Corporate Corruption News Articles

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AT&T feted lawmakers at Washington restaurants offering $52 steaks and a $15 “Lobbyist's Libation” made of gin and cucumber puree as the company sought U.S. approval to buy T-Mobile USA. The parties, carrying $1,000 admission charges and aimed at replenishing congressional campaign coffers, were held as the largest U.S. phone company sought regulators' blessing for the $39 billion deal. On Aug. 31, the Justice Department sued to block the transaction, saying it would harm competition. The litigation marks a rare setback for AT&T, long a leading Washington power. The Dallas-based company boosted lobbying spending by 30 percent to $11.7 million in the first six months of 2011 compared with a year earlier, Senate records show. AT&T's political action committee gave $805,500 to federal candidates, according to the Center for Responsive Politics, a Washington research group. “The one thing you can say about their losing is that it wasn't for a lack of lobbyists,” Bill Allison, editorial director of the Sunlight Foundation, a Washington-based nonprofit that promotes government transparency, said in an interview. “They left no stone unturned.” AT&T's political action committee, which funnels employees' contributions to lawmakers' campaigns, was the most generous corporate PAC this year, according to the Center for Responsive Politics.

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A longtime judge has been ordered to spend nearly three decades in prison for his role in a massive juvenile justice bribery scandal that prompted the state's high court to toss thousands of convictions. Former Luzerne County Judge Mark Ciavarella Jr. was sentenced ... to 28 years in federal prison for taking $1 million in bribes from the builder of a pair of juvenile detention centers in a case that became known as "kids-for-cash." The Pennsylvania Supreme Court tossed about 4,000 convictions issued by Ciavarella between 2003 and 2008, saying he violated the constitutional rights of the juveniles, including the right to legal counsel and the right to intelligently enter a plea. Ciavarella, 61, was tried and convicted of racketeering charges earlier this year. Federal prosecutors accused Ciavarella and a second judge, Michael Conahan, of taking more than $2 million in bribes from the builder of the PA Child Care and Western PA Child Care detention centers and extorting hundreds of thousands of dollars from the facilities' co-owner. Ciavarella, known for his harsh and autocratic courtroom demeanor, filled the beds of the private lockups with children as young as 10, many of them first-time offenders convicted of petty theft and other minor crimes.

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It was the kind of study that made doctors around the world sit up and take notice: Two popular high-blood-pressure drugs were found to be much better in combination than either alone. Unfortunately, it wasn't true. Six and a half years later, the prestigious medical journal the Lancet retracted the paper, citing "serious concerns" about the findings. The damage was done. Doctors by then had given the drug combination to well over 100,000 patients. Instead of protecting them from kidney problems, as the study said the drug combo could do, it left them more vulnerable to potentially life-threatening side effects, later studies showed. Today, "tens of thousands" of patients are still on the dual therapy, according to research firm SDI. When a study is retracted, "it can be hard to make its effects go away," says Sheldon Tobe, a kidney-disease specialist at the University of Toronto. And that's more important today than ever because retractions of scientific studies are surging. Since 2001, while the number of papers published in research journals has risen 44%, the number retracted has leapt more than 15-fold, data compiled for The Wall Street Journal by Thomson Reuters reveal. Just 22 retraction notices appeared in 2001, but 139 in 2006 and 339 last year

Note: To learn lots more of how the medical industry puts profit above public health, click here.

Supermarket tomatoes may look delicious — smooth, red and unblemished — but for the most part, they taste like nothing at all. [Barry] Estabrook is the author of a new book, Tomatoland: How Modern Industrial Agriculture Destroyed Our Most Alluring Fruit. It lays out why supermarket tomatoes tend to taste so bad - and how they got that way. The tomatoes you see in those supermarkets have been bred for high yields and durability, not flavor. There's an even darker side to the modern commercial tomato, too. Up until recently, workers on many of Florida's vast industrial tomato farms were basically slaves. "People being bought and sold like animals," Estabrook says. "People being shackled in chains. People being beaten for either not working hard enough, fast enough, or being too weak or sick to work. People actually being shot and killed for trying to escape. That sounds like 1850's slavery to me." The situation is beginning to improve, he adds. It began with a group of tomato pickers called the Coalition of Immokalee Workers. The group had been lobbying since the early 1990s for a plan that included a pay raise and some basic workers' rights. "What they started concentrating on was the end-customers," Estabrook says. "They started, actually, with the Taco Bell restaurant chain." After four years of protests and boycotts, Taco Bell agreed to sign on and support the group's plan. Other chains soon followed, and even the powerful Florida tomato growers' committee came on board.

