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.

With no warning one weekday morning, investigators entered an organic grocery with a search warrant and ordered the hemp-clad workers to put down their buckets of mashed coconut cream and to step away from the nuts. Then, guns drawn, four officers fanned out across Rawesome Foods in Venice. Skirting past the arugula and peering under crates of zucchini, they found the raid's target inside a walk-in refrigerator: unmarked jugs of raw milk. Cartons of raw goat and cow milk and blocks of unpasteurized goat cheese were among the groceries seized in the June 30 raid by federal, state and local authorities — the latest salvo in the heated food fight over what people can put in their mouths. On one side are government regulators, who say they are enforcing rules designed to protect consumers from unsafe foods and to provide a level playing field for producers. On the other side are " healthy food" consumers [who] seek food in its most pure form. "This is about control and profit, not our health," said Aajonus Vonderplanitz, co-founder of Rawesome Foods. "How can we not have the freedom to choose what we eat?" Demand for all manner of raw foods — including honey, nuts and meat — has been growing, spurred by heightened interest in the way food is produced. But raw milk in particular has drawn a lot of regulatory scrutiny, largely because the politically powerful dairy industry has pressed the government to act.

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Just when you thought the damage BP could cause was limited to beaches, marshes, oceans, people's livelihoods, birds and marine life, there's more. BP's favorite dispersant Corexit 9500 is being sprayed at the oil gusher on the ocean floor. Corexit is also being air sprayed across hundreds of miles of oil slicks all across the gulf. There have been widespread reports of oil cleanup crews reporting various injuries including respiratory distress, dizziness and headaches. Corexit 9500 is a solvent originally developed by Exxon. Corexit is four times more toxic than oil (oil is toxic at 11 ppm (parts per million), Corexit 9500 at only 2.61ppm). In a report written by Anita George-Ares and James R. Clark for Exxon Biomedical Sciences, Inc. titled "Acute Aquatic Toxicity of Three Corexit Products: An Overview," Corexit 9500 was found to be one of the most toxic dispersal agents ever developed. According to the Clark and George-Ares report, Corexit mixed with the higher gulf coast water temperatures becomes even more toxic. The UK's Marine Management Organization ... banned Corexit ... from a list of approved treatments for oil spills in the U.K. more than a decade ago. The simple question I ask is: If the UK bans Corexit ... why the hell are we using it on American waters?

Our biggest gadget makers — including HP and Apple — may inadvertently get their raw ingredients from murderous Congolese militias. A new movement wants them to trace rare metals from ‘conflict mines.’ [It] stands on the cusp of going mainstream. It’s the push to make major electronics companies (manufacturers of cell phones, laptops, portable music players, and cameras) disclose whether they use “conflict minerals”—the rare metals that finance civil wars and militia atrocities, most notably in Congo. Congo raises especially disturbing issues for famous tech brand names that fancy themselves responsible corporate citizens. Congo is a classic victim of the resource curse. Its bountiful deposits—in everything from copper to diamonds—are brazenly plundered by corrupt governments and regional warlords while the population goes without basic services. Today, most violence—including mass rape, slavery, mutilation, and possibly even forced cannibalism—is concentrated in the war-ravaged eastern Kivu provinces, where the Congolese Army and ethnic militias bludgeon each other over the right to trade in mineral ore.

Nearly two years ago, a study known as the JUPITER [Justification for the Use of Statins in Primary Prevention] trial hinted at a new era in the use of statins -- one in which the cholesterol-busting drugs could be used to stave off heart-related death in many more people than just those with high cholesterol. Now, however, researchers behind a new review that takes a second look at the findings of the landmark study say that these results are flawed -- and that they do not support the benefits initially reported. Not only did this second look turn up no evidence of the "striking decrease in coronary heart disease complications" reported by investigators behind JUPITER, but it has also called into question drug companies' involvement in such trials, according to an article in the June 28 issue of Archives of Internal Medicine. Moreover, Dr. Michel de Lorgeril of Joseph Fourier University and the National Center of Scientific Research in Grenoble, France, and coauthors argue that major discrepancies exists between the significant reductions in nonfatal stroke and heart attacks reported in the JUPITER trial and what has been found in other research. "The JUPITER data set appears biased," Lorgeril and coauthors wrote in conclusion. De Lorgeril and coauthors point out that nine of 14 authors of the JUPITER article have financial relationships with AstraZeneca, which sponsored the trial.

