Corporate Corruption Media Articles

Excerpts of Key Corporate Corruption Media Articles in Major Media

Below are key excerpts of revealing news articles on corporate corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

The [Los Angeles Times] is one of the eight daily newspapers now owned by the creditors who took control of the Tribune Co. after real estate wheeler-dealer Sam Zell drove it into bankruptcy. The Tribune board members whom the creditors selected want to unload the papers in favor of more money-making ventures. Right-wing billionaires Charles and David Koch are looking to buy all eight papers. The Koch boys, whose oil-and-gas-based fortune places them just behind Bill Gates, Warren Buffett and Larry Ellison as the wealthiest Americans, have been among the chief donors to the tea party wing of the Republican Party. Their political funding vehicle, Americans for Prosperity, ranked with casino billionaire Sheldon Adelson among the largest funders of right-wing causes and candidates in 2012. Their purchase offer [comes] complete with a commitment to journalism as a branch of right-wing ideology. The staffs at [the Tribune Co.] papers fear that, once Kochified, the papers would quickly turn into print versions of Fox News. A recent informal poll that one L.A. Times writer conducted of his colleagues showed that almost all planned to exit if the Kochs took control (and that included sportswriters and arts writers). Those who stayed would have to grapple with how to cover politics and elections in which their paper’s owners played a leading role. It’s also unclear who in Los Angeles, one of the nation’s most liberal cities, would actually want to read such a paper, but then the Kochs don’t appear to view this as a money-making venture.

We’re now witnessing what happens when all of the economic gains go to the top. Four years into a so-called recovery and we’re still below recession levels in every important respect except the stock market. A measly 88,000 jobs were created in March, and total employment remains some 3 million below its pre-recession level. Labor-force participation is it’s lowest since 1979. The underlying problem is the vast middle class is running out of money. They can’t borrow more — and shouldn’t, given what happened after the last borrowing binge. Real annual median household income keeps falling. It’s down to $45,018, from $51,144 in 2010. All the gains from the recovery continue to go to the top. Widening inequality is not inevitable. If we wanted to reverse it and restore middle-class prosperity, we could. We could award tax cuts to companies that link the pay of their hourly workers to profits and productivity, and that keep the total pay of their top 5 executives within 20 times the pay of their median worker. And impose higher taxes on companies that don’t. We could raise the minimum wage to half the average wage. We could increase public investment in education, including early-childhood. We could eliminate college loans and allow all students to repay the cost of their higher education with a 10 percent surcharge on the first 10 years of income from full-time employment. And we could pay for all this by adding additional tax brackets at the top and increasing the top marginal tax rate to what it was before 1981 – at least 70 percent.

Note: For deeply revealing reports from reliable major media sources on the collapse of the global economy assisted by speculation and profiteering by financial corporations, click here.

Goldman Sachs paid its chief executive, Lloyd Blankfein, $21m last year – and granted him a further $5m in bonus shares in January. The Wall Street bank handed Blankfein $13.3m (Ł8.7m) in restricted shares and a $5.7m cash bonus on top of his $2m annual salary last year. His total 2012 pay was $9m more than in 2011, and the highest since the $68m he received in 2007, before the financial crisis struck. The payout, disclosed in a filing with the US regulator the Securities and Exchange Commission (SEC), makes Blankfein, 58, the world's best paid banker. Blankfein's top four lieutenants collected a total of $72m in annual pay, bonuses and share options last year. Goldman paid its bankers an average of $400,000 last year, $30,000 more than in 2011. The total pay, bonuses and perks bill to its 32,400 staff came in at $13bn. The payroll figures come after the bank ... reported a near-doubling of full year net profits to $7.5bn. The payouts come despite a senior employee attacking it as "morally bankrupt" and revealing that senior Goldman bankers describe clients as "muppets".

Note: For an excellent four-minute video clip of Sen. Elizabeth Warren questioning government bank regulators and showing without doubt they are protecting the banks rather than consumers, click here. For deeply revealing reports from reliable major media sources on financial corruption, click here.

