Corporate Corruption News Stories

Excerpts of Key Corporate Corruption News Stories in Major Media

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When the U.S. Food and Drug Administration approved implanting microchips in humans, the manufacturer said it would save lives, letting doctors scan the tiny transponders to access patients' medical records almost instantly. The FDA found "reasonable assurance" the device was safe, and a sub-agency even called it one of 2005's top "innovative technologies." But neither the company nor the regulators publicly mentioned this: A series of veterinary and toxicology studies, dating to the mid-1990s, stated that chip implants had "induced" malignant tumors in some lab mice and rats. "The transponders were the cause of the tumors," said Keith Johnson, a retired toxicologic pathologist, explaining ... the findings of a 1996 study he led at the Dow Chemical Co. Leading cancer specialists reviewed the research for The Associated Press and ... said the findings troubled them. Some said they would not allow family members to receive implants, and all urged further research before the glass-encased transponders are widely implanted in people. To date, about 2,000 of the so-called radio frequency identification, or RFID, devices have been implanted in humans worldwide. Did the agency know of the tumor findings before approving the chip implants? The FDA declined repeated AP requests to specify what studies it reviewed. The FDA is overseen by the Department of Health and Human Services, which, at the time of VeriChip's approval, was headed by Tommy Thompson. Two weeks after the device's approval took effect on Jan. 10, 2005, Thompson left his Cabinet post, and within five months was a board member of VeriChip Corp. and Applied Digital Solutions. He was compensated in cash and stock options.

Note: For more reliable information about the use and dangers of microchips, click here.

Ten days ago, the Consumer Product Safety Commission announced another in a series of well-publicized recalls of Chinese-made goods: children's art sets containing crayons, markers, pastels, pencils, water colors -- and lead -- distributed by Toys "R" Us. "Consumers should immediately take the products away from children," warned a news release from the federal government's watchdog for thousands of household items. "The CPSC is committed to protecting consumers and families." But 13 months earlier, in July 2006, the CPSC ... authorized a Los Angeles company to export to Venezuela 16,520 art sets that violated the same CPSC standard protecting children from dangerous art supplies. The following month, the agency authorized a Miami company to export to Jamaica 5,184 sets of wax crayons that also violated the standard. For decades the federal agency has allowed American-based companies to export products deemed unsafe here. Those products can present an even greater danger in a country that has only a handful of government employees devoted to consumer protection, said R. David Pittle, a former acting CPSC chairman who spent 22 years as a senior vice president for Consumers Union. "If the United States doesn't have very many inspectors, how many do you think there are in Honduras or Jamaica or Trinidad or Bulgaria?" Pittle asked. Using the CPSC's database of exports of non-approved products and hundreds of pages of documents obtained through the federal Freedom of Information Act, The Bee found that between October 1993 and September 2006, the CPSC received 1,031 requests from companies to export products the agency had found unsafe for American consumers. The CPSC approved 991 of those requests, or 96 percent.

In an attempt to raise the nation's historically low rate of breast-feeding, federal health officials commissioned an attention-grabbing advertising campaign a few years ago to convince mothers that their babies faced real health risks if they did not breast-feed. It featured striking photos of insulin syringes and asthma inhalers topped with rubber nipples. Plans to run these blunt ads infuriated the politically powerful infant formula industry, which hired a former chairman of the Republican National Committee and a former top regulatory official to lobby the Health and Human Services Department. Not long afterward, department political appointees toned down the campaign. The ads ran instead with more friendly images of dandelions and cherry-topped ice cream scoops, to dramatize how breast-feeding could help avert respiratory problems and obesity. In a February 2004 letter (pdf), the lobbyists told then-HHS Secretary Tommy G. Thompson they were "grateful" for his staff's intervention to stop health officials from "scaring expectant mothers into breast-feeding," and asked for help in scaling back more of the ads. The formula industry's intervention -- which did not block the ads but helped change their content -- is being scrutinized by Congress in the wake of last month's testimony by former surgeon general Richard H. Carmona that the Bush administration repeatedly allowed political considerations to interfere with his efforts to promote public health. "This is a credible allegation of political interference that [may] have had serious public health consequences," said [Rep. Henry] Waxman, a California Democrat. The milder campaign HHS eventually used had no discernible impact on the nation's breast-feeding rate, which lags behind the rate in many European countries.

