Corporate Corruption News Stories

Excerpts of Key Corporate Corruption News Stories in Major Media

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: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

In articles, interviews, op-eds and testimony on Capitol Hill, Wendell Potter has described the dark underbelly of the health care insurance industry — unkept promises of care, canceled coverage of those who get sick and fearmongering campaigns designed to quash any change that might adversely affect profits. He should know what he is talking about. For 20 years, Mr. Potter was the head of corporate communications at two major insurers, first at Humana and then at Cigna. Now Mr. Potter has written a fascinating book that details the methods he and his colleagues used to manipulate public opinion and describes his transformation from the idealistic son of working-class parents in eastern Tennessee to top insurance company executive, to vocal critic and industry watchdog. Using little of the fiery rhetoric or lurid prose that usually marks corporate exposés or memoirs of redemption, the book, Deadly Spin ... is an evenhanded yet riveting account of the inner workings of the health care insurance industry, a cautionary tale that doctors and patients would be wise not to miss. Mr. Potter [describes] the myth-making he did, interspersing descriptions of front groups, paid spies and jiggered studies with a deft retelling of the convoluted (and usually eye-glazing) history of health care insurance policies.

Note: Mr. Potter has written a powerful condemnation of health care industry practices at this link. For other major media articles on this courageous whistleblower, click here. And for other highly informative reports on important health issues, click here.

The European security research programme (ESRP) has a €1.4bn EU budget and its twin objectives are to enhance European security and foster the growth of a globally competitive security industry in Europe. Unfortunately, in its haste to cash-in on the homeland security boom, the EU has effectively outsourced the design of its security research agenda to some of the corporations that have the most to gain from its implementation. It has created bodies outside the formal structure of the EU, beyond parliamentary scrutiny and democratic control. The result is a public research programme designed by lobbyists, for lobbyists, with corporations invited to shape the objectives and annual priorities, and then apply for the money on offer. ESRP was the brainchild of the "group of personalities", an EU advisory body convened in 2003 that included some of Europe's largest defence and IT contractors alongside the likes of NATO, the EU military committee and the Rand Corporation. The group's primary concern was the scale of the US government's investment in homeland security R&D, which meant that the US was "taking a lead" in the development of security "technologies and equipment which … could meet a number of Europe's needs", putting US multinationals in "a very strong competitive position".

Note: The author of this article, Ben Hayes, has written a detailed report, NeoConOpticon: the EU Security-Industrial Complex published by Statewatch and the Transnational Institute.

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned. Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery. "Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney [said]. "There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults." American cities and states have debts in total of as much as $2tn. US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds, said the CBS programme, apocalyptically titled The Day of Reckoning.

Note: For a treasure trove of reports from major media sources on the dire impacts of the financial crisis and government bailout of financial capitalists at taxpayers' expense, click here.

Tony Blair has been cashing in on his contacts from the Iraq conflict and his role as Middle East peace envoy for a private business venture expected to earn him more than Ł5m a year. The former prime minister has sold his political and economic expertise to two countries, Kuwait and the United Arab Emirates, via his fledgling private consultancy. He also represents the investment bank JP Morgan in the region. Blair has been ... amassing a fortune from the American lecture circuit. By offering himself to the Arab states as a statesman for hire, he could comfortably double his annual earnings. His consultancy, the London-based Tony Blair Associates (TBA), emulates the New York partnership Kissinger Associates, which was founded by Henry Kissinger, the former national security adviser to President Nixon. Peter Brierley, 59, of Batley, West Yorkshire, whose 28-year-old son Shaun was killed near the Kuwait-Iraq border in 2003 and who refused to shake Blair’s hand at a memorial service this month, said: “This beggars belief. It’s absolutely scandalous that he’s now trying to make money from his contacts in the region. It’s money from the blood and lives of the soldiers who died in Iraq.” His fees for talks, along with contracts with JP Morgan and Zurich Financial Services, are estimated to put his earnings — excluding [a big] book deal — well in excess of Ł5m a year.

