Corporate Corruption News Articles

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For the last year, whistle-blowers deep inside corporate America have been dishing dirt on their employers under a U.S. Securities and Exchange Commission program that could give them a cut of multimillion-dollar penalties won by financial regulators. A new bounty program has been an intelligence boon to the securities industry regulator, which has struggled to redeem itself after failing to stop Bernard Madoff's epic Ponzi scheme and rein in Wall Street before the 2008 financial crisis. Motivated by cash and the chance to rat out wrongdoers, tipsters are dropping more than names. Whistle-blowers and their attorneys are turning over boxes of documents, copies of emails and even audio recordings of alleged fraud or illegal overseas bribery. "We are getting very, very high-quality information from whistle-blowers," said Sean McKessy, director of the SEC's whistle-blower office. In the program's first year, 2,870 tips — or about eight a day — rolled in as of Aug. 12. And on Tuesday, one of them finally led to the agency's first payout: $50,000 to an informant who alerted regulators to an investment fraud. They declined to specify the case, careful to avoid identifying the whistle-blower. Some say shielding identities could pose a challenge for publicizing the program, but the anonymity probably will yield more information. The flood of new information doesn't necessarily mean the SEC will be more effective. In the case of Madoff, one whistle-blower repeatedly sounded the alarm years before the scheme blew up — to no avail.

Note: For deeply revealing reports from reliable major media sources on the collusion between government and the big banks, click here.

Don Barrett, a Mississippi lawyer, took in hundreds of millions of dollars a decade ago after suing Big Tobacco and winning record settlements from R. J. Reynolds, Philip Morris and other cigarette makers. So did Walter Umphrey, Dewitt M. Lovelace and Stuart and Carol Nelkin. More than a dozen lawyers who took on the tobacco companies have filed 25 cases against industry players like ConAgra Foods, PepsiCo, Heinz, General Mills and Chobani. The suits, filed over the last four months, assert that food makers are misleading consumers and violating federal regulations by wrongly labeling products and ingredients. "[Mislabeling of a product is] a crime - and that makes it a crime to sell it," said Mr. Barrett. "That means these products should be taken off the shelves." Mr. Barrett said his group could seek damages amounting to four years of sales of mislabeled products - which could total many billions of dollars. In recent weeks, the Center for Science in the Public Interest has sued General Mills and McNeil Nutritionals over their claims on Nature Valley and Splenda Essentials products, and warned Welch's it would sue unless the company changed the wording on its juice and fruit snacks. The Federal Trade Commission won settlements from companies like Dannon and Pom Wonderful for claims about their products' health benefits. And PepsiCo and Coca-Cola face lawsuits over claims that their orange juice products are "100% natural."

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Kevin Ferry: There are Libor subpoenas raining down on the New York branches of these foreign banks today. So I think you really have to watch it. The [British Bankers' Association] is now saying they are going to go into ‘overhaul’ mode. So as if we don’t have enough things going on, you’re going to start opening up a Pandora’s Box here in the Libor sector of the market. I think what they’re going to do ... is basically put the old system in a coma, and work to devise something that’s a little bit better, and it’s going to be tricky. Doug Dachille: So what are they going to do with the euro/dollar futures and all the outstanding notion of principal of contracts linked to Libor? I mean is everybody going to convert their Libor interest rate swaps to cost of fund funds or Fed fund basis swaps or some other index? KF: Are you asking me? I’ve asked that question as high as I could ask it and I get blank stares. DD: It’s not clear that every bank has exactly the same Libor exposure, so it’s not clear that that cartel, in setting Libor and manipulating it, actually is as powerful as the cartel that manages oil prices. Yet I don’t hear any outrage of people routinely trading commodity derivatives and commodity futures, as much as I hear the outrage over euro/dollar futures and Libor-based interest rate swaps. Everybody assumes that’s what goes on when you trade commodity futures, but nobody ever really thought that was going on when you were trading euro/dollar futures.