For half a century, the Defense Advanced Research Projects Agency - a low-profile but vital division of the Defense Department - has ... been the force behind dozens of weapons, from the M-16 rifle and night-vision goggles to smart bombs and stealth aircraft. Now, DARPA is planning for a long war in which U.S. troops will be expected to face guerrilla adversaries. And just as during the Cold War, DARPA is counting on high-tech Silicon Valley to give U.S. forces the edge. More than 3,000 scientists, entrepreneurs and military leaders ... gathered in Anaheim ... for the agency's 50th anniversary conference. The agency is operating on a $3.1 billion budget, up 8 percent from fiscal 2006. Virtually every Silicon Valley company, from the obvious candidates like Lockheed Martin Missiles and Space to ... Google, has been touched in some way by DARPA. "Almost every great digital oak has a DARPA acorn at the bottom," said futurist Paul Saffo. During three days in Anaheim, DARPA and Pentagon officials made 60 presentations, painting a picture of a future in which the United States will have to spend $1 million on countermeasures for every dollar shelled out by bomb-building guerrillas like those U.S. forces are encountering in Iraq. But DARPA's high-tech dreams have their critics, who view its "visions" as boondoggles the nation can't afford. "I think it (DARPA) is basically a jobs program," said Chalmers Johnson, a retired University of California political scientist. Thomas Barnett, author of The Pentagon's New Map, one of the treatises that lay out the scenario for these asymmetrical wars that planners expect, [said] "The million-to-one (ratio) is unsustainable."

The Bush administration ... plans to turn again to a legal tool, the “state secrets” privilege, to try to stop a suit against a Belgian banking cooperative [known as Swift] that secretly supplied millions of private financial records to the United States government. The “state secrets” privilege, allowing the government to shut down litigation on national security grounds, was once rarely used. The Bush administration has turned to it more than 30 times, seeking to end public discussion of cases like the claims of an F.B.I. whistle-blower and the abduction of a German terrorism suspect. Most notably, the administration has sought to use the privilege to kill numerous suits against telecommunications carriers over the National Security Agency’s eavesdropping program. Swift is considered the nerve center of the global banking industry, routing trillions of dollars each day among banks, brokerage houses and other financial institutions. Its partnership with Washington ... gave Central Intelligence Agency and Treasury Department officials access to millions of records on international banking transactions. Months after the Sept. 11, 2001, attacks, Swift began turning over large chunks of its database in response to a series of unusually broad subpoenas from the Treasury Department. Two American banking customers ... sued Swift on invasion-of-privacy grounds. [Steven E. Schwarz, the lawyer for the plaintiffs, said the Swift program] “is an Orwellian example of government overreaching and unfettered access to private financial information that is not consistent with the values upon which our country was founded. We’ve seen a real erosion of the ‘state secrets’ privilege in the last year. I think it is from overuse. We’ve seen it used in record numbers, in situations where it was inappropriate, and the courts are starting to recognize that.”

