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.

Federal regulators warned offshore rig operators more than a decade ago that they needed to install backup systems to control the giant undersea valves known as blowout preventers, used to cut off the flow of oil from a well in an emergency. The warnings were repeated in 2004 and 2009. Yet the Minerals Management Service, the Interior Department agency charged both with regulating the oil industry and collecting royalties from it, never took steps to address the issue comprehensively, relying instead on industry assurances that it was on top of the problem, a review of documents shows. In the intervening years, numerous blowout preventers and their control systems have failed, though none as catastrophically as those on the well the Deepwater Horizon drilling rig was preparing when it blew up on April 20, leaving tens of thousands of gallons of oil a day spewing into the Gulf of Mexico. Agency records show that from 2001 to 2007, there were 1,443 serious drilling accidents in offshore operations, leading to 41 deaths, 302 injuries and 356 oil spills. Yet the federal agency continues to allow the industry largely to police itself. Critics say that, then and now, the minerals service has been crippled by this dependence on industry and by a climate of regulatory indulgence.

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

Since the Deepwater Horizon oil drilling rig exploded on April 20, the Obama administration has granted oil and gas companies at least 27 exemptions from doing in-depth environmental studies of oil exploration and production in the Gulf of Mexico. The waivers were granted despite President Barack Obama’s vow that his administration would launch a “relentless response effort” to stop the leak and prevent more damage to the gulf. One of them was dated Friday — the day after Interior Secretary Ken Salazar said he was temporarily halting offshore drilling The exemptions, known as “categorical exclusions,” were granted by the Interior Department’s Minerals Management Service (MMS) and included waiving detailed environmental studies for a BP exploration plan to be conducted at a depth of more than 4,000 feet and an Anadarko Petroleum Corp. exploration plan at more 9,000 feet. “Is there a moratorium on off shore drilling or not?” asked Peter Galvin, conservation director with the Center for Biological Diversity, the environmental group that discovered the administration’s continued approval of the exemptions. “Possibly the worst environmental disaster in U.S. history has occurred and nothing appears to have changed.”

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

Petrochemical giant BP didn't file a plan to specifically handle a major oil spill from an uncontrolled blowout at its Deepwater Horizon project because the federal agency that regulates offshore rigs changed its rules two years ago to exempt certain projects in the central Gulf region, according to an Associated Press review of official records. The Minerals Management Service, an arm of the Interior Department known for its cozy relationship with major oil companies, says it issued the rule relief because some of the industrywide mandates weren't practical for all of the exploratory and production projects operating in the Gulf region. Robert Wiygul, an Ocean Springs, Miss., environmental lawyer, said the lack of a blowout scenario "is kind of an outrageous omission, because you're drilling in extremely deep waters, where by definition you're looking for very large reservoirs to justify the cost. If the MMS was allowing companies to drill in this ultra-deep situation without a blowout scenario, then it seems clear they weren't doing the job they were tasked with," he said. "The MMS can't change the law just by telling people that they don't have to comply with it."

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

You'd think that General Motors Co., having been rescued by U.S. taxpayers, would be more up-front with them. In an ad that has been blanketing the airwaves since last week, General Motors Chairman and chief executive Ed Whitacre boasts that "we have repaid our government loan, in full, with interest, five years ahead of the original schedule." In a press release, Whitacre said GM was able to repay the loans "because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse." Neither the ad nor the press release mentioned that GM repaid its government loan with other government money, or that U.S. taxpayers could lose money on the roughly $50 billion they still have invested in General Motors. In a letter to Treasury Secretary Timothy Geithner last week, Sen. Chuck Grassley, R-Iowa, said the repayment "appears to be nothing more than an elaborate TARP money shuffle."

Note: For lots more on the bailout shell game from reliable sources, click here.

