Government Corruption Media Articles

Excerpts of Key Government Corruption Media Articles in Major Media

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

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

One in every 31 adults, or 7.3 million Americans, is in prison, on parole or probation, at a cost to the states of $47 billion in 2008, according to a new study. Criminal correction spending is outpacing budget growth in education, transportation and public assistance, based on state and federal data. Only Medicaid spending grew faster than state corrections spending, which quadrupled in the past two decades, according to [a new report] by the Pew Center on the States, the first breakdown of spending in confinement and supervision in the past seven years. The increases in the number of people in some form of correctional control occurred as crime rates declined by about 25 percent in the past two decades. As states face huge budget shortfalls, prisons, which hold 1.5 million adults, are driving the spending increases. Pew researchers say that as states trim services like education and health care, prison budgets are growing. Those priorities are misguided, the study says. “States are looking to make cuts that will have long-term harmful effects,” said Sue Urahn, managing director of the Pew Center on the States. “Corrections is one area they can cut and still have good or better outcomes than what they are doing now.” About $9 out of $10 spent on corrections goes to prison financing (that includes money spent to house 780,000 people in local jails). One in 11 African-Americans, or 9.2 percent, are under correctional control, compared with one in 27 Latinos (3.7 percent) and one in 45 whites (2.2 percent).

Note: Crime is down 25%, yet prison spending is 400% of what it was 20 years ago. Is there anything strange here? The prison-industrial complex is mighty big and in many ways mighty corrupt.

The U.S. economy is in free fall, the banking system is in a state of complete collapse and Americans all across the country are downsizing their standards of living. The nation as we’ve known it is fading before our very eyes, but we’re still pouring billions of dollars into wars in Afghanistan and Iraq with missions we are still unable to define. Even as the U.S. begins plans to reduce troop commitments in Iraq, it is sending thousands of additional troops into Afghanistan. The strategic purpose of this escalation, as Defense Secretary Robert Gates acknowledged, is not at all clear. We invaded Afghanistan more than seven years ago. We don’t even have an escalation strategy, much less an exit strategy. An honest assessment of the situation ... would lead inexorably to such terms as fiasco and quagmire. Instead of cutting our losses, we appear to be doubling down. As for Iraq, President Obama announced last week that substantial troop withdrawals will take place over the next year and a half and that U.S. combat operations would cease by the end of August 2010. But, he said, a large contingent of American troops, perhaps as many as 50,000, would still remain in Iraq for a “period of transition.” That’s a large number of troops, and the cost of keeping them there will be huge. I can easily imagine a scenario in which Afghanistan and Iraq both heat up and the U.S., caught in an extended economic disaster at home, undermines its fragile recovery efforts in the same way that societies have undermined themselves since the dawn of time — with endless warfare.

Note: The strategic purpose of keeping the wars going is well known by the bankers and power elite. A top U.S. general revealed it all in a powerful book, of which we have a two-page summary available here. For revealing reports from reliable sources on the realities of the Iraq and Afghan wars, click here.

Public pension funds across the U.S. are hiding the size of a crisis that’s been looming for years. Retirement plans play accounting games with numbers, giving the illusion that the funds are healthy. The paper alchemy gives governors and legislators the easy choice to contribute too little or nothing to the funds, year after year. The misleading numbers posted by retirement fund administrators help mask this reality: Public pensions in the U.S. had total liabilities of $2.9 trillion as of Dec. 16, according to the Center for Retirement Research at Boston College. Their total assets are about 30 percent less than that, at $2 trillion. With stock market losses this year, public pensions in the U.S. are now underfunded by more than $1 trillion. That lack of funds explains why dozens of retirement plans in the U.S. have issued more than $50 billion in pension obligation bonds during the past 25 years -- more than half of them since 1997 -- public records show. The quick fix for pension funds becomes a future albatross for taxpayers. The public gets nothing from pension bonds -- other than a chance to at least temporarily avoid paying for higher pension fund contributions. Pension bonds portend the possibility of steep tax increases. By law, states must guarantee public pension fund debts. “What appears to be a riskless strategy is actually very risky,” says David Zion, director of accounting research for New York-based Credit Suisse Holdings USA Inc. “If the returns on the pension bond-financed assets don’t exceed the cost of servicing the debt, the taxpayers bear the brunt.”

Note: The risks to pension funds may require yet another huge public bailout. Where will the money come from? For lots more on the realities of the Wall Street bailout, click here.

