Corporate Corruption News Articles

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A government panel on [June 10] essentially doubled its estimate of how much oil has been spewing from the out-of-control BP well, with the new calculation suggesting that an amount equivalent to the Exxon Valdez disaster could be flowing into the Gulf of Mexico every 8 to 10 days. The new estimate is 25,000 to 30,000 barrels of oil a day. That range, still preliminary, is far above the previous estimate of 12,000 to 19,000 barrels a day. The higher estimates will ... most likely increase suspicion among skeptics about how honest and forthcoming the oil company has been throughout the catastrophe. The new estimate appears to be a far better match than earlier ones for the reality that Americans can see every day on their televisions. As investors have fled BP stock over uncertainties about the company's future and its ability to pay what it will end up owing, BP has lost nearly half its market capitalization since April, and its bonds are now trading at junk levels. Credit Suisse estimates the cleanup costs could end up at $15 billion to $23 billion, plus an additional $14 billion of claims. Ira Leifer, a researcher at the University of California, Santa Barbara, and a member of the flow-rate group, said the new figures confirmed a suspicion he had developed, based on looking at satellite data, that the rate of flow for the well was increasing even before BP cut the riser pipe. "The situation is growing worse," Dr. Leifer said.

Note: For an analysis of the series of false estimates by BP and the US government of the size of the catastrophic Deep Horizon oil blowout, click here.

BP's runaway Deepwater Horizon well may be spewing ...100,000 barrels a day, a member of the government panel tasked with determining the size of the spill told McClatchy [Newspapers]. "In the data I've seen, there's nothing inconsistent with BP's worst case scenario," Ira Leifer, an associate researcher at the Marine Science Institute of the University of California, Santa Barbara, and a member of the government's Flow Rate Technical Group, told McClatchy. Leifer said that based on satellite data he's examined, the rate of flow from the well has been increasing over time, especially since BP's "top kill" effort failed last month to stanch the flow. The decision last week to sever the well's damaged riser pipe from the its blowout preventer in order to install a "top hat" containment device has increased the flow still more -- far more, Leifer said, than the 20 percent that BP and the Obama administration predicted. Leifer noted that BP had estimated before the April 20 explosion that caused the leak that a freely flowing pipe from the well would release 100,000 barrels of oil a day in the worst-case scenario. The oil was not freely flowing before the top kill or before they cut the pipe, Leifer said, but once the riser pipe was cleared, there was little blocking the oil's rise to the top of the blowout preventer. Video images confirm that the flow of black oil is unimpeded.

Note: For an analysis of the series of false estimates by BP and the US government of the size of the catastrophic Deep Horizon oil blowout, click here.

Billionaire Mayor Michael Bloomberg defended multibillion-dollar pharmaceutical companies and their chief executives on Friday, declaring that they "don't make a lot of money" and shouldn't be scapegoats in the health care debate. The mayor — and wealthiest person in New York City with a fortune estimated at $16.5 billion — made the comments on his radio show Friday. "You know, last time I checked, pharmaceutical companies don't make a lot of money, their executives don't make a lot of money," Bloomberg said. Pharmaceutical CEOs are known to make millions, with generous salaries, stock options and other perks. Abbott Laboratories Inc. Chairman and Chief Executive Miles White's compensation was $25.3 million in 2008. The North Chicago, Ill.-based company saw profit rising 35 percent to $4.88 billion. Merck & Co.'s chief executive, Richard T. Clark, received a $17.3 million compensation package for 2008. The company's profit more than doubled to $7.8 billion. The mayor ... often battles criticism that he is out of touch with regular people. Earlier this year he declared "we love the rich people" while arguing against raising taxes on the wealthy. It was clear that Bloomberg or one of his aides realized his gaffe while he was still on the air Friday. The mayor, who has sought to cast himself as a financial and business expert, came back from a break and said he had looked up the pay of some pharmaceutical executives. "Some of them are making a decent amount, more than a decent amount of money," he said.