Europe needs to recapitalise, restructure or shut down its banks as part of a vital clean-up of the industry, International Monetary Fund managing director Christine Lagarde said as she warned that the threat from world’s biggest lenders was “more dangerous than ever”. Speaking in New York ahead of next week’s IMF Spring meeting, Ms Lagarde launched a broadside against the financial services industry for resisting urgent reform. “In too many cases – from the United States in 2008 to Cyprus today – we have seen what happens when a banking sector chooses the quick buck ..., backing a business model that ultimately destabilizes the economy. We simply cannot have pre-crisis banking in a post-crisis world. We need reform, even in the face of intense pushback from an industry sometimes reluctant to abandon lucrative lines of business.” Almost five years since Lehman Brothers collapsed, she claimed: “The 'oversize banking’ model of too-big-to-fail is more dangerous than ever. We must get to the root of the problem with comprehensive and clear regulation.” Regulators have forced banks to increase significantly their loss-absorbing capital buffers since the crisis, but are still working on "resolution" mechanisms that will allow giant lenders to fail without hitting the taxpayer and threatening financial stability. Regulators must also work together, she added, amid evidence that some countries are caving into pressure from the banking lobby.

Note: For deeply revealing reports from reliable major media sources on financial corruption, click here.

All 104 nuclear power reactors now in operation in the United States have a safety problem that cannot be fixed and they should be replaced with newer technology, the former chairman of the Nuclear Regulatory Commission said on [April 8]. Shutting them all down at once is not practical, he said, but he supports phasing them out rather than trying to extend their lives. The position of the former chairman, Gregory B. Jaczko, is not unusual in that various anti-nuclear groups take the same stance. But it is highly unusual for a former head of the nuclear commission to so bluntly criticize an industry whose safety he was previously in charge of ensuring. Dr. Jaczko made his remarks at the Carnegie International Nuclear Policy Conference in Washington in a session about the Fukushima accident. Dr. Jaczko said that many American reactors that had received permission from the nuclear commission to operate for 20 years beyond their initial 40-year licenses probably would not last that long. He also rejected as unfeasible changes proposed by the commission that would allow reactor owners to apply for a second 20-year extension, meaning that some reactors would run for a total of 80 years. Dr. Jaczko resigned as chairman last summer after months of conflict with his four colleagues on the commission. He often voted in the minority on various safety questions, advocated more vigorous safety improvements, and was regarded with deep suspicion by the nuclear industry.

Note: For deeply revealing reports from reliable major media sources on grave risks caused by corruption in the nuclear power industry, click here.

On one covert video, farm workers illegally burn the ankles of Tennessee walking horses with chemicals. Another captures workers in Wyoming punching and kicking pigs and flinging piglets into the air. And at one of the countrys largest egg suppliers, a video shows hens caged alongside rotting bird corpses, while workers burn and snap off the beaks of young chicks. Each video ... drew a swift response: Federal prosecutors in Tennessee charged the horse trainer and other workers, who have pleaded guilty, with violating the Horse Protection Act. Local authorities in Wyoming charged nine farm employees with cruelty to animals. And the egg supplier, which operates in Iowa and other states, lost one of its biggest customers, McDonalds, which said the video played a part in its decision. But a dozen or so state legislatures have had a different reaction: They proposed or enacted bills that would make it illegal to covertly videotape livestock farms, or apply for a job at one without disclosing ties to animal rights groups. They have also drafted measures to require such videos to be given to the authorities almost immediately, which activists say would thwart any meaningful undercover investigation of large factory farms. Critics call them Ag-Gag bills. Some of the legislation appears inspired by the American Legislative Exchange Council, a business advocacy group with hundreds of state representatives from farm states as members. One of the groups model bills, The Animal and Ecological Terrorism Act, prohibits filming or taking pictures on livestock farms to defame the facility or its owner. Violators would be placed on a terrorist registry.

Note: For deeply revealing reports from reliable major media sources on government corruption, click here.

The secret records obtained by ICIJ [International Consortium of Investigative Journalists] lay bare an extraordinary range of people using offshore hideaways. They include ... families of despots, Wall Street swindlers, eastern European and Indonesian billionaires, Russian executives, [and] international arms dealers. The leaks illustrate how offshore financial secrecy has aggressively spread around the globe. The records detail offshore holdings in more than 170 territories; this represents the biggest stockpile of inside information about the offshore system ever obtained by a media organisation. Eighty-six journalists from 46 countries used both hi-tech data crunching and traditional reporting to sift through emails and account ledgers covering nearly 30 years. "Everything is much more geared toward business," David Marchant, publisher of OffshoreAlert, an online journal, said. "If you're dishonest, you can take advantage of that in a bad way." ICIJ's 15-month investigation found that ... the secrecy and lax oversight offered by the offshore world appears to allow fraud, tax-dodging and political corruption to thrive. A study by James S Henry, former chief economist at McKinsey & Company [and a board member of the Tax Justice Network], estimates that wealthy individuals have $21-$32tn tucked away in offshore havens – roughly equivalent to the size of the US and Japanese economies combined.