A three-year veil of secrecy in the name of national security was used to keep the public in the dark about the handling of highly enriched uranium at a nuclear fuel processing plant -- including a leak that could have caused a deadly, uncontrolled nuclear reaction. The leak turned out to be one of nine violations or test failures since 2005 at privately owned Nuclear Fuel Services Inc., a longtime supplier of fuel to the U.S. Navy's nuclear fleet. The public was never told about the problems when they happened. The Nuclear Regulatory Commission revealed them for the first time last month when it released an order demanding improvements at the company, but no fine. In 2004, the government became so concerned about releasing nuclear secrets that the commission removed more than 1,740 documents from its public archive -- even some that apparently involved basic safety violations at the company. Environmental activists are still suspicious of the belated revelations and may challenge the commission's decision not to fine Nuclear Fuel Services for the safety violations. "That party is not over -- the full story of what is going on up there," said Ann Harris, a member of the Sierra Club's national nuclear task force. While reviewing the commission's public Web page in 2004, the Department of Energy's Office of Naval Reactors found what it considered protected information about Nuclear Fuel Service's work for the Navy. The commission responded by sealing every document related to Nuclear Fuel Services. Under the policy, all the documents were stamped "Official Use Only," including papers about the policy itself and more than 1,740 documents from the commission's public archive.

One after another, the men and women who have stepped forward to report corruption in the massive effort to rebuild Iraq have been vilified, fired and demoted. Or worse. For daring to report illegal arms sales, Navy veteran Donald Vance says he was imprisoned by the American military in a security compound outside Baghdad and subjected to harsh interrogation methods. He had thought he was doing a good and noble thing when he started telling the FBI about the guns and the land mines and the rocket-launchers — all of them being sold for cash, no receipts necessary, he said. The buyers were Iraqi insurgents, American soldiers, State Department workers, and Iraqi embassy and ministry employees. The seller, he claimed, was the Iraqi-owned company he worked for, Shield Group Security Co. “It was a Wal-Mart for guns,” he says. “It was all illegal and everyone knew it.” So Vance says he blew the whistle, supplying photos and documents and other intelligence to an FBI agent in his hometown of Chicago because he didn’t know whom to trust in Iraq. For his trouble, he says, he got 97 days in Camp Cropper, an American military prison outside Baghdad. Congress gave more than $30 billion to rebuild Iraq, and at least $8.8 billion of it has disappeared. “If you do it, you will be destroyed,” said William Weaver, professor of political science at the University of Texas-El Paso and senior advisor to the National Security Whistleblowers Coalition. “Reconstruction is so rife with corruption. Sometimes people ask me, ‘Should I do this?’ And my answer is no. If they’re married, they’ll lose their family. They will lose their jobs. They will lose everything,” Weaver said.

The Bush administration acknowledged for the first time that telecommunications companies assisted the government's warrantless surveillance program and were being sued as a result, an admission some legal experts say could complicate the government's bid to halt numerous lawsuits challenging the program's legality. "[U]nder the president's program, the terrorist surveillance program, the private sector had assisted us," Director of National Intelligence Mike McConnell said in an interview with the El Paso Times. His statement could help plaintiffs in dozens of lawsuits against the telecom companies, which allege that the companies participated in a wiretapping program that violated Americans' privacy rights. David Kris, a former Justice Department official, ... said McConnell's admission makes it difficult to argue that the phone companies' cooperation with the government is a state secret. "It's going to be tough to continue to call it 'alleged' when he's just admitted it," Kris said. McConnell has just added to "the list of publicly available facts that are no longer state secrets," increasing the plaintiffs' chances that their cases can proceed, Kris said. McConnell's statement "does serious damage to the government's state secrets claims that are at the heart of its defenses," said Greg Nojeim, senior counsel at the Center for Democracy and Technology. Bruce Fein, an associate deputy attorney general in the Reagan administration, said that McConnell's disclosure shows that "an important element of a program can be discussed publicly and openly without endangering the nation. These Cassandran cries that the earth is going to fall every time you have a discussion simply are not borne out by the facts," he said.

