Corporate Corruption News Articles

Excerpts of key news articles on

Below are key excerpts of revealing news articles on corporate corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.

Making money from water? Is this what Wall Street wants next? This summer, however, myriad business forces are combining to remind us that fresh water isn’t necessarily or automatically a free resource. It could all too easily end up becoming just another economic commodity. At the forefront of this firestorm is Peter Brabeck, chairman and former CEO of Nestlé. In his view, citizens don’t have an automatic right to more than the water they require for mere “survival”, unless they can afford to pay for it. For context, the World Health Organization sets such “survival” consumption levels at a minimum of 20 liters a day for basic hygiene and food hygiene – higher, if you add laundry and bathing. But Brabeck probably isn’t the best standard-bearer for the cause of responsible water management, by any stretch of the imagination. Consider the fact that as the drought has worsened, Nestlé Waters North Americas Inc – the largest bottled water company in the country – has continued to pump water from an aquifer near Palm Springs, California, thanks to its partnership with the Morongo Band of Mission Indians. Their joint venture, bottling water from a spring on land owned by the band in Millard Canyon, has another advantage: since the Morongo are considered a sovereign nation, no one needs to report exactly how much water is being drawn from the aquifer.

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

Four years after President Obama promised to crack down on mortgage fraud, his administration has quietly made the crime its lowest priority and has closed hundreds of cases after little or no investigation, the Justice Department’s internal watchdog said on [March 13]. The report by the department’s inspector general undercuts the president’s contentions that the government is holding people responsible for the collapse of the financial and housing markets. The administration has been criticized, in particular, for not pursuing large banks and their executives. The inspector general’s report ... shows that the F.B.I. considered mortgage fraud to be its lowest-ranked national criminal priority. In several large cities, including New York and Los Angeles, F.B.I. agents either ranked mortgage fraud as a low priority or did not rank it at all. The F.B.I. received $196 million from the 2009 to 2011 fiscal years to investigate mortgage fraud, the report said, but the number of pending cases and agents investigating them dropped in 2011. Mortgage fraud was one of the causes of the 2008 financial collapse. Mortgage brokers and lenders falsified documents, sometimes to make mortgages look safer, other times to make the property look more valuable.

Note: For more on government collusion with the banking industry, see the deeply revealing reports from reliable major media sources available here.

The deal was announced quietly, just before the holidays. The U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. They issued a fine $1.9 billion, or about five weeks' profit but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses. For at least half a decade, the storied British colonial banking power helped to wash hundreds of millions of dollars for drug mobs, including Mexico's Sinaloa drug cartel, suspected in tens of thousands of murders just in the past 10 years. The bank also ... aided countless common tax cheats in hiding their cash. That nobody from the bank went to jail or paid a dollar in individual fines is nothing new in this era of financial crisis. What is different about this settlement is that the Justice Department, for the first time, admitted why it decided to go soft on this particular kind of criminal. It was worried that anything more than a wrist slap for HSBC might undermine the world economy. "Had the U.S. authorities decided to press criminal charges," said Assistant Attorney General Lanny Breuer at a press conference to announce the settlement, "HSBC would almost certainly have lost its banking license in the U.S., the future of the institution would have been under threat and the entire banking system would have been destabilized."

Note: For more on the collusion of government with the biggest, most corrupt banks, see the deeply revealing reports from reliable major media sources available here.