Note: There is intriguing evidence that much of the fear around cholesterol was fabricated to sell drugs. For more on this, see the article by one of the most respected doctors on the Internet at this link.

In the fall of 1999, the drug giant SmithKline Beecham secretly began a study to find out if its diabetes medicine, Avandia, was safer for the heart than a competing pill, Actos, made by Takeda. Avandia’s success was crucial to SmithKline, whose labs were otherwise all but barren of new products. But the study’s results, completed that same year, were disastrous. Not only was Avandia no better than Actos, but the study also provided clear signs that it was riskier to the heart. But instead of publishing the results, the company spent the next 11 years trying to cover them up, according to documents recently obtained by The New York Times. The company did not post the results on its Web site or submit them to federal drug regulators, as is required in most cases by law. The heart risks from Avandia first became public in May 2007, with a study from a cardiologist at the Cleveland Clinic who used data the company was forced by a lawsuit to post on its own Web site. In the ensuing months, GlaxoSmithKline officials conceded that they had known of the drug’s potential heart attack risks since at least 2005. But the latest documents demonstrate that the company had data hinting at Avandia’s extensive heart problems almost as soon as the drug was introduced in 1999, and sought intensively to keep those risks from becoming public.

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

California retailers who accuse manufacturers of scheming to inflate prices scored a significant legal victory [on July 12] when the state Supreme Court allowed them to sue for triple damages despite their ability to pass higher charges along to customers. The court unanimously reinstated a price-fixing suit by a group of pharmacies that accused major drug companies of conspiring to overcharge purchasers by as much as 400 percent from 2000 to 2004. While denying the allegations, the companies also argued that pharmacists could avoid any damages by raising their own prices. Overturning lower-court rulings that dismissed the suit, the court said a "pass-on" defense - allowing manufacturers to avoid damages for illegal overcharges that could be passed on to consumers - is unavailable in California. Justice Kathryn Mickle Werdegar ... said enforcement of the law is promoted by allowing a retailer or wholesaler who buys directly from the manufacturer to seek damages - tripled under antitrust law - for overcharges caused by price-fixing. If such suits were prohibited, Werdegar said, overcharged retailers would have to choose between absorbing the losses or raising their prices and potentially losing sales. Such a ban might allow manufacturers to fix prices with impunity, Werdegar said, because individual consumers' losses might be too small to make a suit worthwhile.

Note: The ruling in Clayworth vs. Pfizer, S166435, can be viewed at www.courtinfo.ca.gov/opinions/documents/S166435.PDF.

More than 27,000 abandoned oil and gas wells lurk in the hard rock beneath the Gulf of Mexico, an environmental minefield that has been ignored for decades. No one - not industry, not government - is checking to see if they are leaking, an Associated Press investigation shows. The oldest of these wells were abandoned in the late 1940s, raising the prospect that many deteriorating sealing jobs are already failing. The AP investigation uncovered particular concern with 3,500 of the neglected wells - those characterized in federal government records as "temporarily abandoned." More than 1,000 wells have lingered in that unfinished condition for more than a decade. About three-quarters of temporarily abandoned wells have been left in that status for more than a year, and many since the 1950s and 1960s - even though sealing procedures for temporary abandonment are not as stringent as those for permanent closures. As a forceful reminder of the potential harm, the well beneath BP's Deepwater Horizon rig was being sealed with cement for temporary abandonment when it blew April 20, leading to one of the worst environmental disasters in the nation's history. BP alone has abandoned about 600 wells in the Gulf, according to government data.

