Corporate Corruption News Articles

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About 48 of the more than 1,730 California doctors who received money from pharmaceutical companies over the past 21 months have been the subject of disciplinary action, a database compiled by the investigative news organization ProPublica found. While that represents less than 3 percent of the California doctors who take pharmaceutical money, the fact that drug companies are paying those doctors - some of whom have multiple disciplinary actions - for their expertise calls into question how closely these companies vet the physicians who serve as the spokespeople for their drugs. California doctors have received $28.6 million from top pharmaceutical companies since 2009, with at least three physicians collecting more than $200,000 and 36 others making more than $100,000 for promoting drug firm products. That cash flowing from drug companies to doctors has raised ethical concerns from some observers. "If they're getting as much money from pharmaceutical companies as they do for being a doctor, what are they really? Are they working for a pharmaceutical company, or are they being a doctor?" asked Lisa Bero, a pharmacy professor at UCSF who studies conflicts of interest in medicine and research.

Note: For a detailed analysis of corruption in the pharmaceutical industry by a highly-respected doctor, click here.

In a rare move, the Justice Department on Tuesday announced that it had charged a former vice president and top lawyer for the British drug giant GlaxoSmithKline with making false statements and obstructing a federal investigation into illegal marketing of the antidepressant Wellbutrin for weight loss. "This is absolutely precedent-setting – this is really going to set people's hair on fire," said Douglas B. Farquhar, a Washington lawyer. "This is indicative of the F.D.A. and Justice strategy to go after the very top-ranking managing officials at regulated companies." The indictment accuses the Glaxo official, Lauren C. Stevens of Durham, N.C., of lying to the Food and Drug Administration in 2003, by writing letters, as associate general counsel, denying that doctors speaking at company events had promoted Wellbutrin for uses not approved by the agency. Ms. Stevens "made false statements and withheld documents she recognized as incriminating," including slides the F.D.A. had sought during its investigation, the indictment stated. The company was cooperating fully with a federal investigation into allegations of illegal sales and marketing of Wellbutrin. Last year, it set aside $400 million to resolve the case, which is still pending. Two weeks ago, in an unrelated case, GlaxoSmithKline agreed to pay $750 million to the government to settle civil and criminal complaints that it sold tainted or ineffective products from a large manufacturing facility in Puerto Rico.

Note: Even with fines in the hundreds of millions of dollars assessed to many of the large pharmaceuticals, why isn't more being done? See what one of the top doctors in the US revealed about corruption in health care at this link.

Two of the largest pilots' unions in the nation are urging commercial pilots to rebel against current airport screening rules. In late October, the Transport Security Administration implemented more invasive patdown rules. Travelers and pilots were faced with a new dilemma -- have a revealing, full-body scan or what some are calling an X-rated patdown. Pilots are piping mad over the options, saying the full-body scanners emit dangerous levels of radiation and that the alternative public patdown is disgraceful for a pilot in uniform. Some pilots have said they felt so violated after a patdown, they were unfit to fly. The patdowns, implemented Oct. 29, allow TSA officers to pat down passengers with the front of their hands, instead of the backs of their hands. A security expert who demonstrated the new procedure on a mannequin for ABC News explained the changes. "You go down the body and up to the breast portion," said Charles Slepian of the Foreseeable Risk Analysis Center. "If it's a female passenger, you're going to see if there's anything in the bra." The new patdown protocol could be used at any of the nation's 450 airports on passengers who require additional screening. Tens of thousands of passengers are submitted to patdowns and full-body scanners every day. More than 300 full-body scanners are being used at 65 airports across the country.

Note: And what about the general public having to submit to being groped?

Few ecological disasters have been as confounding as the massive and devastating die-off of the world's honeybees. The phenomenon of Colony Collapse Disorder (CCD) -- in which disoriented honeybees die far from their hives -- has kept scientists, beekeepers, and regulators desperately seeking the cause. The long list of possible suspects has included pests, viruses, fungi, and also pesticides, particularly so-called neonicotinoids, a class of neurotoxins that kills insects by attacking their nervous systems. For years, their leading manufacturer, Bayer Crop Science, a subsidiary of the German pharmaceutical giant Bayer AG (BAYRY), has tangled with regulators and fended off lawsuits from angry beekeepers who allege that the pesticides have disoriented and ultimately killed their bees. A cheer must have gone up at Bayer on Thursday when a front-page New York Times article, under the headline "Scientists and Soldiers Solve a Bee Mystery," described how a newly released study pinpoints a different cause for the die-off: "a fungus tag-teaming with a virus." The Bayer pesticides, however, go unmentioned. What the Times article did not explore -- nor did the study disclose -- was the relationship between the study's lead author, Montana bee researcher Dr. Jerry Bromenshenk, and Bayer Crop Science. In recent years Bromenshenk has received a significant research grant from Bayer to study bee pollination.