The Securities and Exchange Commission suspected Texas financier R. Allen Stanford of running a Ponzi scheme as early as 1997 but took more than a decade to pursue him seriously. The report by the SEC's inspector general says SEC examiners concluded four times between 1997 and 2004 that Mr. Stanford's businesses were fraudulent, but each time decided not to go further. It singles out the former head of the SEC's enforcement office in Fort Worth, Texas, accusing him of repeatedly quashing Stanford probes and then trying to represent Mr. Stanford as a lawyer in private practice. The former SEC official, Spencer Barasch, is now a partner at law firm Andrews Kurth LLP. The inspector general referred Mr. Barasch for possible disbarment from practicing law. Mr. Stanford was indicted last June and accused of orchestrating a Ponzi scheme that swindled investors out of $7 billion. SEC Inspector General David Kotz's report suggests the agency's mistakes in the Stanford case were in part the result of a culture that favored easily resolved cases over messier ones. Cases such as the alleged Stanford fraud weren't considered "quick-hit" and "slam-dunk," and examiners were discouraged from pursuing them, Mr. Kotz found.

Note: For many more examples from major media sources of the astonishing performance of the SEC in the runup to the Wall Street crisis, click here.

Sempra Energy has agreed to pay about $410 million to settle claims that it played Enron-style games with California's electricity market during the 2000-01 energy crisis, state officials said. Houston's Enron, as well as other companies, used a variety of tactics to create the appearance of congested power lines in some instances and energy shortages in others. Electricity prices soared, and rolling blackouts rippled across the state. Enron traders were caught on audio tape bragging about how much their trading schemes were costing "Grandma Millie," their derisive term for the California utility customer. The crisis forced the state to buy expensive long-term power contracts that Californians are still paying off, month by month, on their utility bills. Pacific Gas and Electric Co., the state's largest utility, tumbled into bankruptcy as a result of soaring wholesale power prices. And Gov. Gray Davis lost his job in a recall election fueled by public anger over his handling of the crisis. Since then, the state government has reached 39 settlement agreements with energy companies for a total of $3.2 billion.

Note: To see how blatant the corruption is, watch the tapes of Enron traders laughing at causing traffic accidents at this link. For many more examples of corporate corruption reported by reliable, verifiable sources, click here.

Why is it so hard to hold Wall Street accountable? Even as we speak the banking industry and corporate America are fighting against financial reform with all the money and influence at their disposal. Their effort is to preserve a system that would enable them to ransack the country once again. What can ordinary Americans do? That's the question I want to put to my guests, Simon Johnson and James Kwak. They have written this new book, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. It's a must read - already a best seller -- and it couldn't have come at a better time. This book could change the debate over financial reform by tipping it in favor of the public. Together James Kwak and Simon Johnson run the indispensable economic website BaselineScenario.com. [Moyers:] Let me get to the blunt conclusion you reach in your book. You say that two years after the devastating financial crisis of '08 our country is still at the mercy of an oligarchy that is bigger, more profitable, and more resistant to regulation than ever. Correct? SIMON JOHNSON: Absolutely correct, Bill. The big banks became stronger as a result of the bailout. That may seem extraordinary, but it's really true. They're turning that increased economic clout into more political power. And they're using that political power to go out and take the same sort of risks that got us into disaster in September 2008.

Note: For a treasure trove of reports from reliable sources on the hidden methods used by financial corporations to manipulate the world economy and gain huge profits at the expense of taxpayers, click here.

[video transcript:] In America today we are getting closer to fully exposing the greatest con and cover-up in this [country's] history. It involves our banks, the federal reserve, our congress, and, of course, you and me. Here's how the con went down. The bankers were operating under an implicit guarantee from the godfather [at] the Federal Reserve, in the form of guaranteed interest rates, guaranteed cheap money exclusively for the con men. Then, Chairman Greenspan, the godfather, would agree to hold those rates -- let's say 2% -- for as far as the eye could see. The banks, or bankers, the con men, would borrow that money from the Federal Reserve, let's say 2%, and turn around and lend it back to [you], and let's say 6%. That encouraged the patsies, you and me, to be drawn into the con because 6% looks like a pretty low rate. Low rates for houses, low rates for cars. Heck, you could join a health club, make that into payments, turn that into bonds, and of course promises of a higher-than-average return for those managing teachers and policemen's and judge's pension funds that are buying into the con as well. And here exactly is where the con comes in. As you and I both know, the banks had no money. They were getting it from the Federal Reserve. It's funny money.

