Pacific

By Jim Garamone

SINGAPORE, June 1, 2012 - The United States is a Pacific power and will remain engaged in the region, Defense Secretary Leon E. Panetta said during a speech delivered at the 11th Annual Shangri-La Dialogue here.

Panetta explained what America's enduring shift toward the Asia-Pacific means to the region. The speech took place June 2 here. Singapore time is 12 hours ahead of the U.S. East Coast.

The shift has long been forecast. After the fall of the Soviet Union, there were those in the U.S. government who urged a re-focusing of U.S. strategy toward the Pacific. China and India are two of the fastest-growing economies on Earth and the nations of Southeast Asia also grew behind the shield of U.S. presence in the region.

The United States also has deep, lasting alliances with nations in the region including Japan, South Korea, the Philippines, Thailand, Australia and New Zealand.

This progress and shift, however, were interrupted by the attacks of 9-11 and American attention shifted to combating the terrorist menace.

But now the war in Iraq is over and U.S. troop levels are drawing down in Afghanistan. Last year, President Barack Obama approved a strategy shifting toward Asia. The United States has thousands of miles of Pacific coastline and is an integral part of the region.

"We take on this role not as a distant power, but as part of the Pacific family of nations, Panetta said at the conference. "Our goal is to work closely with all the nations of this region to confront common challenges and promote peace, prosperity and security."

Defense policy in the region calls for the U.S. military to expand military-to-military relationships well beyond the traditional treaty allies.

China is, of course, the major player in the region. China has grown to the second-largest economy in the world and is investing in modernizing its military. Panetta wants good relations with China and will travel there later this year to expand those contacts.

The secretary stressed that the U.S. shift toward the region in no way is aimed at China. "Our effort to renew and intensify our involvement in Asia is fully compatible with the development and growth of China," Panetta said. "Indeed, increased U.S. involvement in this region will benefit China as it advances our shared security and prosperity."

The United States is working with many nations in the region to promote regional security. There are threats in the area. Terrorism, piracy, narco-trafficking, human trafficking are just a few of the problems. There are disputes over territory and the United States would like to see all these problems addressed peacefully by all nations.

Panetta praised the Association of Southeast Asian Nations for its "rules-based" regional security architecture. The secretary also said he looks forward to working with defense ministers from around the region.

Discussions and dialogue can help calm the waters in the South China Sea, where several countries in the region have claims in the area. "The U.S. position is clear and consistent. We call for restraint and diplomatic resolution; we oppose provocation, coercion or the use of force," Panetta said. The United States does not take sides on the disputes, the secretary said, and America has made this position clear to all in the region.

The U.S. military will shift its stance as the global situation shifts, the secretary said. Marine ground and aviation units have begun rotational deployments to Australia. The United States and the Philippines are looking at a similar arrangement.

American littoral combat ships will be berthing in Singapore and the number of Navy assets deployed will shift, too. "By 2020, the Navy will reposture its forces from today's roughly 50/50 split between the Atlantic and Pacific to about a 60/40 split between those oceans -- including six aircraft carriers, a majority of our cruisers, destroyers, littoral combat ships and submarines," Panetta said.

The United States will also shift resources to combat new threats of cyberwar and anti-access technologies.

The shift will continue, Panetta said, as leaders from both parties recognize the importance of the region.

"The United States has long been deeply involved in the Asia-Pacific," Panetta said. "Through times of war and peace, under Democratic and Republican leaders, through rancor and comity in Washington, through surplus and debt. We were here then, we are here now and we will be here for the future."

U.S. OFFICIALS REMARKS ON NORTH KOREA TO MEDIA IN TOKYO

FROM:  U.S. STATE DEPARTMENT

Remarks to the Media in Tokyo

Remarks

Glyn Davies
Special Representative for North Korea Policy 

Ministry of Foreign Affairs

Tokyo, Japan

May 24, 2012

AMBASSADOR DAVIES: Hello, everybody. Let me just spend one quick minute giving you a report on what I’ve done today. I’ve had three very good meetings: I met with Shinsuke Sugiyama, Director General Sugiyama, and we had a very good meeting. I also had a chance to pay a call on Vice Foreign Minister Sasae, and Senior Vice Minister Yamaguchi. We talked about all aspects of North Korea. Japan is an indispensable player on the North Korea issue; a key member of the Six-Party Talks; and of course, as everyone knows, we have no closer ally in North Asia than Japan. And so Japan, Korea, and the United States, our relationship – when it comes to all issues of peace and security, and in particular my issue of North Korea, representing the United States Government – our relationship, our conversations are very important to us. So this was a chance for me to follow up my visit to Seoul, South Korea, where we had a trilateral meeting with Japan and the ROK, and second, my visit to Beijing where I met with Chinese officials to talk about the current state of affairs on North Korea policy.

