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Government Corruption News Stories
Excerpts of Key Government Corruption News Stories in Major Media


Below are highly revealing excerpts of important government corruption news stories reported in the media that suggest a major cover-up. Links are provided to the full stories on their major media websites. If any link fails to function, read this webpage. These government corruption news stories are listed by date posted to this webpage. You can explore the same articles listed by order of importance or by article date. By choosing to educate ourselves on these important issues and to spread the word, we can and will build a brighter future.

Note: This comprehensive list of government corruption news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.


The Girls Next Door
2004-01-25, New York Times
Posted: 2015-11-15 21:48:23
http://www.nytimes.com/2004/01/25/magazine/the-girls-next-door.html

The United States has become a major importer of sex slaves. Between 18,000 and 20,000 people are trafficked annually into the United States. How many of these are victims of sex traffickers? Kevin Bales, president of Free the Slaves, America's largest anti-slavery organization, says ... at least 10,000 a year. John Miller, the State Department's director of the Office to Monitor and Combat Trafficking in Persons, conceded: "That figure could be low. What we know is that the number is huge." Bales estimates that there are 30,000 to 50,000 sex slaves in captivity in the United States at any given time. Sex-trafficking victims widely believe that if they talk, they or someone they love will be killed. And their fear is not unfounded. The trafficking rings reach back into the girls' hometowns, and local law enforcement is often complicit in the sex trade. In a series of excruciating conversations, Andrea explained to me how the trafficking ring that kept her worked. Girls were shuttled in open cars between the Plainfield, N.J., stash house and other locations in northern New Jersey. Andrea named trading hubs at highway rest stops in Deming, N.M.; Kingman, Ariz.; Boulder City, Nev.; and Glendale, Calif. The operating assumption among American police departments is that women who sell their bodies do so by choice, and undocumented foreign women who sell their bodies are not only prostitutes (that is, voluntary sex workers) but also trespassers on U.S. soil.

Note: The vast majority of child sex slaves in the US are American kids. International sex trafficking is a $99 billion industry. Watch an excellent segment by Australia's "60-Minutes" team titled "Spies, Lords and Predators" on a pedophile ring in the UK which leads directly to the highest levels of government. A second suppressed documentary, "Conspiracy of Silence," goes even deeper into this sad subject.


Bush-Era NSA Whistleblower Makes Most Explosive Allegations Yet About Extent of Gov’t Surveillance — and You Won’t Believe Who He Says They Spied On
2013-06-20, The Blaze
Posted: 2015-11-15 21:45:19
http://www.theblaze.com/stories/2013/06/20/bush-era-nsa-whistleblower-makes-m...

Russ Tice, a former intelligence analyst and Bush-era NSA whistleblower, claimed Wednesday that the intelligence community has ordered surveillance on a wide range of groups and individuals, including high-ranking military officials, lawmakers and diplomats. “They went after – and I know this because I had my hands literally on the paperwork for these sort of things – they went after high-ranking military officers. They went after members of Congress, both Senate and the House, especially on the intelligence committees and on the armed services committees," [said] Tice. “But they went after other ones, too. They went after lawyers and law firms. They went after judges. One of the judges is now sitting on the Supreme Court. Two are former FISA court judges. They went after State Department officials. They went after people in the executive service that were part of the White House.” Then Tice dropped the bombshell about Obama. "In summer of 2004, one of the papers that I held in my hand was to wiretap a bunch of numbers associated with a 40-something-year-old wannabe senator for Illinois ... that’s the president of the United States now.” FBI whistleblower Sibel Edmonds and Tice agreed that such wide-ranging surveillance of officials could provide the intelligence agencies with unthinkable power to blackmail their opponents. “I was worried that the intelligence community now has sway over what is going on,” Tice said. Tice first blew the whistle on ... domestic spying across multiple agencies in 2005.

Note: Listen to Tice's shocking revelations in this interview. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and throughout intelligence agencies.


Reagan Advisers Ran 'Secret' Government
1987-07-05, Miami Herald
Posted: 2015-11-15 21:42:37
http://nl.newsbank.com/nl-search/we/Archives?p_product=MH&p_theme=mh&p_action...

Some of President Reagan’s top advisers have operated a virtual parallel government outside the traditional Cabinet departments and agencies almost from the day Reagan took office, congressional investigators and administration officials have concluded. Investigators believe that the advisers’ activities extended well beyond the secret arms sales to Iran and aid to the contras now under investigation. Lt. Col. Oliver North, for example, helped draw up a controversial plan to suspend the Constitution in the event of a national crisis, such as nuclear war, violent and widespread internal dissent or national opposition to a U.S. military invasion abroad. The advisers conducted their activities through secret contacts throughout the government with persons who acted at their direction but did not officially report to them. The activities of those contacts were coordinated by the National Security Council, the officials and investigators said. There appears to have been no formal directive for the advisers’ activities, which knowledgeable sources described as a parallel government. In a secret assessment of the activities, the lead counsel for the Senate Iran-contra committee called it a “secret government-within-a-government.” The arrangement permitted Reagan administration officials to claim that they were not involved in controversial or illegal activities, the officials said. “It was the ultimate plausible deniability,” said a well-briefed official who has served the Reagan administration since 1982 and who often collaborated on covert assistance to the Nicaraguan contras.

Note: See a downloaded copy of this article and the amazing full text. A recent Boston Globe article suggests that US national security policy continues to be made by concealed, unaccountable institutions within a corrupt government.


Arbitration Everywhere, Stacking the Deck of Justice
2015-10-31, New York Times
Posted: 2015-11-08 20:54:07
http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-st...

On Page 5 of a credit card contract used by American Express ... is a clause that most customers probably miss. If cardholders have a problem with their account, American Express explains, the company “may elect to resolve any claim by individual arbitration.” Those nine words are at the center of a far-reaching power play orchestrated by American corporations. By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices. It has become increasingly difficult to apply for a credit card, use a cellphone, get cable or Internet service, or shop online without agreeing to private arbitration. The same applies to getting a job, renting a car or placing a relative in a nursing home. By banning class actions, companies have essentially disabled consumer challenges to ... predatory lending, wage theft and discrimination. “This is among the most profound shifts in our legal history,” William G. Young, a federal judge ... said in an interview. “Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.” Thousands of cases brought by single plaintiffs over fraud, wrongful death and rape are now being decided behind closed doors. And the rules of arbitration largely favor companies.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in financial industry and throughout the corporate world.


Broken system lets problem officers jump from job to job
2015-11-03, Chicago Tribune/Associated Press
Posted: 2015-11-08 20:51:26
http://www.chicagotribune.com/news/nationworld/ct-police-officer-sexual-misco...

A yearlong Associated Press investigation into sex abuse by cops, jail guards, deputies and other state law enforcement officials uncovered a broken system for policing bad officers, with significant flaws in how agencies deal with those suspected of sexual misconduct and glaring warning signs that go unreported or get overlooked. The AP examination found about 1,000 officers in six years who lost their licenses because of sex crimes that included rape, or sexual misconduct ranging from propositioning citizens to consensual but prohibited on-duty intercourse. That number fails to reflect the breadth of the problem, however, because it measures only officers who faced an official process called decertification and not all states have such a system or provided records. In states that do revoke law enforcement licenses, the process can take years, enabling problem officers to find other jobs. And while there is a national index of decertified officers [containing] the names of nearly 20,000 officers who have lost their licenses for problems that include sex abuse ... contributing is voluntary, and only 39 states do so. Michael Ragusa - now serving a 10-year prison sentence after being convicted of sexually assaulting three women - admitted during the hiring process with the Miami Police Department that he'd solicited a prostitute, committed theft, sold stolen property and abused a relative. The investigator in charge of his background check had himself been disciplined 26 times and was once arrested for falsifying documents.

Note: The article above describes many heart-wrenching examples of how government corruption can foster and abet sexual abuse. Watch an excellent segment by Australia's "60-Minutes" team titled "Spies, Lords and Predators" on a pedophile ring in the UK which leads directly to the highest levels of government. A second suppressed documentary, "Conspiracy of Silence," goes even deeper into this sad subject.


CDC Scientist Admits Data of Vaccines and Autism Was Trashed
2015-10-29, CBS Atlanta/TruthInMedia.com (A leading media watchdog)
Posted: 2015-11-08 20:49:16
http://truthinmedia.com/reality-check-cdc-scientist-admits-data-of-vaccines-a...

Over 100 protesters gathered outside of the Centers for Disease Control offices in Atlanta demanding transparency when it comes to vaccines. [They] say that the information being provided to the public about vaccines isn’t honest. On August 27, 2014 [CDC scientist Dr. William Thompson] made an admission that got very little media coverage. But it was a major statement. That statement read in part, “I regret that my co-authors and I omitted statistically significant information in our 2004 article published in the journal Pediatrics. “The omitted data suggested that African American males who received the MMR (mumps, measles and rubella) vaccine before age 36 months were at increased risk for autism. Decisions were made regarding the findings ... and I believe that the final study protocol was not followed.” Thompson ... hired a whistleblower attorney and turned over documents to Congress. As many as 100,000 documents were turned over. Congressman [Bill] Posey brought this information to the floor of Congress and what he read there was stunning - that authors of the study not only hid the actual findings, but also attempted to destroy evidence [by throwing it] into a trash can. What you might not know is that all vaccines in all quantities for all people are not safe. Every year hundreds of children are injured by vaccines, and since 1986 the United States Government has paid out $3 billion to the vaccine injury compensation program. Raise even one question about why that is, and you’ll get pushback.

Note: Strangely, CBS 46 in Atlanta appears to have removed this from their website. You can see a video of the CBS broadcast at this link. Read further commentary on this important topic in an article by Robert F. Kennedy, Jr. For more along these lines, see concise summaries of deeply revealing vaccine controversy news articles from reliable major media sources.


US overtakes Caymans and Singapore as haven for assets of super-rich
2015-11-02, The Guardian (One of the UK's leading newspapers)
Posted: 2015-11-08 20:44:42
http://www.theguardian.com/politics/2015/nov/02/united-states-overtakes-cayma...

The US has overtaken Singapore, Luxembourg and the Cayman Islands as an attractive haven for super-rich individuals and businesses looking to shelter assets behind a veil of secrecy, according to a study by the Tax Justice Network (TJN). The US is ranked third, behind Switzerland and Hong Kong, in the financial secrecy index, produced every two years by TJN. But the study noted that if Britain and its affiliated tax havens such as Jersey were treated as one unit it would top the list. “Though the US has been a pioneer in defending itself from foreign secrecy jurisdictions it provides little information in return to other countries, making it a formidable, harmful and irresponsible secrecy jurisdiction,” the TJN report said. The scale of hidden offshore wealth around the world is difficult to assess. The economist Gabriel Zucman has put it at $7.6tn, while the TJN’s James Henry, a former chief economist at consultancy McKinsey, estimated three years ago it could be more than $21tn. The US states of Delaware, Wyoming and Nevada have for decades been operating as onshore secrecy havens, specialising in setting up shell companies catering to overseas individuals and companies seeking to hide assets. “The US has not seriously addressed its own role in attracting illicit financial flows and supporting tax evasion,” the TJN report found. Like the US, Britain too remains a central player in the vast financial secrecy industry despite championing corporate transparency on the international stage.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.


Why Can't We End Mass Incarceration?
2015-10-26, Rolling Stone
Posted: 2015-11-08 20:40:02
http://www.rollingstone.com/politics/news/why-cant-we-end-mass-incarceration-...

The U.S. federal-prison population swelled from 24,000 prisoners in 1980 to 219,000 in 2013. And federal prisons are just the tip of the iceberg — factor in state prisons and local jails, and there are 2.2 million people locked up in this country. The U.S. Sentencing Commission ... is charged with setting and adjusting the detailed schedule of penalties for those convicted of federal crimes. In April 2014, the commission approved a reduction in sentences for certain drug crimes going forward. In his final months in office, President Obama has focused more on the need for criminal-justice reform. He has used the executive power of clemency to commute some of the most egregiously unfair sentences of 89 federal drug convicts. But a handful of pardons don't amount to much when there are hundreds of thousands of federal prisoners. Nearly half of federal inmates are serving time for drug crimes. Of those, 60 percent were subject to mandatory minimums when they were sentenced. Stephanie George was a 26-year-old mother of three when she was convicted on drug-conspiracy charges because the man she was dating had kept drugs and money in her house. Under the federal three-strikes-and-you're-out law, she was sentenced to life in prison. George was locked up nearly 18 years before Obama commuted her sentence. One of her sons died shortly before her release. She says she doesn't think most politicians consider the costs a mandatory-minimum sentence brings.

Note: For more along these lines, see concise summaries of deeply revealing prison system corruption news articles from reliable major media sources.


Robert Fisk on Saudi Prince busted with 40 suitcases of drugs at Beirut airport
2015-10-30, CBC (Canada's public broadcasting system)
Posted: 2015-11-08 20:38:00
http://www.cbc.ca/radio/asithappens/as-it-happens-thursday-edition-1.3294404/...

Earlier this week, Saudi Prince Abdul Mohsen bin Walid bin Abdul Aziz al-Saud was arrested in Lebanon. According to reports, the prince and four other Saudis were attempting to fly out of the Beirut airport in a private jet - chock full of drugs. "Apparently most of it was called Captagon ... a kind of amphetamine," [said Robert Fisk], Middle East correspondent for the Independent newspaper. He says that a customs guard at Beirut airport became suspicious when the prince showed up with 40 suitcases. Fisk explains, "So he said, 'You put the baggage through the x-ray machine,' and the Saudi said, 'No, no, I have a diplomatic passport,' and he said, 'You have a diplomatic passport but the baggage does not have diplomatic clearance." The prince was immediately detained. "The photographs which have been leaked out, show boxes, very large boxes with the Saudi royal coat of arms on the front which is a bit unfortunate," