CHICAGO - July 16, 2012. Governor Pat Quinn today took action on the following bill:

 

Bill No.: HB 4314

An Act Concerning: Regulation

Extends the date by which a business must certify job relocation to the Department of Commerce and Economic Opportunity in order to be exempted from certain utility taxes.

Action: Signed

Effective Date: Immediately

 

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UI students named to President's List for spring 2012

Some 280 undergraduate students at the University of Iowa were named to the President's List for the 2012 spring semester.  Included in that list is Carissa Marie Dewaele, a Liberal Arts and Sciences major, from Moline.

The President's List was established in the fall of 1983 to recognize academic excellence. In order to be included on the list, a student must have a minimum 4.0 grade point average (4.0 is an A) in all academic subjects for the preceding two semesters, with a total of at least 12 semester hours of credit per semester during that period.

UI students named to Dean's List for spring 2012

Some 3,900 undergraduate students at the University of Iowa were named to the Dean's List for the 2012 spring semester. Local students who made this list are as follows:

from Moline, IL:

  • Melissa Diane Dawkins, Liberal Arts and Sciences
  • Carissa Marie Dewaele, Liberal Arts and Sciences
  • Ross Parker Elliott, Liberal Arts and Sciences
  • William Exon Elliott, Liberal Arts and Sciences
  • Samantha Nicole McCarthy, Liberal Arts and Sciences
  • Alana Christine McGinnis, Nursing
  • Mary Tedford McLaughlin, Liberal Arts and Sciences


from Rock Island, IL

  • Ashley Michelle Colman, Liberal Arts and Sciences
  • Casey Patrick Cunningham, Business
  • Kevin Robert Johnson, Engineering
  • Nick Henry Neppl, Liberal Arts and Sciences
  • Christina Joanne Richmond, Liberal Arts and Sciences
  • Brittney Janae Ross, Nursing

The guidelines for inclusion on the list are as follows:

Undergraduate students in the College of Liberal Arts and Sciences, the College of Engineering, and the Tippie College of Business who achieve a grade point average of 3.50 or higher on 12 semester hours or more of UI graded course work during a given semester or summer session and who have no semester hours of I (incomplete) or O (no grade reported) during the same semester are recognized by inclusion on the Dean's List for that semester.

Undergraduate students in the Roy J. and Lucille A. Carver College of Medicine may qualify for the Dean's List with fewer than 12 semester hours of graded credit if deemed appropriate by the college.

Beginning fall 2011, College of Nursing students participating in clinical courses must have a total of 12 semester hours of earned credit, with 8 semester hours of graded credit with a grade point average of 3.50 or higher.

MADISON - Roughly 6,000 students participated in the University of Wisconsin-Madison's spring commencement ceremonies May 18-20.

Former Yahoo! CEO and UW alum Carol Bartz delivered the charge to graduates at commencement ceremonies held at the Kohl Center.

For more information about UW-Madison commencement, visit http://commencement.wisc.edu .
Here is a list of the degree recipients from your circulation area:

From Bettendorf IA:

 

  • Paul Michael Latarte, Master of Business Administration, Business: General Management
  • Maria Elena Ontiveros, Bachelor of Science, Chinese, International Studies
  • Kathrine Alice Rogers, Master of Arts-Library and Information Studies, Library and Information Studies


from Davenport IA

  • Jillian Rae Flahaven, Master of Arts-Library and Information Studies, Library and Information Studies
  • Meghan Elizabeth Khoury, Bachelor of Science-Consumer Affairs, Consumer Affairs


from Moline IL

  • Brennan Lynn Price, Bachelor of Science-Natural Sciences with Honors, Wildlife Ecology

 

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Health Law "Taxes" the IRS

by U.S. Senator Chuck Grassley

The highest court in the land issued a landmark decision just days before the United States celebrated its 236th anniversary declaring independence from a tax-happy monarchy.  I respect the Supreme Court, but the colonial patriots who rallied against "taxation without representation" and blazed the trail for liberty, freedom and the pursuit of happiness must have rolled over in their graves on the eve of Independence Day 2012.