Last year, officials at the Department of Homeland Security's counter-narcotics office took a shortcut that has become common at federal agencies: They hired help through a no-bid contract. And the firm they hired showed them how to do it. A contract worth up to $579,000 was awarded to the consultant's firm in September. Though small by government standards, the counter-narcotics contract illustrates the government's steady move away from relying on competition to secure the best deals for products and services. A recent congressional report estimated that federal spending on contracts awarded without "full and open" competition has tripled, to $207 billion, since 2000, with a $60 billion increase last year alone. The category includes deals in which officials take advantage of provisions allowing them to sidestep competition for speed and convenience and cases in which the government sharply limits the number of bidders or expands work under open-ended contracts. Government auditors say the result is often higher prices for taxpayers and an undue reliance on a limited number of contractors. "The rapid growth in no-bid and limited-competition contracts has made full and open competition the exception, not the rule," according to the report, by the House Oversight and Government Reform Committee. Keith Ashdown, chief investigator at Taxpayers for Common Sense, a nonpartisan watchdog group, said that in many cases, officials are simply choosing favored contractors as part of a "club mentality." "Contracting officials are throwing out decades of work to develop fair and sensible rules to promote competition," Ashdown said. "Government officials are skirting the rules in favor of expediency or their favored contractors."

Nearly two dozen gas station owners in California [have] sued Shell Oil, Chevron (CVX) and Saudi Refining ... claiming the companies conspired to fix prices for 23,000 franchise owners nationwide. The plaintiffs ... say chairmen of the three oil companies met privately nearly every month starting in March 1996 for the "purpose of forming and organizing a combination." The lawsuit alleges executives destroyed documents from the meetings, and a defunct joint venture violated U.S. antitrust laws and caused artificially high wholesale gas prices in nearly every state from 1999 to 2001. The lawsuit hinges on a marketing deal that, plaintiffs say, allowed former rivals to collude on prices starting in 1998, when Shell and Texaco formed Equilon Enterprises [and] Motiva Enterprises LLC. Equilon and Motiva began operating when ... crude oil prices hit their lowest levels since the Great Depression, according to ... lawyer Joseph M. Alioto, who [represents] the plaintiffs. Yet gas prices soared for franchise owners, forcing them to pass on the cost to consumers or cut profit margins. "These executives get together and say, 'OK, we're going to raise Texaco's price to Shell's price, then we're going to raise both of them 50 to 75%, and we're going to do it after we've already had all these cost savings,'" Alioto said. [He] argues wholesale prices were higher by at least 20 cents a gallon and possibly as much as 40 cents per gallon from 1999 to 2001. Station owners had little choice but to pay higher prices. Franchises typically sign long-term contracts with oil suppliers, making it tough to switch to another brand or an independent supplier.

US cash dispenser and security company Diebold has admitted that it has failed to find a buyer for its troubled electronic voting machine business. Diebold and other manufacturers of such voting machines have been hit by criticism that they are unreliable and vulnerable to tampering. Growing unease about the machines in the US has led to a number of delayed orders from states. Diebold said that as a result, its 2007 revenues would fall $120m (Ł61m). It added that it would now allow the unit to operate more independently, with a separate board of directors and, possibly, a new management structure. Diebold said it had not ruled out another attempt at a full or partial sale. Some 50 million Americans, about 30% of registered voters, used electronic machines to cast their vote in the 2004 presidential election. The machines were introduced in the aftermath of the problems caused by antiquated punch-card systems in the 2000 presidential election. However, there has since been growing concern that electronic machines may be equally as unreliable.

Note: For more reliable information on the serious problems with the new electronic voting machines, click here.

The Defense Intelligence Agency is preparing to pay private contractors up to $1 billion to conduct core intelligence tasks of analysis and collection over the next five years, an amount that would set a record in the outsourcing of such functions by the Pentagon's top spying agency. The proposed contracts ... reflect a continuing expansion of the Defense Department's intelligence-related work and fit a well-established pattern of Bush administration transfers of government work to private contractors. Since 2000, the value of federal contracts signed by all agencies each year has more than doubled to reach $412 billion, with the largest growth at the Defense Department. Outsourcing particularly accelerated among intelligence agencies after the [Sept. 11] 2001 terrorist attacks. The DIA's action comes a few months after CIA Director Michael V. Hayden, acting under pressure from Congress, announced a program to cut the agency's hiring of outside contractors by at least 10 percent. The DIA is the country's major manager and producer of foreign military intelligence, with more than 11,000 military and civilian employees worldwide and a budget of nearly $1 billion. It has its own analysts from the various services as well as collectors of human intelligence in the Defense HUMINT Service. DIA also manages the Defense attaches stationed in embassies all over the world. Unlike the CIA, the DIA outsources the major analytical products known as all-source intelligence reports, a senior intelligence official said.