Note: The text above is an excerpt from a CNBC news video. Click on the link above for the full report. For deeply revealing reports from reliable major media sources on corruption in the financial sector, click here.

In a welcome about-face Tuesday morning, Twitter restored the account of journalist Guy Adams, who posted a series of critical comments about NBC's handling of the Olympics. While it's encouraging to hear NBC backed away - even if it required an enormous online backlash - it remains disturbing that Twitter revoked the account in the first place. Let's be perfectly clear: Twitter suspended a user for committing an act of journalism. The mind-boggling move undermines the San Francisco startup's credibility as a supposed advocate of open communications, and whittles away the goodwill of professional and citizen journalists who are the lifeblood of the service. In a series of tweets in recent days, Adams colorfully assailed, among other things, NBC's ridiculous decision to force West Coast viewers to watch the Olympics on a time delay, presumably so the network could charge prime-time advertising rates. It's been an infuriating experience for fans who can't duck the spoilers blasting at them from all quarters of the Internet. Adams, a correspondent for London's Independent newspaper, simply supplied them an appropriate outlet for those frustrations in the tweet that supposedly got his account deactivated.

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

Faulty computer modeling caused the equipment problems that are expected to keep the San Onofre nuclear plant dark through the summer, federal regulators said Monday. The plant has been out of service since Jan. 31, when operators discovered a small leak in one of the thousands of steam generator tubes that carry hot, radioactive water used to create steam to turn turbines that generate electricity. That led to the discovery that other tubes were rubbing against support structures and adjacent tubes, and wearing out more quickly than expected. Eight tubes failed pressure testing, which NRC officials said ... is the first time in the nuclear industry that more than one tube at a plant has failed. The wear is a safety concern because tube ruptures can release radiation. The plant's operator, Southern California Edison; the NRC; and Mitsubishi Heavy Industries, the manufacturer of the steam generators, have been studying the cause and extent of the wear. The NRC has ordered Edison to keep the plant shuttered until it has determined the cause and how to fix it. "This is a significant, serious safety issue," said NRC regional administrator Elmo Collins. "This is a very difficult technical issue, and to be honest, it's not one we've seen before." NRC officials said it appears that simulations by Mitsubishi underpredicted the velocity of steam and water flowing among the tubes by a factor of three or four. The high rate of flow caused the tubes to vibrate and knock against each other, leading to the wear. It was not clear why the computer modeling was so far off.

Note: For lots more on corruption in the nuclear power industry, click here.

Slashing spending while the economy is deeply depressed is a self-defeating strategy, because it just deepens the depression. So why is Britain doing exactly what it shouldn’t? Unlike the governments of, say, Spain or California, the British government can borrow freely, at historically low interest rates. So why is that government sharply reducing investment and eliminating hundreds of thousands of public-sector jobs, rather than waiting until the economy is stronger? The great American economist Irving Fisher explained it all the way back in 1933, summarizing what he called “debt deflation” with the pithy slogan “the more the debtors pay, the more they owe.” Recent events, above all the austerity death spiral in Europe, have dramatically illustrated the truth of Fisher’s insight. So why have so many politicians insisted on pursuing austerity in [the] slump? And why won’t they change course even as experience confirms the lessons of theory and history? When you push “austerians” ... they almost always retreat to assertions along the lines of: “But it’s essential that we shrink the size of the state.” These assertions often go along with claims that the economic crisis itself demonstrates the need to shrink government. So the austerity drive in Britain isn’t really about debt and deficits at all; it’s about using deficit panic as an excuse to dismantle social programs. And this is, of course, exactly the same thing that has been happening in America.

Note: For lots more on the devastating impacts created by the corruption of governments and financial corporations, click here.