The 5-4 ruling upholding the 2010 health care law essentially gives Congress a license to use its taxing authority to regulate and direct the public in infinite scenarios as a means to an end.  Writing for the majority, Chief Justice Roberts threaded a legal needle, massaging the federal law to solve a Constitutional conundrum.

As the Chief Justice wrote in his 59-page opinion, "...the requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax."  Using this logic and Congress' track record for inflating the tax code, it is undoubtedly reasonable that the long arm of the law will be reaching deeper into the public's pocketbooks to steer and regulate citizens' behavior.

Notwithstanding the considerable issues of individual liberty, freedom of religion and free enterprise, the ruling triggers all kinds of administrative nightmares.  By any measure, the Internal Revenue Service already has its hands full administering an exceedingly complex federal tax code.

The IRS handles over 145 million individual tax returns annually and its workforce is under increasing pressure to thwart identity theft, close the tax gap, and balance customer service with efforts to track down tax cheats.

The IRS has enough on its plate to properly and effectively carry out its primary mission:  enforcement of the nation's revenue laws.  That's why during Senate debate on the health care law I raised concerns about giving the IRS more responsibility than it could chew.

Just consider a recent report that reveals a surge in identity theft (450,000 cases) and high-dollar refundable credits fraud.  The IRS faced unprecedented backlogs during the past tax season as the agency worked to keep up with the jump in fraudulent schemes.  Its fraud detection system identified more than one million returns as potentially fraudulent.

As a member of the tax-writing Senate Finance Committee, I have worked to try to make the IRS an accountable tax collection agency.  From championing taxpayer service to strengthening transparency through my advocacy of whistleblowers and the independent taxpayer advocate, I have worked through legislative and oversight channels to help the IRS better do its job for the honest taxpaying public.  The big spenders in Washington tirelessly seek to increase the IRS budget, angling for billion dollar increases.  The tiresome argument undoubtedly will be re-charged now that the IRS has been charged with administering a slew of new tax laws included in the 2010 health care law, including the individual health insurance mandate, the employer free-rider penalty, the premium subsidy for low-income individuals and the small business tax credits.

Consider the "unprecedented" backlog this tax season as just the tip of the iceberg.  Imagine the dysfunction once the IRS starts to sort through millions of returns claiming refundable insurance premium tax credits, verifying income information for the new government insurance exchanges, calculating and collecting excise taxes and assessing the individual mandate tax.

Speaking from three decades of experience as a taxpayer watchdog, my crusade to root out waste, fraud and abuse tells me the IRS hasn't seen anything yet.

Assigning the administration of social welfare programs to IRS is misguided policy.  Unless, of course, centralizing health care, growing new layers of government and putting federal bureaucrats in charge of one-fifth of the nation's economy are underlying goals of 2010 health care law.  The partisan overhaul was an overreach that missed an opportunity to enact important reforms to the health care system that have broad-based support.

The IRS certainly has its work cut out to try and connect the dots and collect the mandate "tax," distribute premium subsidies, administer health insurance coverage and keep on top of its core mission of collecting taxes.

Voters who disagree with the Supreme Court's ruling need to take Justice Roberts' advice. He noted the nine justices on the court "possess neither the expertise nor the prerogative to make policy judgments.  Those decisions are entrusted to our Nation's elected leaders, who can be thrown out of office if the people disagree with them.  It is not our job to protect the people from the consequences of their political choices."

Justice Roberts essentially pitched the ball back to the court of public opinion for the electorate to decide in November if the Supreme Court hit a home run or struck out by upholding the health care law.

Monday, July 16, 2012

with U.S. Senator Chuck Grassley

Q:        How significant is the burden of federal regulations on economic activity?

A:        According to a recent Gallup survey, small-business owners in the United States are most likely to say that complying with government regulations is the biggest problem facing them today.  Recently the Small Business Administration estimated the federal regulatory burden has reached $1.75 trillion a year.  That's just the cost of existing regulations.  Uncertainty about what new regulations could be issued tomorrow also makes it difficult to expand and hire more workers.  Since 70 percent of new jobs are created by small business, reducing federal red tape and providing a more transparent, accountable regulatory process should be a top priority for creating an environment to help private-sector employers create jobs.

Q:        What can be done to reduce the burden federal regulations put on job creation?

