Corporate Corruption News Articles

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For 30 years, Lew Ellingson loved being a telephone man. His job splicing phone cables was one that he says gave him “a true sense of accomplishment,” first for Northwestern Bell, then US West and finally Qwest Communications International. But by the time Mr. Ellingson retired from Qwest last year at 52, he had grown angry. An insider trading scandal had damaged the company’s reputation, and the life savings of former colleagues had evaporated in the face of Qwest’s stock troubles. “It was a good place,” he said wistfully. “And then something like this happened.” Now, Mr. Ellingson is the public face of a proposed ballot measure in Colorado that seeks to create what supporters hope will be the nation’s toughest corporate fraud law. Buttressed by local advocacy groups and criticized by a Colorado business organization, the measure would make business executives criminally responsible if their companies run afoul of the law. It would also permit any Colorado resident to sue the executives under such circumstances. Proceeds from successful suits would go to the state. If passed by voters in November, the proposal would leave top business officers [with] unprecedented individual accountability, said Mr. Ellingson. “If nothing else, these folks in charge of the corporations and companies will think twice about cutting corners to make themselves look more profitable than they really are,” he said. The plight of Mr. Ellingson’s former employer, Qwest, based in Denver, was a motivation for the proposal. Last April, a jury in Denver convicted Qwest’s former chief executive, Joseph P. Nacchio, of 19 of 42 counts of insider trading. Mr. Nacchio was sentenced to six years in prison and ordered to pay a fine of $19 million and forfeit $52 million in money he earned from stock sales in 2001.

Note: As reported in the Washington Post, Joseph P. Nacchio, the former Qwest CEO, has claimed that he was singled out for prosecution because he refused to cooperate with the National Security Agency's electronic surveillance of American citizens, which began before 9/11.

Executives at the two biggest phone companies contributed more than $42,000 in political donations to Senator John D. Rockefeller IV this year while seeking his support for legal immunity for businesses participating in National Security Agency eavesdropping. The surge in contributions came from a Who’s Who of executives at the companies, AT&T and Verizon, starting with the chief executives and including at least 50 executives and lawyers at the two utilities, according to campaign finance reports. The money came primarily from a fund-raiser that Verizon held for Mr. Rockefeller in March in New York and another that AT&T sponsored for him in May in San Antonio. Mr. Rockefeller, chairman of the Senate Intelligence Committee, [has emerged] as the most important supporter of immunity in [the Senate]. Mr. Rockefeller’s office said ... that the sharp increases in contributions from the telecommunications executives had no influence on his support for the immunity provision. “Any suggestion that Senator Rockefeller would make policy decisions based on campaign contributions is patently false,” Wendy Morigi, a spokeswoman for him, said. AT&T and Verizon have been lobbying hard to insulate themselves from suits over their reported roles in the security agency program by gaining legal immunity from Congress. The effort included meetings with Mr. Rockefeller and other members of the intelligence panels. Mr. Rockefeller received little in the way of contributions from AT&T or Verizon executives before this year, reporting $4,050 from 2002 through 2006. From last March to June, he collected a total of $42,850 from executives at the two companies. The increase was first reported by the online journal Wired, using data compiled by the Web site OpenSecrets.org. [Telecommunications] industry executives have given significant contributions to a number of other Washington politicians, including two presidential contenders, Senators Hillary Rodham Clinton and John McCain.

Over the past four years, the amount of money the State Department pays to private security and law enforcement contractors has soared to nearly $4 billion a year from $1 billion, ... but ... the department had added few new officials to oversee the contracts. Auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished. A vast majority of the money goes to companies like DynCorp International and Blackwater [Worldwide] to protect diplomats overseas, train foreign police forces and assist in drug eradication programs. There are only 17 contract compliance officers at the State Departments management bureau overseeing spending of the billions of dollars on these programs, officials said. Two new reports have delivered harsh judgments about the State Departments handling of the contracts, including the protective services contract that employs Blackwater guards whose involvement in a Sept. 16 shooting in Baghdad has raised questions about their role in guarding American diplomats in Iraq. The ballooning budget for outside contracts at the State Department is emblematic of a broader trend, contracting experts say. The Bush administration has doubled the amount of government money going to all types of contractors to $400 billion, creating a new and thriving class of post-9/11 corporations carrying out delicate work for the government. But the number of government employees issuing, managing and auditing contracts has barely grown. Thats a criticism thats true of not just State but of almost every agency, said Jody Freeman, an expert on administrative law at Harvard Law School.