The federal government is making progress on developing a surveillance system that would pair computers with video cameras to scan crowds and automatically identify people by their faces, according to newly disclosed documents and interviews with researchers working on the project. The Department of Homeland Security tested a crowd-scanning project called the Biometric Optical Surveillance System — or BOSS — last fall after two years of government-financed development. Although the system is not ready for use, researchers say they are making significant advances. That alarms privacy advocates, who say that now is the time for the government to establish oversight rules and limits on how it will someday be used. In a sign of how the use of such technologies can be developed for one use but then expanded to another, the BOSS research began as an effort to help the military detect potential suicide bombers. But in 2010, the effort was transferred to the Department of Homeland Security to be developed for use instead by the police in the United States. The effort to build the BOSS system involved a two-year, $5.2 million federal contract given to Electronic Warfare Associates, a Washington-area military contractor with a branch office in Kentucky. Significant progress is already being made in automated face recognition using photographs taken under ideal conditions, like passport pictures and mug shots. The Federal Bureau of Investigation is spending $1 billion to roll out a Next Generation Identification system that will provide a national mug shot database to help local police departments verify identities.

Note: For more on government and corporate threats to privacy, see the deeply revealing reports from reliable major media sources available here.

In March, the head of the Centers for Disease Control issued an alarm, echoed by virtually every health authority in the world, that antibiotic-resistant bacteria threaten to return humans to the days when ordinary infections routinely killed and maimed. Yet the United States continues to use at least 70 percent of its antibiotics on livestock. Millions of pounds of antibiotics are routinely administered at low doses to large numbers of animals living in crowded conditions ... to speed their growth and prevent possible infections, creating ideal conditions for bacteria to become resistant. At the same time, drug-resistant infections acquired in hospitals kill 70,000 people a year. The problem is so dire that the Obama administration is paying drug companies to develop new antibiotics, and some groups want to test them directly on sick people to speed approval. While many physicians try to limit antibiotic use on sick patients to slow the spread of resistance, livestock growers can buy antibiotics over the counter at a feed store. "Many hospitals have implemented antimicrobial stewardship programs, in which every milligram of antibiotic use is scrutinized," said Dr. Tom Newman, a professor of epidemiology and biostatistics at UCSF. About once a month, Brad Spellberg, an infectious disease researcher at Harbor-UCLA Medical Center, said he sees patients with abdominal or urinary tract E. coli infections that resist all oral antibiotics. Doctors are down to "one or two last-ditch IVs," or intravenous administration of antibiotics against some bacteria.

Note: For more on important health issues, see the deeply revealing reports from reliable major media sources available here.

Google asked the secretive Foreign Intelligence Surveillance Court on [June 18] to ease long-standing gag orders over data requests the court makes, arguing that the company has a constitutional right to speak about information it is forced to give the government. The legal filing, which invokes the First Amendment’s guarantee of free speech, is the latest move by the California-based tech giant to protect its reputation in the aftermath of news reports about broad National Security Agency surveillance of Internet traffic. Revelations about the program, called PRISM, have opened fissures between U.S. officials and the involved companies, which have scrambled to reassure their users without violating strict rules against disclosing information that the government has classified as top secret. A high-profile legal showdown might help Google’s efforts to portray itself as aggressively resisting government surveillance, and a victory could bolster the company’s campaign to portray government surveillance requests as targeted narrowly and affecting only a small number of users. [The] unusual legal move came after days of intense talks between federal officials and several of the technology companies, including Google, over what details can be released. It also comes as the firms increasingly show signs of wanting to outdo each other in demonstrating their commitment to protecting user privacy. Facebook, Microsoft and Yahoo in recent days have won federal government permission to include requests from the court as part of the overall number of data requests they receive from federal, state and local officials.

Note: For deeply revealing reports from reliable major media sources on government assaults on privacy, click here.

Jack Abramoff had just delivered a primer on the corruption of Congress when a University of San Francisco graduate student in public affairs posed the question: Does ethical lobbying exist, or is the cutting of moral corners just part of the job description? Abramoff, whose mastery of capital sleaze earned him a fortune and then a prison term, estimated that 95 percent of the thousands of lobbyists who populate Washington are ethical. He was, by his own admission, among the 5 percent. "The problem is, when you're one of those (unethical) lobbyists, you will be able to crush the other lobbyists," said Abramoff, now 55, repentant after 43 months in federal prison and on a crusade to reform the system he exploited so adroitly. Abramoff's reform plan ... would expand the definition of lobbyist to anyone (person or corporation) that tries to influence legislation, impose a limit on campaign contributions to $500 per election cycle and prohibit legislators, staffers and administration decisionmakers from lobbying activity for 10 years after leaving government. In Abramoff's eyes, well-directed money is the only way to overcome the corrosive influence of strategically distributed money in Washington. He has written a book, Capitol Punishment: The Hard Truth About Washington Corruption From America's Most Notorious Lobbyist, and become an advocate of political reform. He still owes nearly $44 million in restitution for defrauding his tribal clients.