Speculators now account for half of all traders in the main U.S. oil market, and their growing presence coincided with this decade's historic rise in the price of crude, according to a new Rice University study. The study does not try to prove that speculators caused the price spike, as many politicians and consumer advocates believe. But the authors note that prices rose steadily along with the number of speculative investors, and fell with them as well. Seven years ago, speculators accounted for 20 percent of oil traders on the New York Mercantile Exchange. That number jumped to 55 percent by the time oil prices reached their all-time peak above $145 per barrel last summer. Now oil costs $72, and speculative investors account for half the traders. The government limits the number of oil contracts that each speculator can hold. But under the Commodity Futures Modernization Act [passed in 2000], trades on electronic exchanges or overseas markets don't count toward those limits. The study uses data from the Commodity Futures Trading Commission. Speculators are defined as traders who use oil strictly as a financial investment, those who will never take delivery of a tanker-full of crude. "This confirms what we and others have said for some time," said Tyson Slocum, director of the energy program at the Public Citizen watchdog group. "The good thing from the oil price run-up of 2008 is it has forced Congress to realize there's a problem in these markets, and the answer is re-regulation." The financial industry opposes tightening the regulations.

Note: To read the full study, click here.

The new H1N1 influenza virus bears a disturbing resemblance to the virus strain that caused the 1918 flu pandemic, with a greater ability to infect the lungs than common seasonal flu viruses, researchers reported on Monday. Separately, a top official at the World Health Organization said Monday a fully licensed swine flu vaccine might not be available until the end of the year. The report could affect many countries' vaccination plans. But countries could use emergency provisions to get the vaccines out quicker if they decide their populations need them. The swine flu viruses currently being used to develop a vaccine aren't producing enough of the ingredient needed for the vaccine, and WHO has asked its laboratory network to produce a new set of viruses as soon as possible. Other tests showed the virus could be controlled by the antiviral drugs Relenza, made by GlaxoSmithKline, and Tamiflu, made by Roche AG, the researchers said. The World Health Organization said on Monday that vaccine makers should start making immunizations against H1N1 and that healthcare workers should be first in line to get them. The WHO has previously estimated that the world could have as many as 4.9 billion doses of H1N1 swine flu vaccine ready for the next flu season — but this assumes people only need one shot and production yields are similar to seasonal vaccine.

Note: Who's making the big bucks here? Why is the WHO so strongly promoting billions of doses of vaccines for a disease in which the vast majority of the relatively few people who have died had underlying causes. For more on the blatant corruption of our health industry from reliable sources, click here and here.

During World War I, Americans were exhorted to buy Liberty Bonds to help their soldiers on the front. Now, it seems, they will be asked to come to the aid of their banks — with the added inducement of possibly making some money for themselves. As part of its sweeping plan to purge banks of troublesome assets, the Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds. The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. But there is another, deeply political motivation as well: to quiet accusations that all of these giant bailouts will benefit only Wall Street plutocrats. If, as some analysts suspect, the banks’ assets are worth even less than believed, the funds’ investors could suffer significant losses. Nonetheless, the administration and executives in the financial industry are pushing to establish the investment funds, in part to counter swelling hostility against the financial industry. The embrace of smaller investors underscores the concern in Washington and on Wall Street that Americans’ anger could imperil further efforts to stimulate the economy with vast amounts of government spending. Many Americans say they believe the bailout programs ... will benefit only a golden few, including some of the institutions that helped push the economy to the brink. Critics like Joseph E. Stiglitz, a Nobel Prize-winning economist, argue that the bailouts merely privatize profits and socialize losses.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.

Lawrence H. Summers, the top economic adviser to President Obama, earned more than $5 million last year from the hedge fund D. E. Shaw and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money, the White House disclosed. Mr. Summers, the director of the National Economic Council, wields important influence over Mr. Obama’s policy decisions for the troubled financial industry, including firms from which he recently received payments. Last year, he reported making 40 paid appearances, including a $135,000 speech to the investment firm Goldman Sachs, in addition to his earnings from the hedge fund, a sector the administration is trying to regulate. Mr. Summers’s role at the White House includes advising Mr. Obama on whether — and how — to tighten regulation of hedge funds, which engage in highly sophisticated financial trading that many analysts have said contributed to the economic collapse. Mr. Summers ... appeared before large Wall Street companies like Citigroup ($45,000), J. P. Morgan ($67,500) and the now defunct Lehman Brothers ($67,500), according to his disclosure report. While Mr. Obama campaigned on a pledge to restrict lobbyists from working in the White House, a step intended to reduce any influence between the administration and corporations, the ban did not apply to former executives like Mr. Summers, who was not a registered lobbyist. In 2006, he became a managing director of D. E. Shaw, a firm that manages about $30 billion in assets, making it one of the biggest hedge funds in the world.

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

Prominent banking analyst Meredith Whitney warned that "credit cards are the next credit crunch," as contracting credit lines will lower consumer spending and hurt the U.S. economy. "Few doubt the importance of consumer spending to the U.S. economy and its multiplier effect on the global economy, but what is under-appreciated is the role of credit-card availability in that spending," Whitney wrote in the Wall Street Journal. Although credit was extended "too freely over the past 15 years" and rationalization of lending is unavoidable, what needs to be avoided was "taking credit away from people who have the ability to pay their bills," said Whitney, CEO of Meredith Whitney Advisory Group. Whitney said available lines were reduced by nearly $500 billion in the fourth quarter of 2008 alone, and she estimates over $2 trillion of credit-card lines will be cut within 2009, and $2.7 trillion by the end of 2010. "Inevitably, credit lines will continue to be reduced across the system, but the velocity at which it is already occurring and will continue to occur will result in unintended consequences for consumer confidence, spending and the overall economy," Whitney said. There is roughly $5 trillion in credit-card lines outstanding in the U.S., and a little more than $800 billion is currently drawn upon, she said. "Lenders, regulators and politicians need to show thoughtful leadership now on this issue in order to derail what I believe will be at least a 57 percent contraction in credit-card lines," she said.

Note: Some believe that rising defaults on credit card debt could cause yet another financial shock to the system. For many more revelations of the amazing realites of the Wall Street bailout and the now world-wide financial and credit crises, click here.

Outraged and determined Chicago factory workers who were abruptly laid off this week have occupied their former workplace and say they won't leave until they get the severance and vacation pay they say they're owed. The employees say they received three days notice their plant was closing. In the second day of a sit-in on the factory floor Saturday, about 250 union workers occupied the building in shifts while union leaders outside criticized a Wall Street bailout they say is leaving laborers behind. Leah Fried, an organizer with the United Electrical Workers, said the Chicago-based vinyl window manufacturer failed to give its 300 employees the 60 days' notice required by law before shutting. She said the company can't pay employees because its creditor, Charlotte, N.C.-based Bank of America, won't let them. Bank of America received $25 billion from the government's financial bailout package. The company said in a statement to news outlets Saturday that it isn't responsible for Republic's financial obligations to its employees. "Across cultures, religions, union and nonunion, we all say this bailout was a shame," said Richard Berg, president of Teamsters Local 743. "If this bailout should go to anything, it should go to the workers of this country." Outside the plant, protesters wore stickers and carried signs that said, "You got bailed out, we got sold out."

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

The hot-button issues of CEO pay and the Wall Street bailout may soon collide with the real world of Wall Street bonuses, taxpayer and shareholder anger over the financial crisis, and a Treasury secretary with deep roots on Wall Street. And that collision could be loud and ugly. Though what's commonly known as the Wall Street bailout package includes modest restrictions on CEO pay, it hardly prevents participating financial firms from paying bonuses to top executives and others. And in an environment of beaten-down stock prices, rising layoffs, recession and huge government bailouts, experts and legislators say big end-of-year bonuses will cause a firestorm of public outrage and likely provoke a Congressional backlash. "The corporate community doesn't seem to get it," says a seething Nell Minow, founder of the Corporate Library, which focuses on corporate governance issues. "If the corporate leaders don't come to the American people with some accountability, they are going to find themselves in a world of pain. Congress will set CEO pay." "People are going to be demanding that someone go to jail," say Rep. Peter DeFazio (D.-Ore), who says his constituents have applauded him for voting against the legislation. "It will require Democrats to revisit restrictions [on CEO pay]. " DeFazio says he would also recommend Congress "empower a division in the FBI and Justice Department to investigate the fraud and misdeeds that went on."

Note: For many revealing reports on the realities of the Wall Street bailout, click here.

Just before the Department of Interior's inspector general released reports that laid bare the oil-and-sex scandal in the department's oil royalties office this week, Interior won an annual award from the federal Office of Government Ethics. The inspector general said Wednesday that federal officials in the Mineral Management Service's royalty-in-kind program allegedly were plied with alcohol and expensive gifts from industry representatives, and in some cases had sex and did drugs with them. The Denver-area office takes in roughly $4 billion each year in oil and natural gas reserves from companies drilling on federal and Indian land and offshore. But, on Monday, the Interior Department was praised for "developing a dynamic laminated Ethics Guide for employees" that was a "polished, professional guide" with "colorful pictures and prints which demand employees' attention." The guide, the award noted, was small enough for employees to carry. Interior also was lauded for having held a four-day seminar for its ethics advisors nationwide. It isn't known if those seminars included the royalty office, where investigators found that a former program director was paid more than $30,000 for improper outside work, bought cocaine using a personal check from his office and engaged in an illicit sexual relationship with a subordinate; employees accepted gifts, including sports tickets and vacations, from industry executives; and two former officials, with the help of a supervisor, arranged to get themselves hundreds of thousands of dollars in consulting work after they retired.

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

A new analysis concludes that the Food and Drug Administration approved experiments with artificial blood substitutes even after studies showed that the controversial products posed a clear risk of causing heart attacks and death. The review of combined data from more than 3,711 patients who participated in 16 studies testing five different types of artificial blood, released yesterday, found that the products nearly tripled the risk of heart attacks and boosted the chances of dying by 30 percent. Based on the findings, the researchers questioned why the FDA allowed additional testing of the products to go forward and why the agency is considering letting yet another study proceed. "It's hard to understand," said Charles Natanson, a senior investigator at the National Institutes of Health who led the analysis. "They already had data that these products could cause heart attacks and evidence that they could kill." An artificial blood substitute that has a long shelf life and does not need refrigeration could save untold lives by providing an alternative to trauma patients in emergencies, especially in rural areas and in combat settings. But attempts to develop such products have been marred by repeated failures and fraught with controversy, in part because some products have been studied under rules allowing researchers to administer them without obtaining consent from individual patients. After the Washington-based consumer group Public Citizen sued the FDA to gain access to data submitted to the agency, Natanson and colleagues at NIH and Public Citizen pooled data from studies conducted between 1998 and 2007.

Note: For a treasure trove of reports from reliable, verifiable sources on government corruption, click here.

The tax audit rates of the largest companies are less than half what they were 20 years ago while more small and mid-size businesses are coming under scrutiny, according to an organization that monitors the Internal Revenue Service. The Syracuse University-based Transactional Records Access Clearinghouse described what it said was a "historic collapse" in audits for corporations holding assets of $250 million or more. About 26 percent of them were audited in the 2007 budget year compared with 34 percent in 2006 and 43 percent in 2005. The IRS did not dispute the numbers, based on agency data. The TRAC report concluded that the IRS also was concentrating on regular small and mid-sized companies to boost audit numbers. "Moving the focus of the corporate auditors away from the large corporations and toward the smaller ones has been quite effective when it came to increasing the overall number of these kinds of audits but actually was counterproductive in financial terms," the researchers said. TRAC also questioned the financial benefits of the shift. The group said that last year the government uncovered $682 in additional recommended taxes for every revenue agent hour spent auditing the smallest corporations, compared with $7,498 in additional taxes for audits of the largest corporations. Dean Zerbe, national managing director for Houston-based alliantgroup, which provides tax services for medium-sized companies, said his fear was that "in the IRS' zeal to show Congress improved numbers in corporate audit, it is America's small and medium businesses that are taking it on the chin."

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

Today, more than 23,000 representatives of private industry are working quietly with the FBI and the Department of Homeland Security. The members of this rapidly growing group, called InfraGard, receive secret warnings of terrorist threats before the public does -- and, at least on one occasion, before elected officials. In return, they provide information to the government, which alarms the ACLU. But there may be more to it than that. One business executive, who showed me his InfraGard card, told me they have permission to "shoot to kill"ť in the event of martial law. In November 2001, InfraGard had around 1,700 members. As of late January, InfraGard had 23,682 members, according to its website, www.infragard.net, which adds that "350 of our nation's Fortune 500 have a representative in InfraGard."ť FBI Director Robert Mueller addressed an InfraGard convention on August 9, 2005. He urged InfraGard members to contact the FBI if they "note suspicious activity or an unusual event." And he said they could sic the FBI on "disgruntled employees who will use knowledge gained on the job against their employers."ť

Note: We don't normally use Common Dreams as a news source, but as this news is so important and the major media failed to report it, we decided to include this article here. For a revealing report by the ACLU on this key topic, click here. For important reports from major media sources on threats to civil liberties, click here.

