Government Corruption News Articles

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Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.

According to current and former government officials, the CIA's secret waterboarding program was designed and assured to be safe by two well-paid psychologists now working out of an unmarked office building in Spokane, Washington. Bruce Jessen and Jim Mitchell, former military officers, together founded Mitchell Jessen and Associates. Both men declined to speak to ABC News citing non-disclosure agreements with the CIA. But sources say Jessen and Mitchell together designed and implemented the CIA's interrogation program. "It's clear that these psychologists had an important role in developing what became the CIA's torture program," said Jameel Jaffer, an attorney with the American Civil Liberties Union. Former U.S. officials say the two men were essentially the architects of the CIA's 10-step interrogation plan that culminated in waterboarding. Associates say the two made good money doing it, boasting of being paid a $1,000 a day by the CIA to oversee the use of the techniques on top al Qaeda suspects at CIA secret sites. Both Mitchell and Jessen were previously involved in the U.S. military program to train pilots how to survive behind enemy lines and resist brutal tactics if captured. But it turns out neither Mitchell nor Jessen had any experience in conducting actual interrogations before the CIA hired them. The new documents show the CIA later came to learn that the two psychologists' waterboarding "expertise" was probably "misrepresented" and thus, there was no reason to believe it was "medically safe" or effective. The waterboarding used on al Qaeda detainees was far more intense than the brief sessions used on U.S. military personnel in the training classes.

Note: For lots more on CIA torture and other recent government attacks on civil liberties, click here.

Chrysler turned down additional government funding this month because executives at the troubled auto manufacturer could not agree to new government-mandated limits on executive pay, according to a source familiar with the matter. An official with Chrysler Financial told CNN that the loan was turned down because the company "has determined that it has adequate private capital funding to cover the short-term needs of our dealers and customers and as such, no additional TARP funding is necessary at this time." The official also said that company executives "have not been presented with any new demands with regard to executive compensation." Chrysler already borrowed $1.5 billion from the Treasury under the Troubled Asset Relief Program, or TARP, but those loans were made under less strict regulations pertaining to executive compensation. The Washington Post, which first reported the story online Monday, said the amount of the loan Chrysler rejected was $750 million. A Treasury department spokesman declined to confirm the loan rejection, but told CNN that the administration's Auto Task Force continues to monitor the financing situations for Chrysler and General Motors. "This is an issue that Chrysler and its stakeholders will need to address as part of this process," the spokesman said.

Note: The reason many banks are giving back government loans is very likely also because of executive pay limits. The limits were reported in a NY Times article on Feb. 14, 2009. Not long after came the first news that banks were considering returning the bailout money. Do you think these top execs are more interested in their own paychecks or the health of the company? For a highly revealing archive of reports on the hidden realities underlying the Wall Street bailout, click here.

The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity. A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order. "We have agreed to support a general SDR allocation which will inject $250bn (Ł170bn) into the world economy and increase global liquidity," it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.In effect, the G20 leaders have activated the IMF's power to create money and begin global "quantitative easing". In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it. There is now a world currency in waiting. In time, SDRs are likely evolve into a parking place for the foreign holdings of central banks, led by the People's Bank of China. Beijing's moves this week to offer $95bn in yuan currency swaps to developing economies show how fast China aims to break dollar dependence.

Note: For an extensive archive of key reports on the hidden realities of the Wall Street bailout, click here.

A once-obscure accounting rule that infuriated banks ... was changed Thursday to give banks more discretion in reporting the value of mortgage securities. The change seems likely to allow banks to report higher profits by assuming that the securities are worth more than anyone is now willing to pay for them. But critics objected that the change could further damage the credibility of financial institutions by enabling them to avoid recognizing losses from bad loans they have made. Critics also said that since the rules were changed under heavy political pressure, the move compromised the independence of the organization that did it, the Financial Accounting Standards Board. During the financial crisis, the market prices of many securities, particularly those backed by subprime home mortgages, have plunged to fractions of their original prices. That has forced banks to report hundreds of billions of dollars in losses over the last year, because some of those securities must be reported at market value each three months, with the bank showing a profit or loss based on the change. At first FASB ... resisted making changes, but that changed within a few days of a Congressional hearing at which legislators from both parties demanded the board act. “There is a perception that we are yielding to political pressure,” one board member, Lawrence W. Smith, said as he voted for the changes. A group headed by two former chairmen of the Securities and Exchange Commission, one who served under President Bill Clinton and one who was appointed by President George W. Bush, said that it feared that politicization of accounting standards would destroy the credibility of the board.

Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.