Note: Read the full, revealing article to learn how money often corrupts science. For lots more from reliable sources on corporate corruption, click here.

GlaxoSmithKline, the British drug giant, has agreed to pay $750 million to settle criminal and civil complaints that the company for years knowingly sold contaminated baby ointment and an ineffective antidepressant – the latest in a growing number of whistle-blower lawsuits that drug makers have settled with multimillion-dollar fines. Altogether, GlaxoSmithKline sold 20 drugs with questionable safety that were made at a huge plant in Puerto Rico that for years was rife with contamination. Cheryl D. Eckard, the company's quality manager, asserted in her whistle-blower suit that she had warned Glaxo of the problems but the company fired her instead of addressing them. Among the drugs affected were Paxil, an antidepressant; Bactroban, an ointment; Avandia, a troubled diabetes drug; Coreg, a heart drug; and Tagamet, an acid reflux drug. Justice Department officials announced the settlement in a news conference Tuesday afternoon in Boston, saying a $150 million payment to settle criminal charges was the largest such payment ever by a manufacturer of adulterated drugs. The outcome also provides $600 million in civil penalties. The share to the whistle-blower will be $96 million, one of the highest such awards in a health care fraud case.

Note: For key reports from major media sources on corporate corruption and criminality, click here.

"Inside Job," as the movie title implies, sees the 2008 financial meltdown, its causes and ongoing catastrophic consequences, as the work of crooks. Crooks as in members of the financial services industry. Aided and abetted by ... administrations of both political stripes, ratings agencies and regulators, all of whom were committed to an ideology that enabled larceny on a grand scale. The documentary, written, produced and directed by Bay Area high-tech entrepreneur turned filmmaker Charles Ferguson, opened in Bay Area cinemas [on October 22]. Even if you've read through the growing pile of books, congressional hearings and material generated by the Financial Crisis Inquiry Commission, it has plenty to remind you why you are furious, all over again. If further proof is needed, the film effectively demolishes the "who knew?" argument proffered by Goldman Sachs Group CEO Lloyd Blankfein and his peers. And it makes a convincing case that much of the obscenely compensated financial services industry has been rotten to the core for decades, but is yet to be held truly accountable for activities, both immoral and illegal.

Note: For lots more from reliable sources on the criminal practices of the largest financial corporations and regulatory agencies which led to the current economic crisis, click here.

Research universities that accept millions of dollars from oil companies have failed to shield themselves from corporate influence, according to a new study that faults UC Berkeley, UC Davis, Stanford and seven others. Such cozy relationships give energy companies too much control in deciding what research to fund and what faculty should study, says the report from the Center for American Progress, "Big Oil Goes to College". The contracts ... give more control to companies that foot the bill than to researchers, argues the report's author, Jennifer Washburn. "We want to see university research translate into commercial technology, but we don't want the research itself to be directed by individual corporations," she told The Chronicle. "They shouldn't turn California's flagship universities into the research arm of a private corporation." The report found that industry control over research is "poorly defined" in UC Davis' long-term contract with Chevron Technology Ventures. It says industry shares control with faculty at UC Berkeley, and control is fully corporate at Stanford. The report also says none of the three California contracts "requires peer review when selecting faculty research projects."

Note: For lots more from major media sources on corporate corruption, click here.

Doctors and patients are being misled about the effectiveness of some drugs because negative trial results are not published, experts have warned. Writing in the British Medical Journal, they say that pharmaceutical companies should be forced to publish all data, not just positive findings. The German team give the example of the antidepressant reboxetine, saying publications have failed to show the drug in a true light. Reboxetine (Edronax), made by Pfizer, is used in many European countries, including the UK. But its rejection by US drug regulators raised doubts about its effectiveness, and led some to hunt for missing data. This is not the first time a large drug company has come under fire about its published drug trial data. Pharmaceutical giant GlaxoSmithKline (GSK) was criticised for failing to raise the alarm on the risk of suicidal behaviour associated with its antidepressant Seroxat. GSK has also been forced to defend itself over allegations about hiding negative data regarding another of its drugs, Avandia, which is used to treat diabetes. "Our findings underline the urgent need for mandatory publication of trial data," [the researchers] say in the BMJ. They warn that the lack of all information means policy makers are unable to make informed decisions. In the US, it is already a requirement that all data - both positive and negative - is published.

