Corporate Corruption News Articles

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More than 17,000 doctors and other health care providers have taken money from seven major drug companies to talk to other doctors about their products, a joint investigation by news organizations and non-profit groups found. More than 380 of the doctors, nurses, pharmacists and other professionals took in more than $100,000 in 2009 and 2010, according to the investigation. The report said far more doctors are likely to have taken such payments, but it documented these based on information from seven drugmakers. The investigation by journalism group ProPublica, Consumer Reports magazine, NPR radio and [other] publications showed doctors were sometimes urged to recommend "off-label" prescriptions of drugs, meaning using them for conditions they are not approved for. "Tens of thousands of U.S. physicians are paid to spread the word about pharma's favored pills and to advise the companies about research and marketing," the group says in its report. "This investigation begins to pull back the shroud on these activities," Dr. John Santa, director of the Consumer Reports Health Ratings Center, said in a statement. "The amount of money involved is astounding, and the ProPublica report's account of the background of some of the physicians is disturbing."

Note: This important report is available here. For more on corporate corruption, click here.

Compensation on Wall Street is on pace to break a record high for a second consecutive year, as more than three dozen top banks and securities firms will pay $144 billion in salary and benefits ... a 4% increase from the $139 billion paid out in 2009. Compensation was expected to rise at 26 of the 35 firms. Overall, Wall Street is expected to pay 32.1% of its revenue to employees, the same as last year, but below the 36% in 2007. Profits, which were depressed by losses in the past two years, have bounced back from the 2008 crisis. But the estimated 2010 profit of $61.3 billion for the firms surveyed still falls about 20% short from the record $82 billion in 2006. Over that same period, compensation across the firms in the survey increased 23%. "Until focus of these institutions changes from revenue generation to long-term shareholder value, we will see these outrageous pay packages and compensation levels," said Charles Elson, director of the Weinberg Center for Corporate Governance.

Note: For many key reports from reliable sources on Wall Street's profiteering, click here.

Chris Miller nearly doubled his $3,500 stock investment in a renewable-energy firm in 2008. It was a perfectly legal bet, but he's no ordinary investor. Mr. Miller is the top energy-policy adviser to Nevada Democrat and Senate Majority Leader Harry Reid, who helped pass legislation that wound up benefiting the firm. Mr. Miller isn't the only Congressional staffer making such stock bets. At least 72 aides on both sides of the aisle traded shares of companies that their bosses help oversee, according to a Wall Street Journal analysis of more than 3,000 disclosure forms covering trading activity by Capitol Hill staffers for 2008 and 2009. The Journal analysis showed that an aide to a Republican member of the Senate Banking Committee bought Bank of America Corp. stock before results of last year's government stress tests eased investor concerns about the health of the banking industry. A top aide to the House Speaker profited by trading shares of Freddie Mac and Fannie Mae in a brokerage account with her husband two days before the government authorized emergency funding for the companies. The aides identified by the Journal say they didn't profit by making trades based on any information gathered in the halls of Congress. Even if they had done so, it would be legal, because insider-trading laws don't apply to Congress. Unlike many Executive Branch employees, lawmakers and aides don't have restrictions on their stock holdings and ownership interests in companies they oversee.

Note: Why is Congress exempt from so many of its own laws? Who is willing to start a movement to stop this? For lots more on government corruption from major media sources, click here.

Ahmed Wali Karzai, the half-brother of Afghanistan’s president and boss of the strategically important Kandahar province, has been on the CIA payroll for over a decade, Bob Woodward writes in his new book, Obama’s Wars. By the fall of 2008, Woodward says, “Ahmed Wali Karzai had been on the CIA payroll for years, beginning before 9/11. He had belonged to the CIA's small network of paid agents and informants inside Afghanistan. In addition, the CIA paid him money through his half-brother, the president.” Hamid Karzai was plucked from obscurity and installed as president after U.S.-backed Afghan forces chased the Taliban from power following the Sept. 11, 2001, attacks. There have been many accounts of his brother’s relationship with the CIA over the years, leaving the impression that he is a CIA “agent,” i.e., a controlled asset of the spy agency. But Woodward’s account of the CIA’s relationship with Karzai, who has also been accused repeatedly -- but not charged with -- protecting the illicit opium trade, is more nuanced. “He was not in any sense a controlled agent who always responded to U.S. and CIA requests and pressure,” Woodward writes. “He was his own man, playing all sides against the others -- the United States, the drug dealers, the Taliban and even his brother if necessary.”