Note: To learn more about how all of this incredibly revealing data was obtained and processed, click here. For a powerfully revealing documentary showing how huge corporations park profits offshore to avoid taxes, click here.

Even people used to the closeness of the US administration and food giants like Monsanto have been shocked by the latest demonstration of the GM industry's political muscle. Little-noticed in Europe or outside the US, President Barack Obama last week signed off what has become widely known as "the Monsanto Protection Act", technically the Farmer Assurance Provision rider in HR 933: Consolidated and Further Continuing Appropriations Act 2013. According to an array of food and consumer groups, organic farmers, civil liberty and trade unions and others, this hijacks the constitution, sets a legal precedent and puts Monsanto and other biotech companies above the federal courts. It means, they say, that not even the US government can now stop the sale, planting, harvest or distribution of any GM seed, even if it is linked to illness or environmental problems. The backlash has been furious. A Food Democracy Now petition has attracted 250,000 names. The only good news, say the opponents, is that because the "Monsanto Protection Act" was part of the much wider spending bill, it will formally expire in September. The bad news however is that the precedent has been set and it is unlikely that the world's largest seed company and the main driver of the divisive GM technology will ever agree to give up its new legal protection. The company, in effect, now rules.

Note: For deeply revealing reports from reliable major media sources on the harm caused by GMOs, click here.

Millions of internal records have leaked from Britain's offshore financial industry, exposing for the first time the identities of thousands of holders of anonymous wealth from around the world, from presidents to plutocrats, the daughter of a notorious dictator and a British millionaire accused of concealing assets from his ex-wife. The leak of 2m emails and other documents, mainly from the offshore haven of the British Virgin Islands, has the potential to cause a seismic shock worldwide to the booming offshore trade. The naming project may be extremely damaging for confidence among the world's wealthiest people, no longer certain that the size of their fortunes remains hidden from governments and from their neighbours. As well as Britons hiding wealth offshore, an extraordinary array of government officials and rich families across the world are identified, from Canada, the US, India, Pakistan, Indonesia, Iran, China, Thailand and former communist states. The Caribbean micro-state has incorporated more than a million such offshore entities since it began marketing itself worldwide in the 1980s. Owners' true identities are never revealed. Even the island's official financial regulators normally have no idea who is behind them. The British Foreign Office depends on the BVI's company licensing revenue to subsidise this residual outpost of empire, while lawyers and accountants in the City of London benefit from a lucrative trade as intermediaries.

Note: For profiles of a few leading secret account holders, click here. For a powerfully revealing documentary showing how huge corporations park profits offshore to avoid taxes, click here.

The U.N. General Assembly overwhelmingly approved the first international treaty regulating the multibillion-dollar global arms trade [on April 2], after a more than decade-long campaign. The final vote: 154 in favor, 3 against and 23 abstentions. "This is a victory for the world's people," U.N. Secretary-General Ban Ki-moon said. "The Arms Trade Treaty will make it more difficult for deadly weapons to be diverted into the illicit market. ... It will be a powerful new tool in our efforts to prevent grave human rights abuses or violations of international humanitarian law." Never before has there been a treaty regulating the global arms trade, which is estimated to be worth $60 billion. Frank Jannuzi, deputy executive director of Amnesty International USA [said,] "The voices of reason triumphed over skeptics, treaty opponents and dealers in death to establish a revolutionary treaty that constitutes a major step toward keeping assault rifles, rocket-propelled grenades and other weapons out of the hands of despots and warlords who use them to kill and maim civilians, recruit child soldiers and commit other serious abuses." What impact the treaty will actually have remains to be seen. It will take effect 90 days after 50 countries ratify it, and a lot will depend on which ones ratify and which ones don't, and how stringently it is implemented. As for its chances of being ratified by the U.S., the powerful National Rifle Association has vehemently opposed it, and it is likely to face stiff resistance from conservatives in the Senate, where it needs two-thirds to win ratification.