A:        Washington needs to stay focused on job-generating reforms, including relief from the negative impact of the government's heavy hand.

In July, I introduced legislation to try to stop a litigation process known as "sue-and-settle" from being used to quash meaningful public participation in the rulemaking process of federal regulators.  This regulatory abuse happens when federal agencies and special interest groups enter into consent decrees or settlement agreements governing the creation of regulations.  Agreements are reached almost entirely outside the public process.  Abuse is particularly prevalent when career and political employees at federal agencies share the agenda of the special interest group suing the agency.  The lawsuit becomes an opportunity to implement their shared goals, and the agency is inoculated from accountability by the existence of a court order.  The result is a degrading of the transparency and accountability measures built into the federal rulemaking process.  Sue-and-settle litigation makes traditional notice-and-comment periods a meaningless formality.  My Sunshine for Regulatory Decrees and Settlements Act works to establish transparency, safe-guard public notice and comment, and make consent decrees subject to modification.  The legislation is a direct response to the use of these practices that manipulate and distort America's system of lawmaking and judicial review.

I'm also a cosponsor of the Unfunded Mandates Accountability Act, which would require federal agencies to assess the potential specific effects of new regulations on job creation or job loss.  This reform would require consideration of market-based and non-government alternatives to regulations.  It would make federal agencies choose the least burdensome regulatory option that achieves the policy goal set out by Congress.  It also would extend the Unfunded Mandate Reform Act of 1995 to independent federal agencies outside of the cabinet-level departments of the federal government.  It would permit federal courts to review an agency's economic impact analysis under the 1995 law.

Separately, the House of Representatives already has passed several needed reforms to the regulatory process.  This includes the Regulations from the Executive In Need of Scrutiny Act - or REINS Act - which I've cosponsored in the Senate.  The legislation would require the most costly federal regulations to be passed by Congress and signed into law by the President before they take effect so the American people have someone to hold accountable for the government regulations that increasingly affect their lives.  It's time for the Senate to do the same and for the President to roll up his sleeves, as well.

I hear it from Iowans at the grass roots, and surveys and studies deliver the same message:  The government needs to remove barriers to job creation rather than erect new ones.

Monday, July 16, 2012

Davenport, IOWA (July 2012) The Figge Art Museum's upcoming exhibition, NASA | ART: 50 Years of Exploration, features a companion display of spaceflight instruments and models designed and built at the Department of Physics and Astronomy in the University of Iowa College of Liberal Arts and Sciences.

The department led investigations of the upper atmosphere and magnetosphere under the direction of James Van Allen, and UI scientists since have built instruments flown on more than 60 space missions. Faculty members Mary Hall Reno and Kathy Kurth, along with UI Libraries Special Collections and Archives, were eager to help coordinate the display. "These historic instruments aren't normally available for people to walk in and view," notes Kurth. "We're grateful for the chance to make them accessible to the public."

"We're always trying to find ways to collaborate with other institutions," says Rima Girnius, associate curator for the Figge. "And since the University of Iowa has always been at the forefront of space research, we couldn't pass up this opportunity."

Alongside 72 paintings, drawings, photographs, and sculptures by such artists as Annie Leibovitz, Norman Rockwell, Andy Warhol, and Jamie Wyeth, visitors to the museum can view 11 spaceflight instruments associated with the missions referenced by the art.

The UI instruments include a spare Rockoon (a rocket-borne instrument launched by Van Allen in 1953); a spare of the UI instrument flown on the first successful U.S. satellite, Explorer 1; a spare of the UI-built Hawkeye satellite; and models of the currently operating Juno and Cassini spacecraft.

Exhibiting the spaceflight instruments alongside the artwork they made possible reinforces, says Girnius, "the connection between science and art." The exhibition will also feature a music production by the Kronos Quartet based on sounds of space gathered by Don Gurnett, UI professor of physics and astronomy.

The exhibitions will run from July 14 to October 7. For more information and a schedule of accompanying events and activities, visit www.figgeartmuseum.org.

About NASA | ART: 50 Years of Exploration 

In celebration of its 50th anniversary in 2008, NASA collaborated with the Smithsonian Institution Traveling Exhibition Service and the Smithsonian's National Air and Space Museum on the exhibition NASA | ART: 50 Years of Exploration. Drawn from the collections of NASA and the National Air and Space Museum, the exhibition features 72 works of art commissioned by the NASA Art Program. Established soon after the inception of the U.S. space program in 1958, NASA's Art Program provides a unique way to communicate the accomplishments, setbacks, and sheer excitement of space exploration to the public. The selected works span the entire history of NASA and include paintings, drawings, photographs, sculptures, and other media by such artists as Annie Leibovitz, Nam June Paik, Robert Rauschenberg, Norman Rockwell, Andy Warhol, William Wegman, and Jamie Wyeth.

NASA | ART at the Figge Art Museum is generously sponsored by the ALCOA Foundation, John Deere, Genesis Health Systems and Cobham, plc.

NASA | ART was organized by the Smithsonian Institution Traveling Exhibition Service and the National Aeronautics and Space Administration in cooperation with the Smithsonian's National Air and Space Museum. The Smithsonian Community Grant program, funded by MetLife Foundation, is a proud sponsor of "NASA | ART" public programs.

STORY SOURCE: Iowa Now, News from the University of Iowa; Figge Art Museum

Description: Description: Description: Description: rockoon

PHOTO: A spare Rockoon?a rocket-borne instrument carried into the upper atmosphere by a balloon before being launched to higher altitude?is one UI item on display at the Figge Art Museum in Davenport. Courtesy of the UI Department of Physics and Astronomy.

Offers Ongoing Assistance to Affected Farmers and Communities

MT. VERNON, IL - July 16, 2012. Governor Pat Quinn today announced state assistance available to farmers and residents in drought impacted areas after meeting with farmers and viewing crop damage resulting from persistent, widespread drought conditions in Southern Illinois. Joined by Illinois Department of Agriculture Acting Director Bob Flider, Department of Commerce and Economic Opportunity Acting Director David Vaught and Department of Natural Resources Director Marc Miller, the governor called on the U.S. Department of Agriculture (USDA) to grant a disaster designation to a total of 33 Illinois counties, up from the 26 determined eligible for emergency support by the USDA last week.

Through a request to U.S. Secretary of Agriculture Tom Vilsack, Governor Quinn requested that seven additional counties (Bond, Champaign, Greene, Monroe, Morgan, Stephenson and Washington) be declared eligible for emergency USDA support. He also announced a set of four agricultural aid programs offered by the Illinois Finance Authority.

"Agriculture is the backbone of Illinois' economy, and as we've seen today, severe drought conditions are devastating crop production throughout the state," Governor Quinn said. "As this drought continues, we are committed to using all the tools we have to help impacted farmers and communities bounce back."

Governor Quinn's letter to Secretary Vilsack notes that the seven additional counties have demonstrated crop reduction losses of 30 percent or more, which is the USDA threshold for triggering disaster relief. In addition, Governor Quinn called for the federal Congress to finish its work on the Farm Bill which includes assistance for crops and livestock that will help Illinois farmers.

"We will continue to identify every resource possible for producers who have been impacted by this drought," IDOA Acting Director Bob Flider said.  "We are working closely with the agricultural community of Illinois and the USDA to continually evaluate conditions throughout the state."

Farmers in USDA disaster-designated areas can seek assistance from the Farm Service Agency (FSA), including emergency loans. Those in eligible counties have eight months from the date of the declaration to apply for assistance.

In addition to the USDA relief, Governor Quinn announced that the Illinois Finance Authority (IFA) will partner with local banks to activate four programs statewide to accelerate support to eligible farmers:

·         Agricultural Restructuring Debt Guarantee Program provides an 85 percent guarantee with a term up to 30 years on a local bank loan up to $500,000 used to consolidate existing debt and spread payments out over a longer period

·         Working Capital Guarantee Program provides an 85 percent guarantee with a commitment up to three years on a local bank loan up to $250,000 used for input costs related to planting and raising agricultural crops

·         Agricultural Loan Participation Program provides IFA purchase of up to $500,000 of a customer's bank loan to reduce interest rate with a loan term up to 10 years

·         Rural Development Loan Program provides loans under a relending program from the U.S. Department of Agriculture-Rural Development from $50,000 to $250,000 for economic development financing in communities with less than 25,000 population

The Governor also launched Drought.Illinois.gov, a web repository for information on drought conditions, disaster declarations and related information. The website includes quick access to resources like the Department of Agriculture's "Illinois Hay Directory" which can help Illinois producers locate hay to feed their livestock. Many pastures have been badly damaged this year, making the Hay Directory especially important. Printed copies of the Hay Directory also are available by calling (217) 782-4925.