Drug maker Novartis is taking legal action in Britain to make state-run hospitals use an eye drug that costs about 700 pounds ($1,130) per shot instead of a cheaper one that costs 60 pounds ($97). In a statement, Novartis said it was calling for a judicial review “as a last resort” because it believed patient safety was being potentially compromised. According to the U.K.’s health watchdog, Novartis’ Lucentis is the only drug recommended to treat the eye problem macular degeneration in the country’s state-run National Health Service hospitals. However, several NHS hospitals have been prescribing the much cheaper Avastin, a cancer drug made by Genentech Inc., a subsidiary of Roche, for the same problem even though it has not been officially approved. A study published in the New England Journal of Medicine last year showed Avastin worked just as well as Lucentis for treating the eye disorder. Lucentis and Avastin act on the same biological protein in the body to spur blood vessel growth. In the U.S., eye doctors have often used tiny amounts of Avastin and billed the government for the cost, rather than buying Lucentis. Patient groups called for an independent analysis to determine which drug should be used.

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Dr. Arnold S. Relman [is] 88; Dr. Marcia Angell, 72. But their voices are as strong as ever. Colleagues for decades, late-life romantic partners, the pair has occasionally, wistfully, been called American medicine’s royal couple. In fact, controversy and some considerably less complimentary labels have dogged them as well. From 1977 to 2000, one or both of them filled top editorial slots at The New England Journal of Medicine as it grew into perhaps the most influential medical publication in the world, with a voice echoing to Wall Street, Washington and beyond. Many of the urgent questions in the accelerating turmoil surrounding health care today were first articulated during their tenure. Or, as Dr. Relman summarized one recent afternoon ..., Dr. Angell nodding in agreement by his side: “I told you so.” Their joint crusade ... is against for-profit medicine, especially its ancillary profit centers of commercial insurance and drug manufacture — in Dr. Relman’s words, “the people who are making a zillion bucks out of the commercial exploitation of medicine.” Some have dismissed the pair as medical Don Quixotes, comically deluded figures tilting at benign features of the landscape. Others consider them first responders in what has become a battle for the soul of American medicine.

Note: For a powerful summary of Dr. Marcia Angell's critique of corruption in the medical industry, click here.

A French court has declared the US biotech giant Monsanto guilty of chemical poisoning of a French farmer, a judgment that could lend weight to other health claims against pesticides. In the first such case heard in court in France, the grain grower Paul Francois, 47, said he suffered neurological problems including memory loss, headaches and stammering after inhaling Monsanto's Lasso weedkiller in 2004. He blames Monsanto for not providing adequate warnings on the product label. "It is a historic decision in so far as it is the first time that a [pesticide] maker is found guilty of such a poisoning," Francois Lafforgue, Francois's lawyer, told Reuters. Francois and other farmers suffering from illness set up an association last year to make a case that their health problems should be linked to their use of crop protection products. The agricultural branch of the French social security system says that since 1996, it has gathered farmers' reports of sickness potentially related to pesticides, with about 200 alerts a year. The Francois case goes back to a period of intensive use of crop-protection chemicals in the European Union. The EU and its member countries have since banned a large number of substances considered dangerous.

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Medicines to treat attention deficit hyperactivity disorder are in such short supply that hundreds of patients complain daily to the Food and Drug Administration (FDA) that they are unable to find a pharmacy with enough pills to fill their prescriptions. The shortages are a result of a troubled partnership between drug manufacturers and the Drug Enforcement Administration (DEA), with companies trying to maximize their profits and drug-enforcement agents trying to minimize abuse by people. Shortages, particularly of cheaper generics, have become so endemic that some patients say they worry almost constantly about availability. The DEA sets manufacturing quotas that are designed to control supplies and thwart abuse. Every year, the DEA ... allots portions of the expected demand to various companies. How each manufacturer divides its quota among its own ADHD medicines — preparing some as high-priced brands and others as cheaper generics — is left up to the company. Officials at the FDA say the shortages are a result of overly strict quotas set by the DEA, which, for its part, questions whether there really are shortages or whether manufacturers are simply choosing to make more of the expensive pills than the generics, creating supply and demand imbalances.

