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.

Literally dozens of people – including journalists, police officers, WTC employees, emergency medical workers, and firefighters – reported hearing explosions in the Twin Towers, with some of them explicitly saying that the collapses appeared to be instances of controlled demolition. One fire captain said: "I hear an explosion and I look up. It is as if the building is being imploded, from the top floor down, one after another, boom, boom, boom." [A] paramedic said: "It was [like a] professional demolition where they set the charges on certain floors." One firefighter said: "It seemed like on television [when] they blow up these buildings." Given all the features that indicate controlled demolition, it is not surprising that when a controlled demolition expert in Holland was shown videos of the collapse of WTC 7, without being told what the building was ... he said: "They have simply blown away columns. A team of experts did this. This is controlled demolition." Two emeritus professors of structural analysis and construction at Zurich's prestigious ETH Institute of Technology say that WTC 7 was "with the highest probability brought down by explosives." FEMA, the first agency given the task of explaining the collapse of the WTC, said that its best explanation for the collapse of WTC 7 had "only a low probability of occurrence." The 9/11 Commission avoided the problem by simply not finding room to mention this collapse in its 571-page report. This behavior is no surprise given the fact that the Commission was run by its executive director, Philip Zelikow, who was virtually a member of the Bush-Cheney administration.

Note:  This article in Tikkun by renowned theologian David Ray Griffin is the first in any major U.S. national magazine to contain a detailed argument that the attacks of 9/11 were planned and carried out by rogue elements within the U.S. government.  For additional reliable information on the 9/11 coverup, click here.

Opium production in Afghanistan reached record levels last year, the United States has said. The US State Department's annual report on narcotics also said the flourishing drugs trade was undermining the fight against the Taleban. Poppy production rose 25% in 2006, a figure US Assistant Secretary of State Ann Patterson described as alarming. Four years after the US and its British allies began combating poppy production, Afghanistan still accounts for 90% of the world's opium trade.

Note: Isn't it interesting that though the Taliban had eradicated over 90% of the opium crop in 2001, it has not only come back to previous level, but far surpassed them after Afghanistan was "liberated." Could it be that the military forces are turning a blind eye or even involved? For information from a DEA insider on this, click here.

A federal advisory committee on Tuesday recommended approval of the first bird flu vaccine for humans, despite concerns about its safety and evidence that the shots won't protect most people. The panel said although the vaccine had significant shortcomings, it was safe and effective for use during a pandemic or in high-risk situations, such as military deployment to regions facing an outbreak. The government plans to buy and stockpile enough doses for 20 million people. [The] director of the FDA's vaccine office told the panel that the vaccine was a stopgap measure. "There are numerous vaccines under development that are potentially better than this one," he said. The bird flu strain known as H5N1 originated in Asia. Although it rarely infects people, experts fear a mutation could make it easily transmissible, triggering a pandemic. From the start of 2003, 167 people, mostly in Asia, have died of the virus, according to the World Health Organization. In clinical trials, a two-shot series of the Sanofi vaccine provided protection in 45% of adults who received the highest dose, according to an FDA analysis this week. No serious side effects were detected among the 450 healthy adults who participated in a clinical test. However, some panel members were concerned that the trial was too small to reveal rare side effects. Some experts also worried about possible allergic reactions to the vaccine because it requires a massive dose — 12 times that of the seasonal inoculation.

Note: Who pays for and who profits from the purchase of these 20 million vaccine doses? It's pretty clear that the taxpayer covers the costs and the big drug companies make huge profits. Fear is quite useful for driving up profits. For lots more on profiteering from the avian flu, click here.

Some of America’s most senior military commanders are prepared to resign if the White House orders a military strike against Iran, according to highly placed defence and intelligence sources. Tension in the Gulf region has raised fears that an attack on Iran is becoming increasingly likely. Up to five generals and admirals are willing to resign rather than approve what they consider would be a reckless attack. A generals’ revolt on such a scale would be unprecedented. Robert Gates, the defence secretary, has repeatedly warned against striking Iran and is believed to represent the view of his senior commanders. The threat of a wave of resignations coincided with a warning by Vice-President Dick Cheney that all options, including military action, remained on the table. He was responding to a comment by Tony Blair that it would not “be right to take military action against Iran”. A second US navy aircraft carrier strike group led by the USS John C Stennis arrived in the Gulf last week. Vice Admiral Patrick Walsh, the commander of the US Fifth Fleet, warned: “The US will take military action if ships are attacked or if countries in the region are targeted or US troops come under direct attack.” But General Peter Pace, chairman of the joint chiefs of staff, said recently there was “zero chance” of a war with Iran. He played down claims by US intelligence that the Iranian government was responsible for supplying insurgents in Iraq, forcing Bush on the defensive. Pace’s view was backed up by British intelligence officials who said the extent of the Iranian government’s involvement in activities inside Iraq by a small number of Revolutionary Guards was “far from clear”.