Li Runsen, the powerful technology director of China’s ministry of public security, is best known for leading Project Golden Shield, China’s intensive effort to strengthen police control over the Internet. But last month Mr. Li took an additional title: director for China Security and Surveillance Technology, a fast-growing company that installs and sometimes operates surveillance systems for Chinese police agencies, jails and banks, among other customers. The company has just been approved for a listing on the New York Stock Exchange. The company’s listing and Mr. Li’s membership on its board are just the latest signs of ever-closer ties among Wall Street, surveillance companies and the Chinese government’s security apparatus. Wall Street analysts now follow the growth of companies that install surveillance systems providing Chinese police stations with 24-hour video feeds from nearby Internet cafes. Hedge fund money from the United States has paid for the development of not just better video cameras, but face-recognition software and even newer behavior-recognition software designed to spot the beginnings of a street protest and notify police. Executives of Chinese surveillance companies say they are helping their government reduce street crime, preserve social stability and prevent terrorism. They note that London has a more sophisticated surveillance system, although the Chinese system will soon be far more extensive. Wall Street executives also defend the industry as necessary to keep the peace at a time of rapid change in China. They point out that New York has begun experimenting with surveillance cameras in Lower Manhattan and other areas of the city.

These days, fewer Americans are buying the claim that the United States has the best medical system in the world. Consumers are buying lower-cost online drugs from foreign sources, and some even become "medical tourists" to obtain affordable treatment in other countries. Studies show Americans aren't healthier, nor are they living longer than people in industrialized nations that spend half per capita of what we do on care. A 2007 ... study that compared the United States with five other nations -- Australia, Canada, Germany, New Zealand and the United Kingdom -- ranked the U.S. health system last. And a 2000 report by the World Health Organization ... put the United States 37th out of 190 nations in health care services -- between Costa Rica and Slovenia. France was rated No. 1. In a New York Times/CBS poll conducted in March, health care ranked as the top domestic concern. We spend far more, but our health care is falling behind, studies say. "We, unlike any other country, have 46 million people who are uninsured, and that raises a whole host of health and financial issues," said Ken Thorpe, professor of health policy at Emory University. "Ours is really is a sick-care system." Thorpe said. He argues ... that it is far more cost-effective to prevent people from getting sick or at least catch illnesses early through better monitoring. Karen Davis, president of .... a nonprofit foundation that supports health care research said, "We tend to have more medical errors than other countries, in part because of this highly specialized, fragmented system. More things can go wrong and do go wrong."

Note: For many highly informative major media articles on the U.S. health crisis, click here.

The knee-jerk attitude that the U.S. is the best place on earth to be sick, fueled by the reputations of great institutions like the Mayo Clinic and by America's leadership in drug and technology development, is beginning to be challenged by rigorous international comparisons. There is increasing evidence that, despite justified pride in individual institutions and medical breakthroughs, the world's biggest medical spender isn't buying its citizens the longest, healthiest lives in the world. It's not just moviemakers and comics saying so. The dire message that the U.S. healthcare system is, by some measures, an also-ran on the worldwide stage is being delivered by doctors, researchers — even insurance industry giants. On screen, slamming U.S. medical care is coming of age with Michael Moore's documentary "Sicko." Through the eyes of people who have faced healthcare catastrophes, he tells graphic stories of the problems with America's system. Considerably more sobering are the warnings from an official at the National Institutes of Health, who declared in the May 16 issue of the Journal of the American Medical Assn. that the U.S. healthcare system is "a dysfunctional mess." Amid stacks of reports, all with ... measures of access, equity, efficiency and medical outcomes, two statistics stand out. The U.S. spends more on medical care than any other nation, and gets far less for it than many countries. The U.S. spends an annual $6,102 per person — more than any other country and more than twice the average of $2,571. Yet Americans have the 22nd highest life expectancy among those nations at 77.2 years. People in Japan, the world leader in longevity, live an average of 81.8 years.