Note: This curious story reveals an astonishing level of government manipulation of the manufacturing and availability of medications, and corporations appear to go along with it because it keeps profits high. For lots more on government and corportate corruption from reliable sources, click here and here.

The stunning reality is that five years into the financial meltdown, it's business as usual on Wall Street - outlandish rewards for insiders with downside for almost everyone else. Occupy Wall Street protesters are right - something is wrong - but they're not sure what. Let's revisit the latest debacle - the implosion of yet another Wall Street darling, MF Global. The fallout of its bad bets on European bonds is hitting home hard, even in rural America, where many of its agricultural customers work. As the eighth-largest bankruptcy filing in U.S. history, MF Global represents just about everything that is wrong on Wall Street. 1. The cult of a Wall Street superstar. 2. Gambling disguised as investing. 3. The bail-me-out syndrome. 4. Enormous conflicts of interest. 5. Leverage on a grand scale. 6. Failure of regulators and the reform law. 7. Misappropriation of client funds. 8. Worthless rating agencies. 9. Golden parachutes soaring high. 10. Breakdown of morality. Wall Street will keep sucking huge sums out of our economy and putting 100 percent of us at risk unless the rules change. Most important, we must stop gambling and start investing again to build valuable companies. The next crisis will make 2008 look like a warm-up. Imagine how big the Occupy camps will be if that happens.

Note: For a treasure trove of reports from reliable sources which provide detailed information on all the problematic dimensions of Wall Street's operations described in the article above, click here.

No one could have known that when a Tunisian fruit vendor set himself on fire in a public square in a town barely on a map, he would spark protests that would bring down dictators in Tunisia, Egypt and Libya and rattle regimes in Syria, Yemen and Bahrain. Or that that spirit of dissent would spur Mexicans to rise up against the terror of drug cartels, Greeks to march against unaccountable leaders, Americans to occupy public spaces to protest income inequality, and Russians to marshal themselves against a corrupt autocracy. Protests have now occurred in countries whose populations total at least 3 billion people, and the word protest has appeared in newspapers and online exponentially more this past year than at any other time in history. Everywhere, it seems, people said they'd had enough. They dissented; they demanded; they did not despair, even when the answers came back in a cloud of tear gas or a hail of bullets. The root of the word democracy is demos, "the people," and the meaning of democracy is "the people rule." And they did, if not at the ballot box, then in the streets. Protest is in some ways the source code for democracy — and evidence of the lack of it. For steering the planet on a more democratic though sometimes more dangerous path for the 21st century, the Protester is TIME's 2011 Person of the Year.

Note: For a treasure trove of reports from major media sources that explain why protestors worldwide have been occupying their cities, click here.

Just after 6 a.m. on Dec. 5, under cover of darkness, nine Greenpeace activists cut through a fence at the Nogent-sur-Seine atomic plant 95 kilometers (59 miles) southeast of Paris and headed for a domed reactor building. They scaled the roof and unfurled a “Safe Nuclear Doesn’t Exist” banner before attracting the attention of security guards. Two remained at large for four hours. On the same day, two more campaigners breached the perimeter of the Cruas-Meysse plant on the Rhone, escaping detection for more than 14 hours while posting videos of their sit-in on the Internet. The security lapses ... come at a time when debate has intensified on France’s reliance on atomic power for three-quarters of its energy needs in the run-up to next year’s presidential elections. They also preempt next month’s release of the results of safety checks at France’s 58 reactors, commissioned in the aftermath of the Fukushima tragedy. Greenpeace said its activists exposed the biggest security lapse to date at the reactors that are operated by Electricite de France SA.