Note: For abundant reports from reliable sources on the hidden realities of what may be the greatest con job in financial history, click here.

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."

Some of the world's biggest, most profitable corporations enjoy a far lower tax rate than you do – that is, if they pay taxes at all. The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion. How did this happen? It's complicated. GE in effect consists of two divisions: General Electric Capital and everything else. The everything else – maker of engines, power plants, TV shows and the like – would have paid a 22% tax rate if it was a standalone company. It's GE Capital that keeps the overall tax bill so low. Over the last two years, GE Capital has displayed an uncanny ability to lose lots of money in the U.S. (posting a $6.5 billion loss in 2009), and make lots of money overseas (a $4.3 billion gain). Not only do the U.S. losses balance out the overseas gains, but GE can defer taxes on that overseas income indefinitely. It's the tax benefit of overseas operations that is the biggest reason why multinationals end up with lower tax rates than the rest of us.

Note: Forbes later changed the title of this article to a more innocuous "What The Top U.S. Companies Pay In Taxes." Can you believe that GE not only pays no taxes, they actually get credit from the US government? They ship US jobs overseas and then reap huge tax benefits as a result. What's wrong with this picture? For a wealth of media news articles on the hidden manipulations of major financial corporations, click here.

In recent years, the idea of giving small loans to poor people became the darling of the development world, hailed as the long elusive formula to propel even the most destitute into better lives. Actors like Natalie Portman and Michael Douglas lent their boldface names to the cause. Muhammad Yunus, the economist who pioneered the practice by lending small amounts to basket weavers in Bangladesh, won a Nobel Peace Prize for it in 2006. The idea even got its very own United Nations year in 2005. But the phenomenon has grown so popular that some of its biggest proponents are now wringing their hands over the direction it has taken. Drawn by the prospect of hefty profits from even the smallest of loans, a raft of banks and financial institutions now dominate the field, with some charging interest rates of 100 percent or more. “We created microcredit to fight the loan sharks; we didn’t create microcredit to encourage new loan sharks,” Mr. Yunus recently said at a gathering of financial officials at the United Nations. “Microcredit should be seen as an opportunity to help people get out of poverty in a business way, but not as an opportunity to make money out of poor people.” The noisy interest rate fight has even attracted Congressional scrutiny, with the House Financial Services Committee holding hearings this year focused in part on whether some microcredit institutions are scamming the poor.

Note: An excellent introduction to the power of microloans to pull people out of poverty is available here. For key news reports on the exciting prospects of microlending, click here.

In "Food, Inc.", filmmaker Robert Kenner lifts the veil on our nation's food industry, exposing the highly mechanized underbelly that's been hidden from the American consumer with the consent of our government's regulatory agencies, USDA and FDA. Our nation's food supply is now controlled by a handful of corporations that often put profit ahead of consumer health, the livelihood of the American farmer, the safety of workers and our own environment. We have bigger-breasted chickens, the perfect pork chop, insecticide-resistant soybean seeds, even tomatoes that won't go bad, but we also have new strains of E. coli — the harmful bacteria that causes illness for an estimated 73,000 Americans annually. We are riddled with widespread obesity, particularly among children, and an epidemic level of diabetes among adults. Featuring interviews with such experts as Eric Schlosser Fast Food Nation, Michael Pollan The Omnivore's Dilemma along with forward thinking social entrepreneurs like Stonyfield Farms' Gary Hirschberg and Polyface Farms' Joel Salatin, "Food, Inc." reveals surprising — and often shocking truths — about what we eat, how it's produced, who we have become as a nation and where we are going from here.

Note: For reviews of this important documentary, click here.