Senators who raised millions of dollars in campaign donations from pharmaceutical interests secured industry-friendly changes to a landmark drug-safety bill. The bill, which passed 93-1, grants the Food and Drug Administration broad new authority to monitor the safety of drugs after they are approved. It addressed some shortcomings that allowed the painkiller Vioxx to stay on the market for years after initial signs that it could cause heart attacks. However, the powers granted to the FDA in the bill's original version were pared back during private meetings. And efforts to curb conflicts of interest among FDA advisers and allow consumers to buy cheaper drugs from other countries were defeated in close votes. A measure that blocked an effort to allow drug importation passed, 49-40. The 49 senators who voted against drug importation received about $5 million from industry executives and political action committees since 2001 — nearly three quarters of the industry donations to current members of the Senate. Sen. Bernie Sanders, I-Vt. [was] the lone vote against the bill. "You have a culture in which big money has significant influence. Big money gains you access, access gives you the time to influence people." The pharmaceutical companies spend more money on lobbying than any other single industry — $855 million from 1998 to 2006. The biggest drug trade group, Pharmaceutical Research and Manufacturers of America, praised the bill after it passed. The group's spokesman, Ken Johnson, said its critics "never point out that a great deal of this money is spent trying to defeat bills … that are designed to cripple this industry."

Note: For lots more reliable, verifiable information on drug company manipulations, click here.

Highly educated workers have done better than those with less education, but a college degree has hardly been a ticket to big income gains. The 2006 Economic Report of the President tells us that the real earnings of college graduates actually fell more than 5 percent between 2000 and 2004. So who are the winners from rising inequality? It's not the top 20 percent, or even the top 10 percent. The big gains have gone to a much smaller, much richer group than that. A new research paper by Ian Dew-Becker and Robert Gordon of Northwestern University, "Where Did the Productivity Growth Go?," gives the details. Between 1972 and 2001 the wage and salary income of Americans at the 90th percentile of the income distribution rose only 34 percent, or about 1 percent per year. So being in the top 10 percent of the income distribution, like being a college graduate, wasn't a ticket to big income gains. But income at the 99th percentile rose 87 percent; income at the 99.9th percentile rose 181 percent; and income at the 99.99th percentile rose 497 percent. Should we be worried about the increasingly oligarchic nature of American society? Yes, and not just because a rising economic tide has failed to lift most boats. Both history and modern experience tell us that highly unequal societies also tend to be highly corrupt.

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Exxon Mobil, the nation's largest energy company, today reported a 27 percent surge in profits for the fourth quarter as elevated fuel prices gave rise to the most lucrative year ever for an American company. Exxon's profits are expected to generate new scrutiny of the company's operations in Washington, where legislators have recently expressed concern over Big Oil's good fortune as soaring oil and natural gas prices pressure consumers. Exxon said its profits climbed more than 40 percent last year, while its tax bill rose only 14 percent. Exxon's revenue last year allowed it to surpass Wal-Mart as the largest company in the United States. [The company's] revenue of $371 billion surpassed the gross domestic product of $245 billion for Indonesia, an OPEC member and the world's fourth most populous country with 242 million people.

Note: This article fails to mention the huge profits reaped by oil companies as a result of gas price gouging immediately after Katrina.

In a case that echoes the Jack Abramoff influence-peddling scandal, two Northern California Republican congressmen used their official positions to try to stop a federal investigation of a wealthy Texas businessman who provided them with political contributions. Reps. John T. Doolittle and Richard W. Pombo joined forces with former House Majority Leader Tom DeLay of Texas to oppose an investigation by federal banking regulators into the affairs of Houston millionaire Charles Hurwitz, documents recently obtained by The Times show. The Federal Deposit Insurance Corp. was seeking $300 million from Hurwitz for his role in the collapse of a Texas savings and loan that cost taxpayers $1.6 billion. The investigation was ultimately dropped. Doolittle and Pombo — both considered protégés of DeLay — used their power as members of the House Resources Committee to subpoena the agency's confidential records on the case, including details of the evidence FDIC investigators had compiled on Hurwitz. Then, in 2001, the two congressmen inserted many of the sensitive documents into the Congressional Record, making them public and accessible to Hurwitz's lawyers, a move that FDIC officials said damaged the government's ability to pursue the banker. The FDIC's chief spokesman characterized what Doolittle and Pombo did as "a seamy abuse of the legislative process."

