Corporate Corruption News Articles
Excerpts of Key Corporate Corruption News Articles in Major Media


Below are many highly revealing one-paragraph excerpts of important corporate corruption articles from the mainstream media. Links are provided to the full articles on major media websites. If any link should fail to function, click here. These corporate corruption news articles are listed by order of importance. For the same articles by date posted to this list, click here. For the list by date of news article click here. By choosing to educate ourselves on these important issues and to spread the word, we can and will build a brighter future.



Note: For an index to revealing excerpts of media articles on several dozen engaging topics, click here.

A Bailout. For Everyone.
2008-03-12, Washington Post
http://www.washingtonpost.com/wp-dyn/content/story/2008/03/11/ST2008031103060...

Last week, it was a $200 billion cash-for-bond swap for the banks. This week, it was a $200 billion bond-for-bond swap for the big investment houses. If they keep this up, pretty soon you'll be able to walk into any Federal Reserve bank and hock that diamond brooch you inherited from Aunt Mildred. Forget all that nonsense about the Bernanke Fed being too timid or behind the curve. In the face of what is turning into the most serious financial market crisis since the Great Depression, the Fed has been more aggressive and more creative in using its limitless balance sheet -- in effect, its ability to print money -- than at any time in history. We can argue till the cows come home about whether this is a bailout for Wall Street. It is -- but only to the extent that it is also a bailout for all of us, meant to prevent a financial and economic meltdown that drags everyone down with it. In broad strokes, we're going through a massive "de-leveraging" of the economy, wringing out trillions of dollars of debt that had artificially driven up the price of real estate and financial assets, and, more generally, allowed Americans to live beyond their means. Fed officials warn that this de-leveraging is nowhere near finished. It's anyone's guess how long this credit crunch will last, but the chances are that we'll have several more market meltdowns and Fed rescues before it's over, probably in the fall. Until then, the dollar will continue to get hammered and stocks will continue their fitful decline. And if the last two financially induced recessions are any guide, it will be well into 2009 before the economy hits bottom, followed by a couple of years of slow growth and "jobless" recovery.

Note: The title of this article is quite revealing. A bailout for the big banks is considered to be a bailout for everyone. If you believe this, we most highly encourage you to read our powerful two-page summary of the banking cover-up available here.




FDA to Back Food From Cloned Animals
2008-01-05, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/04/AR20080104036...

The Food and Drug Administration is set to announce as early as next week that meat and milk from cloned farm animals and their offspring can start making their way toward supermarket shelves. The decision would be a notable act of defiance against Congress, which last month passed appropriations legislation recommending that any such approval be delayed pending further studies. Moreover, the Senate version of the Farm bill ... contains stronger, binding language that would block FDA action on cloned food, probably for years. The FDA has hinted strongly in the past year that it is ready to lift its "voluntary moratorium" on the marketing of milk and meat from clones and their offspring, saying that the science led them to that decision. But public opinion has been negative on the issue, with some saying that not enough safety studies have been conducted and others concerned about the health of the clones, which are far more likely than ordinary farm animals to die early in life. A handful of U.S. companies have pushed for marketing approval. Margaret Mellon of the Union of Concerned Scientists, an advocacy group, said she had read the entire 678-page draft risk assessment and found it to be "long on assumptions and short on data, and especially short on the data that are directly relevant to food consumption safety." Of particular concern, she said, was that even though the vast majority of clones die either before birth or soon after, those that survive are deemed normal. She said the FDA should withhold approval at least until it has a regulatory plan in place that will give it an ability to track food from clones and watch for human health impacts. Others have called for mandatory labeling so consumers can avoid products from clones. The FDA has said that lacking any safety concerns, it will not demand such labels. The Agriculture Department has also declared that meat from clones cannot be deemed organic.

Note: For lots more reliable information on how big business takes huge risks with the food we eat, click here.




