Government Corruption News Articles

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A Senate panel has concluded that Goldman Sachs Group Inc. profited from the financial crisis by betting billions against the subprime mortgage market, then deceived investors and Congress about the firm's conduct. Some of the findings in the report by the Senate's Permanent Subcommittee on Investigations will be referred to the Justice Department and the Securities and Exchange Commission for possible criminal or civil action, said Sen. Carl Levin (D-Mich.), the panel's chairman. The giant investment bank was just one focus of the subcommittee's probe into Wall Street's role in the financial crisis. The 639-page report — based on internal memos, emails and interviews with employees of financial firms and regulators — casts broad blame, saying the crisis was caused by "conflicts of interest, heedless risk-taking and failures of federal oversight." Among the culprits cited by the panel are Washington Mutual, a major mortgage lender that failed in 2008, as well as the Office of Thrift Supervision, a federal bank regulator, and credit rating firms. Asked if he was disappointed that no Wall Street figures had gone to jail in connection with the crisis, Levin responded, "There's still time."

Note: For many key reports from major media sources illuminating how major financial corporations knowingly brought about the global financial crisis and profited from it, click here.

It's bizarre but, it turns out, Wall Street cut corners when it created those mortgage-backed investments that triggered the financial collapse. Now that banks want to evict people, they're unwinding these exotic investments to find, that often, the legal documents behind the mortgages aren't there. Caught in a jam of their own making, some companies appear to be resorting to forgery and phony paperwork to throw people - down on their luck - out of their homes. This past January in Los Angeles, 37,000 homeowners facing foreclosure showed up to an event to beg their bank for lower payments on their mortgage. In February in Miami, 12,000 people showed up to a similar event. For many that's when the real surprise comes in: these same banks have fouled up all of their own paperwork to a historic degree. There were a million foreclosures last year. And there will be another million this year - those lawsuits are forcing open those bundled, mortgage-backed securities that Wall Street cooked up in the mid 2000s, and exposing a lack of ownership documents all across the country. Banks are defensive because all 50 state attorneys general want to punish them: the states are seeking about $20 billion in damages for what they say is the irresponsible, perhaps criminal way, that some mortgage companies handled what is, for most folks, the most important investment of their lives.

Note: To watch the amazing 14-minute video of this article, click here. Learn how banks paid a company which hired people off the streets to pretend they were bank vice presidents and sign thousands of documents fraudulently. For lots more from reliable sources on the criminal practices of mortgage lenders, click here.

Aetna Inc. is suing six New Jersey doctors over medical bills it calls “unconscionable,” including $56,980 for a bedside consultation and $59,490 for an ultrasound that typically costs $74. The lawsuits could help determine what pricing limits insurers can impose on ”out-of-network” physicians who don’t have contracts with health plans that spell out how much a service or procedure can cost. One defendant billed $30,000 for a Caesarean birth, and another raised his fee for seeing a critically ill patient in a hospital to $9,000 in 2008 from $500 the year before, the insurer alleges in the suits. Aetna tried in 2007 to impose caps on some out-of-network payments, prompting doctor complaints to the New Jersey Department of Banking and Insurance. The agency sided with the doctors, fined the company $2.5 million, and ordered it to pay out-of-network practitioners enough so that patients wouldn’t be asked to pay balances other than co-pays. In 2009, Aetna, UnitedHealth Group Inc., Cigna Corp. and WellPoint Inc. were accused by the New York attorney general of underpaying out-of-network physicians by manipulating a database used to calculate payments. They paid a total of $90 million in settlements without admitting wrongdoing. UnitedHealthcare agreed that year to pay $350 million to settle a lawsuit by the American Medical Association over the same issues. Similar AMA lawsuits against Aetna, Cigna and Wellpoint are pending.

Note: Is the American health care system out of control? For lots more from reliable sources on corporate corruption, click here.