Note: For a powerful summary of government/corporate corruption in the pharmaceutical industry by a respected former editor of a major medical journal, click here.

For months, companies have been sitting on the sidelines with record piles of cash. Now they're starting to deploy some of that money - not to hire workers or build factories, but to prop up their share prices. Sitting on these unprecedented levels of cash, U.S. companies are buying back their own stock in droves. So far this year, firms have announced they will purchase $273 billion of their own shares, more than five times as much compared with this time last year, according to Birinyi Associates, a stock market research firm. But the rise in buybacks signals that many companies [do not plan to] spend their cash on the job-generating activities that could produce economic growth. "They don't know what they want to do with all the cash they're sitting on," said Zachary Karabell, president of RiverTwice Research. Historically low interest rates are also prompting some companies to borrow to repurchase shares. Microsoft, for instance, borrowed $4.75 billion last month by issuing new bonds at rock-bottom interest rates and announced it would use some of that money to buy back shares. The company already has nearly $37 billion in cash. A share buyback is a quick way to make a stock more attractive to Wall Street. It improves a closely watched metric known as earnings per share, which divides a company's profit by the total number of shares on the market. Such a move can produce a sudden burst of interest in a stock, improving its price.

Note: For lots more from reliable sources on the massive profiteering by corporate recipients of government financial largesse, click here.

Government scientists wanted to tell Americans early on how bad the BP oil spill could get, but the White House denied their request to make the worst-case models public, a report by the staff of the national panel investigating the spill said Wednesday. Although not a final report, it could raise questions over whether the Obama administration tried to minimize the extent of the BP oil spill, the worst man-made environmental disaster in U.S. history. The staff paper said that underestimating the flow rates "undermined public confidence in the federal government's response" by creating the impression that the government was either incompetent or untrustworthy. The paper said that the loss of trust "fuels public fears." In a separate report, the commission's staff concluded that despite the Coast Guard's insistence that it was always responding to the worst-case scenario, the failure to have an accurate flow rate slowed the response and lulled Obama administration officials into a false belief that the spill would be controlled easily. The first report said that the "decision to withhold worst-case discharge figures" may have been made at a high level. It said that in late April or early May, the National Oceanic and Atmospheric Administration "wanted to make public some of its long-term, worst-case discharge models for the Deepwater Horizon spill, and requested approval to do so from the White House's Office of Management and Budget. Staff was told that the Office of Management and Budget denied NOAA's request."

Note: For key reports on government corruption, click here.

Monsanto, the giant of agricultural biotechnology, has been buffeted by setbacks this year that have prompted analysts to question whether its winning streak of creating ever more expensive genetically engineered crops is coming to an end. The latest blow came last week, when early returns from this year’s harvest showed that Monsanto’s newest product, SmartStax corn, which contains eight inserted genes, was providing yields no higher than the company’s less expensive corn, which contains only three foreign genes. Monsanto has already been forced to sharply cut prices on SmartStax and on its newest soybean seeds, called Roundup Ready 2 Yield, as sales fell below projections. Sales of Monsanto’s Roundup, the widely used herbicide, has collapsed this year under an onslaught of low-priced generics made in China. Weeds are growing resistant to Roundup, dimming the future of the entire Roundup Ready crop franchise. And the Justice Department is investigating Monsanto for possible antitrust violations. Until now, Monsanto’s main challenge has come from opponents of genetically modified crops, who have slowed their adoption in Europe and some other regions. Now, however, the skeptics also include farmers and investors who were once in Monsanto’s camp.

Note: For those who are not aware of how Monsanto executives are quite consciously endangering your health, click here.

U.S. companies are rebounding quickly from the recession and posting near-historic profits, the result of aggressively re-tooling their operations to cope with lower revenue and an uncertain outlook. An analysis by The Wall Street Journal found that companies in the Standard & Poor's 500-stock index posted second-quarter profits of $189 billion, up 38% from a year earlier and their sixth-highest quarterly total ever, without adjustment for inflation. For all U.S. companies, the Commerce Department estimates second-quarter after-tax profits rose to an annual rate of $1.208 trillion, up 3.9% from the first quarter and up 26.5% from a year earlier. That annual rate is the highest on record, though it doesn't account for inflation. As a percentage of national income, after-tax profits were the third-highest since 1947, surpassed only by two quarters in 2006, near the peak of the last economic expansion. The data indicate that big companies are recovering from the downturn faster and more strongly than the overall economy, helping send stock prices higher this year. To achieve that performance, companies laid off hundreds of thousands of workers, closed less-profitable units, shifted work to cheaper regions and streamlined processes. Despite the hefty profits, executives aren't expected to boost spending on new employees, products and equipment anytime soon. "We've focused on permanent changes that won't have to be undone as sales improve," said John Riccitiello, chief executive of Electronic Arts.