Note: What this article fails to mention is that President Karzai was also an employee of the major oil company Unocal, as reported in this Chicago Tribune article.

Allergan Inc., the maker of wrinkle-smoothing Botox, has agreed to pay $600 million to settle a yearslong federal investigation into its marketing of the top-selling, botulin-based drug. The Justice Department and the company said Wednesday in a statement it will plead guilty to one misdemeanor charge of "misbranding," in which the company's marketing led physicians to use Botox for unapproved uses. Those included the treatment of headache, pain, spasticity and cerebral palsy in children. Companies are prohibited from promoting drugs for unapproved, or "off-label," uses. Allergan said it will pay $375 million in connection with the plea, which includes the forfeiture of $25 million in assets. Additionally, the company will pay $225 million in civil fines — $210 million to the federal governments and the rest to several states — related to the investigation, although the company denies liability for the civil claims. Allergan "paid kickbacks to induce [physicians] to inject Botox for off-label uses and Allergan also taught doctors how to bill for off-label uses, including coaching doctors how to miscode Botox claims leading to millions of dollars of false claims being to submitted to federal and state programs," Assistant Attorney General Tony West said.

Note: $600 million is nothing to sneeze at, yet this kind of find is becoming almost commonplace in the pharmaceutical industry. Could it be that industry chieftains are more interested in profit that public health? For more powerful information along these lines, see our two-page health summary.

This summer, when Kellogg recalled 28 million boxes of Froot Loops, Apple Jacks, Corn Pops and Honey Smacks, the company blamed elevated levels of a chemical in the packaging. Dozens of consumers reported a strange taste and odor, and some complained of nausea and diarrhea. Federal regulators, who are charged with ensuring the safety of food and consumer products, are in the dark about the suspected chemical, 2-methylnaphthalene. The [FDA and EPA have] no scientific data on its impact on human health. The cereal recall hints at a larger issue: huge gaps in the government's knowledge about chemicals in everyday consumer products, from furniture to clothing to children's products. Under current laws, the government has little or no information about the health risks posed by most of the 80,000 chemicals on the U.S. market today. The information gap is hardly new. When the Toxic Substances Control Act was passed in 1976, it exempted from regulation about 62,000 chemicals that were in commercial use -- including 2-methylnaphthalene. In addition, chemicals developed since the law's passage do not have to be tested for safety. Instead, companies are asked to volunteer information on the health effects of their compounds.

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

More than 27,000 abandoned oil and gas wells lurk in the hard rock beneath the Gulf of Mexico, an environmental minefield that has been ignored for decades. No one - not industry, not government - is checking to see if they are leaking, an Associated Press investigation shows. The oldest of these wells were abandoned in the late 1940s, raising the prospect that many deteriorating sealing jobs are already failing. The AP investigation uncovered particular concern with 3,500 of the neglected wells - those characterized in federal government records as "temporarily abandoned." More than 1,000 wells have lingered in that unfinished condition for more than a decade. About three-quarters of temporarily abandoned wells have been left in that status for more than a year, and many since the 1950s and 1960s - even though sealing procedures for temporary abandonment are not as stringent as those for permanent closures. As a forceful reminder of the potential harm, the well beneath BP's Deepwater Horizon rig was being sealed with cement for temporary abandonment when it blew April 20, leading to one of the worst environmental disasters in the nation's history. BP alone has abandoned about 600 wells in the Gulf, according to government data.