Companies with ties to the Bush White House and the former head of FEMA are clinching some of the administration's first disaster relief and reconstruction contracts in the aftermath of Hurricane Katrina. At least two major corporate clients of lobbyist Joe Allbaugh, President Bush's former campaign manager and a former head of the Federal Emergency Management Agency, have already been tapped to start recovery work along the battered Gulf Coast. One is...Halliburton Co. (Research) subsidiary Kellogg Brown and Root. Vice President Dick Cheney is a former head of Halliburton. Allbaugh formally registered as a lobbyist for Halliburton subsidiary Kellogg Brown and Root in February. Allbaugh is also a friend of Michael Brown, director of FEMA who was removed as head of Katrina disaster relief and sent back to Washington amid allegations he had padded his resume. Halliburton continues to be a source of income for Cheney, who served as its chief executive officer from 1995 until 2000. According to tax filings released in April, Cheney's income included $194,852 in deferred pay from the company.

The maker of a billion-dollar antipsychotic medication has acknowledged misleading doctors and other healthcare providers about the safety of its product, minimizing potentially deadly side effects. On Wednesday, drug maker Janssen Pharmaceutica wrote a two-page letter to doctors, warning them that the company, in promotional material, had "minimized potentially fatal risks, and made misleading claims" that the medication was more safe in treating mental illness than other drugs in the same category. Risperdal is the leading drug used to combat schizophrenia and other types of psychotic disorders, earning Janssen about $2.1 billion in annual sales. The drug was first marketed about eight years ago, and is prescribed to more than 10 million people worldwide. The "important correction of drug information" came shortly after federal regulators had accused Janssen of "disseminating" advertising and marketing material that was "false or misleading."

Don't miss the highly revealing article on this vital topic by the New England Journal of Medicine's former editor in chief Marica Angell. Click here

Rats fed on a diet rich in genetically modified corn developed abnormalities to internal organs and changes to their blood, raising fears that human health could be affected by eating GM food. Details of secret research carried out by Monsanto, the GM food giant...shows that rats fed the modified corn had smaller kidneys and variations in the composition of their blood. According to the confidential 1,139-page report, these health problems were absent from another batch of rodents fed non-GM food. Although Monsanto last night dismissed the abnormalities in rats as meaningless and due to chance...a senior British government source said ministers were so worried by the findings that they had called for further information. The full details of the rat research are included in the main report, which Monsanto refuses to release on the grounds that "it contains confidential business information which could be of commercial use to our competitors".

Note: For lots more reliable, verifiable information on this vital topic, see our summary of Seeds of Deception.

Dr. Walter Bernard Coffey of San Francisco was again asking the State of New York's Department of Social Welfare permission to open a cancer research laboratory and clinic at Huntington, L. I. His cohorts surrounded him. Opposed were Dr. John Augustus Hartwell, president of the New York Academy of Medicine, spokesman for organized Medicine, and his cohorts. The simple question was: Should the State authorize the cancer clinic? But in the train of that simple question came a most extraordinary range of considerations—the nature and cause of cancer; the nature and authenticity of the Coffey-Humber cancer treatment; medical ethics, human nature, public policy, money, fame, and even national politics. Dr. Coffey ... is chief surgeon of Southern Pacific Co. He has 600 doctors working under him. They care for 70,000 railroad men and their families. Dr. John Augustus Hartwell, 61, president of the New York Academy of Medicine ... and most of his associates want Drs. Coffey & Humber and their cancer extract kept away from New York. They fear that the hope of a Coffey-Humber cancer cure will persuade the cancerous to abandon the orthodox treatment of surgery, X-rays and radium. Very quickly after a sufferer gets a Coffey-Humber injection, his pain quiets, and in 71% of the cases disappears. In most of the cases who do not die (Drs. Coffey & Humber will treat only the moribund, cases rejected as hopeless by at least two reputable doctors), the cancer becomes necrotic, ceases to smell, and sloughs off leaving a clean hole. That undeniably happens. Why that happens is debatable.