Big Brother Spying on Americans' Internet Data?
2007-11-07, ABC News
http://abcnews.go.com/Politics/Story?id=3833172

According to a former AT&T employee, the government has warrantless access to a great deal of Internet traffic should they care to take a peek. As information is traded between users it flows also into a locked, secret room on the sixth floor of AT&T's San Francisco offices and other rooms around the country -- where the U.S. government can sift through and find the information it wants, former AT&T employee Mark Klein alleged Wednesday at a press conference on Capitol Hill. "An exact copy of all Internet traffic that flowed through critical AT&T cables -- e-mails, documents, pictures, Web browsing, voice-over-Internet phone conversations, everything -- was being diverted to equipment inside the secret room," he said. Klein ... said that as an AT&T technician overseeing Internet operations in San Francisco, he helped maintain optical splitters that diverted data en route to and from AT&T customers. One day he found that the splitters were hard-wired into a secret room on the sixth floor. Documents he obtained [from] AT&T showed that highly sophisticated data mining equipment was kept there. Conversations he had with other technicians and the AT&T documents led Klein to believe there are 15 to 20 such sites nationwide, including in Seattle, Los Angeles, San Jose, San Diego and Atlanta, he said. Brian Reid, a former Stanford electrical engineering professor who appeared with Klein, said the NSA would logically collect phone and Internet data simultaneously because of the way fiber optic cables are intertwined. He said ... the system described by Klein suggests a "wholesale, dragnet surveillance." Of the major telecom companies, only Qwest is known to have rejected government requests for access to data. Former Qwest CEO Joseph Nacchio, appealing an insider trading conviction last month, said the government was seeking access to data even before Sept. 11.




Panel: Kids Shouldn't Use Cold Medicines
2007-10-20, San Francisco Chronicle/Associated Press
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/10/18/national/w000553D...

The medicines long used by parents to treat their children's coughs and colds don't work and shouldn't be used in those younger than 6, federal health advisers recommended. "The data that we have now is they don't seem to work," said Sean Hennessy, a University of Pennsylvania epidemiologist. The recommendation applies to medicines containing one or more of the following ingredients: decongestants, antihistamines and antitussives. In two separate votes ... the panelists said the medicines shouldn't be used in children younger than 2 or in those younger than 6. A third vote, to recommend against use in children 6 to 11, failed. The panel's advice dovetails with a petition filed by pediatricians that argued the over-the-counter medicines shouldn't be given to children younger than 6, an age group they called the most vulnerable to potential ill effects. The American Academy of Pediatrics and other groups back the petition. But FDA officials and panelists agreed there's no evidence they work in older children, either. Still, panelists held off from recommending against use in those 6 and older. And some said they feared such a prohibition wouldn't eliminate use of the medicines by parents. "They will administer adult products to their children because they work for them or feel they work for them," said the panel's patient and family representative, Amy Celento of Nutley, N.J. Some of the drugs — which include Wyeth's Dimetapp and Robitussin, Johnson & Johnson's Pediacare and Novartis AG's Triaminic products — have never been tested in children, something flagged as long ago as 1972 by a previous FDA panel. An FDA review found just 11 studies of children published over the last half-century. Those studies did not establish that the medicines worked in those cases, according to the agency.

Note: For a powerful exposé of corporate and government corruption in the health industry, click here.




U.S. Cites ‘Secrets’ Privilege to Stop Suit on Banking Records
2007-08-31, New York Times
http://www.nytimes.com/2007/08/31/us/nationalspecial3/31swift.html?ex=1346212...