Until now, parents of children with autism who have spoken up about their fears that their child's disorder came on the heels of vaccination have been given the status of heretic. But it turns out that the increase in autism we have been witnessing over the last few decades could also be a result of the over-all increase in the body burden caused by mercury in our air and water, and by proxy the fish we eat, our vaccines and dental fillings, and now, in our high fructose corn syrup, a substance marketed and consumed most often by those most at risk: children. In 2004, a study ... compared the rate of special education programs in Texas and the amount of mercury found in the environment: "On average, for each 1000 lb of environmental mercury released, there was a 43% increase in the rate of special education services and a 61% increase in the rate of autism." The news on Monday that HFCS contains mercury is ... alarming. First, the FDA had evidence of this in 2005 and did absolutely nothing - no testing, no warning the companies using the tainted HFCS to produces their ketchup, chocolate syrup, cereal bars and soda. Therefore, more time has passed when mercury could bio-accumulate in our bodies. Second, there has been a previous association made between diet and autistic functionality - and specifically HFCS has been singled out as a cause for worsening the disorder. This means that there has been a growing body of evidence relating mercury to autism for some time, in which HFCS is only a new development.

Note: Read a carefully researched essay showing the FDA and CDC (Centers for Disease Control) have consciously concealed solid evidence of a link between mercury in vaccines and the rise in autism.

A special "vaccines court" hears cases brought by parents who claim their children have been harmed by routine vaccinations. The court buffers Wyeth and other makers of childhood-disease vaccines from ... litigation risk. The legal shield, known as the National Childhood Vaccine Injury Compensation Program, was put into place in 1986. Vaccines ... are poised to generate $21.5 billion in annual sales for their makers by 2012, according to France's Sanofi-Aventis SA, a leading producer of inoculations. Vaccines' transformation into a lucrative business has some observers questioning whether the shield law is still appropriate. Critics ... underscored the limited recourse families have in claiming injury from vaccines. "When you've got a monopoly and can dictate price in a way that you couldn't before, I'm not sure you need the liability protection," said Lars Noah, a specialist in medical technology. Kevin Conway, an attorney at Boston law firm Conway, Homer & Chin-Caplan PC, which specializes in vaccine cases and brought one of the recent autism suits, says the lack of liability for the pharmaceutical industry compromises safety. Even if they had won their cases, the families of autistic children wouldn't have been paid by the companies that make the vaccines. Instead, the government would have footed the bill, using the funds from a tax levied on inoculations.

Note: For more along these lines, see concise summaries of deeply revealing news articles on vaccines from reliable major media sources showing huge corruption and deception.

At a friend's sleepover more than a year ago, 14-year-old Phillip Swartley pocketed change from unlocked vehicles in the neighborhood to buy chips and soft drinks. The cops caught him. There was no need for an attorney, said Phillip's mother, Amy Swartley, who thought at most, the judge would slap her son with a fine or community service. But she was shocked to find her eighth-grader handcuffed and shackled in the courtroom and sentenced to a youth detention center. Then, he was shipped to a boarding school for troubled teens for nine months. The justice system in Luzerne County, in the heart of Pennsylvania's struggling coal country, has also fallen prey to corruption. The county has been rocked by a kickback scandal involving two elected judges who essentially jailed kids for cash. Many of the children had appeared before judges without a lawyer. The nonprofit Juvenile Law Center in Philadelphia said Phillip is one of at least 5,000 children over the past five years who appeared before former Luzerne County President Judge Mark Ciavarella. Ciavarella pleaded guilty earlier this month to federal criminal charges of fraud and other tax charges, according to the U.S. attorney's office. Former Luzerne County Senior Judge Michael Conahan also pleaded guilty to the same charges. The two secretly received more than $2.6 million, prosecutors said.

Note: Yet another example of corruption in the legal system. Sadly, federal officers of high rank are often as easily overcome by greed as the average person.