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

A 2004 study of the results of stock trading by United States Senators during the 1990s found that Senators on average beat the market by 12% a year. In sharp contrast, U.S. households on average underperformed the market by 1.4% a year and even corporate insiders on average beat the market by only about 6% a year during that period. A reasonable inference is that some Senators had access to – and were using – material nonpublic information about the companies in whose stock they trade. Under current law, it is unlikely that Members of Congress can be held liable for insider trading. The proposed Stop Trading on Congressional Knowledge Act addresses that problem by instructing the Securities and Exchange Commission to adopt rules intended to prohibit such trading. This article analyzes present law to determine whether Members of Congress, Congressional employees, and other federal government employees can be held liable for trading on the basis of material nonpublic information. It argues that there is no public policy rationale for permitting such trading and that doing so creates perverse legislative incentives and opens the door to corruption. The article explains that the Speech or Debate Clause of the U.S. Constitution is no barrier to legislative and regulatory restrictions on Congressional insider trading.

Note: Do you think that these highly successful investors in the US Senate might have a vested interest in protecting the existing financial and legal structure that makes their profits possible and protects them from criminal charges?

This is the story of how some of the richest people in the world – Goldman, Deutsche Bank, the traders at Merrill Lynch, and more – have caused the starvation of some of the poorest people in the world. At the end of 2006, food prices across the world started to rise, suddenly and stratospherically. Within a year, the price of wheat had shot up by 80 per cent, maize by 90 per cent, rice by 320 per cent. In a global jolt of hunger, 200 million people – mostly children – couldn't afford to get food any more, and sank into malnutrition or starvation. There were riots in more than 30 countries, and at least one government was violently overthrown. Then, in spring 2008, prices just as mysteriously fell back to their previous level. Jean Ziegler, the UN Special Rapporteur on the Right to Food, calls it "a silent mass murder", entirely due to "man-made actions." Through the 1990s, Goldman Sachs and others lobbied hard and the regulations [controlling agricultural futures contracts] were abolished. Suddenly, these contracts were turned into "derivatives" that could be bought and sold among traders who had nothing to do with agriculture. A market in "food speculation" was born. The speculators drove the price through the roof.

Note: Some researchers speculate that the global elite are aware that alternative energies will eventually replace oil, which has been a prime means of control and underlying cause of many wars in recent decades. So as a replacement for oil, the elite and their secret societies are increasingly targeting control of the world's food supply through terminator crops which produce no seed, and through the patenting of seeds.

The chief executive of Goldman Sachs Canada has been named a special adviser to the head of Canada's central bank. The Bank of Canada said [on June 29] that Timothy Hodgson will advise central bank head Mark Carney, a former Goldman Sachs executive, on financial reform. Carney says Hodgson is one of Canada's top investment bankers. Hodgson is leaving Goldman Sachs. The company has come under sharp criticism over civil fraud charges brought by the U.S. Securities and Exchange Commission and because of the high pay its executives and traders received during the financial crisis. Hodgson joined Goldman Sachs in 1990 and became CEO of its Canadian operations in 2005.

Note: So Canada's central bank head, a former Goldman Sachs exec, will now be advised by the chief executive of Goldman Sachs Canada. Hmmmmm.

The base-line measures of the [Gulf of Mexico] crisis have steadily worsened. The estimated flow rate keeps rising. The well is like something deranged, stronger than anyone anticipated. Week by week, the truth of this disaster has drifted toward the stamping ground of the alarmists. The most disturbing of the worst-case scenarios ... is that the Deepwater Horizon well has been so badly damaged that it has spawned multiple leaks from the seafloor, making containment impossible and a long-term solution much more complicated. Much of the worst-case-scenario talk has centered on the flow rate of the well. Rep. Edward J. Markey [said on NBC's "Meet the Press], "I ... have a document that shows that BP actually believes it could go upwards of 100,000 barrels per day. So, again, right from the beginning, BP was either lying or grossly incompetent." Today the official government estimate of the flow, based on multiple techniques that include subsea video and satellite surveys of the oil sick on the surface, is 35,000 to 60,000 barrels a day. In effect, what BP considered the worst-case scenario in early May is in late June the bitter reality -- call it the new normal -- of the gulf blowout.

Note: A NASA photo of the extent of the gulf oil spill speaks a thousand words at this link.