At least 20,000 police surveillance cameras are being installed along streets here [in Shenzhen] in southern China and will soon be guided by sophisticated computer software from an American-financed company to recognize automatically the faces of police suspects and detect unusual activity. Starting this month in a port neighborhood and then spreading across Shenzhen, a city of 12.4 million people, residency cards fitted with powerful computer chips programmed by the same company will be issued to most citizens. Data on the chip will include not just the citizen’s name and address but also work history, educational background, religion, ethnicity, police record, medical insurance status and landlord’s phone number. Even personal reproductive history will be included, for enforcement of China’s controversial “one child” policy. Plans are being studied to add credit histories, subway travel payments and small purchases charged to the card. Security experts describe China’s plans as the world’s largest effort to meld cutting-edge computer technology with police work to track the activities of a population. But they say the technology can be used to violate civil rights. “We have a very good relationship with U.S. companies like I.B.M., Cisco, H.P., Dell,” said Robin Huang, the chief operating officer of China Public Security. “All of these U.S. companies work with us to build our system together.” The role of American companies in helping Chinese security forces has periodically been controversial in the United States. Executives from Yahoo, Google, Microsoft and Cisco Systems testified in February 2006 at a Congressional hearing called to review whether they had deliberately designed their systems to help the Chinese state muzzle dissidents on the Internet; they denied having done so.

In an unusual effort targeting a single chemical, several dozen scientists on Thursday issued a strongly worded consensus statement warning that an estrogen-like compound in plastic is likely causing an array of serious reproductive disorders in people. The compound, bisphenol A or BPA, is one of the highest-volume chemicals in the world and has found its way into the bodies of most human beings. Used to make hard plastic, BPA can seep from beverage containers and other materials. It is used in all polycarbonate plastic baby bottles as well as ... large water cooler containers, sports bottles and microwave oven dishes, along with canned food liners and some dental sealants for children. The scientists — including four from federal health agencies — reviewed about 700 studies before concluding that people are exposed to levels of the chemical exceeding those that harm lab animals. Infants and fetuses are most vulnerable, they said. The statement, published online by the journal Reproductive Toxicology, was accompanied by a new study from researchers from the National Institutes of Health that found uterine damage in newborn animals exposed to BPA. That damage is a possible predictor of reproductive diseases in women, including fibroids, endometriosis, cystic ovaries and cancers. It is the first time BPA has been linked to disorders of the female reproductive tract, although earlier studies have found early-stage prostate and breast cancer and decreased sperm counts in animals exposed to low doses. The scientists' statement and the new study — accompanied by five scientific reviews summarizing the 700 studies — intensify a contentious debate over whether the plastic compound poses a public threat. So far no government agency here or abroad has restricted its use.

A federal panel of scientists [has concluded] that an estrogen-like compound in plastic could be posing some risk to the brain development of babies and children. Bisphenol A, or BPA, [a component of polycarbonate plastic,] is found in low levels in virtually every human body. The decision by the 12 advisors of the Center for the Evaluation of Risks to Human Reproduction ... is the first official, government action related to the chemical. The scientists ranked their concerns about BPA, concluding they had "some concern" about neurological and behavioral effects in fetuses, infants and children, but "minimal" or "negligible" concern about reproductive effects. The findings put the panel roughly in the middle -- between the chemical industry, which has long said there is no evidence of danger to humans, and the environmental activists and scientists who say it is probably harming people. Environmentalists lambasted the panel, saying it had minimized the risks and ignored important research. "Only the chemical industry agrees with the decision that BPA has little or no human health risks. That by itself should speak volumes about the corrupted process endorsed by the panel today," said Dr. Anila Jacob of the Environmental Working Group. The panel's preliminary report on BPA was drafted by a private consulting firm with financial ties to the chemical industry. The National Toxicology Program fired the company but ruled that the report was unbiased. The panel rejected several dozen animal studies that found reproductive effects. The decision to reject the studies has been controversial with toxicologists.