Gold rose to its highest [price] in almost seven months in London as investors bought the precious metal to preserve their wealth on speculation the global economy will deteriorate. Bullion has climbed 33 percent since October as governments lowered interest rates and spent trillions of dollars to combat the recession. “The very big uncertainties in the stock market and economy are driving investors into gold and precious metals,” said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. Gold for immediate delivery rose as much as $25.40, or 2.7 percent, to $967.15 an ounce, the highest since July 22. April futures gained $22.10, or 2.4 percent, to $964.40. Some investors are buying precious metals on speculation government stimulus packages [and bank bailouts] will spur inflation, Fertig said. Treasury Secretary Timothy Geithner last week pledged as much as $2 trillion in financing for programs aimed at spurring new lending. The Treasury will likely borrow a record $2.5 trillion this fiscal year ending Sept. 30, according to Goldman Sachs Group Inc. “Investors have been aggressively adding physical gold to their portfolios as concerns about counterparty risk” increase, ETF Securities wrote in a report. Investors are hedging “against the risk of currency depreciation and longer term inflation risks as government debt projections balloon.” “Gold has become, for all intents, the world’s second reserve currency,” Dennis Gartman, an economist and the editor of the ... Gartman Letter, said.

Note: For many revealing reports on the realities of government bailouts of banks worldwide, click here.

In what could turn out to be the greatest fraud in US history, American authorities have started to investigate the alleged role of senior military officers in the misuse of $125bn ... in a US -directed effort to reconstruct Iraq after the fall of Saddam Hussein. The exact sum missing may never be clear, but a report by the US Special Inspector General for Iraq Reconstruction (SIGIR) suggests it may exceed $50bn, making it an even bigger theft than Bernard Madoff's notorious Ponzi scheme. "I believe the real looting of Iraq after the invasion was by US officials and contractors, and not by people from the slums of Baghdad," said one US businessman active in Iraq since 2003. Iraqi leaders are convinced that the theft or waste of huge sums of US and Iraqi government money could have happened only if senior US officials were themselves involved in the corruption. American federal investigators are now starting an inquiry into the actions of senior US officers involved in the programme to rebuild Iraq. In the expanded inquiry by federal agencies, the evidence of a ... US businessman called Dale C Stoffel who was murdered after leaving the US base at Taiji north of Baghdad in 2004 is being re-examined. Before he was killed, Mr Stoffel, an arms dealer and contractor, was granted limited immunity from prosecution after he had provided information that a network of bribery – linking companies and US officials awarding contracts – existed within the US-run Green Zone in Baghdad. He said bribes of tens of thousands of dollars were regularly delivered in pizza boxes sent to US contracting officers.

Note: To read a former Marine Corps general's exposure of the high-level criminality and profiteering that is the real purpose behind war, click here. For many powerful revelations from reliable sources of government corruption, click here.

Buried deep inside the ... economic stimulus bill ... is some bitter medicine for companies that have received financial bailout funds. Over staunch objections from the Obama administration, Senate Democrats inserted a provision that would impose restrictions on executive bonuses at financial institutions that are much tougher than those proposed 10 days ago by the Treasury Department. The provisions would prohibit cash bonuses and almost all other incentive compensation for the five most-senior officers and the 20 highest-paid executives at large companies that receive money under TARP. The restriction with the most bite would bar top executives from receiving bonuses that exceed one-third of their annual pay. The provision, written by Sen. Chris Dodd, D-Conn., highlighted the growing wrath ... over the lavish compensation that top Wall Street firms and big banks awarded to senior executives at the same time that many of the companies, teetering on the brink of insolvency, received taxpayer-paid bailouts. "The decisions of certain Wall Street executives to enrich themselves at the expense of taxpayers have seriously undermined public confidence," Dodd said Friday. "These tough new rules will help ensure that taxpayer dollars no longer effectively subsidize lavish Wall Street bonuses." Top economic advisers to President Obama adamantly opposed the pay restrictions, according to congressional officials.

Note: For powerfully revealing reports on the realities of the Wall Street bailout, click here.

The nation's new intelligence chief [has warned] that the global economic crisis is the most serious security peril facing the United States, threatening to topple governments [and] trigger waves of refugees. The economic collapse "already looms as the most serious one in decades, if not in centuries," said Dennis C. Blair, director of national intelligence, in [testimony before the Senate Intelligence Committee]. Blair's focus on the economic meltdown represents a sharp contrast from the testimony of his predecessors in recent years, who devoted most of their attention in the annual threat assessment hearing to the issues of terrorism and the wars in Afghanistan and Iraq. "Time is probably our greatest threat," Blair said. "The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests." He said that one-quarter of the world's nations had already experienced low-level instability attributed to the economic downturn, including shifts in power. He cited anti-government demonstrations in Europe and Russia, and he warned that much of Latin America and the former Soviet satellite states lacked sufficient cash to cope with the spreading crisis. "Countries will not be able to export their way out of this one because of the global nature" of the crisis, Blair said. U.S. intelligence analysts fear there could be a backlash against American efforts to promote free markets because the crisis was triggered by the United States. "We're generally held to be responsible," Blair said.