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The European Commission adopted new rules Nov. 14 regarding X-ray, or backscatter, body scanners at all airports in Europe. A press release ordered members of the European Union to remove X-ray scanners from its airports to avoid risking “citizens’ health and safety.” The news [brings] into question the continued use of the very same X-ray scanners in U.S. airports. While the Transportation Security Administration also employs millimeter-wave scanners in U.S. airports, X-ray scanners are the ones that have received more criticism from public-safety advocates. While ... the amount of radiation exposure from X-ray machines is very low, several studies have shown that a small number of cancer cases could result from scanning millions of passengers every year. Some critics of the scanners say that any small amount of cancer is too much to tolerate. Although the TSA doesn’t show signs of budging on the use of X-ray scanners, Europe will instead use machines that rely on radio frequency waves, which have not been linked to cancer.

Note: For key reports from reliable sources on government and corporate threats to privacy, click here.

Yes, there are a wide array of complaints, demands, and goals from the Wall Street protesters: the collapsing environment, labor standards, housing policy, government corruption, ... and so on. Different people have been affected by different aspects of the same system -- and they believe they are symptoms of the same core problem. I witnessed [many cogent conversations] as I strolled by Occupy Wall Street's many teach-ins this morning. There were young people teaching one another about, among other things, how the economy works, ... the history of centralized interest-bearing currency, the creation and growth of the derivatives industry, and about the Obama administration deciding to settle with, rather than investigate and prosecute the investment banking industry for housing fraud. Anyone who says he has no idea what these folks are protesting is not being truthful. We all know that there are investment bankers working on Wall Street getting richer while things for most of the rest of us are getting tougher. Occupy Wall Street is meant more as a way of life that spreads through contagion, creates as many questions as it answers, aims to force a reconsideration of the way the nation does business and offers hope to those of us who previously felt alone in our belief that the current economic system is broken.

Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.

Tony Blair is godfather to one of Rupert Murdoch’s young children, it has emerged in an interview with the media tycoon’s wife Wendi. The former prime minister was reportedly present in March last year when Murdoch’s two daughters by his third wife were baptised on the banks of the Jordan. The information was not made public and its disclosure in an interview with Mrs Murdoch in Vogue will prove highly embarrassing for Mr Blair. His close ties to the Murdochs could explain his reluctance to condemn the News International phone hacking scandal. In July, it was reported that he asked Gordon Brown to put pressure on Tom Watson, the Labour MP who helped expose the scandal, to drop his investigation. Last night, Mr Blair’s spokesman refused to comment, but a News Corp source confirmed that Mr Blair was godfather to Grace, as was Lachlan Murdoch, Rupert Murdoch’s eldest son. While Mrs Murdoch does not comment on Mr Blair directly, the article states that Miss Kidman, Mr Jackman and Mr Blair are godparents. It claims that Mr Blair attended the Jordanian ceremony “garbed in white” and describes him as one of Mrs Murdoch’s “closest friends”. They have a mutual friend in Queen Rania of Jordan, who hosted the baptism. Both women were recently on the judging panel for a film prize organised by the Tony Blair Faith Foundation.

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

What if we stood up for Main Street? Corporations and elected officials are making decisions that are impacting our lives, and we are at their mercy. Americans, many [of] whose lives have been destroyed by the 2008 subprime mortgage market disaster, resent the lack of accountability on the part of Wall Street for its role in this scandal. Few have been indicted for the market collapse and resulting meltdown of the global economy. After the federal government bailed out the financial institutions, it is back to business as usual. Corporate profits are accumulating and bonuses are raining down on the very players who created the bubble and crash in the first place. On the other hand, the taxpayers who bailed out Wall Street aren't doing so well. Instead of bonuses, we are suffering from unemployment and underemployment of epic proportions. Homeowners continue to lose their homes to foreclosure, and homelessness is on the rise. Public services, public safety and public welfare funding is being cut back or cut out. Public education has been decimated. American corporations have lost all sense of responsibility for U.S. citizens. While the U.S. economy fights to survive, corporations have turned their backs on those whose tax dollars kept our ship of state from sinking. Sending jobs overseas might improve corporate profit margins, but at what expense to the workforce and U.S. economy? These decisions have devastated American workers' lives. So, what needs to be done? What if we begin to stand up for Main Street?

