Government Corruption News Articles

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

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

Although the Bush administration has said that six U.S. attorneys were fired recently in part because of "performance related" issues, at least five of them received positive job evaluations before they were ordered to step down. Attorney General Alberto Gonzales, using authority he gained in March from a little-noticed provision of the Patriot Act, has appointed interim U.S. attorneys from the Bush administration's inner circle. Daniel Bogden, the U.S. attorney in Nevada, was described in his last job performance evaluation in 2003 as being a "capable" leader who was highly regarded ... said a Justice Department official. David Iglesias, the U.S. attorney in New Mexico, also received a positive evaluation last year, according to another Justice Department official. Both officials asked not to be identified. The other U.S. attorneys who received good reviews were John McKay, the former U.S. attorney in Seattle; Paul Charlton, the former U.S. attorney in Arizona; and Carol Lam, the current U.S. attorney in San Diego. The decision to fire the U.S. attorneys came under scrutiny late last month after Senate Democrats discovered a change in the Patriot Act that allowed Gonzales to appoint interim U.S. attorneys for indefinite terms without Senate approval. In testimony to the Senate Judiciary Committee last week, [Deputy Attorney General Paul] McNulty conceded that H.E. "Bud" Cummins, the former U.S. attorney in Arkansas, wasn't fired because of how he handled his job. Rather, McNulty said, administration officials wanted to make room for Timothy Griffin, a former aide of presidential adviser Karl Rove.

Note: To read a related Associated Press article on U.S. Attorney General Gonzalez, click here. The article starts with "Attorney General Alberto Gonzales criticized federal judges ... for ruling on cases that affect national-security policy. Judges, he contended, are unqualified to decide terrorism issues that he said are best settled by Congress or the president." Isn't that negating the balance of powers laid out in the U.S. Constitution?

A state appeals court has restored voting rights to as many as 100,000 Californians who are in county jails on probation from felony convictions, and who were disenfranchised by the state a year ago, based on a new legal interpretation. That interpretation abruptly reversed the state's reading of the law for the previous 30 years, the court noted in last week's ruling. The state's top election official said he will not appeal. Most of those affected by the decision are young men, typically racial or ethnic minorities, who have committed nonviolent crimes, said Maya Harris, executive director of the American Civil Liberties Union of Northern California and a lawyer in the case. "It sure is nice to have a win for democracy," she said after last week's ruling. In the 3-0 ruling, Justice William Stein also said the state constitutional provision at issue was passed by the voters in 1974 to lift some previous restrictions on the right to vote, and should be interpreted in favor of participation in elections.

The Bush administration is clamping down on scientists at the U.S. Geological Survey, the latest agency subjected to controls on research that might go against official policy. New rules require screening of all facts and interpretations by agency scientists who study everything from caribou mating to global warming. The rules apply to all scientific papers and other public documents, even minor reports or prepared talks. Some agency scientists, who until now have felt free from any political interference, worry that the objectivity of their work could be compromised. The new requirements state that the USGS's communications office must be "alerted about information products containing high-visibility topics or topics of a policy-sensitive nature." The agency's director, Mark Myers, and its communications office also must be told -- prior to any submission for publication -- "of findings or data that may be especially newsworthy, have an impact on government policy, or contradict previous public understanding." In 2002, the USGS was forced to reverse course after warning that oil and gas drilling in Alaska's Arctic National Wildlife Refuge would harm the Porcupine caribou herd. One week later a new report followed, this time saying the caribou would not be affected.

Paperless electronic voting machines used throughout ... much of the country "cannot be made secure," according to draft recommendations issued this week by a federal agency that advises the U.S. Election Assistance Commission. The assessment by the National Institute of Standards and Technology, one of the government's premier research centers, is the most sweeping condemnation of such voting systems by a federal agency. NIST said that voting systems should allow election officials to recount ballots independently from a voting machine's software. The recommendations endorse "optical-scan" systems in which voters mark paper ballots that are read by a computer and electronic systems that print a paper summary of each ballot, which voters review and elections officials save for recounts. NIST says in its report that the lack of a paper trail for each vote "is one of the main reasons behind continued questions about voting system security and diminished public confidence in elections." The report repeats the contention of the computer security community that "a single programmer could 'rig' a major election." NIST says that voting systems should not rely on a machine's software to provide a record of the votes cast. Some electronic voting system manufacturers have introduced models that include printers to produce a separate record of each vote -- and that can be verified by a voter before leaving the machine -- but such paper trails have had their own problems. Printers have jammed or otherwise failed, causing some election directors to question whether a paper trail is an improvement.