Note: When internal fighting in the military and government is reported in the major media, it is a sign of very deep internal schisms. Yet the ships are in place for another "Gulf of Tonkin" incident.

Col. Masanobu Tsuji was a fanatical Japanese militarist and brutal warrior, hunted after World War II for massacres of Chinese civilians. And then he became a U.S. spy. Newly declassified CIA records ... document more fully than ever how Tsuji and other suspected Japanese war criminals were recruited by U.S. intelligence in the early days of the Cold War. The records [were] declassified in 2005 and 2006 under an act of Congress in tandem with Nazi war crime-related files. In addition to Tsuji ... conspicuous figures in U.S.-funded operations included [a] mob boss and war profiteer [and] former private secretary to Hideki Tojo, the wartime prime minister hanged as a war criminal in 1948. The assessments ... show evidence that other U.S. agencies, such as the Air Force, were also looking into using some of the same people as spies, and that the CIA itself had contacts with former Japanese war criminals. Historians long ago concluded that the Allies turned a blind eye to many Japanese war crimes, particularly those committed against other Asians. Some of Japan's most notorious wartime killers [came] under U.S. sponsorship. Tsuji, for instance, was wanted for involvement in the Bataan Death March of early 1942, in which thousands of Americans and Filipinos perished. The U.S. Air Force attempted unsuccessfully to recruit him after he was taken off the war crimes list in 1949. The Army considered him a potentially valuable source. [Yet] a CIA assessment from 1954 ... says: "Tsuji is the type of man who, given the chance, would start World War III without any misgivings."

Note: Those who claimed the U.S. government had links to former Nazi and Japanese war criminals were once called "conspiracy theorists." Why does it take over 50 years for the truth to come out? For more, click here.

The Pentagon has said it, the President has said it, everybody says it: "Our troops deserve nothing but the best when we send them into combat." It’s a goal that isn’t always met. Did a retired Marine colonel’s connections count more than the best design for a new vehicle for the troops? Jerry Bazinski has made a career of designing and helping to develop new vehicles here in Detroit for years. So when the Marines called for new vehicle small enough to load into an Osprey helicopter but lean and mean enough to allow soldiers to move quickly and launch attacks deep into enemy territory, Jerry and a team of veteran Detroit vehicle designers came up with [a model that] met or exceeded all the specifications. It was designed to provide for bullet-proof protection from enemy gunfire. It included a sturdy built-in roll-cage. And the Marines were impressed, as you can see from the report card that shows a whole list of many strengths ... and "no significant weaknesses." Well, here’s what the Marines ultimately bought ... a model known as the Growler that sort of looks like a dune buggy with a machine gun. Though it may seem it should have a lower sticker price, it’s turned out to cost us upwards of $127,000 a copy. Former Colonel Terry Crews ... sold the Marines on the Growler. [Investigative Reporter Steve] Wilson to Wayne Blake/Growler Plant Manager: That’s how he got this contract, he had some friends, didn’t he? Blake: Yeah, he lives 15 miles from the Pentagon. And the military version is $127,000. And if you bought it as a civilian version? 17,000.

Note: This article has disappeared from the website, though you can try this Google cache version. For a highly revealing, two-page summary by a top U.S. general on major war corruption, click here.

Welcome to the new world of border security. Unsuspecting Americans are turning up at the Canadian border expecting clear sailing, only to find that their past -- sometimes their distant past -- is suddenly an issue. There was a time not long ago when a trip across the border from the United States to Canada was accomplished with a wink and a wave of a driver's license. Those days are over. Take the case of 55-year-old Lake Tahoe resident Greg Felsch. Stopped at the border in Vancouver this month at the start of a planned five-day ski trip, he was sent back to the United States because of a DUI conviction seven years ago. Not that he had any idea what was going on when he was told at customs: "Your next stop is immigration." Felsch was ushered into a room. "There must have been 75 people in line," he says. "We were there for three hours. One woman was in tears. A guy was sent back for having a medical marijuana card. I felt like a felon with an ankle bracelet." Or ask the well-to-do East Bay couple who flew to British Columbia this month for an eight-day ski vacation at the famed Whistler Chateau, where rooms run to $500 a night. They'd made the trip many times, but were surprised at the border to be told that the husband would have to report to "secondary" immigration. There, in a room he estimates was filled with 60 other concerned travelers, he was told he was "a person who was inadmissible to Canada." The problem? A conviction for marijuana possession ... in 1975. This is just the beginning. Soon other nations will be able to look into your past when you want to travel there.