Note: In 2015, Wal-Mart became the most influential corporation to join the initiative promoted by Coalition of Immokalee Workers. For more along these lines, see concise summaries of deeply revealing food system corruption news articles from reliable major media sources.

The world's four largest grain traders, responsible for the vast majority of global corn, soya and wheat trading and processing, have been accused of large-scale tax evasion in a landmark series of cases being brought against them by the Argentinian government. Ricardo Echegaray, the head of Afip, the country's revenue and customs service, has given a detailed account of the charges his department is bringing against ADM, Bunge, Cargill and Dreyfus. "These companies have gone into criminality," Echegaray said. "2008 was when agricultural commodities prices spiked and was the best year for them in prices, yet we could see that the companies with the biggest sales showed very little profit in this country." Afip is seeking to claim $476m (Ł290m) for what it says are unpaid tax and duties from Bunge, $252m from Cargill and $140m from Dreyfus. With the global food system and who controls it under intense scrutiny in recent weeks, thanks to record prices, the legal battle between Afip and the "ABCD four", as they are known, has taken on heightened significance. Oxfam, in a report earlier this week, warned of spiralling prices and a huge increase in global hunger over the next two decades, and said that corporate concentration in the global food trade was a structural flaw in the system.

Note: When you hear of global food prices spiraling, think of market manipulation by companies like this and inside traders.

Anonymous, an online hacker group, released a string of e-mails last week that purportedly show mortgage document fraud at Bank of America. Many people yawned. After all, there have been well-documented cases of mortgage fraud and illegal foreclosures, and little has been done to punish Bank of America or any of the banks for their behavior. But just because the federal government has been slow to act on the mortgage crisis doesn't mean that these e-mails are any less valuable. The e-mails are a chain showing requests for Balboa Insurance employees to remove document tracking numbers from the system of record. Balboa Insurance became a division of Bank of America after the bank bought the bankrupt home loan company Countrywide Financial. The idea suggested in the e-mails was to misplace individual documents away from matching loans. This would make it harder for federal auditors to investigate individual loans. It would also make it far more difficult for individual homeowners to dispute or question bank action on their loans - and therefore obtain mortgage modifications or a stay on bank foreclosure. The Anonymous e-mails are serious indeed. They're a snapshot into why the mortgage mess spiraled out of control. While they don't tell the whole story, they point to the need for further investigation and possible action on behalf of the federal government. When people are losing their homes, the banks shouldn't be allowed to get away with deception.

Note: For a treasure trove of reports by major media sources on the collusion between government and banks against the public interest, click here.

The U.S. Supreme Court let stand a ruling that drug companies can pay rivals to delay production of generic drugs without violating federal antitrust laws. The justices refused to review a federal appeals court ruling that upheld the dismissal of a legal challenge to a deal between Bayer AG and Teva Pharmaceutical Industries Ltd's Barr Laboratories. Bayer paid Barr to prevent it from bringing to market a version of the antibiotic drug Cipro. The deal, involving Bayer's 1997 settlement of patent litigation with Barr, was challenged by a number of pharmacies, which appealed to the Supreme Court. More than 30 states and various consumer groups supported the appeal. The U.S. Federal Trade Commission has opposed such deals, saying they violate antitrust law and cost consumers an estimated $3.5 billion a year in higher prescription drug prices. It has supported legislation pending in Congress to prohibit such settlements, which it says have increased in recent years. The New York-based appeals court, in its ruling last year, cited its similar 2005 decision involving the drug Tamoxifen, used to treat breast cancer, infertility and other conditions. The Supreme Court declined to review that case. In the Cipro case, the Supreme Court rejected the appeal by the pharmacies without comment.