Today's announcements build on the recommendations of the Governor's Drought Response Task Force, a group of state, federal and university officials called together last week to report on the conditions of the state's water resources. They will continue to gather, monitor and report on all local and statewide water issues. They will continue to offer recommendations and update Drought.Illinois.gov as weather conditions change.

The 26 counties in Illinois that have received Secretarial Disaster Designation include : Alexander, Clark, Clay, Crawford, Edwards, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jasper, Jefferson, Johnson, Lawrence, Massac, Perry, Pope, Pulaski, Randolph, Richland, Saline, Union, Wabash, Wayne, White and Williamson.

A combination of extremely hot and dry weather in Illinois made the first half of 2012 the sixth driest on record, according to the Illinois State Water Survey.  Statewide rainfall averaged just 12.6 inches for the period of January through June, nearly seven inches below normal.  Every month this year has had above normal temperatures and the statewide average of 52.8 degrees for the past sixth months is the warmest on record.

For more information, please visit Drought.Illinois.gov.

About the Illinois Finance Authority

The Illinois Finance Authority provides expert, hands-on support to help businesses get the capital they need for growth. To support Illinois businesses and the State's economic development agenda, the IFA provides access to low-cost, non-conventional financing, through banks and other sources. IFA secures financing for farms, industries, businesses, local governments, hospitals and other non-profits. The agency is continually seeking new opportunities and invites developers, financiers and community partners to see how IFA can help. Go to www.il-fa.com to learn more.

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Retired superintendent calls dropout epidemic the nation's biggest socio-economic problem

By Ben Velderman
EAGnews.org

GUILFORD, Conn. -  Armand Fusco has dedicated over 50 years of his life to public education, first as a classroom teacher and later as a guidance counselor, a principal, a superintendent and a university professor.


The 80-year-old educator and scholar has seen virtually every educational fad and reform there is, but none has come close to solving what he calls "the most serious socio-economic problem facing the nation" -  school dropouts.

"Reforms intended to improve inner city schools do not address the dropouts because they are considered throwaway children - out of sight, out of mind," Fusco tells EAGnews.org in an email exchange.

The "throwaway" children - many of whom are black males and Latinos - all have one thing in common: they are functionally illiterate, lacking basic reading, writing and math skills. As a result, "they experience academic failure day in and day out," and have no compelling reason to remain in school, Fusco says.

On average, 7,200 kids drop out of school every day, totaling 1.2 million dropouts per year. Over the course of three years, that's a population that surpasses the size of Chicago.

Dropping out of school causes obvious economic hardships for young people. They earn far less than their high school- and college-educated peers, assuming they can even find work.

Low-skilled workers have unemployment rates that are two-to-four times higher than those with higher levels of training, and they also spend more time out of work, writes Dropout Nation editor RiShawn Biddle.

But dropping out of school results in more than lost income; it also leads to lost lives.

School dropouts account for 80 percent of the nation's prison population, which Fusco sums up this way: "If a student can't read, he can't learn, he can't get a job, he can't survive, so he can't stay within the law."

It's a serious problem, but Fusco says only one of the education reforms being proposed and enacted throughout the nation has the potential to solve it: holding back third graders until they acquire adequate math and reading skills.

The research backs him up: students who don't have basic literacy skills by third grade are four times more likely to drop out of high school.

Third grade retention "is the only policy that may have some lasting effect, and it's still in its infancy," Fusco says.

A few states do require students to be proficient in reading before leaving the third grade - most notably Florida and Indiana - but he warns that approach will not succeed unless there are intensive literacy intervention programs for struggling students.

"It should begin the summer following grade three and continue, if need be, by having a minimum of four hours a day devoted to literacy instruction," Fusco says, adding that "interventions could and should begin even earlier."