The Bush administration ... plans to turn again to a legal tool, the “state secrets” privilege, to try to stop a suit against a Belgian banking cooperative [known as Swift] that secretly supplied millions of private financial records to the United States government. The “state secrets” privilege, allowing the government to shut down litigation on national security grounds, was once rarely used. The Bush administration has turned to it more than 30 times, seeking to end public discussion of cases like the claims of an F.B.I. whistle-blower and the abduction of a German terrorism suspect. Most notably, the administration has sought to use the privilege to kill numerous suits against telecommunications carriers over the National Security Agency’s eavesdropping program. Swift is considered the nerve center of the global banking industry, routing trillions of dollars each day among banks, brokerage houses and other financial institutions. Its partnership with Washington ... gave Central Intelligence Agency and Treasury Department officials access to millions of records on international banking transactions. Months after the Sept. 11, 2001, attacks, Swift began turning over large chunks of its database in response to a series of unusually broad subpoenas from the Treasury Department. Two American banking customers ... sued Swift on invasion-of-privacy grounds. [Steven E. Schwarz, the lawyer for the plaintiffs, said the Swift program] “is an Orwellian example of government overreaching and unfettered access to private financial information that is not consistent with the values upon which our country was founded. We’ve seen a real erosion of the ‘state secrets’ privilege in the last year. I think it is from overuse. We’ve seen it used in record numbers, in situations where it was inappropriate, and the courts are starting to recognize that.”




Bird flu vaccine recommended
2007-02-28, Los Angeles Times
http://www.latimes.com/news/nationworld/nation/la-sci-birdflu28feb28,1,454874...

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

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




2 Ex-Enron Traders Get Probation
2007-02-14, CBS News/Associated Press
http://www.cbsnews.com/stories/2007/02/14/business/main2479660.shtml

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.




Protesters challenge the powerful at exclusive California retreat
2006-07-22, San Francisco Chronicle
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2006/07/22/state/n163157D01.DTL

Hundreds of protesters gathered outside an exclusive California retreat for government and business leaders Saturday to challenge the right of a "ruling elite" to make policy decisions without public scrutiny. The annual Bohemian Grove retreat has attracted powerful men such as Ronald Reagan, George Bush, former Secretary of State Henry Kissinger, philanthropist David Rockefeller, former West German Chancellor Helmut Schmidt and former House Speaker Newt Gingrich. It's also become a magnet for all types of activists who increasingly use the event to network and organize their campaigns. The men who attend the Bohemian Grove retreat spend two weeks performing plays, eating gourmet camp grub, listening to speakers and power-bonding at the 2,700-acre compound near the Russian River in Sonoma County. The retreat is organized by the exclusive San Francisco-based Bohemian Club. The club and event are shrouded in mystery, much like Yale University's most-famous secret society, Skull and Bones, whose members include President George W. Bush and his presidential rival Sen. John Kerry.

Note: For an informative five-minute ABC news clip on the power elite gathering Bohemian Grove reported in 1981, click here. And for reliable information on the most secretive meeting of the world's elite reported by the major media, see our Bilderberg Group compilation available here.




Selling Sickness to the Well
2005-08-02, MSNBC News
http://www.msnbc.msn.com/id/8789159/site/newsweek/

A new book looks at how pharmaceutical companies are using aggressive marketing campaigns to turn more people into patients. In their new book, “Selling Sickness: How the World’s Biggest Pharmaceutical Companies Are Turning Us All Into Patients”, Ray Moynihan and Alan Cassels examine how the drug industry has transformed the way we think about physical and mental health and turned more and more of us each year into customers. Moynihan...a regular contributor to the British Medical Journal [discusses] how -- and why -- drug makers have begun targeting people who aren’t sick. The so-called preventives are where the big money are: like the bone-density drugs or the cholesterol [-lowering] drugs. Increasingly we’re seeing the marketing shift to those types of drugs. People talk about the "worried well." There are many ways in which the drug companies target those people. There’s an informal alliance between the drug companies and aspects of the medical profession and aspects of the patient advocacy world who all seem to have interests in defining more and more people as ill. Americans make up less than 5 percent of the world’s population but the U.S. makes up...half of total spending on drugs.