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The Food and Drug Administration has wrapped up three days of hearings and public comment on the effort by AquaBounty Technologies, a Massachusetts company, to sell salmon genetically engineered to grow twice as fast as normal salmon. But the meetings ended without an FDA decision on whether the company can move ahead with sales. USA TODAY's Elizabeth Weise [answers questions about the issue]: Q: What are the issues? A: There are really two: Are these fish safe to eat, and are they safe for the environment? FDA staff, in a report released earlier this month, found the genetically engineered (or GE) salmon to be as safe to eat as normal salmon. But several members of the agency's Veterinary Medicine Advisory Committee felt that the tests for food safety could have included more data and encouraged the agency to request more from the company. Q: What's the environmental issue? A: Some scientists and environmental groups worry that if these fast-growing salmon escaped into the ocean, they might out-compete native salmon populations for both food and mates. As almost all wild Atlantic salmon are endangered, anything that could harm them is of concern.

Note: For lots more from reliable sources on corporate and government corruption, click here and here. For a highly-informative overview of the threats posesd to health and the environment by genetically modified foods, click here.

The former chief executive of a British chemical company faces the prospect of extradition to the US after the firm admitted million-dollar bribes to officials to sell toxic fuel additives to Iraq. Paul Jennings, until last year chief executive of the Octel chemical works ... and his predecessor, Dennis Kerrison, exported tonnes of tetra ethyl lead (TEL), to Iraq. TEL is banned from cars in western countries because of links with brain damage to children. Iraq is believed to be the only country that still adds lead to petrol. The company recently admitted that, in a deliberate policy to maximise profits, executives from Octel – which since changed its name to Innospec – bribed officials in Iraq and Indonesia with millions of dollars to carry on using TEL, despite its health hazards. Senior Iraqi oil ministry officials are accused of taking British bribes throughout the UK-US occupation, up until 2008. US prosecutors say multi-million dollar bribes to Iraq were agreed in 2001-3, when Kerrison was chief executive. A decade ago, Octel decided to remain the world's only manufacturer of TEL for cars, after it was banned in the US and Europe. They used high profits from non-western countries to diversify into other products and to pay back investors, mainly US hedge funds run by Connecticut billionaire Jeffrey Gendell. According to prosecutors, the strategy included the corrupt blocking of health campaigns.

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The great cosmic joke would be to find out definitively that the advances we thought were blessings — from the hormones women pump into their bodies all their lives to the fancy phones people wait in line for all night — are really time bombs. We don’t yet really know the physical and psychological impact of being slaves to technology. We just know that technology is a narcotic. We’re living in the cloud, in a force field, so afraid of being disconnected and plunged into a world of silence and stillness that even if scientists told us our computers would make our arms fall off, we’d probably keep typing. San Francisco just became the first city in the country to pass legislation making cellphone retailers display radiation levels. The city’s Board of Supervisors voted 10 to 1 in favor. Different phone models emit anywhere from 0.2 watts per kilogram of body tissue to 1.6 watts, the legal limit. Sure enough, when the bill passed Tuesday, CTIA [The Wireless Association] issued a petulant statement that after 2010, it would relocate its annual three-day fall exhibition, with 68,000 exhibitors and attendees and “$80 million” in business, away from San Francisco.

Note: For many highly important articles from reliable sources on major health issues, click here.

BP, the company in charge of the rig that exploded last month in the Gulf of Mexico, hasn't publicly divulged the results of tests on the extent of workers' exposure to evaporating oil or from the burning of crude over the gulf, even though researchers say those data are crucial in determining whether the conditions are safe. Moreover, the company isn't monitoring the extent of the spill and only reluctantly released videos of the spill site that could give scientists a clue to the amount of the oil in the gulf. BP's role as the primary source of information has raised questions about whether the government should intervene to gather such data and to publicize them and whether an adequate cleanup can be accomplished without the details of crude oil spreading across the gulf. The company also hasn't publicly released air sampling for oil spill workers although Occupational Safety and Health Administration, the agency in charge of monitoring compliance with worker safety regulations, is relying on the information and has urged it to do so.

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The Securities and Exchange Commission suspected Texas financier R. Allen Stanford of running a Ponzi scheme as early as 1997 but took more than a decade to pursue him seriously. The report by the SEC's inspector general says SEC examiners concluded four times between 1997 and 2004 that Mr. Stanford's businesses were fraudulent, but each time decided not to go further. It singles out the former head of the SEC's enforcement office in Fort Worth, Texas, accusing him of repeatedly quashing Stanford probes and then trying to represent Mr. Stanford as a lawyer in private practice. The former SEC official, Spencer Barasch, is now a partner at law firm Andrews Kurth LLP. The inspector general referred Mr. Barasch for possible disbarment from practicing law. Mr. Stanford was indicted last June and accused of orchestrating a Ponzi scheme that swindled investors out of $7 billion. SEC Inspector General David Kotz's report suggests the agency's mistakes in the Stanford case were in part the result of a culture that favored easily resolved cases over messier ones. Cases such as the alleged Stanford fraud weren't considered "quick-hit" and "slam-dunk," and examiners were discouraged from pursuing them, Mr. Kotz found.

Note: For many more examples from major media sources of the astonishing performance of the SEC in the runup to the Wall Street crisis, click here.

Three quarters of a century ago, President Franklin Roosevelt earned the undying enmity of Wall Street when he used his enormous popularity to push through a series of radical regulatory reforms that completely changed the norms of the financial industry. Wall Street hated the reforms, of course, but Roosevelt didn’t care. Wall Street and the financial industry had engaged in practices they shouldn’t have, and had helped lead the country into the Great Depression. Those practices had to be stopped. To the president, that’s all that mattered. On Wednesday, President Obama unveiled what he described as “a sweeping overhaul of the financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression.” In terms of the sheer number of proposals, outlined in an 88-page document the administration released on Tuesday, that is undoubtedly true. But in terms of the scope and breadth of the Obama plan — and more important, in terms of its overall effect on Wall Street’s modus operandi — it’s not even close to what Roosevelt accomplished during the Great Depression. Rather, the Obama plan is little more than an attempt to stick some new regulatory fingers into a very leaky financial dam rather than rebuild the dam itself. Everywhere you look in the plan, you see the same thing: additional regulation on the margin, but nothing that amounts to a true overhaul. The plan places enormous trust in the judgment of the Federal Reserve — trust that critics say has not really been borne out by its actions during the Internet and housing bubbles. Firms will have to put up a little more capital, and deal with a little more oversight, but once the financial crisis is over, it will, in all likelihood, be back to business as usual.

Note: To watch the Inspector General of the Federal Reserve testify to Congress that she knows pracitcally nothing of trillions of dollars that are unaccounted for, click here. For many revealing reports from reliable sources on the hidden realities of the continuing taxpayer bailout of the biggest financial corporations, click here.

Forget buckets of blood. Nothing says horror like one of those tubs of artificially buttered, nonorganic popcorn at the concession stand. That, at least, is one of the unappetizing lessons to draw from one of the scariest movies of the year, “Food, Inc.,” an informative ... documentary about the big business of feeding or, more to the political point, force-feeding, Americans all the junk that multinational corporate money can buy. You’ll shudder, shake and just possibly lose your genetically modified lunch. The director Robert Kenner jumps all over the food map, from industrial feedlots where millions of cruelly crammed cattle mill about in their own waste until slaughter, to the chains where millions of consumers gobble down industrially produced meat and an occasional serving of E. coli bacteria. The voice in the opening belongs to the ethical epicurean and locavore champion Michael Pollan, author of In Defense of Food and The Omnivore’s Dilemma. Mr. Pollan ... is a great strength of “Food, Inc.,” as is one of its co-producers, Eric Schlosser, the author of Fast Food Nation. [They], together with Mr. Kenner, chart how and why the villains not only outnumber the heroes in contemporary food production, but also how and why they outbluff, outmuscle and outspend their opponents by billions of often government-subsidized dollars. The movie takes a look at the animal abuse in industrial food production — including clandestine images of sick and crippled cows being prodded to join the rest of the ill-fated herd — but its main focus is on the human cost. It’s a cost visible in the rounded bodies of a poor family that eats cheap if filling fast-food burgers for breakfast and in the obscured faces of farmers too frightened to go on record about Monsanto, the agricultural biotech giant.

