IOWA COMPANY PLEADS GUILTY TO PARTICIPATING IN READY-MIX

WASHINGTON — An Iowa-based company pleaded guilty today to participating in a price-fixing conspiracy for the sales of ready-mix concrete, the Department of Justice announced.

According to a one-count felony charge filed on June 24, 2011, in U.S. District Court in Sioux City, Iowa, VS Holding Co., which formerly operated as Alliance Concrete Inc., a producer of ready-mix concrete with headquarters in Orange City, Iowa, participated in a conspiracy with another ready-mix concrete company to fix prices for ready-mix concrete sold in the northern district of Iowa. The department said the company participated in the conspiracy beginning at least as early as January 2006 and continuing until as late as January 2008.

Ready-mix concrete is a product comprised of cement, aggregate (sand and gravel), water and other additives. The concrete generally is produced in a concrete plant and is transported by concrete-mixer trucks to work sites, where it is used in various types of construction projects, including buildings and roads.

According to the court documents, Steven VandeBrake, the former president of VS Holding Co., participated in the conspiracy by engaging in discussions and reaching agreements regarding the conspirators' prices for ready-mix concrete sold in the northern district of Iowa. VS Holding Co. then accepted payment for those sales at collusive and noncompetitive prices, the department said.

VS Holding Co. is charged with violating the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today's plea is the result of an ongoing federal antitrust investigation of the ready-mix concrete industry in Iowa and its surrounding states. As a result of the investigation, three individuals have been convicted and sentenced to serve prison time, and, including VS Holding Co., three ready-mix concrete companies have pleaded guilty and are awaiting sentencing.

The investigation is being conducted by the Antitrust Division's Chicago Field Office, the FBI's Sioux City Resident Agency and the Department of Transportation's Office of the Inspector General, with the assistance of the U.S. Attorney's Office in Sioux City. Anyone with information concerning bid rigging, price fixing or territorial allocation related to the ready-mix concrete industry in Iowa and its surrounding states should contact the Antitrust Division's Chicago Field Office at 312-353-7530 or visit justice.gov/atr/contact/newcase.htm.

Public Debt Announces Activity for Securities in the STRIPS Program for June 2011

The Bureau of the Public Debt announced activity for the month of June 2011, of securities within the Separate Trading of Registered Interest and Principal of Securities program (STRIPS*).

Dollar Amounts In Thousands Principal Outstanding (Eligible Securities) $7,794,632,591

Held in Unstripped Form $7,590,309,222

Held in Stripped Form $204,323,369

Reconstituted in June $36,445,699

The accompanying table gives a breakdown of STRIPS activity by individual loan description. The balances in this table are subject to audit and subsequent revision. These monthly figures are included in Table V of the Monthly Statement of The Public Debt, entitled "Holdings of Treasury Securities in Stripped Form."

The STRIPS Table along with the new Monthly Statement of the Public Debt is available on Public Debt's Internet site at: www.treasurydirect.gov. A wide range of information about the public debt and Treasury securities is also available at the site.

_________________________

*About STRIPS:

•STRIPS is the acronym for Separate Trading of Registered Interest and Principal of Securities.

•STRIPS let investors hold and trade the individual interest and principal components of eligible Treasury notes and bonds as separate securities.

•STRIPS are popular with investors who want to receive a known payment on a specific future date.

•STRIPS are called “zero-coupon” securities. The only time an investor receives a payment from STRIPS is at maturity.

•STRIPS are not issued or sold directly to investors. STRIPS can be purchased and held only through financial institutions and government securities brokers and dealers.

When a Treasury fixed-principal note or bond or a Treasury inflation-protected security (TIPS) is stripped through the commercial book-entry system each interest payment and the principal payment becomes a separate zero-coupon security. Each component has its own identifying number and can be held or traded separately.

For example, a Treasury note with 10 years remaining to maturity consists of a single principal payment, due at maturity, and 20 interest payments, one every six months over a 10 year duration. When this note is converted to STRIPS form, each of the 20 interest payments and the principal payment becomes a separate security.