Note: Abramoff, who manipulated tens of millions of dollars, was sentenced to a total of 10 years in jail, yet was released after less than four years. At the same time petty thieves caught three times in many US states are sentenced to life in prison. Where's the justice? For deeply revealing reports from reliable major media sources on government corruption, click here.

The [Los Angeles Times] is one of the eight daily newspapers now owned by the creditors who took control of the Tribune Co. after real estate wheeler-dealer Sam Zell drove it into bankruptcy. The Tribune board members whom the creditors selected want to unload the papers in favor of more money-making ventures. Right-wing billionaires Charles and David Koch are looking to buy all eight papers. The Koch boys, whose oil-and-gas-based fortune places them just behind Bill Gates, Warren Buffett and Larry Ellison as the wealthiest Americans, have been among the chief donors to the tea party wing of the Republican Party. Their political funding vehicle, Americans for Prosperity, ranked with casino billionaire Sheldon Adelson among the largest funders of right-wing causes and candidates in 2012. Their purchase offer [comes] complete with a commitment to journalism as a branch of right-wing ideology. The staffs at [the Tribune Co.] papers fear that, once Kochified, the papers would quickly turn into print versions of Fox News. A recent informal poll that one L.A. Times writer conducted of his colleagues showed that almost all planned to exit if the Kochs took control (and that included sportswriters and arts writers). Those who stayed would have to grapple with how to cover politics and elections in which their paper’s owners played a leading role. It’s also unclear who in Los Angeles, one of the nation’s most liberal cities, would actually want to read such a paper, but then the Kochs don’t appear to view this as a money-making venture.

The U.N. General Assembly overwhelmingly approved the first international treaty regulating the multibillion-dollar global arms trade [on April 2], after a more than decade-long campaign. The final vote: 154 in favor, 3 against and 23 abstentions. "This is a victory for the world's people," U.N. Secretary-General Ban Ki-moon said. "The Arms Trade Treaty will make it more difficult for deadly weapons to be diverted into the illicit market. ... It will be a powerful new tool in our efforts to prevent grave human rights abuses or violations of international humanitarian law." Never before has there been a treaty regulating the global arms trade, which is estimated to be worth $60 billion. Frank Jannuzi, deputy executive director of Amnesty International USA [said,] "The voices of reason triumphed over skeptics, treaty opponents and dealers in death to establish a revolutionary treaty that constitutes a major step toward keeping assault rifles, rocket-propelled grenades and other weapons out of the hands of despots and warlords who use them to kill and maim civilians, recruit child soldiers and commit other serious abuses." What impact the treaty will actually have remains to be seen. It will take effect 90 days after 50 countries ratify it, and a lot will depend on which ones ratify and which ones don't, and how stringently it is implemented. As for its chances of being ratified by the U.S., the powerful National Rifle Association has vehemently opposed it, and it is likely to face stiff resistance from conservatives in the Senate, where it needs two-thirds to win ratification.