US regulator suppresses vital data on prescription drugs on sale in Britain
2005-06-12, The Independent (One of the UK's leading newspapers)
http://news.independent.co.uk/uk/health_medical/story.jsp?story=646243

Despite calls for more transparency after revelations about the side effects of ibuprofen, the FDA has withheld 28 pages of information on a new wave of painkillers. Vital data on prescription medicines found in millions of British homes has been suppressed by the powerful US drug regulators, even though the information could potentially save lives. An investigation by The Independent on Sunday shows that, under pressure from the pharmaceutical industry, the American Food and Drug Administration routinely conceals information it considers commercially sensitive, leaving medical specialists unable to assess the true risks. Dr Peter Juni, one of the team of Swiss investigators who helped to expose the risk of the new-generation drugs, claims his efforts were obstructed by the FDA. "Too often the FDA saw and continues to see the pharmaceutical industry as its customers, a vital source of funding for its activities, and not as a sector of society in need of strong regulation."




Fighting for the future of food
2004-11-07, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/11/07/LVG709K7MV1.DTL

"Just about everybody is pretty serious about their chow," says Deborah Koons Garcia, enjoying the understatement. No matter how serious they are, though, Garcia knows most people don't realize that genetically engineered foods have quietly slipped into much of the American food supply, mostly from corn and canola. They're in an estimated 60 percent of all processed foods. "We are at a crossroads," says Garcia. She's spent the last three years ... making "The Future of Food," a documentary about GMO (genetically modified organism) foods. "Someone needed to make this film, because if this technology isn't challenged and if this corporatization of our whole food system isn't stopped, at some point it will be too late," says Garcia. "It became clear that GMOs are really a much bigger issue ... And it was really clear that there hadn't been a really good film that told the whole story from the cellular, from the microscopic level, all the way up to the global," Garcia says. Her 90-minute documentary ... expresses a strong point of view against letting new life forms loose on the land without long-term testing of the health effects and real government controls, especially labeling of foods. Garcia threads a clear path through the history, science and politics of GMO foods to a clear call for action.

Note: To view this highly educational film, which may encourage you to change your eating habits, click here.




Schwarzenegger electricity plan fuels fears of another debacle
2003-10-11, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/10/11/MN20927.DTL

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/10/11/MN20927.DTL

Gov.-elect Arnold Schwarzenegger is preparing a push to deregulate the state's electricity markets -- a move embraced by business leaders and some energy analysts but criticized by many Democrats and consumer advocates as a return to the failed policies that sparked California's energy crisis. "Deregulation has already cost the state $50 billion, give or take," said Mike Florio, senior attorney for The Utility Reform Network. "Why on earth anyone would want to do that again is mystifying to us." Florio also said he was suspicious of Schwarzenegger's idea because former Enron Corp. Chairman and CEO Ken Lay met with the actor and others in the spring of 2001, when Lay was pushing deregulation in California. Schwarzenegger has said he doesn't remember details of the meeting.

Note: What was Schwarzenegger doing meeting with the CEO of Enron well over two years before the recall vote which gave him the governorship of California? Could it be big business had plans for him?




U.S. Advised Iraqi Ministry on Oil Deals
2008-06-30, New York Times
http://www.nytimes.com/2008/06/30/world/middleeast/30contract.html?partner=rs...

A group of American advisers led by a small State Department team played an integral part in drawing up contracts between the Iraqi government and five major Western oil companies to develop some of the largest fields in Iraq, American officials say. The disclosure, coming on the eve of the contracts’ announcement, is the first confirmation of direct involvement by the Bush administration in deals to open Iraq’s oil to commercial development and is likely to stoke criticism. In their role as advisers to the Iraqi Oil Ministry, American government lawyers and private-sector consultants provided template contracts and detailed suggestions on drafting the contracts, advisers and a senior State Department official said. At a time of spiraling oil prices, the no-bid contracts, in a country with some of the world’s largest untapped fields and potential for vast profits, are a rare prize to the industry. The contracts are expected to be awarded Monday to Exxon Mobil, Shell, BP, Total and Chevron, as well as to several smaller oil companies. The deals have been criticized by opponents of the Iraq war, who accuse the Bush administration of working behind the scenes to ensure Western access to Iraqi oil fields even as most other oil-exporting countries have been sharply limiting the roles of international oil companies in development. Though enriched by high prices, the companies are starved for new oil fields. American military officials say the pipelines [in Iraq] now have excess capacity, waiting for output to increase at the fields.