The "war on drugs" has failed and should be abandoned in favour of evidence-based policies that treat addiction as a health problem, according to prominent public figures including former heads of MI5 and the Crown Prosecution Service. Leading peers – including prominent Tories – say that despite governments worldwide drawing up tough laws against dealers and users over the past 50 years, illegal drugs have become more accessible. Vast amounts of money have been wasted on unsuccessful crackdowns, while criminals have made fortunes importing drugs into this country. The increasing use of the most harmful drugs such as heroin has also led to “enormous health problems”, according to the group. The MPs and members of the House of Lords, who have formed a new All-Party Parliamentary Group on Drug Policy Reform, are calling for new policies to be drawn up on the basis of scientific evidence. It could lead to calls for the British government to decriminalise drugs, or at least for the police and Crown Prosecution Service not to jail people for possession of small amounts of banned substances.

Note: If you examine topics on which the government has declared war, what is being fought against often increases instead of decreasing. Could it be that the best way to deal with serious problems is not to wage war?

South of El Paso, Texas, on Mexico's side of the border, lies Juarez - the most dangerous city in the world. ATF [U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives] Special Agent Rene Jaquez has been stationed there for the past year, trying to keep U.S. guns from being trafficked into Mexico. "That's what we do as an agency," Jaquez said. "ATF's primary mission is to make sure that we curtail gun trafficking." That's why Jaquez tells CBS News he was so alarmed to hear his own agency may have done the opposite: encouraged U.S. gun dealers to sell to suspected traffickers for Mexico's drug cartels. Apparently, ATF hoped that letting weapons "walk" onto the street - to see where they'd end up - would help them take down a cartel. Jaquez is so opposed to the strategy, he's speaking out. "You don't let guns walk. I've never let a gun walk." Yet ATF agents told us they were ordered to let thousands of weapons walk. But ATF wasn't working alone on the case known as "Fast and Furious." Documents show ATF had conference calls with "DHS" (Homeland Security). "USMS" (U.S. Marshals) and DEA. An "ICE," or Customs agent, was on ATF's Fast and Furious team. They were advised by an "AUSA," or Assistant U.S. Attorney under the Justice Department. Jaquez says he's left wondering whether runaway violence in Mexico can be partly blamed on the agency tasked with stopping it.

Note: For many reports from reliable sources on government corruption, click here.

U.S. government officials, in private sessions on Capitol Hill [on Friday, March 18], repeatedly declined to give details of radiation measurements at the stricken Japanese nuclear complex, saying the situation is shrouded in a "fog of war." Separately, the Obama administration said ... "miniscule quantities" of radiation from the Japanese nuclear accident were detected Friday at a monitoring station in Sacramento, Calif., a day after similar traces of radiation were detected in Washington state. The administration said the levels of the radioactive isotope xenon 133 were approximately equivalent to one-millionth the dose received from the sun, rocks or other natural sources. The Obama administration's reluctance to detail in public what it is learning from radiation-detection operations around the damaged Fukushima Daiichi complex in Japan ... comes after statements Wednesday by the head of the U.S. Nuclear Regulatory Commission that painted a grimmer picture of the nuclear crisis than Japanese officials had offered, and suggested that the U.S. didn't trust the information coming from the Japanese government.

Note: Shouldn't the title be something more like "U.S. Refuses to Give Radiation Details for Fear of Industry Repercussions"? How sad that money often continues to trump public health in matters like this.

This week, the Michigan legislature passed – and the governor signed into law – a bill that would permit Governor Rick Snyder to push aside elected city officials and replace them with emergency financial managers in any municipality or school district facing financial difficulties. The law would include virtually every town and city in the state as those cities that aren’t bankrupt already soon will be once the governor’s proposed budget – which cuts billions in aid to municipalities and school districts – is approved by the legislature. One of the most shocking, Draconian, democracy-destroying measures in the history of this country has became law – and the nation has seemingly slept through it. The new law, described by one of the GOP legislators sponsoring the bill as “financial martial law”, empowers the governor’s appointees [referred to as ‘Emergency Financial Managers’] to fire duly elected local officials, cancel labor contracts and even dissolve entire communities and school districts. This is about so much more than collective bargaining agreements and unions. This law gives an appointee of the governor – which, by the way, may be a corporation – the authority to dismiss any or all of a municipality’s elected government officials.