Note: For the complete text of Blair's testimony, click here. For an excellent analysis, click here. For more on the realities behind the economic crisis, click here.

[Former Treasury Secretary Paul] O'Neill - who is known for speaking his mind - talks for the first time about his two years inside the Bush administration. His story is the centerpiece of a new book being published this week about the way the Bush White House is run. Entitled The Price of Loyalty, the book by [Ron Suskind,] former Wall Street Journal reporter, draws on interviews with high-level officials who gave the author their personal accounts of meetings with the president, their notes and documents. But the main source of the book was Paul O'Neill. What happened at President Bush's very first National Security Council meeting is one of O'Neill's most startling revelations. "From the very beginning, there was a conviction, that Saddam Hussein was a bad person and that he needed to go," says O'Neill, who adds that going after Saddam was topic "A" 10 days after the inauguration - eight months before Sept. 11. "From the very first instance, it was about Iraq. It was about what we can do to change this regime," says Suskind. "Day one, these things were laid and sealed." As treasury secretary, O'Neill was a permanent member of the National Security Council. He says in the book he was surprised at the meeting that questions such as "Why Saddam?" and "Why now?" were never asked. "It was all about finding a way to do it. That was the tone of it. The president saying 'Go find me a way to do this,'" says O'Neill.

Note: Most wars in the 20th Century were started by false-flag operations; could 9/11 have been yet another one, on a scale large enough to launch a "global" and "endless" war? For an overview, click here.

For years, the juvenile court system in Wilkes-Barre [PA] operated like a conveyor belt: Youngsters were brought before judges without a lawyer, given hearings that lasted only a minute or two, and then sent off to juvenile prison for months for minor offenses. The explanation, prosecutors say, was corruption on the bench. In one of the most shocking cases of courtroom graft on record, two Pennsylvania judges have been charged with taking millions of dollars in kickbacks to send teenagers to two privately run youth detention centers. “I’ve never encountered, and I don’t think that we will in our lifetimes, a case where literally thousands of kids’ lives were just tossed aside in order for a couple of judges to make some money,” said Marsha Levick, an attorney with the Philadelphia-based Juvenile Law Center, which is representing hundreds of youths sentenced in Wilkes-Barre. Prosecutors say Luzerne County Judges Mark Ciavarella and Michael Conahan took $2.6 million in payoffs to put juvenile offenders in lockups run by PA Child Care LLC and a sister company, Western PA Child Care LLC. The judges were charged on Jan. 26 and removed from the bench by the Pennsylvania Supreme Court shortly afterward. The high court ... is looking into whether hundreds or even thousands of sentences should be overturned. Among the offenders were teenagers who were locked up for months for stealing loose change from cars, writing a prank note and possessing drug paraphernalia. Many had never been in trouble before. Some were imprisoned even after probation officers recommended against it.

Note: For many insights into government corruption from reliable sources, click here.

President Obama's Justice Department signaled in a San Francisco courtroom Monday that the change in administrations has not changed the government's position on secrecy and the rights of foreign prisoners - and that lawsuits by alleged victims of CIA kidnappings and torture must be dismissed on national security grounds. The Ninth U.S. Circuit Court of Appeals in San Francisco ... is considering a suit accusing a San Jose company, Jeppesen Dataplan, of arranging so-called extraordinary rendition flights for the CIA. Although Obama has issued orders banning torture and closing secret CIA prisons, his administration has sent mixed signals on extraordinary rendition and the legitimacy of court challenges. Obama's nominee for CIA director, Leon Panetta, said last week that he approved of rendition for foreign prosecution or brief CIA detention. The American Civil Liberties Union, which represents five men suing Jeppesen for allegedly flying them to foreign torture chambers, said this case is the new administration's chance to live up to its promises. ACLU attorney Ben Wizner told the court that the supposedly ultra-secret rendition program is widely known. He noted that Sweden recently awarded $450,000 in damages to one of the plaintiffs, Ahmed Agiza, for helping the CIA transport him to Egypt, where he is still being held and allegedly has been tortured. "The notion that you have to close your eyes and ears to what the whole world knows is absurd," Wizner said.