Note: For many revealing reports from reliable sources on the real reasons behind the war in Iraq, click here.




The Business of Intelligence Gathering
2008-06-15, New York Times
http://www.nytimes.com/2008/06/15/business/15shelf.html?partner=rssuserland&e...

America is ruled by an “intelligence-industrial complex” whose allegiance is not to the taxpaying public but to a cabal of private-sector contractors. That is the central thesis of Spies for Hire: The Secret World of Intelligence Outsourcing by Tim Shorrock, ... an investigative journalist. His book [provides a] disturbing overview of the intelligence community, also known as “the I.C.” Mr. Shorrock says our government is outsourcing 70 percent of its intelligence budget, or more than $42 billion a year, to a “secret army” of corporate vendors. Because of accelerated privatization efforts after 9/11, these companies are participating in covert operations and intelligence-gathering activities that were considered “inherently governmental” functions reserved for agencies like the Central Intelligence Agency, he says. Some of the book’s most intriguing assertions concern the permeating influence of the consulting firm Booz Allen Hamilton. In 2006, Mr. Shorrock reports, Booz Allen amassed $3.7 billion in revenue, much of which came from classified government contracts exempt from public oversight. Among its more than 18,000 employees are R. James Woolsey, the former C.I.A. director, and Joan Dempsey, a former longtime United States intelligence official who declared in a 2004 speech, “I like to refer to Booz Allen as the shadow I.C.” The “revolving door” between Booz Allen and the I.C. is personified by Mike McConnell, who joined the firm after serving as head of the National Security Agency under President Bill Clinton, only to return as director of national intelligence under President Bush.

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




Monsanto’s Harvest of Fear
2008-05-01, Vanity Fair magazine
http://www.vanityfair.com/politics/features/2008/05/monsanto200805

Gary Rinehart clearly remembers the summer day in 2002 when the stranger walked in and issued his threat. Rinehart was behind the counter of the Square Deal, his “old-time country store,” as he calls it, on the fading town square of Eagleville, Missouri, a tiny farm community 100 miles north of Kansas City. As Rinehart would recall, the man began verbally attacking him, saying he had proof that Rinehart had planted Monsanto’s genetically modified (G.M.) soybeans in violation of the company’s patent. Better come clean and settle with Monsanto, Rinehart says the man told him—or face the consequences. But Rinehart wasn’t a farmer. He wasn’t a seed dealer. He hadn’t planted any seeds or sold any seeds. He owned a small—a really small—country store in a town of 350 people. On the way out the man kept making threats. Rinehart says he can’t remember the exact words, but they were to the effect of: “Monsanto is big. You can’t win. We will get you. You will pay.” Scenes like this are playing out in many parts of rural America these days as Monsanto goes after farmers, farmers’ co-ops, seed dealers—anyone it suspects may have infringed its patents of genetically modified seeds. As interviews and reams of court documents reveal, Monsanto relies on a shadowy army of private investigators and agents in the American heartland to strike fear into farm country. They fan out into fields and farm towns, where they secretly videotape and photograph farmers, store owners, and co-ops; infiltrate community meetings; and gather information from informants about farming activities. Farmers say that some Monsanto agents pretend to be surveyors. Others confront farmers on their land and try to pressure them to sign papers giving Monsanto access to their private records.

Note: For a revealing summary on the health impacts of genetically modified food, click here.




Congress Examines Role Of Industry in Regulation
2008-04-27, Washington Post
http://www.washingtonpost.com/wp-dyn/content/story/2008/04/26/ST2008042602242...