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

Take a book of just 13 pages, written by a relatively obscure 93-year-old man, which contains no sex, no jokes, no fine writing and no startlingly original message. A publishing disaster? No, a publishing phenomenon. Indignez vous! (Cry out!), a slim pamphlet by a wartime French resistance hero, Stéphane Hessel, is smashing all publishing records in France. The book urges the French, and everyone else, to recapture the wartime spirit of resistance to the Nazis by rejecting the "insolent, selfish" power of money and markets and by defending the social "values of modern democracy". The book, which costs €3, has sold 600,000 copies in three months and another 200,000 have just been printed. Its original print run was 8,000. In the run-up to Christmas, Mr Hessel's call for a "peaceful insurrection" not only topped the French bestsellers list, it sold eight times more copies than the second most popular book. Mr Hessel, who survived Nazi concentration camps to become a French diplomat, said he was "profoundly touched" by the success of his book. Just as he "cried out" against Nazism in the 1940s, he said, young people today should "cry out against the complicity between politicians and economic and financial powers" and "defend our democratic rights acquired over two centuries".

Note: For lots more from major media sources on the "complicity between politicians and economic and financial powers", click here.

The Obama administration has doled out about $2 billion in stimulus money to some of the nation's biggest polluters while granting them exemptions from a basic form of environmental oversight, a Center for Public Integrity investigation has found. The administration has awarded more than 179,000 "categorical exclusions" to stimulus projects funded by federal agencies, freeing the projects from review under the National Environmental Policy Act, or NEPA. Officials said they did not consider companies' pollution records in deciding whether to grant the waivers. The projects include: - An electrical-grid upgrade project in Kansas led by Westar Energy, the state's largest coal-burning utility, which settled a major air pollution case by paying half a billion dollars in penalties and remediation costs. - A project to create clean-burning biofuel from seaweed led by chemical giant DuPont, which received $8.9 million in stimulus funds in February. In all, about three dozen of the country's biggest polluters with past environmental problems won NEPA exemptions for the stimulus grants totaling $2 billion from the Energy Department - about 6 percent of the department's total money awarded so far.

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

About two-thirds of corporations operating in the United States did not pay taxes annually from 1998 to 2005, according to a [report] from the U.S. Government Accountability Office. In 2005, after collectively making $2.5 trillion in sales, corporations gave a variety of reasons on their tax returns to account for the absence of taxable revenue. The most frequently listed included the cost of producing their goods, salary expenses and interest payments on their debt, the report said. Sen. Byron L. Dorgan (D-N.D.) called the findings "a shocking indictment of the current tax system." "It's shameful that so many corporations make big profits and pay nothing to support our country," he said. "The tax system that allows this wholesale tax avoidance is an embarrassment and unfair to hardworking Americans who pay their fair share of taxes. We need to plug these tax loopholes and put these corporations back on the tax rolls." In 2005, about 28 percent of large corporations paid no taxes. Of the 1.3 million corporations included in the study, 998 were categorized as "large." Dorgan and Sen. Carl M. Levin (D-Mich.) requested the report out of concern that some corporations were using "transfer pricing" to reduce their tax bills. The practice allows multi-national companies to transfer goods and assets between internal divisions so they can record income in a jurisdiction with low tax rates. Levin said: "This report makes clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States."

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

About eight of every 10 registered lobbyists who work for scanner-technology companies previously held positions in the government or Congress, most commonly in the homeland security, aviation or intelligence fields, a Washington Post review of lobbying-disclosure forms and other data shows. Industries routinely employ well-connected lobbyists to seek favorable legislation and regulations in the nation's capital. But the extent of the connections to the federal government is particularly notable given the relatively small size of the scanner industry, which is dominated by half a dozen specialized businesses with heavy investments in airport and border security technology. The roster of lobbyists for L-3 Communications includes former U.S. senator Alfonse M. D'Amato (R-N.Y.) and Linda Daschle, a former federal aviation official who is married to Thomas A. Daschle (D-S.D.), a former Senate majority leader. L-3 has won nearly $900 million worth of TSA business, including for its "millimeter-wave" machines used for airport body scans. Former homeland security chief Michael Chertoff, a longtime advocate for increased use of passenger scanners, worked until recently as a consultant for Rapiscan, which provides "backscatter" X-ray scanners to the TSA. Privacy and civil liberties advocates and other critics argue that the industry's lobbying ties have encouraged a frenzy of TSA spending on technologies that are often untested or ineffective.

Note: For key reports from major media sources on corporate and government corruption, click here and here.