Note: For lots more from major media sources on the disturbing trend toward ever-greater restrictions on civil liberties and due process, click here.

The US military has been using Britain's atomic weapons factory to carry out research into its own nuclear warhead programme. US defence officials said that "very valuable" warhead research has taken place at the Atomic Weapons Establishment at Aldermaston in Berkshire as part of an ongoing and secretive deal between the British and American governments. Campaign groups warned any such deal was in breach of international law. Kate Hudson, of Campaign for Nuclear Disarmament, said: "Any work preparing the way for new warheads cuts right across the UK's commitment to disarm, which it signed up to in the nuclear non-proliferation treaty. That this work may be contributing to both future US and British warheads is nothing short of scandalous." The extent of US involvement at Aldermaston came to light in an interview with John Harvey, policy and planning director at the US National Nuclear Security Administration. Harvey said: "There are some capabilities that the UK has that we don't have and that we borrow... that I believe we have been able to exploit [and] that's been very valuable to us." In the same interview, Harvey admitted that the US and UK had struck a new deal over the level of cooperation, including work on ... a new generation of nuclear warhead known as the Reliable Replacement Warhead (RRW).

What allowed some people to see the financial crash coming while so many others missed its gathering force? I put that question recently to Nouriel Roubini, who has come to be known as "Dr. Doom" because of his insistent warnings starting in 2006 that we were heading into a global firestorm. Roubini gave two kinds of answers. The first involves standard number-crunching of the sort that economists routinely do -- and that Roubini just did better and sooner. It's his second answer that's more interesting, because it goes to the heart of what we should take away from this crisis: Roubini decided to discard the assumption of market rationality that underlies most economics and to embrace the psychological insights of what's known as "behavioral economics." Everyone else had those same numbers. Why did Roubini act? The answer is that he decided to trust his gut, which told him there was trouble ahead, rather than Wall Street's "wisdom of the crowd," which -- as reflected in stock prices -- said everything was rosy. He concluded that the markets were not pricing in the degree of risk that was actually present in housing. "The rational man theory of economics has not worked," Roubini said last month at a session of the World Economic Forum at Davos. That's why he and other prominent economists are paying more attention to behavioral economics, which starts from the premise that economic decisions, like other aspects of human behavior, are influenced by irrational psychological factors.

Note: To visit Nouriel Roubini's highly informative blog, click here. For lots more on the financial crisis and bailout, click here.

The U.S. Treasury looks to have overpaid financial institutions to the tune of $78 billion in carrying out capital injections last year, the head of a congressional oversight panel for the government's $700 billion bailout program told lawmakers. Elizabeth Warren, a Harvard law professor, said her group estimated the Treasury paid $254 billion in 2008 in return for stocks and warrants worth about $176 billion under the Troubled Asset Relief Program, or TARP. Warren said the Treasury, under then-Secretary Henry Paulson, misled the public about how it would price them. "Treasury simply did not do what it said it was doing ... They described the program one way, and they priced it another," Warren said at a hearing before the Senate Banking Committee. She added that Paulson "was not entirely candid" in describing TARP's bank capital injection program. Neil Barofsky, another watchdog for the TARP program, told the Senate committee his office is turning to criminal investigations. "That's going to be a large focus of my office," he said. Warren told the banking committee that after three months on the job, her panel is still not getting enough answers from Treasury. She described the bailout as "an opaque process at best." Barofsky raised concerns about potential fraud in one of several programs funded by bailout money -- the Federal Reserve's Term Asset-Backed Loan Facility (TALF).

Note: Was the overpayment by Treasury to Wall Street banks for nearly-worthless assets they created a mistake? Or was it the real, hidden purpose of TARP to pay the banks more for the assets than they are worth? For many revealing reports from reliable sources on the realities behind the Wall Street bailout, click here.