Despite more than 100 published studies by government scientists and university laboratories that have raised health concerns about a chemical compound that is central to the multibillion-dollar plastics industry, the Food and Drug Administration has deemed it safe largely because of two studies, both funded by an industry trade group. The compound, bisphenol A (BPA), has been linked to breast and prostate cancer, behavioral disorders and reproductive health problems in laboratory animals. The FDA's position on the compound was called into question earlier this month when a National Institutes of Health panel issued a draft report linking BPA to health concerns. As part of his investigation, Rep. John D. Dingell (D-Mich.), chairman of the House Energy and Commerce Committee, wants to examine the role played by the Weinberg Group, a Washington firm that employs scientists, lawyers and public relations specialists to defend products from legal and regulatory action. The firm has worked on Agent Orange, tobacco and Teflon, among other products linked to health hazards, and congressional investigators say it was hired by Sunoco, a BPA manufacturer. From 1997 to 2005, 116 studies of the compound were published, many of them focused on its effects in low doses. Of those funded by government, 90 percent showed a health effect linked to BPA. None of the industry-funded studies found an effect; all of them said BPA is safe. There is a clear bias in studies funded by industry, said [David] Michaels, who ... runs the Project on Scientific Knowledge and Public Policy at George Washington University and wrote the book Doubt is Their Product, which details how various industries have used science to stave off regulation.

Note: For many powerful reports on corporate corruption, click here.




Colorado Proposes Tough Law on Executive Accountability
2008-04-01, New York Times
http://www.nytimes.com/2008/04/01/business/01fraud.html?ex=1364702400&en=6a78...

For 30 years, Lew Ellingson loved being a telephone man. His job splicing phone cables was one that he says gave him “a true sense of accomplishment,” first for Northwestern Bell, then US West and finally Qwest Communications International. But by the time Mr. Ellingson retired from Qwest last year at 52, he had grown angry. An insider trading scandal had damaged the company’s reputation, and the life savings of former colleagues had evaporated in the face of Qwest’s stock troubles. “It was a good place,” he said wistfully. “And then something like this happened.” Now, Mr. Ellingson is the public face of a proposed ballot measure in Colorado that seeks to create what supporters hope will be the nation’s toughest corporate fraud law. Buttressed by local advocacy groups and criticized by a Colorado business organization, the measure would make business executives criminally responsible if their companies run afoul of the law. It would also permit any Colorado resident to sue the executives under such circumstances. Proceeds from successful suits would go to the state. If passed by voters in November, the proposal would leave top business officers [with] unprecedented individual accountability, said Mr. Ellingson. “If nothing else, these folks in charge of the corporations and companies will think twice about cutting corners to make themselves look more profitable than they really are,” he said. The plight of Mr. Ellingson’s former employer, Qwest, based in Denver, was a motivation for the proposal. Last April, a jury in Denver convicted Qwest’s former chief executive, Joseph P. Nacchio, of 19 of 42 counts of insider trading. Mr. Nacchio was sentenced to six years in prison and ordered to pay a fine of $19 million and forfeit $52 million in money he earned from stock sales in 2001.

Note: As reported in the Washington Post, Joseph P. Nacchio, the former Qwest CEO, has claimed that he was singled out for prosecution because he refused to cooperate with the National Security Agency's electronic surveillance of American citizens, which began before 9/11.




Companies Seeking Immunity Donate to Senator
2007-10-23, New York Times
http://www.nytimes.com/2007/10/23/washington/23nsa.html?ex=1350792000&en=f9b3...