The gulf between rich and poor in the United States is yawning wider than ever, and the number of extremely impoverished is at a three-decade high. Based on the latest available U.S. census data from 2005, [a] McClatchy Newspapers analysis found that almost 16 million Americans live in "deep or severe poverty" defined as a family of four with two children earning less than 9,903 dollars — one half the federal poverty line figure. For individuals the "deep poverty" threshold was an income under 5,080 dollars a year. The number of severely poor Americans grew by 26% from 2000 to 2005. The surge in poverty comes alongside an unusual economic expansion. "Worker productivity has increased dramatically since the brief recession of 2001, but wages and job growth have lagged behind. At the same time, the share of national income going to corporate profits has dwarfed the amount going to wages and salaries. That helps explain why the median household income for working-age families, adjusted for inflation, has fallen for five straight years. These and other factors have helped push 43% of the nation's 37 million poor people into deep poverty — the highest rate since at least 1975," the report said. Since 2000, the number of severely poor — far below basic poverty terms — in the United States has grown "more than any other segment of the population. That was the exact opposite of what we anticipated when we began," said Steven Woolf of Virginia Commonwealth University, a study co-author. U.S. social programs are minimal compared to those of western Europe and Canada.

The only surviving convicted criminal in the April 19, 1995, bombing of the Alfred P. Murrah Federal Building in Oklahoma City is saying his co-conspirator, Timothy McVeigh, told him he was taking orders from a top FBI official in orchestrating the bombing. A declaration from Terry Lynn Nichols ... was filed as part of Salt Lake City attorney Jesse Trentadue's pending wrongful death suit against the government for the death of his brother in a federal corrections facility in Oklahoma City. Trentadue claims his brother was killed during an interrogation by FBI agents when agents mistook his brother for a suspect in the Oklahoma City bombing investigation. The most shocking allegation in the 19-page signed declaration is Nichols' assertion that the whole bombing plot was an FBI operation and that McVeigh let slip during a bout of anger that he was taking instruction from former FBI official Larry Potts. Potts was no stranger to anti-government confrontations, having been the lead FBI agent at Ruby Ridge in 1992, which led to the shooting death of Vicki Weaver, the wife of separatist Randy Weaver. Potts also was reportedly involved in the 51-day siege of the Branch Davidian compound in Waco, Texas in 1993, which resulted in a fire that killed 81 Branch Davidian followers. Potts retired from the FBI under intense pressure and criticism for the cover-up of an order to allow agents to shoot anyone seen leaving the Weaver cabin at Ruby Ridge.

Note: For an excellent article and video clearly showing major deception around the Oklahoma City bombing, click here. For lots more from reliable sources on the deceptive manipulations of intelligence agencies, click here.

Col. Masanobu Tsuji was a fanatical Japanese militarist and brutal warrior, hunted after World War II for massacres of Chinese civilians and complicity in the Bataan Death March. And then he became a U.S. spy. Newly declassified CIA records, released by the U.S. National Archives and examined by The Associated Press, document more fully than ever how Tsuji and other suspected Japanese war criminals were recruited by U.S. intelligence in the early days of the Cold War. In addition to Tsuji, who escaped Allied prosecution and was elected to parliament in the 1950s, conspicuous figures in U.S.-funded operations included mob boss and war profiteer Yoshio Kodama, and Takushiro Hattori, former private secretary to Hideki Tojo, the wartime prime minister hanged as a war criminal in 1948. The CIA also cast a harsh eye on its counterparts — and institutional rivals — at G-2, the occupation's intelligence arm, providing evidence for the first time that the Japanese operatives often bilked gullible American patrons, passing on useless intelligence and using their U.S. ties to boost smuggling operations and further their efforts to resurrect a militarist Japan.