Our government must act to close the loopholes that allow companies and wealthy individuals to get out of paying their taxes - in particular, loopholes allowing them to move profits offshore to avoid taxation. The U.S. PIRG (Public Interest Research Group) ... released a study outlining how in California alone, an estimated $7.1 billion in potential tax revenue for 2011 was lost because companies and individuals shifted profits to subsidiary shell companies in tax havens. Often described as "sunny places for shady people," tax havens aren't usually associated with mundane issues like potholes - or with cuts to programs for seniors; freezes in funding for public education ... or cancellation of emergency services. Yet the PIRG study, which concludes that the United States is losing about $150 billion in tax revenue annually, shows once again how tax havens and shortfalls in government budgets are directly related. Despite the obvious damage to society, shifting profits offshore is, in most cases, perfectly legal. In fact, tax haven use by big companies is so common that a 2008 Government Accountability Office Report found 83 of the Fortune 100 companies in the United States had subsidiaries in offshore tax havens. Just because something is legal does not mean that it is right.

Note: For a powerfully revealing documentary showing how huge corporations park profits offshore to avoid taxes, click here. For deeply revealing reports from reliable major media sources on corporate corruption, click here.

The world's biggest banks won a major victory on [March 29] when a U.S. judge dismissed a "substantial portion" of the claims in private lawsuits accusing them of rigging global benchmark interest rates. The 16 banks had faced claims totaling billions of dollars in the case. The banks include: Bank of America, Citigroup, Credit Suisse, Deutsche Bank, HSBC Holdings, JPMorgan Chase, [and others]. They had been accused by a diverse body of private plaintiffs, ranging from bondholders to the city of Baltimore, of conspiring to manipulate the London Interbank Offered Rate (Libor), a key benchmark at the heart of more than $550 trillion in financial products. In a significant setback for the plaintiffs, U.S. District Judge Naomi Reice Buchwald in Manhattan granted the banks' motion to dismiss federal antitrust claims and partially dismissed the plaintiffs' claims of commodities manipulation. She also dismissed racketeering and state-law claims. Buchwald did allow a portion of the lawsuit to continue that claims the banks' alleged manipulation of Libor harmed traders who bet on interest rates. Small movements in those rates can mean sizable gains or losses for those gambling on which way the rates move. Buchwald's decision may make it more likely that banks will talk settlement with a significant win in their pocket. The decision also could cast doubt on some of the highest analyst projections about potential Libor damages, and quell some concerns that the banks have not reserved enough for litigation expenses.

Note: For deeply revealing reports from reliable major media sources on criminal operations of the financial industry, click here.

According to a new report, most of the 30 companies listed on the Dow Jones industrial average are paying a far lower proportion of their profits in federal taxes - at a time when the Dow is reaching new highs - than they have in past decades. The main reason: not so much those yawning tax loopholes, but the multinationals' ability to stash more of their money overseas, where it's taxed at a lower rate and the feds can't touch it. Hewlett-Packard, according to the analysis, experienced the steepest percentage reduction in federal taxes - 47 percent since 1969. Intel's share of income paid in taxes has fallen by 29.6 percent since 1973, and Cisco Systems by 24.7 percent since 1989. U.S. multinationals ... often pay far less than the standard 35 percent corporate tax rate - a rate many of these companies are pushing to have significantly lowered. In its year-end report, Intel recorded $13 billion in profit - a record - and said its tax rate was approximately 29 percent. In 2010 HP paid $1.75 billion in income taxes on $9.4 billion of pretax income, a tax rate of 18.6 percent. As a share of the nation's GDP, U.S. corporate income tax has fallen by more than half, from 5.5 percent in 1946 to 2.6 percent in 2011.

Note: The statement about corporate income tax falling from 5.5 percent of GDP in 1946 to 2.6 percent in 2011 is quite misleading, making it appear that corporate taxes are a small percentage of total income. It is much more accurate to compare the total annual amount of corporate taxes to individuals' taxes. As this historical tax chart clearly shows, in 1946 corporate income tax receipts were 74% of the amount received from individual income taxes. By 2011, corporate taxes dropped to less than 17% of the amount paid in individual income taxes. That is a huge percentage drop in corporate taxes.