Insiders have been pulling out of stocks just as small investors are getting in. Selling by corporate executives has surged recently as the Dow Jones Industrial Average hit 14,000 and retail investors flooded into stocks. The amount of insider selling has usually preceded market selloffs. "In almost perfect coordination with an equity market that was rushing toward new all-time highs, insider sentiment has weakened sharply — falling to its lowest level since late March 2012," wrote David Coleman of the Vickers Weekly Insider report, one of the longest researchers of executive buying and selling on Wall Street. "Insiders are waving the cautionary flag in an increasingly aggressive manner." There have been more than nine insider sales for every one buy over the past week among NYSE stocks, according to Vickers. The last time executives sold their company's stock this aggressively was in early 2012, just before the S&P 500 went on to correct by 10 percent to its low for the year. "Insiders know more than the vast majority of market participants," said Enis Taner, global macro editor for RiskReversal.com. "And they're usually right over a long period of time." "Insiders (are) showing a remarkable ability of late to identify both market peaks and troughs," states the Vickers report. For selling to be big enough that firms like Vickers raise a bearish flag, the bulls may want to take heed.

Note: For more on this, click here.

The federal government is ... going after Wall Street's biggest credit rating firm for its role in pumping up the housing bubble. The Justice Department filed a lawsuit [on Feb. 4] against Standard & Poor's Corp. The suit accuses the company's analysts of issuing glowing reviews on troubled mortgage securities whose subsequent failure helped cause the worst financial crisis since the Great Depression. The action marks the first federal crackdown against a major credit rater, and it signals an untested legal tack after limited success in holding the nation's banks accountable for the part they played in the crisis. The government selected Los Angeles as the venue to file the lawsuit in part because it was one of the regions hardest hit when the bottom fell out of the housing market. Hundreds of thousands of California residents lost their homes to foreclosure, and others saw their wealth evaporate as properties plummeted in value. In addition to the Justice Department, several state attorneys general are investigating the ratings agency. States such as California and New York are expected to pursue their own investigations and legal action, people familiar with the matter said. The federal action does not involve any criminal allegations. Critics have complained that the government has yet to send any senior bankers or Wall Street executives to jail for potential illegal behavior that led to the crisis. But civil actions typically require a much lower burden of proof.

Note: For deeply revealing reports from reliable major media sources on the criminal practices of the financial industry, click here.

A jury has ordered an $85m compensation payout by the American military contractor Kellogg Brown and Root ... after finding it guilty of negligence for illnesses suffered by a dozen soldiers who guarded an oilfield water plant during the Iraq war. KBR was ordered to pay $6.2m to each of the soldiers in punitive damages and $850,000 in non-economic damages. During the Iraq war KBR was the engineering and construction arm of Halliburton, the biggest US contractor during the conflict. KBR split from Halliburton in April 2007. The US lawsuit was the first concerning American soldiers' exposure to a toxin at a water plant in southern Iraq. The soldiers have said they suffer from respiratory ailments after their exposure to sodium dichromate and fear that a carcinogen it contains – hexavalent chromium – could cause cancer later in life. The contractor's defence ultimately rested on the fact that it informed the US army of the risks of exposure to sodium dichromate. KBR was tasked with reconstructing the decrepit, scavenged plant just after the March 2003 invasion while troops from the US national guard defended the area. Bags of unguarded sodium dichromate – a corrosive substance used to keep pipes at the water plant free of rust – were ripped open, allowing the substance to spread across the plant and into the air. When KBR was still part of Halliburton it won a large share of Pentagon contracts to build and manage US military bases in Iraq after the 2003 invasion. Its former chief executive, Dick Cheney, was US vice-president.

The Occupy movement received vindication from an unlikely source tonight, as a senior executive at the Bank of England credited it with stirring a “reformation of finance”. Andrew Haldane, executive director of financial stability, said Occupy protesters had been “both loud and persuasive”, and had attracted public support because “they are right”. “Some have suggested … that Occupy’s voice has been loud but vague, long on problems, short on solutions. Others have argued that the fault-lines in the global financial system, which chasmed during the crisis, are essentially unaltered, that reform has failed,” Mr Haldane said. “I wish to argue that both are wrong – that Occupy’s voice has been both loud and persuasive and that policymakers have listened and are acting in ways which will close those fault-lines. In fact, I want to argue that we are in the early stages of a reformation of finance, a reformation which Occupy has helped stir.” Speaking at an Occupy Economics event in central London, Mr Haldane said that Occupy had been “successful in its efforts to popularise the problems of the global financial system for one very simple reason: they are right.” He added that protesters ... “touched a moral nerve in pointing to growing inequities in the allocation of wealth”. Mr Haldane ended with a direct appeal to activists to continue putting pressure on governments and regulators. He said: “You have put the arguments. You have helped win the debate. And policymakers, like me, will need your continuing support in delivering that radical change.”