Note: For highly revealing reports on income inequality, click here.

A Berkshire family say they are devastated at being forced to leave their pet dog in France after his pet passport microchip failed. Matt Roberts and his family returned to Arborfield, near Reading, without their dog Indy because the technology had stopped working. Indy has undergone surgery costing Ł1,000 to remove the chip. It could take up to six months for him to be issued with a new pet passport. Mr Roberts had just finished a two week holiday in the south of France with his wife Dorota and six-month-old daughter Harriet when he tried to return to the UK via Dunkirk. However, when the dogs tried to re-enter the country the scanners could not read Indy's microchip. The family had spent spent Ł400 on pet passports for his two Shih Tzu dogs, Indy and Buzz. Indy will remain in kennels in France unless the manufacturer can confirm that the chip they have removed from him matches the documentation on the pet passport. However, vets have said that the chip has corrupted and will be difficult to read. Mr Roberts may have to apply for a new pet passport for Indy or put the dog into quarantine. He said he was reluctant to do this, and was already spending Ł15 a night to keep his dog in kennels. A Defra spokesman said: "Around 100 pets a year have a failed or missing microchip on arrival to the UK. "In the majority of cases the microchip number can be removed and identified or read by the manufacturer, and the pet eventually allowed to enter."

Note: Another media article shows the same thing happened to a second couple. Explore an excellent website on the risks and dangers of microchipping your pets.

The federal government hired a New Orleans man for $18,000 to appraise whether news stories about its actions in the gulf oil spill were positive or negative for the Obama administration, which was keenly sensitive to comparisons between its response and former President George W. Bush's much-maligned reaction to Hurricane Katrina. The government also spent $10,000 for just over three minutes of video showing a routine offshore rig inspection for news organizations but couldn't say whether any ran the footage. While most of the contracts don't raise alarms, some could provide ammunition for critics of government waste. Among all the contracts, perhaps none is more striking than the Coast Guard's decision to pay $9,000 per month for two months to John Brooks Rice of New Orleans, an on-call worker for the Federal Emergency Management Agency, under a no-bid contract to monitor media coverage from late May through July. Rice told the AP that he compiled print and video news stories and offered his subjective appraisal of the tone of the coverage. "From reading and watching the media I would create reports," he said. "I reported either positive coverage, negative coverage, misinformation coverage."

Note: For lots more from reliable sources on government corruption, click here.

An intelligence analyst named Eitan Arusy [at the district attorney's office in Manhattan] began studying a slim lead. Suspicious money was flowing to and from an Iranian nonprofit. Mr. Arusy's probe, later merged with a Justice Department inquiry, ultimately widened to some of Europe's vaunted banks, helping spark a global inquiry that found they actively evaded U.S. law in aiding sanctioned countries, banks or other enterprises move some $2 billion undetected. Nine banks have been caught up in the probe. These weren't rogue operations. The investigators discovered that the banks ran dedicated units to systematically aid the undetected transfer of money through the U.S. banking system. They did that by removing identifying coding on fund transfers so they could evade automated U.S. bank computer systems designed to spot money flowing from a sanctioned state. The far-reaching inquiry started small. Mr. Arusy arrived at the district attorney's office in 2005 to help ferret out illegal financing tied to the Middle East. Though the office prosecutes everyday crime, it carved out a role infiltrating crimes tied to the city's financial markets and institutions. Its expertise dates to the 1990s, when it led the investigation of Bank of Credit & Commerce International, or BCCI, which collapsed in a fraud and money-laundering scandal.

Note: For a treasure trove of articles from reliable sources revealing the criminality of many major financial corporations, click here.

Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public [on July 23]. Goldman Sachs disclosed the list of companies to the Senate Finance Committee after a threat of subpoena from Sen. Chuck Grassley, R-Ia. Goldman Sachs received $5.55 billion from the government in fall of 2008 as payment for then-worthless securities it held in AIG. Goldman had already hedged its risk that the securities would go bad. It had entered into agreements to spread the risk with the 32 entities named in Friday's report. Overall, Goldman Sachs received a $12.9 billion payout from the government's bailout of AIG, which was at one time the world's largest insurance company. Goldman Sachs also revealed to the Senate Finance Committee that it would have received $2.3 billion if AIG had gone under. Other large financial institutions, such as Citibank, JPMorgan Chase and Morgan Stanley, sold Goldman Sachs protection in the case of AIG's collapse. Those institutions did not have to pay Goldman Sachs after the government stepped in with tax money. Shouldn't Goldman Sachs be expected to collect from those institutions "before they collect the taxpayers' dollars?" Grassley asked. "It's a little bit like a farmer, if you got crop insurance, you shouldn't be getting disaster aid."