JPMorgan Chase Admits to Anticompetitive Conduct by Former Employees in the Municipal Bond Investments Market and Agrees to Pay $228 Million to Federal and State Agencies

WASHINGTON – JPMorgan Chase & Co. has entered into an agreement with the Department of Justice to resolve the company’s role in anticompetitive activity in the municipal bond investments market and has agreed to pay a total of $228 million in restitution, penalties and disgorgement to federal and state agencies, the Department of Justice announced today.

As part of its agreement with the department, JPMorgan admits, acknowledges and accepts responsibility for illegal, anticompetitive conduct by its former employees.   According to the non-prosecution agreement, from 2001 through 2006, certain former JPMorgan employees at its municipal derivatives desk, entered into unlawful agreements to manipulate the bidding process and rig bids on municipal investment and related contracts. These contracts were used to invest the proceeds of, or manage the risks associated with, bond issuances by municipalities and other public entities.

“By entering into illegal agreements to rig bids on certain investment contracts, JPMorgan and its former executives deprived municipalities of the competitive process to which they were entitled,” said Assistant Attorney General Christine Varney in charge of the Department of Justice’s Antitrust Division.   “Today’s agreements ensure that JPMorgan will pay restitution to the municipalities harmed by its anticompetitive conduct, disgorge its profits from the illegal activity and pay penalties for the criminal conduct.   We are committed to rooting out anticompetitive activity in the financial markets and our investigation into the municipal bond derivatives industry, which has led to criminal charges against 18 former executives, remains active and ongoing.”

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

The Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (Fed) and 25 state attorneys general also entered into agreements with JPMorgan requiring the payment of penalties, disgorgement of profits from the illegal conduct and payment of restitution to the victims harmed by the manipulation and bid rigging by JPMorgan employees, as well as other remedial measures.

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

In May 2011, UBS AG agreed to pay a total of $160 million in restitution, penalties and disgorgement to federal and state agencies for its participation in anticompetitive conduct in the municipal bond derivatives market.  

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

The Antitrust Division, SEC, IRS, FBI, state attorneys general, OCC and Fed are members of the Financial Fraud Enforcement Task Force.   President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.   The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.   For more information about the task force, visit stopfraud.gov.

Federal Reserve releases report on college credit card agreements

The Federal Reserve Board on Thursday released a report that contains 2010 payment and account information about more than 1,000 agreements between institutions of higher education or affiliated organizations and credit card issuers. The Board also updated an online database that includes the full text of each agreement that was in effect during 2010.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) requires issuers to submit to the Board annually their agreements with educational institutions or affiliated organizations, such as alumni associations. For each agreement, issuers are also required to submit information regarding payments made to the institution or organization and the number of accounts opened under the agreement.

An online database, www.FederalReserve.gov/CollegeCreditCardAgreements, provides the complete text of each agreement and the payment and accounts information submitted by issuers. Users may also search for agreements by card issuer, by educational institution or organization, or by the city or state in which the institution or organization is located.

Former Bakersfield Credit Union Employee Sentenced to 12 Months’ Imprisonment for Stealing a Quarter of a Million Dollars

FRESNO, CA—United States Attorney Benjamin B. Wagner announced that today United States District Judge Anthony W. Ishii sentenced Carolyn Jean Jones, 45, of Bakersfield, to 12 months in prison for stealing approximately a quarter of a million dollars from her employer, Kern Schools Federal Credit Union. Judge Ishii, in sentencing the defendant, also imposed restitution in the amount of $245,000 and 36 months of supervised release.

In denying the defendant’s request for probation, Judge Ishii noted, “This is a serious offense and the message must be sent that those who steal these amounts from their employers will go to prison.”

This case is the product of an extensive investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorney Stanley A. Boone.

According to court documents, Jones worked for Kern Schools Federal Credit Union as a Servicing Representative in the Home Loan Processing Center. From March 2003 and to November 2003, she embezzled over $250,000 by opening up fraudulent lines of credit using pre-existing customers’ information and diverting the monies from those lines of credit into accounts she controlled.