Note: For a treasure trove of reports detailing the criminal collusion between the federal government and Wall Street financial corporations, click here.

It's fraudulent for academics to give their names to medical articles ghostwritten by pharmaceutical industry writers, say two Canadian law professors who call for potential legal sanctions. Studies suggest that industry-driven drug trials and industry-sponsored publications are more likely to downplay a drug's harms and exaggerate a drug's virtues, said Trudo Lemmens, a law professor at the University of Toronto. The integrity of medical research is also harmed by ghostwritten articles, he said. Ghostwriting is part of marketing that can distort the evidence on a drug, Lemmens said. Industry authors are concealed to insert marketing messages and academic experts are recruited as "guest" authors to lend credibility despite not fulfilling criteria for authorship, such as participating in the design of the study, gathering data, analyzing the results and writing up of the findings. Lemmens and his colleague Prof. Simon Stern argue that legal remedies are needed for medical ghostwriting since medical journals, academic institutions and professional disciplinary bodies haven't succeeded in enforcing sanctions against the practice. Ghostwritten publications are used in court to support a manufacturer's arguments about a drug's safety and effectiveness, and academic experts who appear as witnesses for pharmaceutical and medical device companies also boost their credibility with the publications on their CV, Lemmens said.

Note: For a respected doctor's powerful analysis of fraud in the pharmaceutical industry, click here. For lots more from reliable sources on key health issues, click here.

Ending a six-year legal battle, the Army Corps of Engineers has agreed to pay nearly $1 million to a former top contracting official who charged that she was demoted after she objected to a $7 billion no-bid contract granted to a Halliburton subsidiary to repair oil fields in Iraq. In a settlement agreement signed this month and made final by a federal judge this week, the Army Corps of Engineers agreed to pay the former official, Bunnatine H. Greenhouse, $970,000 to cover lost wages, legal fees and compensatory damages, including for harm to her reputation and her mental health. The payment for damages is unusually large for a lawsuit by a federal employee. In early 2003, the Army, in secret and without competitive bidding, put KBR, then a subsidiary of Halliburton, in charge of restoring Iraqi oil production, in a contract potentially worth $7 billion over five years. Ms. Greenhouse, a career civil servant who was the chief contracts monitor at the Army Corps of Engineers at the time, objected that the contract was based on repair plans and cost estimates that KBR itself had been hired by the corps to prepare, and that the emergency conditions did not justify a multiyear no-bid contract. After internal clashes and threats of demotion, she went public with her concerns in 2004. Ms. Greenhouse was demoted from the Senior Executive Service and given a poor performance rating, prompting her to bring the lawsuit. As part of the settlement, Ms. Greenhouse, 67, formally retired this week with full benefits.

Note: The press has reported little on this most important case. For a much better description of all that went on and the intense corruption revealed, click here.

Scientists say they have bred a dog that glows under ultraviolet light when an antibiotic is added to its food. Scientists started cloning glow-in-the-dark puppies two years ago by inserting genes from other species that produce fluorescent proteins, such as jellyfish and coral. In the journal Genesis, researchers from Seoul National University report that they produced a dog that expresses the green fluorescent protein gene when it eats food containing a doxycycline antibiotic. When the drug is no longer added to the food, the glow-in-the-dark effect fades away. The technique could be used to help find cures for human diseases such as Alzheimer's and Parkinson's, South Korea's Yonhap news agency reported. The genetically modified female beagle, named Tegon, was born in 2009. Other methods can produce dogs that glow, but "the uncontrollable expression often results in unwanted outcomes," they said.

Note: Though this may have some beneficial applications, why doesn't the article raise any of the serious ethical considerations?

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.