In the spring of 2001, a ... rice farmer named Jacko Garrett watched a fleet of 18-wheelers haul away truckloads of rice that he had grown with great care. "It just bothers me so bad," Garrett said. "I'm sitting here trying to find food to feed people, and I've got to bury five million pounds of rice." Garrett's rice was genetically modified, part of an experiment that was brought to an abrupt halt by its sponsor, a ... biotechnology company called Aventis Crop Science. The company had contracted with a handful of farmers to grow the rice, which was known as Liberty Link because its genes had been altered to resist a weed killer called Liberty, also made by Aventis. In January 2006, small amounts of genetically engineered rice turned up in a shipment that was tested ... by a French customer of Riceland Foods. Because no transgenic rice is grown commercially in the U.S., the people at Riceland were stunned. Then came another shock. Testing revealed that the genetically modified rice contained a strain of Liberty Link that had not been approved for human consumption. What's more, trace amounts of the Liberty Link had mysteriously made their way into the commercial rice supply in all five of the Southern states where long-grain rice is grown. The tainted rice was everywhere. If in the past year or so you or your family ate Uncle Ben's, Rice Krispies, or Gerber's, or drank a Budweiser ... you probably ingested a little bit of Liberty Link, with the unapproved gene. Last November, over the howls of anti-GMO activists, the USDA retroactively approved the Liberty Link rice, known as LL601. The department said the genes that it approved are similar to those inserted for years into canola and corn, with no apparent ill effects.

Note: To read a ten-page summary of Seeds of Deception, a ground-breaking exposé of the dangers of the genetic engineering of foods, click here.

A federal drug advisory committee voted 20 to 3 late this afternoon that Avandia, a controversial diabetes drug made by GlaxoSmithKline, raises the risks of heart attacks, but it then voted 22 to 1 that the drug should nonetheless remain on the market. Dr. Clifford J. Rosen, chairman of the committee [said] “there was enough concern on the advisory committee that virtually everybody felt there was risk” of heart attacks from taking Avandia. Patients who have congestive heart failure or a history of cardiovascular disease, or those taking insulin or nitrates should not be given Avandia, Dr. Rosen said. The votes came after an extraordinary meeting in which officials from the Food and Drug Administration, which brought the committee together, openly disagreed with one another about the right course to take. Dr. David Graham, a drug safety officer at the F.D.A., called for the drug’s withdrawal and estimated that its toxic effects on the heart had caused as many as 205,000 heart attacks, strokes and death from 1999 to 2006. For every month that Avandia is sold, he said, another 1,600 to 2,200 patients are likely to suffer from heart attacks and strokes, some of them fatal. Dr. Robert Meyer, director of the office within the F.D.A. that approved Avandia’s initial application, immediately disagreed with Dr. Graham. Dr. Douglas C. Throckmorton, a deputy director of the F.D.A.’s center for drugs, explained at a news conference after the meeting that the split within the agency resulted from the “complexity” of the issue. The open disagreement within the F.D.A. reflects a fierce debate that has occurred among diabetes experts across the country since The New England Journal of Medicine published a study in May suggesting that Avandia increases the risks of heart attacks.

Note: To read a succinct, powerful summary of how drug companies control the regulation of their own industry, click here.