Note: For a treasure trove of reports by major media sources on the collusion between government and financial powers against the public interest, click here.

Behind Japan's escalating nuclear crisis sits a scandal-ridden energy industry in a comfy relationship with government regulators often willing to overlook safety lapses. Leaks of radioactive steam and workers contaminated with radiation are just part of the disturbing catalog of accidents that have occurred over the years and been belatedly reported to the public, if at all. In one case, workers hand-mixed uranium in stainless steel buckets, instead of processing by machine, so the fuel could be reused, exposing hundreds of workers to radiation. Two later died. "Everything is a secret," said Kei Sugaoka, a former nuclear power plant engineer in Japan who now lives in California. "There's not enough transparency in the industry." In 1989 Sugaoka received an order that horrified him: edit out footage showing cracks in plant steam pipes in video being submitted to regulators. Sugaoka alerted his superiors in the Tokyo Electric Power Co., but nothing happened — for years. He decided to go public in 2000. Three Tepco executives lost their jobs. The legacy of scandals and cover-ups over Japan's half-century reliance on nuclear power has strained its credibility with the public. That mistrust has been renewed this past week with the crisis at the Fukushima Dai-Ichi plant. The vagueness and scarcity of details offered by the government and Tepco — and news that seems to grow worse each day — are fueling public anger and frustration.

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

The US military is developing software that will let it secretly manipulate social media sites by using fake online personas to influence internet conversations and spread pro-American propaganda. A Californian corporation has been awarded a contract with United States Central Command (Centcom), which oversees US armed operations in the Middle East and Central Asia, to develop what is described as an "online persona management service" that will allow one US serviceman or woman to control up to 10 separate identities based all over the world. Critics are likely to complain that it will allow the US military to create a false consensus in online conversations, crowd out unwelcome opinions and smother commentaries or reports that do not correspond with its own objectives. The discovery that the US military is developing false online personalities – known to users of social media as "sock puppets" – could also encourage other governments, private companies and non-government organisations to do the same. Once developed, the software could allow US service personnel, working around the clock in one location, to respond to emerging online conversations with any number of co-ordinated messages, blogposts, chatroom posts and other interventions.

Note: The Pentagon claims that the "fake persona" software will not be used on social networks in the United States, because that would break laws against using propaganda on US citizens. How much credence should be given to this assurance?

International police led by a UK team say they shut down the largest internet paedophile ring yet discovered. The global forum had 70,000 followers at its height, leading to 4,000 intelligence reports being sent to police across 30 countries. The operation has so far identified 670 suspects and 230 abused children. Detectives say 184 people have been arrested - 121 of them were in the UK. Some 60 children have been protected in the UK. The three-year investigation, Operation Rescue, was led by investigators from the UK's Child Exploitation and Online Protection Centre (Ceop). The members of the network went into a private channel, boylover.net, and then used its secret systems to share films and images of abused children, said Rob Wainwright, director of European police agency Europol. In the UK, the 240 suspects include police officers, teachers and a karate teacher. One of the suspects in the UK is a woman. The internet has proved to be fertile territory for people with a sexual interest in children. Taking advantage of the anonymity modern computer technology provides, paedophiles download and exchange vile images of abuse unaware of the reality of the suffering.

Note: For powerful evidence that this kind of abuse is much more widespread than believed, and even goes to the highest level of government, click here.