Gov. Rick Perry on Thursday angrily defended his relationship with Merck & Co. and his executive order requiring that schoolgirls receive the drugmaker's vaccine against the sexually transmitted cervical-cancer virus. The Associated Press reported Wednesday that Perry's chief of staff had met with key aides about the vaccine on Oct. 16, the same day Merck's political action committee donated $5,000 to the governor's campaign. In issuing the order, the governor made Texas the first state to require the vaccine Gardasil for all schoolgirls. But many lawmakers have complained about his bypassing the Legislature altogether. The executive order has inflamed conservatives, who said it contradicts Texas' abstinence-only sexual education policies and intrudes into families' lives. Critics have previously questioned Perry's ties to Merck. Mike Toomey, Perry's former chief of staff, now lobbies for the drug company. And the governor accepted a total of $6,000 from Merck during his re-election campaign. Merck has waged a behind-the-scenes lobbying campaign to get state legislatures to require girls to get the three-dose vaccine to enroll in school. But on Tuesday the pharmaceutical company announced it was suspending the effort because of pressure from parents and medical groups. The Kentucky House on Thurday passed a bill that would require the vaccination for middle school girls unless their parents sign a form opposing it. Virginia lawmakers have also passed legislation requiring the vaccine, but the governor has not decided if he will sign it.

Note: The drug company lobby is the most powerful in the U.S., as reported by the former editor-in-chief of one of the most respected medical journals in the U.S. Click here for more.

Pediatricians, gynecologists and even health insurers all call Gardasil, the first vaccine to prevent cervical cancer, a big medical advance. But medical groups, politicians and parents began rebelling after disclosure of a behind-the-scenes lobbying campaign by Gardasil's maker, Merck & Co., to get state legislatures to require 11- and 12-year-old girls to get the three-dose vaccine as a requirement for school attendance. Some parents' groups and doctors particularly objected because the vaccine protects against a sexually transmitted disease. Vaccines mandated for school attendance usually are for diseases easily spread through casual contact, such as measles and mumps. Bowing to pressure, Merck said Tuesday that it is immediately suspending its controversial campaign, which it had funded through a third party. Legislatures in roughly 20 states have introduced measures that would mandate girls have the vaccine to attend school. Texas Gov. Rick Perry on Feb. 2 issued an executive order requiring Texas girls entering the sixth grade as of 2008 get the vaccinations. Dr. Anne Francis, who chairs an American Academy of Pediatrics committee [stated] "I believe that their timing was a little bit premature," she said, "so soon after (Gardasil's) release, before we have a picture of whether there are going to be any untoward side effects." The country has been "burned" by some drugs whose serious side effects emerged only after they were in wide use, including Merck's withdrawn painkiller Vioxx. The vaccine also is controversial because of its price - $360 for the three doses required.

Note: $360 for every girl in school would amount to quite a hefty transfer of funds from taxpayers into the pockets of Merck. Could profit and campaign contributions be behind the move to make this mandatory?

Let's say your teenager is a habitual truant and there is nothing you can do about it. A Washington area politician thinks he might have the solution: Fit the child with a Global Positioning System chip, then have police track him down. "It allows them to get caught easier," said Maryland Delegate Doyle Niemann (D-Prince George's), who recently co-sponsored legislation in the House that would use electronic surveillance as part of a broader truancy reduction plan. "It's going to be done unobtrusively. The chips are tiny and can be put into a hospital ID band or a necklace." Niemann's legislation mirrors a bill sponsored by state Sen. Gwendolyn Britt (D-Prince George's). Both would provide truants and their parents with better access to social services, such as mental health evaluations and help with schoolwork. Electronic monitoring would be a last resort. Still, the prospect of tagging children and using them in some "catch and release" hunt by police casts a pall over everything that's good about the plan. Odd how billions and billions of dollars keep going to a war that almost nobody wants, but there's never enough to fund the educational programs that nearly everybody says are needed. Aimed solely at students in Prince George's — the only predominantly black county in the Washington area — the truancy effort is called a "pilot program," a first-of-its-kind experiment. It would cost $400,000 to keep track of about 660 students a year.

Note: For more reliable information on the push to microchip the entire population, click here.