Bipartisan agreement in Washington usually means citizens should hold on to their wallets or get ready for another threat to peace. Beneath all the partisan bickering, bipartisan majorities are solid for a trade policy run by and for multinationals, a health-care system serving insurance and drug companies, an energy policy for Big Oil and King Coal, and finance favoring banks that are too big to fail. Economist James Galbraith calls this the “predator state,” one in which large corporate interests rig the rules to protect their subsidies, tax dodges and monopolies. This isn’t the free market; it’s a rigged market. Wall Street is a classic example. The attorney general announces that some banks are too big to prosecute. Despite what the FBI called an “epidemic of fraud,” not one head of a big bank has gone to jail or paid a major personal fine. Bloomberg News estimated that the subsidy they are provided by being too big to fail adds up to an estimated $83 billion a year. Corporate welfare is, of course, offensive to progressives. But true conservatives are — or should be — offended by corporate welfare as well. Conservative economists Raghuram Rajan and Luigi Zingales argue that it is time to “save capitalism from the capitalists,” urging conservatives to support strong measures to break up monopolies, cartels and the predatory use of political power to distort competition. Here is where left and right meet, not in a bipartisan big-money fix, but in an odd bedfellows campaign to clean out Washington. For that to happen, small businesses and community banks will have to develop an independent voice in our politics.

Note: For deeply revealing reports from reliable major media sources on the collusion between the US government and corrupt financial corporations, click here.

A number of major Bay Area companies were up for what were described as the "Oscars of the investment-relations industry." Sponsored by the trade publication IR Magazine, the event featured a notable award for "best crisis management," and San Ramon's Chevron Corp. was nominated for its handling of the Aug. 6 explosions and fire at the company's refinery in Richmond. Chevron's performance, one might recall, didn't play so well locally, having so far earned $1 million in fines and citations alleging "willful serious" health and safety violations, and the company's own admission last month "that we failed to live up to our own expectations in this incident." Perhaps it was just as well that Chevron, which was not at the event, didn't make it to the winner's circle ... at the palatial Cipriani Club 55 in New York. Few of the thousands of Richmond and other East Bay residents choking their way through black smoke to local hospitals last August would likely have appreciated it. The winner, announced with the opening of an envelope, might have seemed even less likely to the general public: JPMorgan Chase for its management of the $6.2 billion trading loss involving what was known as the "London whale" last year.

Note: For deeply revealing reports from reliable major media sources on corporate corruption, click here.

Whatever the final outcome in the Cyprus crisis ... the island nation will have to maintain fairly draconian controls on the movement of capital in and out of the country. It will mark the end of an era for Cyprus, which has in effect spent the past decade advertising itself as a place where wealthy individuals who want to avoid taxes and scrutiny can safely park their money, no questions asked. But it may also mark at least the beginning of the end for something much bigger: the era when unrestricted movement of capital was taken as a desirable norm around the world. [With] the rise of free-market ideology, the assumption [is] that if financial markets want to move money across borders, there must be a good reason, and bureaucrats shouldn’t stand in their way. But the truth, hard as it may be for ideologues to accept, is that unrestricted movement of capital is looking more and more like a failed experiment. It’s hard to imagine now, but for more than three decades after World War II financial crises of the kind we’ve lately become so familiar with hardly ever happened. Since 1980, however, the roster has been impressive: Mexico, Brazil, Argentina and Chile in 1982. Sweden and Finland in 1991. Mexico again in 1995. Thailand, Malaysia, Indonesia and Korea in 1998. Argentina again in 2002. And, of course, the more recent run of disasters: Iceland, Ireland, Greece, Portugal, Spain, Italy, Cyprus. The best predictor of crisis is large inflows of foreign money: in all but a couple of the cases ... the foundation for crisis was laid by a rush of foreign investors into a country, followed by a sudden rush out.

Note: For deeply revealing reports from reliable major media sources on the collusion between the US government and corrupt financial corporations, click here.

Over the last two years, President Obama and Congress have put the country on track to reduce projected federal budget deficits by nearly $4 trillion. Yet when that process began, in early 2011, only about 12% of Americans in Gallup polls cited federal debt as the nation's most important problem. Two to three times as many cited unemployment and jobs as the biggest challenge facing the country. So why did policymakers focus so intently on the deficit issue? One reason may be that the small minority that saw the deficit as the nation's priority had more clout than the majority that didn't. We recently conducted a survey of top wealth-holders (with an average net worth of $14 million) in the Chicago area, one of the first studies to systematically examine the political attitudes of wealthy Americans. Our research found that the biggest concern of this top 1% of wealth-holders was curbing budget deficits and government spending. When surveyed, they ranked those things as priorities three times as often as they did unemployment — and far more often than any other issue. Our Survey of Economically Successful Americans [found that] two-thirds of the respondents had contributed money (averaging $4,633) in the most recent presidential election, and fully one-fifth of them "bundled" contributions from others. About half recently initiated contact with a U.S. senator or representative, and nearly half (44%) of those contacts concerned matters of relatively narrow economic self-interest rather than broader national concerns. This kind of access to elected officials suggests an outsized influence in Washington.