The Pentagon is steadily and dramatically increasing the money it spends to win what it calls "the human terrain" of world public opinion. In the process, it is raising concerns of spreading propaganda at home in violation of federal law. An Associated Press investigation found that over the past five years, the money the military spends on winning hearts and minds at home and abroad has grown by 63 percent, to at least $4.7 billion this year, according to Department of Defense budgets and other documents. That's almost as much as it spent on body armor for troops in Iraq and Afghanistan between 2004 and 2006. This year, the Pentagon will employ 27,000 people just for recruitment, advertising and public relations — almost as many as the total 30,000-person work force in the State Department. The biggest chunk of funds — about $1.6 billion — goes into recruitment and advertising. Another $547 million goes into public affairs, which reaches American audiences. And about $489 million more goes into what is known as psychological operations. Staffing across all these areas costs about $2.1 billion, as calculated by the number of full-time employees and the military's average cost per service member. That's double the staffing costs for 2003. Recruitment and advertising are the only two areas where Congress has authorized the military to influence the American public. Far more controversial is public affairs, because of the prohibition on propaganda to the American public.

Note: For more revealing reports from reliable sources on the realities of the wars in Afghanistan and Iraq, click here.

Will President Obama's new plan to rein in executive compensation at companies receiving taxpayer money be more successful than previous attempts? Not if history is any guide. Since at least 1984, Congress and accounting authorities have enacted measures designed in whole or part to stem runaway pay. Yet compensation for top executives has continued to climb in both dollar terms and as a multiple of average worker pay. In 1992, the average chief executive earned $5 million, or 126 times the average hourly worker. By 2007, the average CEO was earning $12.3 million, or 275 times the average worker. No matter what Congress cooks up, it seems like executives, companies and their consultants find a way over, under or through the rules. "It's like putting up a dam for a river. The water tries very hard to find a way around it," says John Olson, a partner with Gibson Dunn & Crutcher who advises corporate boards on compensation and other matters. Obama's plan will apply only to companies taking bailout money in the future and has escape hatches of its own. "You can try all these different reforms," [says Corey Rosen, executive director of the National Center for Employee Ownership,] but none will be truly effective "unless the board of directors, the media and public stop thinking of executives as superstars and that if we just get the right CEO, everything will be OK."

Note: For many revealing reports from reliable sources on the realities behind the Wall Street bailout, click here.

Executives at Goldman Sachs Group Inc., JPMorgan Chase & Co. and hundreds of financial institutions receiving federal aid aren’t likely to be affected by pay restrictions announced yesterday by President Barack Obama. The rules, created in response to growing public anger about the record bonuses the financial industry doled out last year, will apply only to top executives at companies that need “exceptional” assistance in the future. The limits aren’t retroactive, meaning firms that have already taken government money won’t be subject to the restrictions unless they have to come back for more. Pay caps may provide the political cover the administration needs to deliver additional infusions of capital into the financial sector. Obama ... “is not proposing to go back and get that $18.4 billion in bonuses back,” Laura Thatcher, head of law firm Alston & Bird’s executive compensation practice in Atlanta, said of the cash bonuses New York banks paid last year, the sixth-biggest haul in history. “Right now, we have not clamped down” on pay at banks. In addition, some executives may be compensated for the potential reduced salaries with restricted stock grants, which may result in huge paydays after the bank repays the government assistance with interest. “They’re just allowing companies to defer compensation,” said Graef Crystal, a former compensation consultant. The restrictions are “a joke,” he said, because “if the government is paid pack, you can be sure that the stock will have risen hugely.”

Note: For many revealing reports from reliable sources on the realities behind the Wall Street bailout, click here.

The financial analyst who nine years ago discovered Bernard Madoff's multi-billion dollar ... fraud scheme today lambasted US securities officials who ignored his warnings, calling for a shakeup of the US securities and exchange commission's structure. Harry Markopolos, a Massachusetts financial analyst who since 2000 several times sought to alert the SEC to Madoff's fraud, told a House of Representatives committee that the agency should replace its lawyer-heavy enforcement staff with senior securities professionals who have years of industry experience and can understand cutting-edge financial instruments used by hedge fund traders. He said regulators should give fraud investigators a pay incentive to unearth large fraud, and eliminate the turf wars that he said kept New York-based regulators from heeding tips he fed to the Boston office. Markopolos discovered Madoff's alleged malfeasance in May 2000, after he became suspicious of his years-long record of success in all market conditions. Markopolos said it took him about five minutes perusing Madoff's marketing materials to suspect fraud, and another roughly four hours to develop mathematical models to prove it. He eventually delivered a detailed case to securities regulators in Boston and followed up several times over the next eight years as he continued to gather evidence. He said that important SEC officials in New York and Boston brushed his reports aside. In testimony before members of the House financial services committee, Markopolos described "an abject failure by the regulatory agencies we entrust as our watchdog".

Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.

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