'Zombie schools'


Fusco has literally written the book on the dropout problem. He released a 500-page tome earlier this year called "School Pushouts: A Plague of Hopelessness Perpetuated by Zombie Schools."

As the title reveals, Fusco blames the dropout problem on "zombie schools" - his term for failing schools - and the adults who allow them to exist.

The former superintendent places much of the blame on ineffective school boards that fail to provide strong leadership and shirk their oversight duties. Weak school boards cede too much control over the operation of the school district to the local teachers unions.

Clauses in teacher contracts constrain school administrators from effectively managing the school by placing limits on class sizes, meeting times, teacher evaluations, teacher assignments, grievance procedures and layoff procedures, among other things.

"The very public institutions intended for student learning have become focused instead on adult employment," he says.

Fusco also blames state departments of education "that tread too lightly on local control," thus allowing weak-kneed school boards to exist.

"(The states) are the ones that have the responsibility and are in control," he says. "There is no one else to blame."

Fusco recoils at the typical union suggestion that parents are ultimately to blame for allowing their children to attend school unprepared to learn. Unions only make that argument to shift responsibility from their members, he says.

"What parents can be blamed for is not supporting what the schools are trying to do academically, not helping enforce discipline, and not getting involved with the school, although many single parents don't have the time to do it," he adds.

'A time bomb exploding '

Fusco spends hours every morning scouring various education blogs and websites for the latest reports and studies concerning school dropouts. The research has led Fusco to break with fellow education reformers over the value of charter schools, vouchers and school choice.

Such options might provide "an immediate escape from the bondage of failing public schools," but only if there is a successful school nearby, he says. Too often, students end up trading a failing school for one that is "less failing."

But he reserves his strongest criticism for reformers who want to expand preschool programs.

"That's probably the most insane reform," he says. "What is absent from the discussion is what happens to children upon leaving preschool. Since this effort is primarily in the inner cities, and since the inner cities have the preponderance of failing schools, the reality is that the preschoolers simply move on to a failing school. That makes no sense.

"What preschool does is to provide many union jobs, and that's really what it's about."

Instead, Fusco advocates policies that are designed to boost reading skills. That list includes teaching literacy in all classes, using online learning programs for intervention purposes, having schools partner with local colleges and universities and, of course, third grade retention.

He notes that the third grade reform "engine has not picked up steam," possibly because holding students back is a blow to the self-image of both the students and their parents.

But research shows that third grade retention only works if it is accompanied with an effective reading intervention strategy. Holding students back simply to give more of the same only results in continued failure, he warns.

Educators also need to revamp the high school experience, since this "is where dropouts occur." He says "improving high schools - what they do and how they do it - could be a significant help in stemming the tide of dropouts."

"Remember what the basic problem is - dropouts are in all respects illiterate and that is why they are failing," Fusco says.

He sums up the urgency of the dropout problem this way: "This is a time bomb exploding economically and socially every twenty-six seconds."

Riverside Theatre Announces September 15th Deadline for Monologue Submissions to Walking the Wire: TMI

Iowa City, IA - Riverside Theatre invites playwrights to submit monologues for performance in Walking the Wire. This annual celebration of original work features monologues of ten minutes or less by both established and emerging playwrights. The focus for this season's monologues is: TMI. Submissions must be emailed as a Word or PDF document and dated by midnight CST September 15, 2012; final selections will be announced on Riverside Theatre's website (www.riversidetheatre.org) on November 1, 2012. The monologues will be performed March 1-10, 2013 at Riverside Theatre.

Submission Guidelines

Riverside Theatre is seeking original monologues with the theme of TMI (too much information): moments of startling revelations...wince-worthy weirdness...and hilarious personal habits (that didn't really need to be shared).