Federal prosecutors counted immigration violations, marriage fraud and drug trafficking among anti-terror cases in the four years after 9/11 even though no evidence linked them to terror activity, a Justice Department audit said Tuesday. Overall, nearly all of the terrorism-related statistics on investigations, referrals and cases examined by department Inspector General Glenn A. Fine were either diminished or inflated. Only two of 26 sets of department data reported between 2001 and 2005 were accurate, the audit found. It found that data from the Executive Office of U.S. Attorneys were the most severely flawed. Auditors said the office, which compiles statistics from the 94 federal prosecutors' districts nationwide, both under- and over-counted the number of terror-related cases during a four-year period. The numbers, used to monitor the department's progress in battling terrorists, are reported to Congress and the public and help, in part, shape the department's budget. Other examples, according to the audit, included: charges against a marriage-broker for being paid to arrange six fraudulent marriages between Tunisians and U.S. citizens, prosecution of a Mexican citizen who falsely identified himself as another person in a passport application, [and] charges against a suspect for dealing firearms without a license.

Note: To read the report by the Justice Department, click here.

A disturbing recent phenomenon in Washington is that laws that strike to the heart of American democracy have been passed in the dead of night. So it was with a provision quietly tucked into the enormous defense budget bill at the Bush administration’s behest that makes it easier for a president to override local control of law enforcement and declare martial law. The provision, signed into law in October, weakens two obscure but important bulwarks of liberty. One is the doctrine that bars military forces, including a federalized National Guard, from engaging in law enforcement. The other is the Insurrection Act of 1807, which ... essentially limits a president’s use of the military in law enforcement to putting down lawlessness, insurrection and rebellion, where a state is violating federal law or depriving people of constitutional rights. The newly enacted provisions upset this careful balance. The president may now use military troops as a domestic police force in response to a natural disaster, a disease outbreak, terrorist attack or to any “other condition.” Changes of this magnitude should be made only after a thorough public airing. But these new presidential powers were slipped into the law without hearings or public debate. The president made no mention of the changes when he signed the measure, and neither the White House nor Congress consulted in advance with the nation’s governors.

The three top auditors overseeing work in Iraq told a House committee their review of $57 billion in Iraq contracts found that ... about $10 billion has been squandered by the U.S. government on Iraq reconstruction aid because of contractor overcharges and unsupported expenses. Of the $10 billion in overpriced contracts or undocumented costs, more than $2.7 billion were charged by Halliburton Co., the oil-field services company once headed by Vice President Dick Cheney. Federal investigators warned Thursday that significantly more taxpayer money is at risk. More than one in six dollars charged by U.S. contractors were questionable or unsupported, nearly triple the amount of waste the Government Accountability Office estimated last fall. "There is no accountability," said David M. Walker, who heads the auditing arm of Congress. "Organizations charged with overseeing contracts are not held accountable. Contractors are not held accountable. The individuals responsible are not held accountable." The investigators urged the Pentagon to reconsider its growing reliance on outside contractors. Layers of subcontractors, poor documentation and lack of strong contract management are rampant. Walker complained that GAO investigators have difficulty getting basic detail about reconstruction contracts such as expenses and subcontractors involved because many Pentagon divisions fail to consistently track or fully report them. Noting that auditors still have $300 billion of Iraq spending to review, Waxman said the total amount of waste, fraud and abuse "could be astronomical."

Note: To understand how so much money can go missing, read what a top U.S. general has to say here. And for major media articles claiming hundreds of billions of dollars are missing, click here.

A judge Friday indicted 26 Americans and five Italians in the abduction of an Egyptian terror suspect on a Milan street in what would be the first criminal trial stemming from the CIA’s extraordinary rendition program. Prosecutors allege that five Italian intelligence officials worked with the Americans to seize Muslim cleric Osama Moustafa Hassan Nasr on Feb. 17, 2003. Nasr was allegedly transferred by vehicle to the Aviano Air Force base near Venice, then by air to the Ramstein Air Base in Germany, and on to Egypt, where his lawyer says he was tortured. Nasr was freed earlier this week by an Egyptian court that found his four years of detention in Egypt “unfounded.” All but one of the Americans have been identified as CIA agents, including the former Milan station chief Robert Seldon Lady and former Rome station chief Jeffrey Castelli. Among the Italians indicted by Judge Caterina Interlandi was the former chief of military intelligence, Nicolo Pollari, and his former deputy, Marco Mancini. The CIA has refused to comment on the case, which has put an uncomfortable spotlight on its operations. Prosecutors are pressing the Italian government to seek the extradition of the Americans. In Italy, defendants can be tried in absentia. Prosecutors elsewhere in Europe are moving ahead with cases aimed at the CIA program. A Munich prosecutor recently issued arrest warrants for 13 people in another alleged CIA-orchestrated kidnapping, that of a German citizen who says he was seized in December 2003 at the Serbian-Macedonia border and flown to Afghanistan.