The Defense Department's top watchdog has declined to investigate allegations that an American woman working under an Army contract in Iraq was raped by her co-workers. The case of former Halliburton/KBR employee Jamie Leigh Jones gained national attention last month. An ABC News investigation revealed how an earlier investigation into Jones' alleged gang-rape in 2005 had not resulted in any prosecution, and that neither Jones nor Democratic and Republican lawmakers have been able to get answers from the Bush administration on the state of her case. In letters to lawmakers, DoD Inspector General Claude Kicklighter said that because the Justice Department still considers the investigation into Jones' case open, there is no need for him to look into the matter. "We're not satisfied with that," a Nelson spokesman said. Jones' lawyers also professed disappointment. Despite deferring to the Justice Department, Kicklighter's office told Nelson it was willing to pursue other questions Nelson raised about Jones' case. Kicklighter agreed to explore "whether and why" a U.S. Army doctor handed to KBR security officials the results of Jones' medical examination, a so-called "rape kit," which would have contained evidence of the crime if it had occurred. In a separate letter, Kicklighter's office said that the State Department had said its security officials had Jones' rape kit in their possession at one point.

Note: For a treasure trove of reliable reports on government corruption from major media sources, click here.

U.S. drug companies spend almost twice as much on marketing and promoting medications [as] on research and development, a new Canadian study says. "These numbers clearly show how promotion predominates over R&D in the pharmaceutical industry, contrary to the industry's claim," the authors write in this week's peer-reviewed journal Public Library of Science Medicine. Using data from two market research companies, the University of Quebec's Marc-André Gagnon and York University's Joel Lexchin found U.S. drug companies spent $57.5 billion US on promotional activities in 2004 compared with $31.5 billion on research and development. Promotional activities included free samples, visits from drug reps, direct-to-consumer advertising of drugs, meetings with doctors to promote products, e-mail promotions, direct mail and clinical trials designed to promote the prescribing of new drugs rather than to generate scientific data. The authors say their figure of $57.5 billion US is likely an underestimate, citing other avenues for promotion such as ghostwriting of articles in medical journals by drug company employees, or the off-label promotion of drugs. Drug companies have long argued they are driven primarily by research, while critics charge that marketing and profits are their primary concerns. There were extensive U.S. government reviews of the pharmacy business in the 1950s and '60s and again in the 1980s. But there hasn't been a comprehensive study of drug industry profits and spending in more than a decade.

Note: For a powerful overview of corruption in the pharmaceutical industry, click here.

Despite being implicated in several controversial killings, [Blackwater] is the Pentagon's most favoured contractor and has effective diplomatic immunity in Iraq. Referred to as "the most powerful mercenary army in the world", both the US ambassador to Iraq and the army's top generals hold it in regard. The company, based near the Great Dismal Swamp in North Carolina, was co-founded by Erik Prince, a billionaire right-wing fundamentalist. At its HQ, Blackwater has trained more than 20,000 mercenaries to operate as freelancers in wars around the world. Prince is a big bankroller of the Republican Party - giving a total of around $275,550 - and was a young intern in the White House of George Bush Sr. Under George Bush Jr, Blackwater received lucrative no-bid contracts for work in Iraq, Afghanistan and New Orleans after hurricane Katrina. His firm has pulled down contracts worth at least $320 million in Iraq alone. Jeremy Scahill, who wrote the book Blackwater: The Rise Of The World's Most Powerful Mercenary Army, says when Bush was re-elected in 2004, one company boss sent this email to staff: "Bush Wins, Four More Years!! Hooyah!!" One Blackwater employment policy is to hire ex-administration big-hitters into key positions. It hired Cofer Black, a former State Department co-ordinator for counter-terrorism and former head of the CIA's counter-terrorism centre, as vice-chairman. Robert Richer, a former CIA divisional head, joined Blackwater as vice-president of intelligence in 2005. Scahill says the firm is "the front line in what the Bush administration views as the necessary revolution in military affairs" - privatisation of as many roles as possible. Scahill went on to call Prince a "neo-crusader, a Christian supremacist, who ... has been allowed to create a private army to defend Christendom around the world."