Mexican President Felipe Calderon has warned that corruption among American officials may be making it harder to deal with drug-trafficking between Mexico and the US. Mr Calderon said violence in the border city of Juarez had fallen by 73% in the month since he sent 7,000 extra troops there. There has been open warfare in Juarez for more than a year; last year, 5,600 people were killed in drug-related attacks in Mexico, many in Juarez. President Calderon said it was impossible to smuggle [tons] of cocaine into the United States without the complicity of some American authorities. "There is trafficking in Mexico because there is corruption in Mexico," he told the BBC. "But by the same argument if there is trafficking in the United States it is because there is some corruption in the United States... It is impossible to pass tonnes of cocaine to the United States without the complicity of some American authorities." The situation along the border is very sensitive politically, and although the White House may wonder privately whether there is some corruption among some American customs, immigration and police officials, it is unlikely to admit it publicly.

Note: For powerfully revealing information on involvement of U.S. officials in the illegal drug trade, click here.

As a novice CIA case officer in the Middle East, Andrew Warren quickly learned the value of sex in recruiting spies. Colleagues say that he made an early habit of taking informants to strip clubs, and that he later began arranging out-of-town visits to brothels for his best recruits. Often Warren would travel with them, according to two colleagues who worked with him for years. His methods earned him promotions and notoriety over a lengthy career, until Warren, 41, became ensnared in a sex scandal. Two Algerian women have accused the Virginia native of drugging and sexually assaulting them, and, in one instance, videotaping the encounter. The episode -- one of three sex-related scandals to shake the CIA this year -- has drawn harsh questions from Congress about whether the agency adequately polices its far-flung workforce or takes sufficient steps to root out corrupt behavior. Former officers say the cases underscore a perennial challenge: guarding against scandal in a workforce -- the size of which is classified but is generally estimated to be 20,000 -- that prides itself on secrecy and deception. "You have an organization of professional liars," said Tyler Drumheller, who oversaw hundreds of officers as chief of the agency's European division. Experienced field managers are needed, he said, because inevitably "some people will try to take advantage of the system . . . and it's a system that can be taken advantage of." The recent string of embarrassing revelations started with the CIA's former No. 3 officer, Kyle "Dusty" Foggo, who was indicted on corruption charges two years ago.

Note: For in-depth analysis of the continuing revelations of a long history of the CIA's use of sex to control people, click here.

There must be a criminal investigation of the AIG debacle, and it looks as if New York's top lawman is on the case. The collusion to save this toxic company in order to salvage the rogue financiers who conspired to enrich themselves by impoverishing millions is being revealed as the greatest financial scandal in U.S. history. Instead of taking bonuses, the culprits should be taking perp walks. The real culprits are the AIG leaders who, as New York Attorney General Andrew Cuomo revealed Tuesday, signed those bonus contracts a year ago to reward the very people "principally responsible for the firm's meltdown." As Cuomo noted in a letter to Rep. Barney Frank: "The contracts shockingly contain a provision that required most individuals' bonuses to be 100 percent of their 2007 bonuses. Eleven of the individuals who received 'retention' bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million." But the $165 million in taxpayer funds used to reward them is but a sideshow in a far larger drama of moral decay swirling around the banking bailout. It should not distract from the many billions, not paltry millions, of our dollars being diverted to reward the very folks who brought us such misery. Consider the $12.8 billion of the $170 billion that taxpayers gave AIG in bailout funds that AIG then secretly diverted to Goldman Sachs, a company that evidently has a lock on both the Treasury Department and the Federal Reserve no matter which political party is in power.

Note: For an excellent analysis of "the real AIG conspiracy", click here. For lots more on the hidden realities of the Wall Street bailout, click here.

Eliot Spitzer must miss his glory days when he was the scourge of Wall Street as New York’s attorney general. With the bonus battle exploding at the American International Group, Mr. Spitzer has jumped into the fray — and dismissed the bonus scandal, arguing that it is obscuring the “real disgrace” at A.I.G. “Why are A.I.G.’s counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?” he asks in an article on Slate. Mr. Spitzer notes that A.I.G.’s trading parties were all the big banks including Goldman Sachs, many of which received billions of dollars from the government’s Troubled Asset Relief Program. “So now we know for sure what we already surmised: The A.I.G. bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already,” he writes. “It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure,” Mr. Spitzer writes. Recounting how the economic crisis is affecting workers, with tax increases, pay cuts and layoffs, Mr. Spitzer asks: “Why can’t Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn’t we already give Goldman a $25 billion capital infusion, and aren’t they sitting on more than $100 billion in cash? What is the deeper relationship between Goldman and A.I.G.?”