  1. Up to two submissions per author of original, unpublished and unproduced monologues less than ten minutes length (please read it aloud and include the approximate performance time on the first page of your submission; all lengths of up to ten minutes will be considered, with the objective of choosing monologues of varying lengths).
  2. Selection considerations: Monologues should have strong forward action and a clear dramatic event or moment.
  3. Copy requirements: double spaced in a minimum 12 pt. font, and including the playwright's name, mailing address, email address, and phone number.
  4. Simple is best. Since Walking the Wire typically includes 10-12 monologues, it is important that each one require as little production as possible; set-pieces, props or effects needing set-up, strike, or special technical support may disqualify an otherwise excellent submission.
  5. Email submissions (Word or PDF document attachment) must be dated by midnight CST September 15, 2012. Final selections will announced on Riverside Theatre's website, www.riversidetheatre.org on November 1, 2012.
  6. Writers will be credited in all marketing and playbill materials; no royalties will be paid. Walking the Wire will be produced March 1-10, 2013. Playwrights are entitled to two complimentary tickets to any single performance; tickets are not transferable.
  7. Submissions should be emailed to: artistic@riversidetheatre.org

For more information about Riverside Theatre, visit www.riversidetheatre.org.

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Alleged misappropriation of investor funds for twenty years calls into question CFTC's oversight

 

Washington, D.C. - Rep. Bruce Braley (IA-01) today called on the US House Oversight and Government Reform Committee to investigate the Commodities Futures Trading Commission's role in allowing Peregrine Financial Group of Cedar Falls to apparent misappropriate $200 million of investor funds over 20 years in what could be the largest financial fraud in Iowa history.

 

In a letter to committee Chairman Darrell Issa and Ranking Member Elijah Cummings, Braley requested a hearing into Peregrine Financial Group and the CFTC's oversight of commodities trading.  Braley is a member of the House Oversight Committee.

 

"It's shocking to think that Peregrine was defrauding its customers for more than 20 years," Braley said.  "My question is, where were the regulators who should have stopped this long ago and how did Peregrine so easily fool them?

 

"It's the job of regulators to protect farmers, families, and businesses who have invested in futures. I'm greatly concerned that this misappropriation of funds was allowed to continue for so long before it was discovered.  Iowans deserve answers - especially those who were victims of Peregrine's fraud."

 

In court filings, federal prosecutors allege that Russell Wassendorf, Sr., CEO of Peregrine Financial Group, admitted to falsifying bank statements and defrauding customers for 20 years.

 

The U.S. Commodity Futures Trading Commission (CFTC) has said that Peregrine has "used customer funds for purposes other than those intended by its customers." According to CFTC, the money has been misused for years and as many as 1,845 investors are missing their money.

 

The full text of Braley's letter to Issa and Cummings follows.

 

--

 

July 16, 2012

 

The Honorable Darrel Issa                          

Chairman                      

Committee on Oversight and Government Reform                        

B3540-A, Rayburn HOB                           

Washington, DC  20515                         

 

The Honorable Elijah Cummings

Ranking Member

Committee on Oversight and Government Reform

2471 Rayburn HOB

Washington, DC  20515

 

 

Dear Chairman Issa and Ranking Member Cummings:

 

I am writing to bring to your attention the apparent misappropriation of more than $200 million in client funds by Peregrine Financial Group, an Iowa-based futures trading company. According to the U.S. Commodity Futures Trading Commission (CFTC), Peregrine has "used customer funds for purposes other than those intended by its customers."

 

According to a criminal complaint filed by the U.S. Attorney on Friday, Russell Wassendorf, Sr., Founder and CEO of Peregrine Financial Group, admitted that he was defrauding his customers for as long as 20 years.  According to court documents, Peregrine had as many as 1,845 investors - and it is unclear whether their money will ever be recovered.

 

It is the job of regulators to protect farmers, families, and businesses who have invested in futures.  I'm greatly concerned that this misappropriation of funds was allowed to continue so long before being discovered.

 

In the wake of the MF Global debacle and these new allegations at Peregrine Financial Group, I ask that you immediately hold a hearing to look at unanswered questions related to the role of the CFTC in allowing this situation to continue and investigate whether this agency had the proper procedures in place to prevent this type of abuse from happening again. It is absolutely essential that there is investor confidence in our commodity trading system.

 

It is also important that any hearing focus on whether there is a process in place to expedite the recovery of the assets of these investors.

 

Thanks again for your consideration of this request. We owe it to American taxpayers and investors to ensure a secure marketplace where they can trust that their money is protected from fraud.

 

Sincerely,

Bruce L. Braley

Member of Congress

 

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