Note: For another excellent review of this important film, click here.

Don't dismiss the Nano as a small, poor man's car that will cause a mere ripple on the world market. The Nano is a radical innovation, with the potential to revolutionize automobile manufacturing and distribution. The tiny Nano incorporates three innovations, which together make it huge. First, the Nano uses a modular design that enables a knowledgeable mechanic to assemble the car in a workshop. Thus, Tata can outsource assembly to independent workshops that can then assemble the car on buyers' orders. This innovation not only removes costly labor from the manufacturer's side but also allows for distributed entrepreneurship on the dealer's side. Second, the low cost of the Nano comes from a combination of its no-frills design and its use of numerous lighter components, from simple door handles and bulbs to the transmission and engine parts. The lighter vehicle enables a more energy-efficient engine that gets 67 miles to the gallon. Third, at just 122 inches long, the Nano is one of the shortest four-passenger cars on the market, yet it allows for ample interior space. These innovations have enabled Tata to introduce the Nano at a base price of $2,000. The low price has triggered worldwide interest in the car and a surge of orders, even in a struggling auto market. The Nano has the potential of flourishing despite the recession or softening its sting because of its extraordinary low price. It's a radical innovation precisely because it is a poor man's car.

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Members of Congress and the New York State attorney general demanded detailed information Thursday on how tens of billions of taxpayer dollars flowed through the American International Group during its crisis last fall and ended up in the coffers of several dozen big banks, shielding them from losses. The new inquiries shine a spotlight on a question that is exponentially bigger, in dollars, than the $165 million in bonuses that A.I.G. paid out this month, but which has been overshadowed until now by the uproar over the bonuses. “We would like to know if the A.I.G. counterparty payments, as made, were in the best interests of the taxpayers who provided the funding,” said Representative Elijah E. Cummings, Democrat of Maryland, in a letter to Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program. The banks and investment firms that ended up with A.I.G.’s bailout money last fall were, in many cases, counterparties to derivatives contracts it had sold, known as credit-default swaps, which guaranteed the value of assets in their investment portfolios. They included Wall Street firms, like Goldman Sachs, JPMorgan Chase and Merrill Lynch, that have successfully resisted efforts to regulate credit derivatives in the past. In several hearings this month, members of Congress said they believed the derivatives had often been used to speculate, not to manage risk. They have expressed outrage that A.I.G.’s trading partners got 100 cents on the dollar for their money-losing trades when ordinary Americans paying for the bailout have suffered big losses in their 401(k) accounts and other investments.

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.

The Internal Revenue Service is not living up to its pledge to crack down on wealthy tax cheats, an IRS watchdog group says, citing a drop in audits of millionaires last year. Those with incomes of $1 million and above had a 5.6 percent chance of getting audited in fiscal year 2008, which ended last September, down from 6.8 percent the previous year, according to IRS figures. The actual number of millionaires audited fell from 23,200 to 21,874; the number of millionaires filing tax returns grew from 339,138 to 392,776. "In the face of growing federal deficits and public calls to lower the tax gap — the amount of taxes due but not reported and paid — the drop in millionaire audits is surprising," said the Syracuse University-based Transactional Records Access Clearinghouse in a report Monday. It said the significant drop in audits of richer Americans contrasted with IRS statements last year that it was making strong progress in enforcement, especially of those with incomes of more than $1 million. The TRAC report said focus on high earner returns is critical because of the huge rewards. Among those millionaire audit cases where additional taxes were recommended, the average was $198,000 after face-to-face audits and $137,000 for audits done through correspondence. In total, the IRS collected $56.4 billion in enforcement revenues last year, down from $59.2 billion in 2007 and the first decline in collections in a decade.