Tomorrow, I will have an opportunity that I look forward to very much to talk to representatives of the families of abductees and some of the family members themselves. And after that, I will return to Washington to report on my activities here in Tokyo, in Beijing, and in Seoul. So thank you very much for coming today, it’s wonderful to see you. And perhaps tomorrow, you may be at some of the ministries when I pay calls on officials. If you have any questions, I’m happy to try to answer them – but otherwise, I’ve got a schedule and I’ve got to run off and go to other things. But any questions you may have, I’m happy to try to answer them.

QUESTION: On behalf of all other reporters, I’m going to ask you a first question. My name is Karube from Kyodo News. With the information you have obtained so far from Beijing and other places, how do you assess the possibility of North Korea taking fresh provocative actions? Ambassador, frankly speaking, do you see that the likelihood is growing?

AMBASSADOR DAVIES: Yes, well, of course, I did not talk to North Korea on this trip. And I think what’s important to stress about this issue is that it is up to North Korea to make decisions about what it does. The signals that we are trying to send to them, the messages that we are sending to them – and we do sometimes communicate with them, in particular through the New York channel – is that it’s important that they think very carefully about the actions that they take, because their actions do have consequences. And as I’ve said before, provocations we take very seriously, along with most of the rest of the world community, and certainly the other members of the Six-Party Talks.
Prior to their launch of a missile on April 13, we were all telling North Korea that it would be provocative and it would be a miscalculation, and we called on them not to go forward with that step. They went ahead and did that. That is unfortunate. That represents a missed opportunity on their part. That, in fact, is a setback, I think, very much, to diplomacy, and made it impossible for us to go forward in our bilateral track as we had begun actually almost a year ago, before our first meeting in July in Washington, followed up in October in Geneva, and then finally in Beijing in February, where we achieved that modest deal. So, that was, we think, a miscalculation. And we are essentially repeating the same message to them now: that it would be a serious miscalculation were they to go ahead with another provocation. So we hope that they don’t do that.

We hope that what they will do instead is concentrate their energy and their efforts on fulfilling their undertakings, their promises that they’ve made for many years, in particular as represented by the September 2005 Joint Statement; that they will take seriously the word of the international community as expressed in a number of United Nations Security Council Resolutions; and instead of devoting resources to prestige projects or vanity projects such as launching missiles, instead they’ll devote their resources to feeding and educating their own people, and they’ll devote their diplomatic energies to opening themselves up to the rest of the world, abiding by their commitments, and finding a way forward with all of us. That’s where we are right now. So I don’t have any particular wisdom or judgment to give you on whether or not it’s more likely or less likely that they will engage in another provocation. We hope they don’t, and we’re listening to what they say. We always will be open to messages from them, and we will simply have to wait to see what direction they go in and draw the appropriate conclusions and take the necessary steps if they do miscalculate again. But we hope that they don’t.
In any event, thank you very much. I really appreciate it. I may see some of you tomorrow. I’ll be in Tokyo overnight and then I have to go back and report to my boss, the Secretary of State, in Washington. It’s been a pleasure to chat with you, and perhaps I’ll see you again.

QUESTION: Briefly, one more: how about the statement two days ago, released by the North that they did not intend nuclear testing. Does this something change your perception about the DPRK’s intention, or simply, how do you analyze this?

AMBASSADOR DAVIES: Well, it’s a difficult statement to analyze, because I think there were several different messages embedded in the statement. Some have said that it may mean that they don’t intend to test a nuclear device; others view it as a warning to the United States. So it’s a little difficult to know. It’s a mixed message, and what we’re looking for is really an end to mixed messages from North Korea, and a beginning of a more positive track with them, based on better decisions from them about the choices they make. And that’s really where we are diplomatically with North Korea. So I don’t have any particular interpretations that I can make to you about that. We study it, we study all the messages. But I think more important than talk are actions. And I think we’re looking for positive actions from them.

Anyway, I’ve got to run. Thank you very much for coming out today, I really appreciate it. All the very best.
QUESTION: How (inaudible) worried about the launching pad after they, Musudan-ri…

AMBASSADOR DAVIES: Well, as I said, I think it would be better if they were to devote their resources to – you heard me say it – feeding and educating their own people, rather than engaging in these kinds of very expensive technological projects. But thank you very much.

JAPAN'S CHILDREN'S DAY

FROM:  U.S. STATE DEPARTMENT
Japan's Children's Day
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
May 4, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Japan as you celebrate Children’s Day this May 5th.
Across Japan we have witnessed the strong bonds of family and friends that have been a guiding light through your recovery from last year’s unprecedented disaster. Americans have been inspired by the bravery and resilience of the Japanese people, and admire your commitment in creating a better future for your children. During this time of rebuilding and renewal, the United States stands with you.

On this important day dedicated to our children and their future, know that the United States is committed to the peace and security of both our nations. We are working to create a tomodachi generation of young people who will be our future leaders. Let us redouble our efforts to strengthening the ties that bind us as we work to build a peaceful and prosperous world for our children.