Treasury Kicks Off Billions Of Dollars In Main Street Lending Through The Small Business Lending Fund

Community Banks Receive Funding to Help Small Businesses Access Capital,

Create New Jobs 

WASHINGTON – Today, the U.S. Department of the Treasury announced that six community banks received a total of $123 million as part of the first wave of capital provided by the Small Business Lending Fund (SBLF). The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.          

“Expanding access to credit for small businesses will provide a powerful spark for growth and job creation,” said Treasury Secretary Tim Geithner. “These funds will help ensure that more Main Street entrepreneurs have the opportunity to expand their businesses, invest in their local communities, and create new jobs.” 

Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.

The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so they can expand and create jobs.

The SBLF is one part of the Obama Administration’s comprehensive agenda to help small businesses access the capital they need to invest and hire. The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers.  A total of 54 states and territories applied to take part in the SSBCI and 14 states have already had their applications approved for $488 million in SSBCI funding. 

The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire. 

The full list of community banks that received funding through the first wave of SBLF capital includes the following:

•Community Trust Financial Corporation (Ruston, Louisiana) – $48.3 million

•Level One Bancorp, Inc (Farmington Hills, Michigan) – $11.3 million

•Pioneer Bank, SSB (Drippings Springs, Texas) – $3.0 million

•ServisFirst Bancshares Inc. (Birmingham, Alabama) – $40.0 million

•U&I Financial Corp (Lynnwood, Washington) – $5.5 million

•Virginia Heritage Bank (Fairfax, Virginia) – $15.3 million

Tom Broughton, President and CEO of ServisFirst Bancshares, Inc. said: "This lending fund program will enable us to continue to grow our small business loan portfolio and assist in the economic recovery in our markets.”  

Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead. For more details on the SBLF program, please visit, link and http://www.treasury.gov/resource-center/sb-programs/DocumentsSBLFTransactions/SBLF%20Transactions%20Report%20-%20THRU%2007062011.pdf

DOJ, FTC ANNOUNCE CHANGES TO STREAMLINE THE PREMERGER NOTIFICATION FORM

Revisions Are Part of Ongoing Regulatory Review Efforts to Ensure Rules Are Effective and Not Unduly Burdensome

WASHINGTON — Following a public comment period, the Department of Justice and the Federal Trade Commission (FTC) have made changes to reduce the filing burden and streamline the form parties must file when seeking antitrust clearance of proposed mergers and acquisitions under the Hart-Scott-Rodino (HSR) Act and the Premerger Notification Rules.

The revisions are part of ongoing efforts by the department and the FTC to review their regulations, ensure that the rules are necessary and up-to-date, and eliminate unnecessary or potentially overly burdensome reporting requirements for business. The changes will make the HSR form easier to complete, reduce the burden for most filers and make the premerger notification review program more effective for both agencies.

The revised HSR form deletes several categories of information that over time have proven unnecessary in a preliminary merger review. For example, HSR filers will no longer be required to provide copies of documents – whether in hard copy or via electronic link – filed with the Securities and Exchange Commission, report economic code “base year” data or give a detailed breakdown of all the voting securities to be acquired. The new form also will require filers to provide the department and the FTC with narrowly focused additional documents that will help expedite the merger review process.

The revised form changes certain kinds of required reporting, such as revenue information by the North American Industry Classification System (NAICS) code, and the identity of holders and holdings of the entities making a filing. In addition, new concepts are introduced that are designed to expedite the antitrust review, including reporting information about “associates” of the acquiring person. Changes also include minor revisions to the HSR Rules to address omissions from the 2005 Rule changes involving unincorporated entities.

The Revision Process

Last August the department and the FTC sought public comments on the proposed changes. The agencies worked together to modify the original proposal in response to these comments to clarify the proposed amendments and to ensure that they accurately reflect both agencies’ interests in streamlining the HSR form. This will reduce burdens on businesses while still enabling the department and the FTC to obtain the information and documents they need in their merger review process.