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

Thinking about going through your medicine cabinet and throwing out all your expired prescriptions? That might not be necessary, according to a UCSF-led study. Researchers analyzed eight prescription drugs with 15 active ingredients that expired between 28 and 40 years ago and found that most remained just as potent as they were on the day they were made. In 12 of the 14 drug compounds, or 86 percent of the time, the amount of active ingredient present in the drugs was at least 90 percent of the amount indicated on the label. That's well within the "reasonable variation" allowed by the U.S. Food and Drug Administration of 90 percent to 110 percent. Only two compounds - aspirin and the stimulant amphetamine - fell below the 90 percent threshold. Another medication, the painkiller phenacetin, fell below the threshold in one sample but was found in levels greater than 90 percent in another. The study was published online last week in the Archives of Internal Medicine.

Note: A drug listed expired as 40 years ago is still just as potent as the day it was made. Could short expiration dates be an example of drug companies finding a way to make more money through unnecessary disposal of older medications?

The U.S. government filed a civil mortgage fraud lawsuit on [October 9] against Wells Fargo & Co, the latest legal volley against big banks for their lending during the housing boom. The complaint, brought by the U.S. Attorney in Manhattan, seeks damages and civil penalties from Wells Fargo for more than 10 years of alleged misconduct related to government-insured Federal Housing Administration loans. The lawsuit alleges the FHA paid hundreds of millions of dollars on insurance claims on thousands of defaulted mortgages as a result of false certifications by Wells Fargo, the fourth-biggest U.S. bank as measured by assets. "As the complaint alleges, yet another major bank has engaged in a longstanding and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance," said Manhattan U.S. Attorney Preet Bharara. Bharara's office has brought similar cases in the past few years, including one against Citigroup Inc unit CitiMortgage Inc, which settled the case for $158.3 million in February, and against Deutsche Bank, which paid $202.3 million in May to resolve its case. The U.S. Attorney's office in Brooklyn brought the biggest such case, against Bank of America Corp's Countrywide unit, which agreed in February to pay $1 billion to resolve the allegations.

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

The US Supreme Court has declined to block a judgement from an Ecuadorean court that a US oil firm pay billions in damages for pollution in the Amazon. Chevron was fighting a ruling that it must pay $18.2bn (Ł11.4bn) in damages, a sum increased to $19bn in July. It is the latest move in a decades-long legal wrangle between Texaco, bought by Chevron in 2001, and the people of the Lago Agrio region of Ecuador. The decision could affect other oil firms accused of pollution. The case claimed that Texaco contaminated land between 1964 and 1992, and has triggered several other lawsuits in courts within the US and elsewhere. In March 2011 a court in New York issued an injunction that blocked the judgement. But it was overturned in January this year by an appeals court, which said Chevron had challenged the judgement prematurely. The appeals court also said the New York judge could not stop other, foreign courts from enforcing the judgement - something the Ecuadorean plaintiffs are working to do in Canada and Brazil. The judgement originally ordered $8.6bn in environmental damages, but that was more than doubled because the oil company did not apologise publicly.