Note: To read how permission for the innovative cancer clinic was eventually refused, click here. If you want to understand how politics and big money prevented the legitimate study of promising cancer cures back in the 1930s, this article is a highly revealing "must read."

Ecuador's highest court has upheld a $9.5 billion judgment against oil giant Chevron for decades of rainforest damage. Plaintiffs celebrated the constitutional court's decision announced Tuesday night, saying it should pave the way for indigenous tribes to receive compensation for oil spills that contaminated groundwater and soil in their Amazon home. But the ruling is largely symbolic as Chevron no longer operates in the South American country. That means Ecuador's government will have to pursue assets owned by the ... company in foreign courts, where it so far has had little luck. Last week, an appeals court in Argentina rejected an attempt by Ecuador to collect on its award, echoing earlier rulings by courts in Canada, Gibraltar and Brazil. In 2014, a U.S. court of appeals ... also denied Ecuador's request, arguing that the original judgment was obtained through bribery, coercion and fraud. In an added twist, the American lawyer who for years represented Ecuador in the matter was barred Tuesday from practicing law in New York state. The New York state appeals court found Steven Donziger guilty of professional misconduct, saying that in his appeal of the 2014 ruling he did not challenge the judge's findings of bribery, witness tampering, and the ghostwriting of a court opinion.

Note: For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.

Evidence that Roundup weed killer can cause cancer seems "weak," but experts can still make that claim at trial, a U.S. judge ruled Tuesday. The decision by U.S. District Judge Vince Chhabria in San Francisco allows hundreds of lawsuits against Roundup's manufacturer, Monsanto, to move forward. The lawsuits by cancer victims and their families say the agrochemical giant long knew about Roundup's cancer risk but failed to warn them. The judge wanted to determine whether the science behind the claim that Roundup can cause non-Hodgkin's lymphoma had been properly tested and met other requirements to be considered valid. Before issuing his ruling, Chhabria spent a week in March hearing dueling testimony from epidemiologists. He peppered them with questions about potential strengths and weaknesses of research on the cancer risk of glyphosate. Beate Ritz, an epidemiologist at the University of California, Los Angeles, testified for the plaintiffs that her review of scientific literature led her to conclude that glyphosate and glyphosate-based compounds such as Roundup can cause non-Hodgkin's lymphoma. Ritz said a 2017 National Institute of Health study that found no association between glyphosate and non-Hodgkin's lymphoma had major flaws. A federal judge in Sacramento in February blocked California from requiring that Roundup carry a label stating that it is known to cause cancer.

Note: As major lawsuits like this one against Monsanto unfold, the EPA continues to use industry studies to declare Roundup safe while ignoring independent scientists. A recent independent study published in a scientific journal found a link between glyphosate and gluten intolerance. Internal FDA emails suggest that the food supply contains far more glyphosate than government reports indicate. For more along these lines, see concise summaries of deeply revealing news articles on food system corruption and health.

Pharmaceutical companies that spend billions of dollars to develop new drugs do not want competitors to profit from inexpensive generic copies of blockbuster medicines. To avoid rivals, they ... sometimes prevent generic drug companies from obtaining samples. Dr. Scott Gottlieb, the commissioner of the Food and Drug Administration, calls this “gaming the system,” and has vowed to stop it. On Thursday, the F.D.A. took a new tack and began posting a list of makers of brand-name drugs that have been the target of complaints, to persuade them to “end the shenanigans,” in the commissioner’s words. Congressional efforts to force the companies to hand over samples of their drugs to generic competitors have not been successful. Generic drug developers usually need between 1,500 to 5,000 units of the brand drug to develop their product and test it. Both the F.D.A. and the Federal Trade Commission say securing the samples can be difficult. The F.D.A.’s new list includes drug companies the agency said may be pursuing gaming tactics to delay generic competition. Along with the name of each business, the agency noted how many inquiries it received from generic drug companies seeking supplies. Celgene, [which makes drugs to treat cancer and immune-inflammatory diseases], tops the list. Other companies ... included GlaxoSmithKline, Pfizer, Valeant Pharmaceuticals International, BioMarin Pharmaceutical, Gilead Sciences and Novartis Pharmaceuticals.