The global economic collapse pushed the rise of green capitalism off business magazine covers, but it will surely resurface. Now, along comes Heather Rogers, who warns about the dangers of buying into this mind-set with Green Gone Wrong: How Our Economy Is Undermining the Environmental Revolution. She says green capitalism is actually undermining ecological progress. She says corporate America has led us into thinking that we can save the earth mainly by buying things like compact fluorescent light bulbs, hybrid gas-electric cars and carbon offsets. Green Gone Wrong ... doesn’t just go after easy targets like big corporations that she says are clearly more interested in making money than saving the earth. Some of the most poignant moments come when Ms. Rogers visits organic farmers in upstate New York. She laments that they can’t make a living because it is so expensive for them to comply with the federal certification requirements for organic foods. “What isn’t being talked about is that many of the small organic producers who are expected to lead the reinvention of the food system can barely make ends meet,” she says. [The book] would have been better had Ms. Rogers delved more deeply into another of her suggestions: instead of buying green, we simply need to buy less stuff. She seems reluctant to push this too hard because it’s a truly radical idea that flies in the face of capitalism — green or not.

Note: Heather Rogers is an established investigative journalist who is also the author of the acclaimed book Gone Tomorrow: The Hidden Life of Garbage.

A federal jury has awarded $1.37 million in damages to a former Pfizer scientist who claimed she was sickened by a genetically engineered virus at a company laboratory and then fired for raising safety concerns. The case ... has raised questions about the safety of workers in the biotechnology industry and about regulations to protect them. The jury ruled that Pfizer had violated laws protecting free speech and whistle-blowers by retaliating against Ms. McClain. The case has attracted the attention of some worker advocates, who say it shows the risks workers in biological labs encounter and the lack of rules to protect them. Ms. McClain, for example, claimed she encountered many difficulties in her attempts to learn the genetic content of the virus she suspected had infected her because it was protected as a trade secret. [She] had complained about what she saw as safety problems, including desks next to where biological experiments were done. Jeremy Gruber, president of the Council for Responsible Genetics, an advocacy group urging discussion of the ethical implications of biotechnology, applauded the award. �I personally believe that Becky McClain is really the canary in the coal mine,� he said. Regulations �have not kept pace with the explosion of research.�

Note: Why are they creating genetically engineered viruses that can sicken people? Could there be some credence to those who claim the AIDS virus was manufactured?

Imagine being charged with a crime, but an imaginary friend takes the rap for you. That is essentially what happened when Pfizer, the world's largest pharmaceutical company, was caught illegally marketing Bextra, a painkiller that was taken off the market in 2005 because of safety concerns. It's a story about the power major pharmaceutical companies have even when they break the laws intended to protect patients. The story begins in 2001, when Bextra was about to hit the market. The drug was part of a revolutionary class of painkillers known as Cox-2 inhibitors that were supposed to be safer than generic drugs, but at 20 times the price of ibuprofen. Pfizer and its marketing partner, Pharmacia, planned to sell Bextra as a treatment for acute pain, the kind you have after surgery. But in November 2001, the U.S. Food and Drug Administration said Bextra was not safe for patients at high risk of heart attacks and strokes. The FDA approved Bextra only for arthritis and menstrual cramps. It rejected the drug in higher doses for acute, surgical pain. Promoting drugs for unapproved uses can put patients at risk by circumventing the FDA's judgment over which products are safe and effective. For that reason, "off-label" promotion is against the law. Internal company documents show that Pfizer and Pharmacia (which Pfizer later bought) used a multimillion-dollar medical education budget to pay hundreds of doctors as speakers and consultants to tout Bextra.

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

Nine months after being labelled "a great vampire squid wrapped around the face of humanity", Goldman Sachs has issued a wide-ranging justification of its conduct before, during and after the financial crisis. In a letter to shareholders issued alongside Goldman's 2009 annual report, the Wall Street bank denied that it "bet against its clients" when it changed its position in the housing market in 2007, shortly before prices began to collapse. The eight-page letter, signed by chief executive Lloyd Blankfein and president Gary Cohn, also contained a detailed defence of the $12.9bn (Ł8.5bn) payout which Goldman received from AIG after the failed insurance giant was bailed out by the US government. The letter appears to be a detailed response to some of the allegations made nine months ago by Rolling Stone journalist Matt Taibbi. His article, which argued that Goldman had repeatedly profited by inflating unsustainable financial bubbles ... included the claim that the company [is] "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money". Goldman ... actually profited from the fiasco by short-selling the market before the credit crunch struck in summer 2007.

Note: Read Matt Taibbi's article on Goldman Sachs here.