Note: For the article written in 2008 by former NY Governor Spitzer which likely caused him to be targeted for a takedown just weeks later, click here. For lots more on the hidden realities of the Wall Street bailout, click here.

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

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

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

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

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

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

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

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

The CIA's secret prisons are being shuttered. Harsh interrogation techniques are off-limits. And Guantanamo Bay will eventually go back to being a wind-swept naval base on the southeastern corner of Cuba. But even while dismantling these programs, President Obama left intact an equally controversial counter-terrorism tool. Under executive orders issued by Obama recently, the CIA still has authority to carry out what are known as renditions, secret abductions and transfers of prisoners to countries that cooperate with the United States. Current and former U.S. intelligence officials said that the rendition program might be poised to play an expanded role going forward because it was the main remaining mechanism -- aside from Predator missile strikes -- for taking suspected terrorists off the street. The rendition program became a source of embarrassment for the CIA, and a target of international scorn, as details emerged in recent years of botched captures, mistaken identities and allegations that prisoners were turned over to countries where they were tortured. The European Parliament condemned renditions as "an illegal instrument used by the United States." Prisoners swept up in the program have sued the CIA as well as a Boeing Co. subsidiary accused of working with the agency on dozens of rendition flights. But the Obama administration appears to have determined that the rendition program was one component of the Bush administration's war on terrorism that it could not afford to discard. The decision underscores the fact that the [War on Terror] is far from over.

Note: For key reports from reliable sources on the hidden realities of the War on Terror, click here.

The United Nations' crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday. Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiralled out of control last year. "In many instances, drug money is currently the only liquid investment capital," Costa was quoted as saying by Profil. "In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor." The United Nations Office on Drugs and Crime had found evidence that "interbank loans were funded by money that originated from drug trade and other illegal activities," Costa was quoted as saying. There were "signs that some banks were rescued in that way." Profil said Costa declined to identify countries or banks which may have received drug money and gave no indication how much cash might be involved.

Note:. For powerful evidence that corporations and even rogue elements of government are involved in the huge amounts of cash generated in the drug trade, click here. For lots more on corporate corruption, click here.

The Nazi doctor Josef Mengele is responsible for the astonishing number of twins in a small Brazilian town, an Argentine historian has claimed. The steely hearted "Angel of Death", whose mission was to create a master race fit for the Third Reich, was the resident medic at Auschwitz from May 1943 until his flight in the face of the Red Army advance in January 1945. His task was to carry out experiments to discover by what method of genetic quirk twins were produced – and then to artificially increase the Aryan birthrate for his master, Adolf Hitler. Now, a historian claims, Mengele's notorious experiments may have borne fruit. For years scientists have failed to discover why as many as one in five pregnancies in a small Brazilian town have resulted in twins – most of them blond haired and blue eyed. But residents of Candido Godoi now claim that Mengele made repeated visits there in the early 1960s, posing at first as a vet but then offering medical treatment to the women of the town. Shuttling between Argentina, Paraguay and Brazil, he managed to evade justice before his death in 1979, but his dreams of a Nazi master race appeared unfulfilled. In a new book, Mengele [in Spanish], the Argentine historian Jorge Camarasa, a specialist in the post-war Nazi flight to South America, has painstakingly pieced together the Nazi doctor's mysterious later years. After speaking to the townspeople of Candido Godoi, he is convinced that Mengele continued his genetic experiments with twins – with startling results.

Note: For more about Josef Mengele, and his relationship with the CIA, click here.

With President-elect Barack Obama and congressional Democrats considering a massive spending package aimed at pulling the nation out of recession, the national debt is projected to jump by as much as $2 trillion this year, an unprecedented increase that could test the world's appetite for financing U.S. government spending. For now, investors are frantically stuffing money into the relative safety of the U.S. Treasury, which has come to serve as the world's mattress in troubled times. Interest rates on Treasury bills have plummeted to historic lows, with some short-term investors literally giving the government money for free. But about 40 percent of the debt held by private investors will mature in a year or less, according to Treasury officials. When those loans come due, the Treasury will have to borrow more money to repay them, even as it launches perhaps the most aggressive expansion of U.S. debt in modern history. With the government planning to roll over its short-term loans into more stable, long-term securities, experts say investors are likely to demand a greater return on their money, saddling taxpayers with huge new interest payments for years to come. Some analysts also worry that foreign investors, the largest U.S. creditors, may prove unable to absorb the skyrocketing debt, undermining confidence in the United States as the bedrock of the global financial system.