Note: At long last, the CIA is beginning to be held accountable for flagrantly breaking laws resulting in torture.

9/11 was the first global event in the age of the internet. And now the world wide web is being used as a platform for a wide range of conspiracy theories ... which allege that the US government was somehow involved in the attacks. Those who question the official account of 9/11 form a broad coalition. Loose Change has been viewed tens of millions of times and pulls no punches. [Creator Dylan Avery claims] "our government will willingly kill its own citizens for whatever gain it deems necessary ... and then lie as much as they need to cover it up." At the other extreme [Professor Jim] Fetzer is a former US Marine officer and retired professor of philosophy. Puzzled by the apparent discrepancies in the official account of 9/11, he founded a coalition of like-minded academics called Scholars For 9/11 Truth. Its purpose is to research exactly what happened that day, using the principles of scientific research. Alex Jones, a nationally syndicated radio talk show host ... believes 9/11 was "an inside job." "It's a self inflicted wound, it's a false-flag terror operation," he claims. After the attacks, government officials were summoned to give evidence before a Congressional Inquiry set up to investigate the intelligence failure before 9/11. Co-chairman Senator Bob Graham told ... of his frustration at the lack of co-operation from the FBI in that inquiry, and by the government's decision to censor over 30 pages of his report which related to Saudi Arabia. "Within 9/11 there are too many secrets," he said, "withholding of those secrets has eroded public confidence in their government."

Note: Don't miss the BBC's impressive 9/11 Timeline available here which is related to the above article. And for lots more reliable, verifiable information suggesting a 9/11 cover-up, click here. If the above link to the BBC article does not function, click on The 9/11 Conspiracy Movement.

Lots of questions have been raised about 9/11: Why does it look like there is no plane at the crash site in Pennsylvania where flight United 93 came down? Why did a building called World Trade Centre Building 7 collapse even though it was never hit by an aircraft? And why was America so unprepared when terror attack warnings had been received? Through the internet and the media generally, allegations of complicity by the US government in the 9/11 attacks are intensifying. We found that simple requests, such as asking to see the plane wreckage of flight United 93 at Shanksville, or flight American Airlines 77 at the Pentagon, were refused after months of delay by the authorities. Yet if we had been able to film the wreckage from flight AA77 we would have had extremely strong evidence that a Boeing 757 hit the Pentagon. Trying to prove or disprove these alternative theories is not easy. Officials are loathe to engage, thinking that any response will only fan the flames of popular conspiracy theories, and yet no response seems to be worse still. Senator Bob Graham ... co-chaired the Congressional Inquiry into 9/11 which detailed the failure of the CIA and FBI to use intelligence it had received about Al Qaeda before the attacks. Senator Graham told us there was a “collaboration of efforts among agencies and the administration to keep information out of the public’s hands.”

Note: For more along these lines, see concise summaries of deeply revealing 9/11 news articles from reliable major media sources. Then explore the excellent, reliable resources provided in our 9/11 Information Center.

Two of three former Enron Corp. traders accused of driving up energy prices during California's power crisis were each sentenced Wednesday to two years of court-supervised release in federal court. Timothy Belden ... was sentenced after pleading guilty in October 2002 to one count of conspiracy to commit wire fraud. Belden's plea was the first prosecution of anyone related to the West's energy crisis in 2000 and 2001. He had faced up to five years in prison, and must forfeit $2.1 million. The second defendant, Jeffrey Richter, was a lower-level trading manager ... who also pleaded guilty to two counts related to manipulating energy prices. He had faced up to five years and agreed to pay a $410,000 fine. Internal company memos describe how Belden's trading unit took power out of California at a time of rolling blackouts and shortages and sold it out of state to elude price caps. Enron bought California power at cheap, capped prices, routed it outside the state, then sold it back into California at vastly inflated prices. The crisis played a role in Pacific Gas & Electric Co.'s bankruptcy and will leave California consumers paying abnormally high electricity prices for years. Transcripts of Enron energy traders showed them openly discussing manipulating California's power market during profanity-laced telephone conversations in which they merrily gloated about ripping off “those poor grandmothers” during the energy crunch. On the calls, other traders openly and gleefully discussed creating congestion on transmission lines and taking generating units off-line to pump up electricity prices.

Note: So while California taxpayers cough up hundreds of millions of dollars as a result of Enron's scheming and thousands of employees across the U.S. lost their entire pensions, the result of the first prosecution of anyone related to the Enron scam is probation? For lots more on this, click 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.