Despite months of dire warnings and millions in taxpayer dollars, less than half of the 229 million doses of H1N1 vaccine the government bought to fight the pandemic have been administered -- leaving an estimated 71.5 million doses that must be discarded if they are not used before they expire. Between 81 million and 91 million doses of swine flu vaccine were injected into peoples' arms or squirted up their noses through the end of February, according to federal officials, leaving about 138 million doses unused. An estimated 60 million of those will be donated to poor countries or saved for possible future use. But doses already in vials and syringes will be thrown away if not used before their expiration dates pass. The prospect of millions of doses of the once-precious vaccine being discarded is the latest twist in the $1.6 billion program -- the most ambitious immunization campaign in U.S. history. The government-led effort produced a vaccine in record time, but unexpected production problems delayed delivery of the bulk of supplies until after the second wave of infections had peaked.

Note: Yet the pharmaceutical companies get to keep the huge profits from the vaccines, paid for by the taxpayers. For key reports from major media sources on the government and pharmaceutical corporation corruption involving bird and swine flu vaccines, click here.

For almost two years, molecular biologist Bénédicte Trouiller doused the drinking water of scores of lab mice with nano-titanium dioxide, the most common nanomaterial used in consumer products today. Halfway through, Trouiller became alarmed: Consuming the nano-titanium dioxide was damaging or destroying the animals' DNA and chromosomes. The biological havoc continued as she repeated the studies again and again. It was a significant finding: The degrees of DNA damage and genetic instability that [she] documented can be "linked to all the big killers of man, namely cancer, heart disease, neurological disease and aging," says Professor Robert Schiestl, a genetic toxicologist who ran the lab at UCLA's School of Public Health where Trouiller did her research. Nano-titanium dioxide is so pervasive that the Environmental Working Group says it has calculated that close to 10,000 over-the-counter products use it in one form or another. Other public health specialists put the number even higher. It's "in everything from medicine capsules and nutritional supplements, to food icing and additives, to skin creams, oils and toothpaste," Schiestl says.

Note: For a treasure trove of key reports on health issues, click here.

A former Pfizer scientist is suing the pharmaceuticals giant after alleging she contracted an artificial, HIV-like, virus created by a colleague. In her lawsuit, Becky McClain claims Pfizer unlawfully dismissed her while she suffered bouts of paralysis brought on by the man-made virus. Pfizer denies these accusations, and says McClain simply didn't come to work, and only linked her problems to engineered-disease exposure after she was fired. According to McClain, researchers in her lab genetically engineered an artificial lentivirus, a class of viruses that also includes HIV. McClain believes that she became infected by the virus due to faulty safety measures, resulting in complete body paralysis as often as 12 times every month. Most likely, we will never know if it is Pfizer's virus that caused McClain's health problems. The court case will focus mostly on safety procedures in the laboratory, not on what exactly from the lab caused the illness. Also, Pfizer refuses to release the genome of the suspected virus, preventing both identification of the disease, as well as the development of a possible cure.

Note: Isn't it interesting that Pfizer is involved in creating HIV-like viruses? How long has this been going on?

Two former employees of Blackwater Worldwide have accused the private security company of defrauding the government for years by filing bogus receipts, double billing for the same services and charging government agencies for strippers and prostitutes, according to court documents unsealed this week. In a December 2008 lawsuit, the former employees said top Blackwater officials had engaged in a pattern of deception as they carried out government contracts in Iraq and Afghanistan, and in Louisiana in the aftermath of Hurricane Katrina. The lawsuit, filed under the False Claims Act, also asserts that Blackwater officials turned a blind eye to “excessive and unjustified” force against Iraqi civilians by several Blackwater guards. Blackwater has earned billions of dollars from government agencies in the years since the Sept. 11 attacks, when the company won contracts to protect American diplomats in Iraq and Afghanistan. The former employees who filed the lawsuit, a married couple named Brad and Melan Davis, said there was little financial oversight of the money. The documents detailing the Davises’ accusations were unsealed after the Justice Department declined to join in the case against Blackwater, which last year changed its name to Xe Services.

Note: For lots more on corporate fraud and war profiteering from reliable sources, click 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.