Thirty-five years ago, Dale G. Bridenbaugh and two of his colleagues at General Electric resigned from their jobs after becoming increasingly convinced that the nuclear reactor design they were reviewing -- the Mark 1 -- was so flawed it could lead to a devastating accident. Five of the six reactors at the Fukushima Daiichi plant, which has been wracked since Friday's earthquake with explosions and radiation leaks, are Mark 1s. "The problems we identified in 1975 were that, in doing the design of the containment, they did not take into account the dynamic loads that could be experienced with a loss of coolant," Bridenbaugh [said]. "The impact loads the containment would receive by this very rapid release of energy could tear the containment apart and create an uncontrolled release." Questions persisted for decades about the ability of the Mark 1 to handle the immense pressures that would result if the reactor lost cooling power. In 1986, for instance, Harold Denton, then the director of NRC's Office of Nuclear Reactor Regulation, spoke critically about the design during an industry conference. Today that design is being put to the ultimate test in Japan.

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

Three Metropolitan Police officers are under investigation after they were alleged to have inadvertently recorded themselves arranging to falsely arrest a protester during the student fees demonstrations. The officers, who have not been named, are alleged to have conspired to arrest a 20-year-old man who had broken through the police cordon during the protests at Parliament Square in December. The man was chased and caught and, it is alleged, was then struck in the face with a police riot shield which chipped his tooth. The officers are then alleged to have discussed how to arrest the man and are believed to have concocted a story in which they claimed the man had threatened to cause criminal damage to a nearby building. However one of the officers was wearing sound recording equipment which recorded the chase and arrest of the man and the subsequent conversation between the officers. The officers have each been served with letters telling them that they are now being investigated for gross misconduct and criminal matters – believed to be assault and false arrest. A total of 113 complaints were received by the IPCC about police officers behaviour during the four demonstrations. One of them concerns 20-year-old student Alfie Meadows, who needed brain surgery after he was allegedly struck on the head during a protest in December.

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

How could more than 130,000 children be shipped from Britain to Australia and other Commonwealth countries, often without their parents' knowledge, and the world not know about it? [This is] the chilling poser at the heart of Jim Loach's debut film, Oranges and Sunshine, which centres on a policy that saw children from poor and struggling families sent halfway across the world to a promised new life. Instead, many endured virtual slave labour and, in some extreme cases, serial abuse. In the film, we follow Margaret [as] she gradually uncovers the devastating effects that the deportation has had on its victims. In Australia, Margaret's efforts amass evidence that defenceless children, in the care of the Roman Catholic Christian Brotherhood, have been physically and sexually abused by members of the order. However, Margaret is seen as a troublemaker, an outsider stirring up long-forgotten memories. Back in the UK, charities and government officials are refusing to accept responsibility for sending the children abroad. She receives death threats. Margaret eventually finds personal solace as her efforts finally come to fruition. Families are brought back together after decades apart, and the now grown-up children are able to establish their true identities. Finally, in 2009-10, after many years of official denial and vacillation, there are full public apologies from the Australian and British governments. Loach's film intelligently explores a grave injustice. The title, Oranges and Sunshine, refers to the inviting picture of a new life sold to the children in advance of their long journey to the other side of the world. It is a shattering, yet inspiring story.

Note: For more on this huge scandal of child abduction and abuse, click here. For another scandal of major child abuse based in Australia that has yet to be fully exposed, click here. For more on child sexual abuse, see the deeply revealing reports from reliable major media sources available here.