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

The feeding of antibiotics in small doses to entire herds or flocks to promote rapid weight gain poses a serious threat to human health. The constant dosing promotes the emergence of germs that are resistant to veterinary drugs and to the very similar drugs used in humans. That raises the risk that when humans are infected by the germs, the medicines they rely on will be less effective. Earlier this month, a federal magistrate judge in New York told the Food and Drug Administration to quit dillydallying on its three-decade effort to curb indiscriminate use of antibiotics in farm animals to spur their growth. He set a timetable for the agency to follow in withdrawing two important drugs - penicillin and two forms of tetracycline - from widespread use in animals. The trouble is, that timetable will give the F.D.A. five more years to complete the process.

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

Fourteen months after the accident [at the Fukushima Daiichi nuclear plant], a pool brimming with used fuel rods and filled with vast quantities of radioactive cesium still sits on the top floor of a heavily damaged reactor building, covered only with plastic. The public’s fears about the pool have grown in recent months as some scientists have warned that it has the most potential for setting off a new catastrophe ... as frequent quakes continue to rattle the region. The jury-rigged cooling system for the pool has already malfunctioned several times, including a 24-hour failure in April. Had the outages continued, they would have left the rods at risk of dangerous overheating. “The No. 4 reactor is visibly damaged and in a fragile state, down to the floor that holds the spent fuel pool,” said Hiroaki Koide, an assistant professor at Kyoto University’s Research Reactor Institute and one of the experts raising concerns. “Any radioactive release could be huge and go directly into the environment.” The worst-case situations for Reactor No. 4 would be for the pool to run dry if there is another problem with the cooling system and the rods catch fire, releasing enormous amounts of radioactive material, or for fission to restart if the metal panels that separate the rods are knocked over in a quake. That would be especially bad because the pool, unlike reactors, lacks containment vessels to hold in radioactive materials.

Note: For extensive coverage from reliable sources on corruption in the nuclear power industry, click here.

A published report says Apple Inc. uses subsidiaries in Ireland, the Netherlands and other low-tax nations as part of a strategy that enables the technology giant to cut its global tax bill by billions of dollars every year. The New York Times on [April 29] outlined legal methods used by Cupertino, Calif.-based Apple to avoid paying billions of dollars in federal and state taxes. One approach highlighted in the report: Even though the company is based in California, Apple has set up a small office in Reno, Nev. to collect and invest its profits. The corporate tax rate in Nevada is zero. In California, it's 8.84 percent. While many major corporations try to reduce their tax bills, technology companies like Apple, Google Inc., Microsoft Corp. and others have more options to do so. That's because some of their revenue comes from digital products or royalties on patents, which makes it easier for them to move profits to tax-friendly states or countries. Apple has legally allocated about 70 percent of its profits overseas, where tax rates are often much lower than in the U.S., according to company filings. The Times cites a study by former Treasury Department economist Martin A. Sullivan that estimates Apple's federal tax bill would have been $2.4 billion higher last year without such tactics.

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

Protesters enraged about the country's economic miasma disrupted Wells Fargo's annual summit [on April 24], as shareholders celebrated the bank's record profit and awarded its chief executive a pay package of nearly $20 million. Hundreds of activists - including union members, Occupy activists and people whose homes have been foreclosed - surrounded the Merchants Exchange Building in downtown San Francisco, where about 250 shareholders gathered on the 15th floor to hear details of the bank's 28 percent profit increase last year. Fifteen protesters, allowed into the meeting because they own stock in Wells Fargo, shouted over CEO John Stumpf as he presented a PowerPoint slide show about the bank's $15.9 billion profit last year. Police escorted out the protesters, who were cited for disrupting the meeting and released. It was the bank's involvement in foreclosures ... that brought hundreds of protesters to the meeting. Some came from as far away as Minnesota. They filled the air with lively chants, led by people using loudspeakers set up on a flatbed truck alongside an 8-foot-high, inflated rat smoking a cigar. A protester-built, 10-foot-high mockup of Wells Fargo's signature stagecoach stood in the street, covered with slogans denouncing the bank.

Note: For key reports from reliable sources on Occupy and other protests against the criminal profiteering of banks and other financial corporations, click here.

Important Note: Explore our full index to revealing excerpts of key major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.