America's big businesses are less and less American. They're going abroad for sales and employees. That's one reason they've showed record-breaking profits in 2010 while creating almost no American jobs. Consider one of the most popular products for Christmas gifts of all time - Apple's iPhone. Researchers from the Asian Development Bank Institute have dissected an iPhone, whose wholesale price is around $179, to determine where the money actually goes. Only about $11 of that iPhone goes to American workers, mostly researchers and designers. Even old-tech American companies made big money abroad in 2010 - and created scads of jobs there. General Motors, for example, is now turning a nice profit, and American investors are bullish about its future. That doesn't mean GM will be creating lots more blue-collar jobs in America, though. 2010 was a banner year for GM's foreign sales - already two-thirds of its total sales, and rising. In October, GM became the first automaker to sell more than 2 million cars a year in China. The company is now making more cars in China than in the United States. Meanwhile, back home in the United States, GM has slashed its labor costs. New hires are brought in at roughly half the wages and benefits of former GM employees, under a two-tier wage structure accepted by the United Auto Workers. Almost all of GM's U.S. suppliers have also cut their payrolls.

Note: Robert Reich, former U.S. secretary of labor, is professor of public policy at UC Berkeley and the author of the new book Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.

A New Orleans law firm is challenging government assurances that Gulf Coast seafood is safe to eat in the wake of the BP oil spill, saying it poses “a significant danger to public health.” Citing what the law firm calls a state-of-the-art laboratory analysis, toxicologists, chemists and marine biologists retained by the firm of environmental attorney Stuart Smith contend that the government seafood testing program, which has focused on ensuring the seafood was free of the cancer-causing components of crude oil, has overlooked other harmful elements. And they say that their own testing — examining fewer samples but more comprehensively — shows high levels of hydrocarbons from the BP spill that are associated with liver damage. “What we have found is that FDA simply overlooked an important aspect of safety in their protocol,” contends William Sawyer, a Florida-based toxicologist on Smith’s team. Five months after crude oil stopped gushing from the broken BP wellhead into the Gulf of Mexico, the federal government has reopened more than 90 percent of fishing waters that were in danger of contamination from the broken Deepwater Horizon rig. But many fishermen have yet to return to sea, and consumer confidence in Gulf seafood remains lukewarm.

Note: For important reports from reliable sources on government corruption, click here.

A genetically engineered fish infused with genes from other species, including an eel-like creature, could soon be on dinner plates in the Bay Area and around the United States. The U.S. Food and Drug Administration is considering an application by AquaBounty Technologies Inc. of Massachusetts to bioengineer a sterile salmon that would grow extremely fast and, if all goes as planned, never set so much as a fin in a natural body of water. It would be the first genetically engineered animal to be approved for human consumption. The proposal, which is awaiting an environmental assessment and a preliminary decision by the FDA, has created a furor among environmentalists, who have dubbed the species "Frankenfish." They claim the doctored salmon could spread disease in humans or circulate mutant genes in the wild if an accident or sabotage ever set them loose. "The effect of what happens if these genetically engineered fish escape is largely unknown and has been largely unquestioned by the FDA," said Colin O'Neil, the regulatory policy analyst for the Center for Food Safety, an environmental nonprofit based in Washington, D.C. "These fish have been demonstrated to be less healthy. Consumers clearly do not want to eat genetically engineered salmon."

Note: For a superb summary of the dangers posed by genetically-modified foods, click here.

Nigeria announced today that in exchange for $250 million, the African nation has dropped bribery charges against Dick Cheney, eight others and Halliburton, the oil-services company he headed before becoming vice president. African and U.S. media say Halliburton and Cheney have not commented on the deal, which the head of Nigeria's anti-corruption agency said was offered by Texas-based Halliburton. As The Wall Street Journal points out, "U.S. regulators collected $1.28 billion in penalties and criminal fines in the Bonny Island case after settling charges of violating the Foreign Corrupt Practices Act, a 1977 law that bans the bribery of foreign officials to obtain business." Femi Babafemi, a spokesman for the Economic and Financial Crimes Commission, said that the $250 million would include roughly $130 million frozen in a Swiss bank, and that remainder would be paid as fines, Agence France-Presse reported Tuesday. But a source told AFP $100 million was in Switzerland and $30 million was in Monaco, saying the money was paid to an intermediary but never passed on as part of the bribery scheme.

Note: It sounds like Cheney and Halliburton basically bribed their way out of a potentially very damaging court case. For lots more from major media sources on corporate and government corruption, click here and here.