Note: For many revealing reports on the realities of the Wall Street bailout and its impacts on the national debt, click here.

Dick Cheney's lawyers are asserting that the vice president alone has the authority to determine which records, if any, from his tenure will be handed over to the National Archives when he leaves office in January. That claim is in federal court documents asking that a lawsuit over the records be dismissed. Cheney leaves office Jan. 20, potentially taking millions of records that might otherwise become public. Cheney is being sued by Citizens for Responsibility and Ethics in Washington, a watchdog group that is trying to ensure that no presidential records are destroyed or handled in a way that makes them unavailable to the public. The 1978 Presidential Records Act requires that all presidential and vice presidential records to be transferred to the National Archives immediately upon the end of the president's last term and charges the archivist with preserving and controlling access to presidential records. The law allows exceptions for personal or purely party records. But the law is unclear on how disagreements will be resolved about disputed records, said Steven Aftergood, a government secrecy expert at the Federation of American Scientists. "Decisions that are made in the next couple of weeks may prove irrevocable. If records are held from the archivist now, they may never be recovered," Aftergood said. A judge in September ordered Cheney to preserve all records while the suit continued.

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

The foreign nonunion auto companies located in the South have a plan to reduce wages and benefits at their factories in the United States. And to do it, they need to destroy the United Auto Workers. Last week, Senate Republicans from some Southern states went to work trying to do just that, on the foreign car companies' behalf. [Republican] representatives from states that subsidize companies such as Honda, Volkswagen, Toyota and Nissan first tried to force the UAW to take reductions in wages and benefits as a condition for supporting the auto industry bailout bill. When the UAW refused, those senators torpedoed the bill. They claimed that they couldn't support the bill without specifics about how wages would be "restructured." They didn't, however, require such specificity when it came to bailing out the financial sector. Their grandstanding, and the government's generally lackluster response to the auto crisis, highlight many of the problems that have caused our current economic mess: the lack of concern about manufacturing, the privileged way our government treats the financial sector, and political support given to companies that attempt to slash worker's wages. When one compares how the auto industry and the financial sector are being treated by Congress, the double standard is staggering. At Goldman Sachs ... employee compensation made up 71% of total operating expenses in 2007. In the auto industry, by contrast, autoworker compensation makes up less than 10% of the cost of manufacturing a car. Hundreds of billions were given to the financial-services industry with barely a question about compensation; the auto bailout, however, was sunk on this issue alone.

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

What are the pills in your medicine cabinet, and how do you know they're best for you? When drug companies seek approval to market new medicines, they must show the U.S. Food and Drug Administration the results of all the tests they've run on volunteer patients - at first on only a few, then on dozens, and finally on hundreds or sometimes thousands. After winning approval, the companies typically sponsor reports of those tests in medical journal publications, which many doctors often rely on to determine whether to prescribe new drugs for their patients. Now a skeptical team of medical investigators at UCSF has accused the major drug companies of bias by distorting the results of their trials in those publications, making it hard for doctors to judge for themselves the pros and cons of prescribing the new drugs. As a result, the researchers say, patients may sometimes be taking medicines they don't need - or with unwanted side effects - that their doctors have prescribed on the basis of inadequate information. The UCSF team, led by Lisa A. Bero of the medical center's Institute for Health Policy Studies, probed the details of 164 drug trials involving as many as 1,500 patients over a two-year period and then examined reports on those trials that were published in medical journals, as well as those that remained unpublished. "We found really important information from the official trial reports that were either not published at all or that stressed mostly the positive results of trials in the published versions," said Kristin Rising, a physician at the institute who did the major investigation.

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

Jim Rogers, one of the world's most prominent international investors, ... called most of the largest U.S. banks "totally bankrupt," and said government efforts to fix the sector are wrongheaded. Co-founder with George Soros of the Quantum Fund, [Rogers] said the government's $700 billion rescue package for the sector doesn't address how banks manage their balance sheets, and instead rewards weaker lenders with new capital. "Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt," said Rogers. "What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent," he said. "What's happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics." While not saying how long the U.S. economic recession will last, he said conditions could ultimately mirror those of Japan in the 1990s. "The way things are going, we're going to have a lost decade too, just like the 1970s," he said. "Governments are making mistakes," he said. "They're saying to all the banks, you don't have to tell us your situation. You can continue to use your balance sheet that is phony.... All these guys are bankrupt, they're still worrying about their bonuses, they're still trying to pay their dividends, and the whole system is weakened."

Note: For a treasure trove of reliable reports exposing the realities of the Wall Street bailout, 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.