Note: Another federal advisory panel amazingly rejects requiring a paper trail days after the above report is released. To read the CBS News/AP article on this, click here.

Most people first heard about Russell Tice last December when the former National Security Agency intelligence analyst asked to testify before Congress about NSA programs he claims are illegal. But his confrontation with his employer began much earlier. In 2001, Tice reported suspicions that an employee of the Defense Intelligence Agency, which oversees the NSA and other intelligence-gathering agencies, was spying for China. When he followed up on the allegations several years later, Tice was ordered to undergo a psychological evaluation. Although he had passed his regular exam nine months earlier, the in-house psychologist conducting the latest evaluation decided Tice had psychotic paranoia. After almost 20 years in intelligence, Tice's security clearance was revoked. He was transferred to a maintenance position at the NSA vehicle pool, and then to a government furniture warehouse. Just days after publicly urging Congress to pass stronger protections for federal intelligence agency whistle-blowers facing retaliation, he was fired in May 2005. "They treat a whistle-blower like a virus which they basically surround with buffers in an attempt to marginalize, isolate and prevent from having an impact on an organization," says Tice's lawyer, Joshua Dratel.

The United States last year provided nearly half of the weapons sold to militaries in the developing world, as major arms sales to the most unstable regions -- many already engaged in conflict -- grew to the highest level in eight years, new US government figures show. The United States supplied $8.1 billion worth of weapons to developing countries in 2005 -- 45.8 percent of the total. The figures underscore how the largely unchecked arms trade to the developing world has become a major staple of the American weapons industry, even though introducing many of the weapons risks fueling conflicts rather than aiding long-term US interests. [The U.S.] also signed an estimated $6.2 billion worth of new deals last year to sell attack helicopters, missiles, and other armaments to developing nations such as the United Arab Emirates, Pakistan, India, Israel, Egypt, Kuwait, and Saudi Arabia. There is growing evidence that the sales are increasingly more about dollars and cents for the US military-industrial complex. A UN panel [recently] voted to study whether a new treaty might be possible to regulate the sale of conventional arms. The United States was the only country out of 166 to vote no. A study last year by the progressive World Policy Institute found that the United States transferred weaponry to 18 of the 25 countries involved in an ongoing war. More than half of the countries buying US arms...were defined as undemocratic by the State Department's annual Human Rights Report, including top recipients Saudi Arabia, Egypt, Kuwait, the United Arab Emirates, and Uzbekistan.

Most of the federal scientists who improperly accepted personal money from drug or biotechnology companies walked away with reprimands or were allowed to retire unscathed. Only two of the 44 scientists found to have violated rules governing private consulting deals are being investigated for possible criminal activity, and they remain on the government payroll. NIH spokesman John Burklow said his agency wanted eight others reviewed for possible crimes, but those cases were rejected by the investigating office at the U.S. Health and Human Services Department. The two still outstanding...both committed "serious misconduct," so grave that they would be fired if they were civilians, NIH internal ethics reports contend. [A Congressional] subcommittee is expected to question NIH officials about documents showing it approved several taxpayer-paid trips for [Dr. Trey] Sunderland to attend conferences and events in places like Hawaii and Toronto, even after recommending his firing. Of the 44 alleged offenders...the majority received reprimands or warnings for failing to properly obtain approvals for their outside consulting work. NIH ethics reports allege...two scientists had unauthorized, unreported deals with drug companies -- Sunderland earning more than $600,000 over eight years for consulting and speeches and [Dr. Thomas] Walsh more than $100,000 in five years -- and that their consulting improperly overlapped with government duties.

Note: The Los Angeles Times later reported that Dr. Sunderland was the first NIH scientist in 14 years to be found guily of conflict of interest laws. For more vital information on major collusion between government and the pharmaceutical companies: http://www.WantToKnow.info/healthcoverup.