Note: For lots more from reliable sources on the Wall Street bailout by taxpayers, click here.

Just when you thought the damage BP could cause was limited to beaches, marshes, oceans, people's livelihoods, birds and marine life, there's more. BP's favorite dispersant Corexit 9500 is being sprayed at the oil gusher on the ocean floor. Corexit is also being air sprayed across hundreds of miles of oil slicks all across the gulf. There have been widespread reports of oil cleanup crews reporting various injuries including respiratory distress, dizziness and headaches. Corexit 9500 is a solvent originally developed by Exxon. Corexit is four times more toxic than oil (oil is toxic at 11 ppm (parts per million), Corexit 9500 at only 2.61ppm). In a report written by Anita George-Ares and James R. Clark for Exxon Biomedical Sciences, Inc. titled "Acute Aquatic Toxicity of Three Corexit Products: An Overview," Corexit 9500 was found to be one of the most toxic dispersal agents ever developed. According to the Clark and George-Ares report, Corexit mixed with the higher gulf coast water temperatures becomes even more toxic. The UK's Marine Management Organization ... banned Corexit ... from a list of approved treatments for oil spills in the U.K. more than a decade ago. The simple question I ask is: If the UK bans Corexit ... why the hell are we using it on American waters?

Despite President Barack Obama's promises of better safeguards for offshore drilling, federal regulators continue to approve plans for oil companies to drill in the Gulf of Mexico with minimal or no environmental analysis. The Department of Interior's Minerals Management Service has signed off on at least five new offshore drilling projects since June 2, when the agency's acting director announced tougher safety regulations for drilling in the Gulf, a McClatchy review of public records has discovered. Three of the projects were approved with waivers exempting them from detailed studies of their environmental impact – the same waiver the MMS granted to BP for the ill-fated well that's been fouling the Gulf with crude for two months. Environmental groups [say] the administration is allowing oil companies to proceed with drilling plans that may be just as flawed as BP's, which concluded that a major spill was "unlikely" and that the company was equipped to manage even the worst-case blowout. "It's just outrageous," said Kieran Suckling, executive director of the Center for Biological Diversity, a conservation organization. "The whole world is screaming and ... they're just continuing to move this stuff through the system."

Note: For abundant reports from reliable sources on government corruption, click here.

Tony Hayward cashed in about a third of his holding in the company one month before a well on the Deepwater Horizon rig burst, causing an environmental disaster. Mr Hayward, whose pay package is Ł4 million a year, then paid off the mortgage on his family's mansion in Kent, which is estimated to be valued at more than Ł1.2 million. His decision ... means he avoided losing more than Ł423,000 when BP's share price plunged after the oil spill began six weeks ago. Since he disposed of 223,288 shares on March 17, the company's share price has fallen by 30 per cent. About Ł40 billion has been wiped off its total value. The spill, which has still not been stemmed, has caused a serious environmental crisis and is estimated to cost BP up to Ł40 billion to clean up. Mr Hayward, whose position is thought to be under threat, risked further fury by continuing plans to pay out a dividend to investors next month.

Images and reports of oil-drenched wildlife that's dead or slowly dying are starting to emerge. At least one cleanup worker alleges that BP is trying to keep such disturbing pictures out of the public eye. CBS News has gut-wrenching video of oil-covered birds in distress, including the brown pelican, Louisiana's state bird, which for many years was on the Endangered Species List. An unidentified cleanup worker took a New York Daily News reporter on a clandestine tour of the hidden wildlife carnage in Louisiana, accusing the BP of keeping the media at bay. "There is a lot of coverup for BP. They specifically informed us that they don't want these pictures of the dead animals. They know the ocean will wipe away most of the evidence. It's important to me that people know the truth about what's going on here," the contractor said. "The things I've seen: They just aren't right. All the life out here is just full of oil. When you see some of the things I've seen, it would make you sick," the contractor said. "No living creature should endure that kind of suffering." More oil-soaked birds arrived at cleaning stations today, as Louisiana officials continued to patrol the marshes and beaches.

Note: For revealing reports from major media sources on government and corporate corruption and collusion, click here and here.

Important Note: Explore our full index to revealing excerpts of key 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.