Executives at the two biggest phone companies contributed more than $42,000 in political donations to Senator John D. Rockefeller IV this year while seeking his support for legal immunity for businesses participating in National Security Agency eavesdropping. The surge in contributions came from a Who’s Who of executives at the companies, AT&T and Verizon, starting with the chief executives and including at least 50 executives and lawyers at the two utilities, according to campaign finance reports. The money came primarily from a fund-raiser that Verizon held for Mr. Rockefeller in March in New York and another that AT&T sponsored for him in May in San Antonio. Mr. Rockefeller, chairman of the Senate Intelligence Committee, [has emerged] as the most important supporter of immunity in [the Senate]. Mr. Rockefeller’s office said ... that the sharp increases in contributions from the telecommunications executives had no influence on his support for the immunity provision. “Any suggestion that Senator Rockefeller would make policy decisions based on campaign contributions is patently false,” Wendy Morigi, a spokeswoman for him, said. AT&T and Verizon have been lobbying hard to insulate themselves from suits over their reported roles in the security agency program by gaining legal immunity from Congress. The effort included meetings with Mr. Rockefeller and other members of the intelligence panels. Mr. Rockefeller received little in the way of contributions from AT&T or Verizon executives before this year, reporting $4,050 from 2002 through 2006. From last March to June, he collected a total of $42,850 from executives at the two companies. The increase was first reported by the online journal Wired, using data compiled by the Web site OpenSecrets.org. [Telecommunications] industry executives have given significant contributions to a number of other Washington politicians, including two presidential contenders, Senators Hillary Rodham Clinton and John McCain.




State Department Use of Contractors Leaps in 4 Years
2007-10-19, New York Times
http://www.nytimes.com/2007/10/24/washington/24contractor.html?ex=1350878400&...

Over the past four years, the amount of money the State Department pays to private security and law enforcement contractors has soared to nearly $4 billion a year from $1 billion, ... but ... the department had added few new officials to oversee the contracts. Auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished. A vast majority of the money goes to companies like DynCorp International and Blackwater [Worldwide] to protect diplomats overseas, train foreign police forces and assist in drug eradication programs. There are only 17 contract compliance officers at the State Department’s management bureau overseeing spending of the billions of dollars on these programs, officials said. Two new reports have delivered harsh judgments about the State Department’s handling of the contracts, including the protective services contract that employs Blackwater guards whose involvement in a Sept. 16 shooting in Baghdad has raised questions about their role in guarding American diplomats in Iraq. The ballooning budget for outside contracts at the State Department is emblematic of a broader trend, contracting experts say. The Bush administration has doubled the amount of government money going to all types of contractors to $400 billion, creating a new and thriving class of post-9/11 corporations carrying out delicate work for the government. But the number of government employees issuing, managing and auditing contracts has barely grown. “That’s a criticism that’s true of not just State but of almost every agency,” said Jody Freeman, an expert on administrative law at Harvard Law School.




An Opportunity for Wall St. in China’s Surveillance Boom
2007-09-07, New York Times
http://www.nytimes.com/2007/09/11/business/worldbusiness/11security.html?ex=1...

Li Runsen, the powerful technology director of China’s ministry of public security, is best known for leading Project Golden Shield, China’s intensive effort to strengthen police control over the Internet. But last month Mr. Li took an additional title: director for China Security and Surveillance Technology, a fast-growing company that installs and sometimes operates surveillance systems for Chinese police agencies, jails and banks, among other customers. The company has just been approved for a listing on the New York Stock Exchange. The company’s listing and Mr. Li’s membership on its board are just the latest signs of ever-closer ties among Wall Street, surveillance companies and the Chinese government’s security apparatus. Wall Street analysts now follow the growth of companies that install surveillance systems providing Chinese police stations with 24-hour video feeds from nearby Internet cafes. Hedge fund money from the United States has paid for the development of not just better video cameras, but face-recognition software and even newer behavior-recognition software designed to spot the beginnings of a street protest and notify police. Executives of Chinese surveillance companies say they are helping their government reduce street crime, preserve social stability and prevent terrorism. They note that London has a more sophisticated surveillance system, although the Chinese system will soon be far more extensive. Wall Street executives also defend the industry as necessary to keep the peace at a time of rapid change in China. They point out that New York has begun experimenting with surveillance cameras in Lower Manhattan and other areas of the city.





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