Note: The highly important statistic only mentioned in passing here is "the number of millionaires filing tax returns grew from 339,138 to 392,776." That's an over-15% increase in the number of millionaires in one year, while most everyone else seems to be losing money. Hmmmm. Makes you wonder.

Retirement slammed Carole Jacko. Raising two grandchildren, she's too young for Medicare and too strapped to pay $600 a month for health insurance. So when a trip to the emergency room ended with a diagnosis of diabetes, Jacko found a creative solution. She became a medical guinea pig, offering herself to science in exchange for free medication, free doctor's visits and even a modest payment. With the economy careening and millions uninsured, some doctors and researchers believe the lure of volunteering for medical research is growing – and so are potential ethical pitfalls. "Sometimes desperation leads people to be poor shoppers," to gloss over risks or grasp at imagined benefits, said Kevin Weinfurt, a Duke University professor who focuses on medical decision-making and ethics. No regulations limit how much a person can be paid to take part in medical research. Researchers do not agree on how much money it takes to cross the line and exert "undue influence" or coercion to get someone to enroll in a study. That's something federal regulations do forbid. "This is the most complicated issue in research ethics, and it's still an unsettled question," Weinfurt said. It has lingered for more than 100 years, since an Army surgeon named Walter Reed paid volunteers at a Cuban outpost $100 in gold to risk being infected with yellow fever. The men got another $100 if they contracted the disease, payable to themselves – or any designated survivor.

Note: For many reports on corruption in the pharmaceutical and medical industries from major media sources, click here.

The Bush administration has failed to adequately oversee its $700 billion bailout program and must move rapidly to guarantee that banks are complying with the plan's limits on conflicts of interest and lavish executive compensation, congressional investigators said yesterday. The new report by the Government Accountability Office, the nonpartisan investigative arm of Congress, said the Treasury Department has yet to impose necessary safeguards or decide how to determine whether the program is achieving its goals. The auditors said it was too soon for them to tell whether the bailout was working. "The rapid pace of implementation and evolving nature of the program have hampered efforts to put a comprehensive system of internal control in place," the report said. "Until such a system is fully developed and implemented, there is heightened risk that the interests of the government and taxpayers may not be adequately protected and that the program objectives may not be achieved in an efficient and effective manner." So far, the rescue package has provided at least $150 billion in capital infusions to 52 financial institutions, the auditors said. They added that no applications for funding were denied by the Treasury. The congressional auditors urged Treasury officials to determine how each bank receiving bailout money is using the money and whether they are using it in a way consistent with the intent of the law. Several congressional leaders have criticized financial firms for hoarding the money instead of using it to lend to borrowers.

Note: For many revealing reports on the Wall Street bailout from reliable sources, click here.

The government wasted millions of dollars on four no-bid contracts it handed out for Hurricane Katrina work, including paying $20 million for a camp for evacuees that was never inspected and proved to be unusable, investigators say. A report by the Homeland Security Department's office of inspector general, obtained ... by The Associated Press is the latest to detail mismanagement in the multibillion-dollar Katrina hurricane recovery effort, which investigators have said wasted at least $1 billion. The review examined temporary housing contracts awarded without competition to Shaw Group Inc., Bechtel Group Inc., CH2M Hill Companies Ltd. and Fluor Corp. in the days immediately before and after the August 2005 storm that smashed into the U.S. Gulf Coast. It found that FEMA wasted at least $45.9 million on the four contracts that together were initially worth $400 million. FEMA subsequently raised the total amounts for the four contracts twice, both times without competition, to $2 billion and then $3 billion. FEMA did not always properly review the invoices submitted by the four companies, exposing taxpayers to significant waste and fraud, investigators wrote. In many cases, the agency also issued open-ended contract instructions for months without clear guidelines on what work was needed to be done and the appropriate charges. "We question how FEMA determined that the amounts invoiced were allowable and reasonable," the IG report states, warning that its review was limited in scope so that additional waste and fraud might yet to be found.

Note: For many more reports of government corruption from major media sources, click here.

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