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

A 2004 study of the results of stock trading by United States Senators during the 1990s found that Senators on average beat the market by 12% a year. In sharp contrast, U.S. households on average underperformed the market by 1.4% a year and even corporate insiders on average beat the market by only about 6% a year during that period. A reasonable inference is that some Senators had access to – and were using – material nonpublic information about the companies in whose stock they trade. Under current law, it is unlikely that Members of Congress can be held liable for insider trading. The proposed Stop Trading on Congressional Knowledge Act addresses that problem by instructing the Securities and Exchange Commission to adopt rules intended to prohibit such trading. This article analyzes present law to determine whether Members of Congress, Congressional employees, and other federal government employees can be held liable for trading on the basis of material nonpublic information. It argues that there is no public policy rationale for permitting such trading and that doing so creates perverse legislative incentives and opens the door to corruption. The article explains that the Speech or Debate Clause of the U.S. Constitution is no barrier to legislative and regulatory restrictions on Congressional insider trading.

Note: Do you think that these highly successful investors in the US Senate might have a vested interest in protecting the existing financial and legal structure that makes their profits possible and protects them from criminal charges?

Wachovia [Bank] ... made a habit of helping move money for Mexican drug smugglers. San Francisco's Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers - including the cash used to buy four planes that shipped a total of 22 tons of cocaine. The admission ... sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years. Wachovia admitted it didn't do enough to spot illicit funds in handling $378.4 billion for Mexican currency exchange houses from 2004 to 2007. That's the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history - a sum equal to one-third of Mexico's current gross domestic product. "Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," said Jeffrey Sloman, the federal prosecutor who handled the case. "It's the banks laundering money for the cartels that finances the tragedy," said Martin Woods, director of Wachovia's anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia's branch network. "If you don't see the correlation between the money laundering by banks and the 22,000 people killed in Mexico, you're missing the point," he said.

Note: For abundant reports from reliable sources on the many dubious ways in which major financial firms make their profits, click here.

When the operators of Southern Seaplane in Belle Chasse, La., called the local Coast Guard-Federal Aviation Administration command center for permission to fly over restricted airspace in [the] Gulf of Mexico, they made what they thought was a simple and routine request. A pilot wanted to take a photographer from The Times-Picayune of New Orleans to snap photographs of the oil slicks blackening the water. The response from a BP contractor who answered the phone late last month at the command center was swift and absolute: Permission denied. "We were questioned extensively. Who was on the aircraft? Who did they work for?" recalled Rhonda Panepinto, who owns Southern Seaplane with her husband, Lyle. "The minute we mentioned media, the answer was: ‘Not allowed.' " Journalists struggling to document the impact of the oil rig explosion have repeatedly found themselves turned away from public areas affected by the spill, and not only by BP and its contractors, but by local law enforcement, the Coast Guard and government officials. Scientists, too, have complained about the trickle of information that has emerged from BP and government sources. Three weeks passed, for instance, from the time the Deepwater Horizon oil rig exploded on April 20 and the first images of oil gushing from an underwater pipe were released by BP.

Note: For revealing reports from major media sources on government and corporate corruption and collusion, click here and here.

Scientists who drew up the key World Health Organisation guidelines advising governments to stockpile drugs in the event of a flu pandemic had previously been paid by drug companies which stood to profit. An investigation by the British Medical Journal and the Bureau of Investigative Journalism, the not-for-profit reporting unit, shows that WHO guidance issued in 2004 was authored by three scientists who had previously received payment for other work from Roche, which makes Tamiflu, and GlaxoSmithKline (GSK), manufacturer of Relenza. Pharmaceutical companies banked more than $7bn (�4.8bn) as governments stockpiled drugs. "The tentacles of drug company influence are in all levels in the decision-making process," said Paul Flynn, the Labour MP who sits on the council's health committee. Although the experts consulted made no secret of industry ties in other settings, declaring them in research papers and at universities, the WHO itself did not publicly disclose any of these in its seminal 2004 guidance.

Note: For wide coverage from reliable sourcesof the swine and avian flu "fake pandemics" designed for corporate profit, click here.