Note: For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.

A group of student activists sat in the library at George Mason University this past week feeling both vindicated and violated. The group, Transparent GMU, had sued ... last year after it was denied requests for documents that it suspected showed how deep-pocket donors were given undue influence over academic affairs. After a recent court hearing in the case, the university released those documents. The documents reveal in surprising detail that for years, as George Mason grew from a little-known commuter school to a major public university and a center of libertarian scholarship, millions of dollars in donations from conservative-leaning donors like the Charles Koch Foundation had come with strings attached. As early as 1990, entities controlled by the billionaire brothers Charles G. and David H. Koch were given a seat on a committee to pick candidates for a professorship that they funded. Similar arrangements that continued through 2009 gave donors decision-making roles in selecting candidates for key economics appointments. In 2016, executives of the Federalist Society, a conservative national organization of lawyers, served as agents for a $20 million gift from an anonymous donor, and were given the right to terminate installments of the gift at their discretion. Federalist Society officials were also involved in hiring discussions and had suggested a student for admission. In academia, such influence is viewed as inappropriate.

Note: The above article suggests that the secretive empire built by the Koch brothers to manipulate US politics extends deep into academia. For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.

The largest dead zone ever recorded in the U.S. has appeared at the mouth of the Mississippi River. According to scientists, it's primarily caused by fertilizer and sewage that wash off farmland in the river's watershed and eventually make their way to the sea. Scientists announced this month the dead zone measures nearly 9,000 square miles – about the size of New Jersey. Underwater video recorded Tuesday afternoon shows the transition from life to death as green fades to black. It becomes so dark, divers need flashlights to find their way around. The abyss stretches over an enormous portion of the Gulf. "This is the largest one we've ever measured. And the northern Gulf of Mexico dead zone is the second largest human-caused dead zone in the ocean," said Nancy Rabalais, the nation's foremost expert on dead zones. She's been measuring oxygen levels in the Gulf since 1985. Dead zones happen when agricultural runoff sends nitrogen-rich fertilizer downstream into the sea. The fertilizer feeds harmful amounts of algae at the surface that eventually die and sink to the bottom. Bacteria feast on the dead algae, removing oxygen from the water. "The solution lies upstream in the watershed with better agricultural management practices - a switch to crops that have deeper roots and don't need as much fertilizer," Rabalais said.

Note: For more along these lines, see concise summaries of deeply revealing news articles on food system corruption and mass animal deaths.

Martin Shkreli - famously known as the guy that jacked up the price of a lifesaving AIDS treatment by 5,000% - finally saw his day in court, albeit for a completely unrelated case involving an unrelated company. The trial ... found Shkreli guilty of three counts of fraud for essentially lying to his investors about how he would invest their money and when they would be paid back. The conviction, carrying a potential 20 years in prison, is no joke. Yet the notorious self-promoter took the opportunity to ... let the world know he wasn’t fazed. And why should he be? How Shkreli got rich in the first place remains not just legal but celebrated. The real crime of the Pharma Bro is the unrepentant greed that drives him, as well as the industry he’s thrived in. Sen. Bernie Sanders has attempted to put a stop to this greed with recently introduced legislation to cap prices for pharmaceuticals developed by government-funded research. Far from a new idea, Sanders has been pushing for a bill like this for decades. While raising the price of a life-saving drug by 5,000% rightfully drew the scorn of millions of people, price gouging is all too common for the industry. Take the EpiPen, the lifesaving device for kids and adults with severe allergies, whose price was famously hiked up over 500% ... after it was acquired by Mylan. Laws that protect investors in these companies are what landed Shkreli in court. Yet until there are laws to protect patients from drug company extortion, like the one proposed by Sanders, the line of Pharma Bros ready to take his place is already queued up.

Note: For more along these lines, see concise summaries of deeply revealing news articles on Big Pharma profiteering and corporate corruption.

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.