One of the largest American contractors working in Iraq, Bechtel National, met its original objectives on fewer than half of the projects it received as part of a $1.8 billion reconstruction contract, while most of the rest were canceled, reduced in scope or never completed as designed. But the report, by the Special Inspector General for Iraq Reconstruction, an independent agency, places a large share of the blame for the failures on the government overseers at the United States Agency for International Development who administered the contract. [USAID] assigned just two people in Iraq to oversee the giant contract, which included some 24 major projects and 150 subcontractors and stipulated that all invoices be approved or denied in just 10 days. The report is the first of a planned series of audits of Western contractors that have received large slices of the roughly $40 billion in American taxpayer money that has been spent on the troubled program to rebuild Iraq. Stuart Bowen Jr., who heads the special inspector general's office, said the United States government clearly shared responsibility with the company for the project failures. "I would say there's fault on both sides," Bowen said in an interview Wednesday. He added that neither the aid agency nor the United States Army Corps of Engineers, which also oversaw aspects of the contract, ever came close to filling all their staff positions in Iraq. "This isn't so much an indictment of Bechtel as it is a criticism of the system," said Stephen Ellis, a vice president at Taxpayers for Common Sense in Washington.

Two years into a fraud investigation, veteran federal prosecutor David Maguire told colleagues he'd uncovered one of the biggest cases of his career. Maguire described crimes "far worse" than those of Arthur Andersen, the accounting giant that collapsed in the wake of the Enron scandal. Among those in his sights: executives from a subsidiary of Berkshire Hathaway, the investment empire overseen by billionaire Warren Buffett. In May 2006, he felt strongly enough about his case that he prepared a draft indictment accusing executives from a Virginia insurer, Reciprocal of America, of concocting a series of secret deals to hide its losses from regulators. Although he didn't name anyone from Berkshire Hathaway's subsidiary, he described the company as a participant in the scheme. But Maguire never brought those charges. Months after preparing the draft, he was removed as the lead prosecutor on the case and reassigned. His replacement, a prosecutor who hadn't been involved in the case until then, soon announced that the Berkshire Hathaway subsidiary, General Reinsurance, would not be indicted. By April of this year, the entire investigation ... had fizzled. Former employees and policyholders of the Richmond-based insurer were astounded. Why had the Justice Department spent upward of $2 million to investigate the case only to decline to prosecute? Maguire and his team of investigators had secured two related guilty pleas, interviewed dozens of witnesses and gathered 7,000 boxes of documents. Tom Gober, a certified fraud examiner who worked on the case ... concluded that the Justice Department had buckled under pressure from defense lawyers. "It just stinks," he said. "You don't come in out of nowhere and in no time kill three years of sophisticated effort."

John Revelli vividly remembers the day the U.S. Supreme Court issued its infamous Kelo decision that allowed local governments to condemn private property under eminent domain, not only for public uses such as roads and schools, but also to accommodate private developers. "The Kelo decision," the former owner of Revelli Tires in Oakland [said,] "came out on June 23 of '05, and the deadline that the city put up against us to move out was July 1." The U.S. Constitution states, "Nor shall private property be taken for public use, without just compensation." The big bench wrongly ruled that "public use" could be whatever states want it to be -- including private developments designed to expand the tax base. The ruling allowed the City of New London, Conn., to seize the land under Susette Kelo's "little pink cottage" and hand it over to a private developer for a development featuring high-end waterfront homes. And Oakland went ahead with its plans to seize Revelli Tires [as well as] Autohouse -- a business owned and run by first-generation American Tony Fung -- in order to accommodate a private apartment project. Revelli and Fung lost their businesses and their property. As former Justice Sandra Day O'Connor, who dissented on Kelo, warned, "The specter of condemnation hangs over all property. Nothing is to prevent the state from replacing any Motel 6 with a Ritz-Carlton, any home with a shopping mall, or any farm with a factory." No government should be able to take your land to give it to a corporation. When states and cities, in search of a richer tax base, can take your land and give it to a private developer -- they have license to trample on everyone's rights. And no one, except the very rich, is safe.

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.