Two Oakland police officers working undercover at an anti-war protest in May 2003 got themselves elected to leadership positions in an effort to influence [a] demonstration. The department assigned the officers to join activists protesting the U.S. war in Iraq ... a police official said last year in a sworn deposition. [At the] demonstration, police fired nonlethal bullets and bean bags at demonstrators who blocked the Port of Oakland's entrance in a protest. Dozens of activists and longshoremen on their way to work suffered injuries ranging from welts to broken bones and have won nearly $2 million in legal settlements from the city. In a deposition related to a lawsuit filed by protesters, Deputy Police Chief Howard Jordan said activists had elected the undercover officers to "plan the route of the march and decide I guess where it would end up and some of the places that it would go." Oakland police had also monitored online postings by the longshoremen's union regarding its opposition to the war. The documents ... were released Thursday by the American Civil Liberties Union, as part of a report criticizing government surveillance of political activists since the terrorist attacks of Sept. 11, 2001. Jordan ... noted that "two of our officers were elected leaders within an hour on May 12." The idea was "to gather the information and maybe even direct them to do something that we want them to do." The ACLU said the Oakland case was one of several instances in which police agencies had spied on legitimate political activity since 2001.

The doors may be closing shortly on the nine-year-old Project for a New American Century, the neoconservative think tank headed by William Kristol, former chief of staff to Vice President Dan Quayle. The PNAC was short on staff -- having perhaps a half-dozen employees -- but very long on heavy hitters. The founders included Richard B. Cheney, Donald H. Rumsfeld, Paul D. Wolfowitz, Jeb Bush, I. Lewis "Scooter" Libby, William J. Bennett, Zalmay Khalilzad and Quayle. PNAC and its supporters dominated the Bush administration's foreign policy apparatus and championed a policy to get rid of Saddam Hussein long before Sept. 11, 2001. In its famous 1998 letter to President Bill Clinton, PNAC said "removing Saddam Hussein and his regime . . . now needs to become the aim of American foreign policy. The signatories wrote that "we are fully aware of the dangers of implementing this policy."

Note: Though the PNAC was staffed by some of the most powerful people in the U.S. government who clearly wanted Hussein out of power long before 9/11, no major papers were willing to report these crucial facts. Had Americans known of this, many likely would not have initially supported the war on Iraq. For more on this important information: http://www.WantToKnow.info/9-11cover-up10pg#pnac

The home and office of Kyle Foggo, who stepped down on Monday as the Central Intelligence Agency's No. 3 official, were searched today. Mr. Foggo resigned after becoming entangled in a widening investigation that has already brought down former Representative Randy Cunningham. Mr. Foggo's workplace in Langley, Va., and his residence in Virginia were searched this morning by agents of the Federal Bureau of Investigation and the C.I.A. inspector general's office. April Langwell, a spokeswoman for the F.B.I.'s San Diego office, said Mr. Foggo had been under investigation by the Internal Revenue Service and the Defense Criminal Investigative Service of the Defense Department's inspector general's office, as well as by the C.I.A.'s inspector general and the F.B.I. The inquiry by the C.I.A.'s inspector is examining whether he improperly awarded agency contracts to a longtime friend, Brent R. Wilkes, a military contractor whose companies have received nearly $100 million in government contracts over the years. Mr. Foggo, 51, has admitted attending poker parties throughout the 1990's that Mr. Wilkes held in a suite at the Watergate Hotel in Washington. The parties were primarily attended by C.I.A. officials and congressmen, and Mr. Cunningham, a California Republican, occasionally attended. Several news media accounts have reported that prostitutes frequented the parties.

Note: This article has huge significance. Until just a few years ago, there was a virtual blackout in the media on any negative coverage of the CIA. The fact that the Feds raided the home of the #3 man in the CIA and it was reported in top newspapers is an external manifestation of huge shake-ups going on behind the scenes. Buzzy Krongard, the previous #3 at the CIA has been linked to the millions of dollars in suspicious stock option trades made just prior to 9/11 that were never claimed, though this received little media coverage.

Vaccine industry officials helped shape legislation behind the scenes that Senate Majority Leader Bill Frist secretly amended into a bill to shield them from lawsuits, according to e-mails obtained by a public advocacy group. E-mails and documents written by a trade group for the vaccine-makers show the organization met privately with Frist's staff and the White House about measures that would give the industry protection from lawsuits filed by people hurt by the vaccines. Frist, along with House Speaker Dennis Hastert, R-Ill., ordered the vaccine liability language inserted in a defense spending bill in December without debate and in violation of usual Senate practice. In a written statement, Frist spokeswoman Amy Call stated that the senator had promised publicly to include the vaccine liability protection in the defense spending bill. She did not address the issue of the influence of industry lobbyists.

Note: For one-paragraph summaries of media articles showing why the vaccine makers want this protection, click here.

At the start of the Iraq war, around $23bn-worth of Iraqi money was placed in the trusteeship of the US-led coalition by the UN. The money...was to be used in a "transparent manner"...for "purposes benefiting the people of Iraq". For the past few months we have been working on a Guardian Films investigation into what happened to that money. A great deal of it has been wasted, stolen or frittered away. Over the first 14 months of the occupation, 363 tonnes of new $100 bills were shipped in - $12bn, in cash. "Iraq was awash in cash - in dollar bills. Piles and piles of money," says Frank Willis, a former senior official with the governing Coalition Provisional Authority. "We played football with some of the bricks of $100 bills before delivery. It was a wild-west crazy atmosphere". The environment created by the coalition positively encouraged corruption. "American law was suspended, Iraqi law was suspended, and Iraq basically became a free fraud zone," says Alan Grayson, a Florida-based attorney who represents whistleblowers now trying to expose the corruption. One CPA official was given nearly $7m and told to spend it in seven days.

Note: I highly recommend this entire article to understand some of what happens in war. For lots more on war-related corruption written by a highly decorated US general, see http://www.WantToKnow.info/warisaracket

Radiation detectors in Britain recorded a fourfold increase in uranium levels in the atmosphere after the “shock and awe” bombing campaign against Iraq. Environmental scientists who uncovered the figures through freedom of information laws say it is evidence that depleted uranium from the shells was carried by wind currents to Britain. Government officials, however, say the sharp rise in uranium detected by radiation monitors in Berkshire was a coincidence and probably came from local sources. Each detector recorded a significant rise in uranium levels during the Gulf war bombing campaign in March 2003. The reading from a park in Reading was high enough for the Environment Agency to be alerted. “This research shows that rather than remaining near the target as claimed by the military, depleted uranium weapons contaminate both locals and whole populations hundreds to thousands of miles away,” [Liverpool University's Chris Busby] said. Busby’s report shows that within nine days of the start of the Iraq war on March 19, 2003, higher levels of uranium were picked up on five sites in Berkshire. On two occasions, levels exceeded the threshold at which the Environment Agency must be informed, though within safety limits. The report says weather conditions over the war period showed a consistent flow of air from Iraq northwards.

Note: For more on the depleted uranium cover-up: http://www.WantToKnow.info/050405depleteduranium

Fifty years ago, American scientists were in a frantic race to counter what they saw as the Soviet threat from germ warfare. Biological pathogens they developed were tested on volunteers from a pacifist church and were also released in public places. In the 1950s, the Seventh-day Adventist Church struck an extraordinary deal with the US Army. It would provide test subjects for experiments on biological weapons at the Fort Detrick research centre near Washington DC. The volunteers were conscientious objectors who agreed to be infected with debilitating pathogens. In return, they were exempted from frontline warfare. The research involved anthrax, other lethal bacteria and biological poisons. But it wasn't just the white coat volunteers and sailors who were subject to experiments. The scientists also conducted tests on an unsuspecting American public. Scientists used what they thought was a harmless simulant in major bio-weapon tests across US cities and on public transport. It was a bacteria which they believed was harmless but which would mimic the dispersal of deadly biological agents such as anthrax. But later research showed that the strain of Bacillus globigii, or BG, did pose a risk to people who were ill or whose immune system was failing. In a damning report, [a U.S. Senate committee] concluded that the Department of Defense (DoD) repeatedly failed to comply with required ethical standards when using human subjects in military research - and that the DoD demonstrated a pattern of misrepresenting the danger of various exposures and continued to do so.

Note: For other well documented instances of governments using humans as guinea pigs in order to forward a military agenda, click here.