The nation’s biggest telecommunications companies, working closely with the White House, have mounted a secretive lobbying campaign to get Congress to quickly approve a measure wiping out all private lawsuits against them for assisting the U.S. intelligence community’s warrantless surveillance programs. The campaign — which involves some of Washington's most prominent lobbying and law firms — has taken on new urgency in recent weeks because of fears that a U.S. appellate court in San Francisco is poised to rule that the lawsuits should be allowed to proceed. If that happens, the telecom companies say, they may be forced to terminate their cooperation with the U.S. intelligence community — or risk potentially crippling damage awards for allegedly turning over personal information about their customers to the government without a judicial warrant. But critics say the language proposed by the White House — drafted in close cooperation with the industry officials — is so extraordinarily broad that it would provide retroactive immunity for all past telecom actions related to the surveillance program. Its practical effect, they argue, would be to shut down any independent judicial or state inquires into how the companies have assisted the government in eavesdropping on the telephone calls and e-mails of U.S. residents in the aftermath of the September 11 terror attacks. “It’s clear the goal is to kill our case," said Cindy Cohn, legal director of the Electronic Frontier Foundation, [which] filed the main lawsuit against the telecoms after The New York Times first disclosed, in December 2005, that President Bush had approved a secret program to monitor the phone conversations of U.S. residents without first seeking judicial warrants. “I find it a little shocking that Congress would participate in the covering up of what has been going on," added Cohn.

At least 20,000 police surveillance cameras are being installed along streets here [in Shenzhen] in southern China and will soon be guided by sophisticated computer software from an American-financed company to recognize automatically the faces of police suspects and detect unusual activity. Starting this month in a port neighborhood and then spreading across Shenzhen, a city of 12.4 million people, residency cards fitted with powerful computer chips programmed by the same company will be issued to most citizens. Data on the chip will include not just the citizen’s name and address but also work history, educational background, religion, ethnicity, police record, medical insurance status and landlord’s phone number. Even personal reproductive history will be included, for enforcement of China’s controversial “one child” policy. Plans are being studied to add credit histories, subway travel payments and small purchases charged to the card. Security experts describe China’s plans as the world’s largest effort to meld cutting-edge computer technology with police work to track the activities of a population. But they say the technology can be used to violate civil rights. “We have a very good relationship with U.S. companies like I.B.M., Cisco, H.P., Dell,” said Robin Huang, the chief operating officer of China Public Security. “All of these U.S. companies work with us to build our system together.” The role of American companies in helping Chinese security forces has periodically been controversial in the United States. Executives from Yahoo, Google, Microsoft and Cisco Systems testified in February 2006 at a Congressional hearing called to review whether they had deliberately designed their systems to help the Chinese state muzzle dissidents on the Internet; they denied having done so.

Two years into a fraud investigation, veteran federal prosecutor David Maguire told colleagues he'd uncovered one of the biggest cases of his career. Maguire described crimes "far worse" than those of Arthur Andersen, the accounting giant that collapsed in the wake of the Enron scandal. Among those in his sights: executives from a subsidiary of Berkshire Hathaway, the investment empire overseen by billionaire Warren Buffett. In May 2006, he felt strongly enough about his case that he prepared a draft indictment accusing executives from a Virginia insurer, Reciprocal of America, of concocting a series of secret deals to hide its losses from regulators. Although he didn't name anyone from Berkshire Hathaway's subsidiary, he described the company as a participant in the scheme. But Maguire never brought those charges. Months after preparing the draft, he was removed as the lead prosecutor on the case and reassigned. His replacement, a prosecutor who hadn't been involved in the case until then, soon announced that the Berkshire Hathaway subsidiary, General Reinsurance, would not be indicted. By April of this year, the entire investigation ... had fizzled. Former employees and policyholders of the Richmond-based insurer were astounded. Why had the Justice Department spent upward of $2 million to investigate the case only to decline to prosecute? Maguire and his team of investigators had secured two related guilty pleas, interviewed dozens of witnesses and gathered 7,000 boxes of documents. Tom Gober, a certified fraud examiner who worked on the case ... concluded that the Justice Department had buckled under pressure from defense lawyers. "It just stinks," he said. "You don't come in out of nowhere and in no time kill three years of sophisticated effort."

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.