CAMPBELL BROWN: [There is] growing outrage over the millions of gallons of chemical dispersants BP is dumping into the gulf. Some local residents insist the chemicals along with the oil are making them violently ill. Kerry Kennedy from the Robert F. Kennedy Center for Justice and Human Rights has been touring the coast and talking to folks who complain that they are being exposed to a lot of unknown toxins right now. Kerry, people who have come in contact with the oil and the dispersants are complaining of nausea, headaches, burning eyes. Talk to me a little bit about your experience when you were touring these gulf communities. KERRY KENNEDY: People are getting sick. And the patients, the health care providers cannot properly diagnose what the problems are because BP will not give them the names of the chemicals that are in the dispersants. However, we know that they're the same types of illnesses that people reported in Alaska. Now, the average lifespan of a person who did cleanup on the Exxon Valdez is 51 years old. Almost all those people who did work on the Exxon Valdez are now dead. And BP still here, once again, is big oil not giving the information to the doctors and health care officials. A county nurse was not given permission to go on to the BP property. When she finally did that, the people who work at BP who were coming to see her were only allowed to get band aids and aspirin from her. And they were told that they only could go to the BP doctors if they wanted to get treated.

Note: For a powerful, one-minute CNN News video of this segment, click here.

Wachovia [Bank] ... made a habit of helping move money for Mexican drug smugglers. San Francisco's Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers - including the cash used to buy four planes that shipped a total of 22 tons of cocaine. The admission ... sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years. Wachovia admitted it didn't do enough to spot illicit funds in handling $378.4 billion for Mexican currency exchange houses from 2004 to 2007. That's the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history - a sum equal to one-third of Mexico's current gross domestic product. "Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," said Jeffrey Sloman, the federal prosecutor who handled the case. "It's the banks laundering money for the cartels that finances the tragedy," said Martin Woods, director of Wachovia's anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia's branch network. "If you don't see the correlation between the money laundering by banks and the 22,000 people killed in Mexico, you're missing the point," he said.

Note: For abundant reports from reliable sources on the many dubious ways in which major financial firms make their profits, click here.

The U.S Supreme Court has severely restricted the ability of federal prosecutors to bring corruption cases against public officials and corporate executives. The court unanimously imposed stark limits on the so-called honest services law that for decades has been a key tool in prosecuting corruption cases. The court's ruling came in the case of former Enron executive Jeffrey Skilling, convicted of engaging in a scheme to enrich himself by deceiving shareholders about his company's true financial condition. He was convicted of a variety of charges, including depriving the Enron investors of his honest services. The Supreme Court ruled that the definition of honest services in federal law was so broad that, if viewed literally, it would be unconstitutionally vague, providing inadequate notice to citizens about what conduct is legal and what is not. Instead, a six-justice majority led by Ruth Bader Ginsburg declined to invalidate the law outright, but read it narrowly to cover only bribery and kickbacks. Three other justices — Antonin Scalia, Anthony Kennedy and Clarence Thomas — would have, for all practical purposes, invalided the statute in its entirety.

Note: For lots more from major media sources on corporate and government (including the judicial branch) corruption, click here and here.

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

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The CIA has hired Xe Services, the private security firm formerly known as Blackwater Worldwide, to guard its facilities in Afghanistan and elsewhere. The previously undisclosed CIA contract is worth about $100 million. The revelation comes only a day after members of a federal commission investigating war-zone contractors blasted the State Department for granting Xe a new $120 million contract to guard U.S. consulates under construction in Afghanistan. CIA spokesman Paul Gimigliano stopped short of confirming the contract, saying only that Xe personnel would not be involved in operations. The firm, based in Moyock, N.C., has been fighting off prosecution and lawsuits since a September 2007 incident in Baghdad, when its guards opened fire in a city square, allegedly killing 17 unarmed civilians and wounding 24. Two weeks ago, [CEO Erik] Prince announced that he was putting the company on the block. A spokeswoman said "a number of firms" are interested in buying but declined to elaborate.