Counterterrorism agents at the Federal Bureau of Investigation have conducted numerous surveillance and intelligence-gathering operations that involved, at least indirectly, groups active in causes as diverse as the environment, animal cruelty and poverty relief. One F.B.I. document...talks of the Catholic Workers group's "semi-communistic ideology." The documents...came as part of a series of Freedom of Information Act lawsuits brought by the American Civil Liberties Union. The latest batch of documents...totals more than 2,300 pages and centers on references in internal files to a handful of groups, including PETA, the environmental group Greenpeace and the Catholic Workers group, which promotes antipoverty efforts and social causes. Many of the investigative documents turned over by the bureau are heavily edited. The documents indicate that in some cases, the F.B.I. has used employees, interns and other confidential informants within groups like PETA and Greenpeace to develop leads on potential criminal activity and has downloaded material from the groups' Web sites, in addition to monitoring their protests.

With the birth of the Cold War, a more nefarious collaboration began between government and social scientists, as the CIA funded universities' mind control and brainwashing experiments that left unsuspecting volunteers psychologically impaired. One example was the "psychic driving" of McGill University's Ewan Cameron, who played subjects an endless loop of one of their own statements from therapy, such as "You killed your mother," while keeping them packed with mind-altering drugs and locked in sensory depravation chambers. They emerged broken, ready to "be built up again." This is real "Manchurian Candidate" stuff, and it is easy to see how it could have a dramatic impact on human behavior. McGill's Cameron...actually helped prosecute Nazi doctors at the Nuremberg tribunals.

Note: For more along these lines, read our concise summaries of news articles on mind control.

For 16 critical hours, Federal Emergency Management Agency officials, including former director Michael D. Brown, dismissed urgent eyewitness accounts by FEMA's only staffer in New Orleans that Hurricane Katrina had broken the city's levee system the morning of Aug. 29 and was causing catastrophic flooding. Marty Bahamonde, sent to New Orleans by Brown, said he alerted Brown's assistant shortly after 11 a.m. that Monday with the "worst possible news" for the city: The Category 4 hurricane had carved a 20-foot breach in the 17th Avenue Canal levee. Bahamonde said he called Brown personally after 7 p.m. to warn that 80 percent of New Orleans was underwater and that he had photographed a 200-foot-wide breach. Testifying to a bipartisan Senate panel investigating the response to the hurricane, Bahamonde said his accounts were discarded by officials in Baton Rouge and Washington. President Bush, Homeland Security Secretary Michael Chertoff, Defense Secretary Donald H. Rumsfeld and Richard B. Myers, then chairman of the Joint Chiefs of Staff, have all said they were told that the city's flood walls did not fail until Aug. 30. Bahamonde said he found it "amazing" that New Orleans officials continued to let thousands gather at the Superdome, even though they knew that the area around it was going to flood. Ten people later died at the Superdome.

Let's call in Craig Crawford, MSNBC analyst and author of “Attack the Messenger.” Good evening, Craig. CRAWFORD: Hi, there. You're sounding a bit skeptical tonight. OLBERMANN: Yes, and I'm going to raise this question as skeptically and bluntly as I can. It's not a question that doubts the existence of terror, nor the threat of terrorism. But we've cobbled together in the last couple of hours a list of at least 13 occasions...on which -- whenever there has been news that significantly impacted the White House negatively, there has been some sudden credible terror threat somewhere in this country. How could the coincidence be so consistent? CRAWFORD: It is a pattern. One of the most memorable was just after the Democratic Convention in the 2004 election, when they talked about the threat to New York and even the...World Bank, and it turned out that was based on intelligence that was three years old.

Note: For more on the suspicious timing of terror alerts on the CBS website:
http://www.cbsnews.com/blogs/2005/10/07/publiceye/entry924555.shtml

An officer who has claimed that a classified military unit identified four Sept. 11 hijackers before the 2001 attacks is facing Pentagon accusations of breaking numerous rules, charges his lawyer suggests are aimed at undermining his credibility. The alleged infractions by Army Lt. Col. Anthony Shaffer, 42, include obtaining a service medal under false pretenses, improperly flashing military identification while drunk and stealing pens, according to military paperwork shown by his attorney to The Associated Press. Shaffer was one of the first to publicly link Sept. 11 leader Mohamed Atta to the unit code-named Able Danger. Shaffer was one of five witnesses the Pentagon ordered not to appear Sept. 21 before the Senate Judiciary Committee to discuss the unit's findings. The military revoked Shaffer's top security clearance this month, a day before he was supposed to testify to a congressional committee.

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.