The United States must curb consumption and credit and boost production and savings, but its citizens and leaders so far lack the will to change, economist Paul Volcker said. Volcker, 82, an adviser to the Obama administration, ... said the United States spiraled toward the Great Recession through an excess of debt that subsidized an appetite for consumer goods, many of them imported. The chief bugaboo, in Volcker's view, was a runaway financial sector that ... became a factory to make money by manipulating money. He said under-regulated financiers made big profits and bonuses by swapping derivatives and other exotic instruments that produced few of the widespread benefits - like better jobs and wages - that normally flow from investment. Now that this financial house of cards has collapsed, Volcker said, U.S. and world leaders must figure out how to stop powerful mega-banks and hedge funds from engaging in the same shenanigans that forced taxpayers to bail them out to prevent further catastrophe. "The central issue with which we have been grappling is the doctrine of 'too big to fail,' " Volcker said, alluding to how the United States bailed out institutions like insurer AIG to prevent their collapse from further damaging the economy.

Note: For a great collection of reports from major media sources on the hidden realities of the Wall Street crisis and the government bailout of big finance, click here.

It is the Wall Street equivalent of a perfect game of baseball — 27 up, 27 down, the final score measured in millions of dollars a day. Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year. Their remarkable 61-day streak is one for the record books. Perfect trading quarters on Wall Street are about as rare as perfect games in Major League Baseball. But Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of four perfect games during the first quarter. Each one finished the period without losing money for even one day. Their showing ... underscored the outsize — and controversial — role that trading has assumed at major financial institutions. It also drives home the widening lead that a handful of big banks are enjoying over lesser rivals on post-bailout Wall Street. The four banks ... reaped big rewards without necessarily placing big bets that stocks or bonds would go up or down. “This is not about hitting home runs,” said Jaidev Iyer, who runs his own risk management consulting firm, J-Risk Advisors. “This is just, as we call it, milking the market and your captive client base.”

Note: For an astounding list on the Forbes website of the richest companies in the world by assets, click here. All of the top 10 companies are banks, with collective assets of over $22 trillion! Yet we as taxpayers continue to pay to bail them out when they have problems. Is something wrong with this picture? For a graphic representation of this, click here. And for an abundance of deep reporting in major media articles on the hidden realities of Wall Street's shadowy operations, click here.

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

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

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

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

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

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

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

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

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

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

More than half the scientists on the swine flu taskforce advising the [UK] Government have ties to drug companies. Eleven of the 20 members of the Scientific Advisory Group for Emergencies (SAGE) have done work for the pharmaceutical industry or are linked to it through their universities. Many have declared interests in GlaxoSmithKline, the vaccine maker expected to be the biggest beneficiary of the pandemic. The disclosure of the register of interests comes just days after a health expert branded the swine flu outbreak a 'false pandemic' driven by the drug companies which stood to profit. The Government is now trying to offload up to Ł1billion worth of unwanted swine flu vaccine. Last July, the Department of Health warned of up 65,000 deaths, with 350 a day at the pandemic's peak. But the death toll now stands at just 251. SAGE was created to give Ministers recommendations on how to control and treat the virus. Official documents show some members are linked to vaccine manufacturer Baxter and to Roche, which makes Tamiflu. GSK, Baxter and Roche stand to make up to Ł1.5billion between them from Government contracts related to swine flu.

Note: For lots more on the Swine Flu "false pandemic," click here.

The World Health Organization said it plans to conduct a review of its response to swine flu as policymakers in Europe prepare for an “urgent debate” on the influenza pandemic. Yesterday, the Parliamentary Assembly of the Council of Europe said “false pandemics, a threat to health” will be a major theme of its next plenary session. Health authorities worldwide are assessing whether their response to swine flu is justified by its threat as cases retreat in the U.S. and Western Europe. The new H1N1 virus, which has targeted children and younger adults, has so far resulted in fewer deaths than attributed to seasonal strains, which kills mostly the frail elderly. Council of Europe parliamentarian Wolfgang Wodarg said last week he and several colleagues had called for a commission of inquiry into a “false pandemic” and the way it was handled at national and European levels, claiming pressure from pharmaceutical firms. The WHO moved to the top level of its six-step pandemic alert in June after the discovery of swine flu in Mexico and the U.S. in April.

Note: BusinessWeek deleted this article days after posting it. Could someone have pressured them to do this? If you click the above link, the article is gone, though you can still see a promo here and read it on BusinessWeek in the Google cache available here. For a link to the article on the Bloomberg website, click here. For revealing reports of the corruption surrounding the swine flu and previous health scares, 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.