What's wrong with this picture: Years have passed since Wall Street's financial meltdown. Due to the crisis, the economy tanked, the mortgage market has yet to recover, and millions of jobs were lost. Many of those jobs losses will be permanent. The only person who went to jail for any of this was Bernie Madoff. When he accepted his Academy Award for the documentary "Inside Job," Berkeley filmmaker Charles Ferguson reminded Americans that the lack of criminal prosecutions for the financial crisis is, simply, "wrong." No matter what kinds of logical, legal explanations that the Justice Department has trotted out to explain why all of these senior financial executives are too big to jail, it's outrageous that there has not been and will not be any comeuppance for the men who plunged the American economy into chaos. The fact that some of these executives have or will receive some financial punishment in civil court is of little consequence - if ruining the economy isn't worth a little jail time, then what is? The Obama administration has not made it a priority to prosecute financial executives. Its reticence to punish was prominently on display last month, when the Justice Department decided not to prosecute Angelo Mozilo, the former CEO of Countrywide Financial. Mozilo left an e-mail trail detailing his feelings about Countrywide's "toxic" mortgage products and negotiated a $67.5 million payout in a civil suit that was brought against him by the Securities and Exchange Commission. If the feds don't go after him, it's unlikely that they'll go after anyone else. It's a bitter contrast to the 1980s savings-and-loan crisis, when the federal government threw enormous resources at criminal prosecutions and sent even well-connected executives, like Charles Keating, to jail.

Note: For other highly revealing major media articles showing just how much control big bankers have over government, click here.

Most Americans operate on the assumption that the U.S. is still No. 1. But is it? Yes, the U.S. remains the world's largest economy, and we have the largest military by far, the most dynamic technology companies and a highly entrepreneurial climate. But ... the decisions that created today's growth — decisions about education, infrastructure and the like — were made decades ago. The following rankings come from various lists, but they all tell the same story. Our 15-year-olds rank 17th in the world in science and 25th in math. We rank 12th among developed countries in college graduation (down from No. 1 for decades). We come in 79th in elementary-school enrollment. Our infrastructure is ranked 23rd in the world, well behind that of every other major advanced economy. American health numbers are stunning for a rich country: based on studies by the OECD and the World Health Organization, we're 27th in life expectancy, 18th in diabetes and first in obesity. Only a few decades ago, the U.S. stood tall in such rankings. No more. There are some areas in which we are still clearly No. 1, but they're not ones we usually brag about. We have the most guns. We have the most crime among rich countries. And, of course, we have by far the largest amount of debt in the world. Reducing funds for things like education, scientific research, air-traffic control, NASA, infrastructure and alternative energy will not produce much in savings, and it will hurt the economy's long-term growth. It would happen at the very moment that countries from Germany to South Korea to China are making large investments in education, science, technology and infrastructure.

Note: In discussing how the U.S. can reduce it's staggering debt, this article, like almost every major media article, fails to even mention the possibility of cutting our huge military budget. For why this is, click here.

Intelligence papers on a reported UFO sighting known as the "Rendlesham incident" have gone missing, files from the National Archives reveal. The missing files relate to a report of mysterious lights from US servicemen at RAF Woodbridge in Suffolk in 1980. The disappearance came to light with the release of 8,000 previously classified documents on UFOs. Officials found a "huge" gap where defence intelligence files relating to the case should be, the papers show. The incident took place near the fence of RAF Woodbridge - at that time being used by the US Air Force. A group of servicemen reported seeing strange lights in the trees near the base and after investigating found marks on the ground and damage to vegetation. The files reveal the MoD received a request for its own records of the incident in 2000, but when officials looked they discovered a "huge" gap where defence intelligence files relating to it should be. But it is not the only gap in the official record. In 2002 the MoD received a request for information from Lord Hill-Norton. He wanted to know about reports of a UFO sighting made by HMS Manchester while on exercise in the 1990s. It emerged in the file that HMS Manchester's log for one of the periods was lost overboard after "a gust of wind".

Note: Something major is missing from this article, too. The servicemen at Rendlesham not only found marks, they saw a craft up close. One man even touched the vehicle. These military men have all gone on record with their experience and all claim a cover-up. For an intriguing documentary on this landmark case, click here. For other key information and documents on the Rendlesham incident, click here. For a two-page summary of testimony from top military and government officials on their personal involvement with UFOs, click here.