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CBS News has learned in an exclusive report that the State Department has awarded a part of what was formerly known as Blackwater Worldwide a contract worth more than $120 million for providing security services in Afghanistan. Private security firm U.S. Training Center, a business unit of the Moyock, N.C.-based Blackwater, now called Xe Services, was awarded the contract [on June 18], a State Department spokeswoman said. Under the contract, U.S. Training Center will provide "protective security services" at the new U.S. consulates in Herat and Mazar-e-Sharif, Afghanistan, the spokeswoman said. The firm can begin work "immediately" and has to start within two months. The contract lasts a year but can be extended twice for three months at a time to last a maximum of 18 months. The awarding of the contract comes just more than four months after the government of Iraq ordered hundreds of Blackwater-linked security guards to leave the country within seven days or face possible arrest. The Justice Department is also trying to prosecute a case against five Blackwater guards who had opened fire on a crowded Baghdad street in 2007. The Justice Department's case or Blackwater's expulsion from Iraq didn't block U.S. Training Center from bidding on the multi-million dollar contract, the State Department spokeswoman said.

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

Imagine a siege of hydrocarbons spewing from deep below ground, polluting water and air, sickening animals and threatening the health of unsuspecting Americans. And no one knows how long it will last. No, we’re not talking about BP’s gulf oil spill. We’re talking about hydraulic fracturing of natural gas deposits. Fracking, as the practice is also known, may be coming to a drinking well or a water system near you. It involves blasting water, sand and chemicals, many of them toxic, into underground rock to extract oil or gas. "Gasland," a compelling documentary on HBO ..., traces hydraulic fracturing across 34 states from California to Louisiana to Pennsylvania. The exposé by filmmaker Josh Fox, alternately chilling and darkly humorous, won the 2010 Sundance Film Festival’s special jury prize for documentary. It details how former Vice President Dick Cheney, in partnership with the energy industry and drilling companies such as his former employer, Halliburton Corp., successfully pressured Congress in 2005 to exempt fracking from the Safe Drinking Water Act, the Clean Air Act and other environmental laws. Each well requires the high-pressure injection of a cocktail of nearly 600 chemicals, including known carcinogens and neurotoxins, diluted in 1 million to 7 million gallons of water. Some 450,000 wells have been drilled nationwide.

Note: For many reliable reports on government and corporate corruption, click here and here.

BP is accused of destroying the wildlife and coastline of America, but if you look back into history you find that BP did something even worse to America. They gave the world Ayatollah Khomeini. Back in 1951 the Anglo-Iranian Oil Company - which would later become BP - and its principal owner the British government, conspired to destroy democracy and install a western-controlled regime in Iran. The resulting anger and the repression that followed was one of the principal causes of the Iranian revolution in 1978/79 - out of which came the Islamist regime of Ayatollah Khomeini. And what's more, BP and the British government were so arrogant and bumblingly inept at handling the crisis that they had to persuade the Americans help them. They did this by pretending there was a Communist threat to Iran. The American government, led by President Eisenhower, believed them and the CIA were instructed to engineer a coup which removed the Iranian prime minister Mohamed Mossadegh. The CIA, led by Allen Dulles, ... sent the CIA's top Middle East agen, Kermit Roosevelt, to run Operation Ajax. The plan, drawn up by the British and the Americans, was to bribe the street gangs of Tehran to create chaos, and then install an army general, General Zahedi, as prime minister.

Bank of America Corp. and other banks are preparing new fees on basic banking services as they try to replace revenue lost to regulatory rules, in a push that is expected to spell an end to free checking accounts for many Americans. Free checking accounts, which have been widely available for more than a decade, have been a boon to middle-class consumers and attracted low-income customers to the banking system for the first time. Customers will likely be required to pay new monthly maintenance fees on the most basic accounts that don't generate a lot of activity. To avoid a fee, customers will have to maintain certain account balances or frequently use other banking services, such as credit and debit cards, automated teller machines and online accounts. Some consumer advocates warn the new fees will whack consumers who now manage their bank accounts to avoid such charges. The transformation of checking accounts comes at a time when banks are bouncing back from the steepest financial losses in a generation and are facing new regulations. To accelerate that recovery and recoup losses from new banking rules, financial institutions are increasingly leaning on customers who don't now generate enough revenue for the bank.

Note: Why hasn't the federal government protected consumers from this sort of response by the banking industry to new regulations imposed after the massive taxpayer bailout of these failing corporations?

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.