Note: For deeply revealing reports from reliable major media sources on the collusion between the US government and corrupt financial corporations, click here.

Documents reveal that the National Vaccine Injury Compensation Program (VICP) has paid out nearly $6 million in claims to victims of HPV (Human Papillomavirus) vaccine, including families of two dead. Judicial Watch announced today that it has received documents from the Department of Health and Human Services (HHS) revealing that its VICP has awarded $5,877,710 dollars to 49 victims in claims made against the highly controversial HPV vaccines. To date 200 claims have been filed with VICP, with barely half adjudicated. The documents came in response to a February 28, 2013, Judicial Watch lawsuit against HHS to force the department to comply with a November 1, 2012, Judicial Watch Freedom of Information Act (FOIA) request. From its inception, the use of HPV (human papillomavirus) vaccines for sexually transmitted diseases has been hotly disputed. According to the Annals of Medicine: "At present there are no significant data showing that either Gardasil or Cervarix (GlaxoSmithKline) can prevent any type of cervical cancer since the testing period employed was too short to evaluate long-term benefits of HPV vaccination." "This new information from the government shows that the serious safety concerns about the use of Gardasil have been well-founded," said Judicial Watch President Tom Fitton. "Public health officials should stop pushing Gardasil on children."

Note: For lots more on the risks and dangers of this vaccine being promoted by big pharma, click here.

Europe’s decision to force depositors in Cypriot banks to share in the cost of the latest euro zone bailout has sparked outrage in Cyprus and fears that a run on deposits over the weekend might spread to larger countries at risk like Spain and Italy. Under an emergency deal reached early Saturday in Brussels, a one-time tax of 9.9 percent is to be levied on Cypriot bank deposits of more than 100,000 euros, or $130,000, effective [March 19]. That will hit wealthy depositors — mostly Russians who have put vast sums into Cyprus’s banks in recent years. But smaller deposits will also be taxed, at 6.75 percent, meaning that the banks will be confiscating money directly from retirees and ordinary workers to help pay the tab for the 10 billion euro bailout or $13 billion. Most of the 10 billion euros will go to bail out Cypriot banks, which took a blow when their substantial holdings of Greek government bonds were written down as part of that country’s second bailout. The island’s banks are also laden with loans made to Greek companies and individuals, which have turned sour as Greece endures its fourth year of economic and financial crisis. The "deposit tax", which is expected to raise 5.8 billion euros, was part of a bailout agreement ... among finance ministers from euro countries and representatives of the International Monetary Fund and the European Central Bank. The Cypriot bailout follows those for Greece, Portugal, Ireland and the Spanish banking sector — and is the first where bank depositors will be touched.

Note: What gives anyone the right to seize the deposits of ordinary bank account holders? Is this the first step towards establishing a precedent for governments to seize anything they want from ordinary citizens? For a report indicating that the Cypriot people may not take this attack lying down, click here.

Last month a three-year-long federal prosecution of Blackwater collapsed. The government’s 15-felony indictment—on such charges as conspiring to hide purchases of automatic rifles and other weapons from the Bureau of Alcohol, Tobacco, Firearms, and Explosives—could have led to years of jail time for Blackwater personnel. In the end, however, the government got only misdemeanor guilty pleas by two former executives, each of whom were sentenced to four months of house arrest, three years’ probation, and a fine of $5,000. Prosecutors dropped charges against three other executives named in the suit and abandoned the felony charges altogether. But the most noteworthy thing about the largely failed prosecution wasn’t the outcome. It was the tens of thousands of pages of documents—some declassified—that the litigation left in its wake. These documents illuminate Blackwater’s defense strategy: to defeat the charges it was facing, Blackwater built a case not only that it worked with the CIA—which was already widely known—but that it was in many ways an extension of the agency itself. [CEO Erik] Prince [said] recently, “Blackwater’s work with the CIA began when we provided specialized instructors and facilities that the Agency lacked. In the years that followed, the company became a virtual extension of the CIA because we were asked time and again to carry out dangerous missions, which the Agency either could not or would not do in-house.”

Note: For deeply revealing reports from reliable major media sources on the growing privatization of intelligence agency functions, click here.

Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.