Normally, in media accounts, you hear about the Pentagon budget and the war-fighting supplementary funds passed by Congress for our conflicts in Iraq and Afghanistan. That already gets you into a startling price range -- close to $700 billion for 2012 -- but that's barely more than half of it. If Americans were ever presented with the real bill for the total U.S. national security budget, it would actually add up to more than $1.2 trillion a year. Take that in for a moment. It's true; you won't find that figure in your daily newspaper or on your nightly newscast, but it's no misprint. It's the real thing when it comes to your tax dollars. The simplest way to grasp just how Americans could pay such a staggering amount annually for "security" is to go through what we know about the U.S. national security budget, step by step, and add it all up. [Click here for details] Still, don't for a second think that $1.2 trillion is the actual grand total for what the U.S. government spends on national security. Former Secretary of Defense Donald Rumsfeld once famously spoke of the world's "known unknowns." Explaining the phrase this way: "That is to say there are things that we now know we don't know." It's a concept that couldn't apply better to the budget he once oversaw. American taxpayers should know just what they are paying for.

Note: When discussing budget cuts, why is it we never hear about cuts to the massive national security budget? Donald Rumsfeld also once admitted that the Pentagon couldn't track $2.3 trillion in transactions, as reported by CBS News in this video clip. For lots more on the rampant corruption of military funds, click here. And for a top US general revealing how bankers and industry tycoons rake in profits from war, click here.

The top U.S. military commander in Afghanistan intends to order an investigation into whether a three-star general responsible for training Afghan security forces inappropriately used members of a psychological operations team to influence visiting U.S. senators into providing more funding for the war. The U.S. command in Kabul issued a statement Thursday saying Gen. David H. Petraeus "is preparing to order an investigation to determine the facts and circumstances surrounding the issue." The investigation stems from an article published ... on the Web site of Rolling Stone magazine alleging that Lt. Gen. William Caldwell, the head of the U.S. and NATO training operation for Afghan forces, used an "information operations" team to "manipulate visiting American senators" and other visitors, including the chairman of the Joint Chiefs of Staff, Adm. Mike Mullen. The article is based on the claims of a lieutenant colonel who served on a psychological operations team in Afghanistan last year and who alleges he was subjected to retribution when he resisted the assignment.

Note: To read Rolling Stone's fascinating report on how the US military used a secret program to pressure Senators to support the war, click here.

The US government is offering private intelligence companies contracts to create software to manage "fake people" on social media sites. Private security firms employeed by the government have used the accounts to create the illusion of consensus on controversial issues. The contract calls for the development of "Persona Management Software" which would help the user create and manage a variety of distinct fake profiles online. According to the contract, the software would "protect the identity of government agencies" by employing a number of false signals to convince users that the poster is in fact a real person. A single user could manage unique background information and status updates for up to 10 fake people from a single computer. The software enables the government to shield its identity through a number of different methods including the ability to assign unique IP addresses to each persona and the ability to make it appear as though the user is posting from other locations around the world. The document describes how they would 'friend' real people on Facebook as a way to convey government messages.

Note: To read the government contract for "Persona Management" software, click here.

The Iraqi defector whose claims that Saddam Hussein’s government had biological weapons became part of the Bush administration’s justification for the 2003 invasion of Iraq has admitted that he fabricated his story. The defector, Rafid Ahmed Alwan al-Janabi, who was code-named “Curveball” by the Central Intelligence Agency and German intelligence officials, told the British newspaper The Guardian on [February 15] that he had concocted his tale that Iraq was hiding mobile bioweapons laboratories. The strange case of “Curveball” has become one of the most infamous episodes in the Bush administration’s case for war. Mr. Janabi’s claim about the mobile laboratories was featured prominently in Secretary of State Colin L. Powell’s address to the United Nations in February 2003, when he laid out the administration’s case that Mr. Hussein was hiding weapons of mass destruction. The United States invaded Iraq in March 2003, and eventually determined that Iraq did not have any such weapons. It later became clear that the Bush administration had relied heavily on bogus information from unreliable exiles like Mr. Janabi.

Note: For background information on "Curveball" in the runup to the Iraq war, click here.

Important Note: Explore our full index to revealing excerpts of key 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.