Excerpts from complaint by New York State Attorney General (and Governor-Elect) Andrew Cuomo: E&Y [Ernst and Young] substantially assisted Lehman Brothers Holdings Inc., now bankrupt, to engage in a massive accounting fraud, involving the surreptitious removal of tens of billions of dollars of securities from Lehman’s balance sheet in order to create a false impression of Lehman’s liquidity, thereby defrauding the investing public. As the financial crisis deepened in 2007 and 2008 and Lehman’s liquidity problems intensified, E&Y ... assisted Lehman in defrauding the public about the Company’s deteriorating financial condition, particularly its leverage. As the public auditor for Lehman, E&Y had the absolute obligation to ensure that Lehman’s financial statements ... did not mislead the public. Instead of fulfilling this obligation ... E&Y sat by silently while Lehman deceived the public by concealing [fraulent] transactions and misrepresenting the Company’s leverage. By doing so, E&Y directly facilitated a major accounting fraud, and helped Lehman mislead the public as to its true financial condition. E&Y, which reaped over $150 million in fees from Lehman, must be held accountable for its role in this fraud.

Note: For key reports from reliable sources detailing the fraud that led to the financial crisis and bailout of Wall Street by taxpayers, click here.

No one, including himself, would argue that Bradley Birkenfeld, 44, is a saint. But at the same time, almost no one in the U.S. government would deny that Birkenfeld was absolutely essential to its landmark tax-evasion case against Swiss banking giant UBS. The former UBS employee turned whistle-blower exposed the previously hidden world of offshore tax shelters, which cheats the Treasury out of about $100 billion a year. Thanks to his insider information, UBS was fined $780 million, and it promised to "exit entirely" from the U.S. tax-shelter business and to provide the names of thousands of American tax dodgers, from which hundreds of millions of dollars still might be collected. It also led to new tax treaties with the Swiss that should provide unprecedented tax information in civil cases and better access to such data in criminal cases. Considering Birkenfeld's help, many observers wonder why the Justice Department decided to arrest and prosecute him. Many critics believe the decision to prosecute Birkenfeld, whom some consider the most important whistle-blower in years, sends the worst possible message to other financial-industry insiders who might be considering coming forward. The Government Accountability Project (GAP), a Washington watchdog organization that has extensive whistle-blower experience, says a chilling effect is already apparent: a senior executive at a European bank that offers similar U.S. tax shelters is having second thoughts about going public because of the Birkenfeld case.

Note: For lots more, including Obama's tight ties with UBS, see the New York Daily News article here.

Gordon R. England's appointment to a top Pentagon post in 2006 came at a high price. The Senate committee overseeing his confirmation demanded that he give up lucrative stocks and options he held in companies that do business with the military. England said he took a big hit on his taxes and lost out on more than $1 million in potential profits that year when he divested himself of interests in companies that included General Dynamics. If he had been a senator, he would not have had to sell anything. The Senate Armed Services Committee prohibits its staff and presidential appointees requiring Senate confirmation from owning stocks or bonds in 48,096 companies that have Defense Department contracts. But the senators who sit on the influential panel are allowed to own any assets they want. And they have owned millions in interests in these firms. The committee's prohibition is designed to prevent high-ranking Pentagon officials from using inside information to enrich themselves or members of their immediate family. But panel members have access to much of the same inside information, because they receive classified briefings from high-ranking defense officials about policy, contracts and plans for combat strategies and weapons systems. "I think Congress should live by the rules they impose on other people," said England, who served as deputy defense secretary under George W. Bush until 2009.

Note: Congress is amost always exempt from it's own rules, as further described in this powerful Time magazine article. This is one major source of rampant corruption in US government. For more on government corruption, click here.

Last year, Stanford banned its physicians from giving paid promotional talks for pharmaceutical companies. One thing it didn't do was make sure its faculty followed that rule. A ProPublica investigation ["Dollars for Docs"] found that more than a dozen of the school's doctors were paid speakers in apparent violation of Stanford policy - two of them were paid six figures since last year. Conflict-of-interest policies have become increasingly important as academic medical centers worry that promotional talks undermine the credibility not only of the physicians giving them, but also of the institutions they represent. Yet when it comes to enforcing the policies, universities have allowed permissive interpretations and relied on the honor system. That approach isn't working. Many physicians are in apparent violation, and ignorance or confusion about the rules is widespread. As a result, some faculty physicians stay on the industry lecture circuit, where they can net tens of thousands of dollars in additional income. Critics of the practice say delivering talks for drug companies is incompatible with teaching future generations of physicians. That's because drug firms typically pick the topic of the lecture, train the speakers and require them to use company-provided presentation slides.

Note: "Dollars for Docs" is an ongoing investigation into the influence of drug company marketing payments on medical providers. To search for a doctor in the database, click here.

Enough uncertainty surrounds silver-colored metal dental fillings with mercury that U.S. regulators should add more cautions for dentists and patients, a U.S. advisory panel [has] said. The fillings should be accompanied by warnings about unknown risks for vulnerable people such as children and pregnant women. "There really is no place for mercury in children," Suresh Kotagal, a panelist and neurologist at the Mayo Clinic in Rochester, Minnesota, said of the toxic metal. Mercury has been linked to neurological damage at high exposure levels and makes up about half of a metal filling. While the panel stopped short of urging a ban, it wants the FDA to look at the latest data and reassess its guidance after the agency last year declared the fillings safe. Some European nations have banned amalgam use. Critics told the advisers there was a clear link between mercury fillings and side effects, especially in more vulnerable patients. They should be banned or not implanted unless patients give consent, they said.

Note: Why is mercury still used in most dental fillings, when there is a known risk and other materials are available? Our teeth are not a good place for mercury. Studies have proven that small amounts of mercury are released by these fillings in gases into the mouth, only the toxicity is debated. For more, click here.

On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan. The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential. Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk. In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks. The banks in this group ... have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available. Banks’ influence over this market, and over clearinghouses like the one this select group advises, has costly implications for businesses large and small. The size and reach of this market has grown rapidly over the past two decades. Pension funds today use derivatives to hedge investments. States and cities use them to try to hold down borrowing costs. Airlines use them to secure steady fuel prices. Food companies use them to lock in prices of commodities like wheat or beef.

Note: To explore highly revealing news articles on the powerful secret societies which without doubt back these top bankers, click here. For a treasure trove of reports from reliable sources detailing the amazing control of major banks over government and society, click here.

Stricken Allied Irish Banks is preparing to hand out €40m (Ł34m) of bonuses next week – despite being on the brink of receiving another emergency bailout from the Irish government. As many as 2,400 bankers in its Dublin capital markets division are to receive the payments on 17 December under agreements struck with the bank in 2008. The bank, 19% owned by Ireland's taxpayers but expected to reach 95% state-ownership, had originally been blocked from making the payments under one of the government's bailout programmes. But legal action by a trader, John Foy, over a deferred €161,000 bonus awarded in 2008 has led the bank to conclude it will need to pay bonuses to many of the staff to whom they were awarded for that year. The bonuses are being handed out at a time when the government is instigating four years of tax rises and brutal cuts to benefits. Bankers are receiving much of the blame for forcing Ireland to take international assistance and implement the austerity budgetary measures.

Note: For lots more from reliable sources on the worldwide bailout by taxpayers of failed banks, click here.

An independent examiner has just recommended stricter ethics rules for managers of the $218.8 billion California Public Employees' Retirement System. According to a suit filed by state Attorney General Jerry Brown, back in 2007, CalPERS board member-turned-investment broker Alfred Villalobos took one of the pension fund's senior investment officers on a private jet ride to New York to attend a Museum of Modern Art fundraiser honoring a client Villalobos was representing. The client, Leon Black, heads the private-equity firm Apollo Global Management, which was seeking a $700 million investment from CalPERS. According to the suit, Villalobos and the investment officer, Leon Shahinian, shared a $1,000-a-night-plus suite at the five-star Mandarin Oriental Hotel. The suit claims Villalobos' firm billed the trip to Apollo. Sometime after, the suit claims, Shahinian touted the $700 million investment to the CalPERS board with nary a mention of the New York trip - and the deal was approved. Shahinian was not named as a defendant in Brown's suit, which is seeking $95 million in penalties against Villalobos and CalPERS' former chief executive, Fred Buenrostro - both of whom have denied any wrongdoing. As for Shahinian, who also maintains he did nothing wrong, he was placed on paid administrative leave over the incident and four months later resigned from CalPERS, where he was earning about $350,000 a year.

Note: For lots more on government and corporate corruption from major media sources, click here and here.

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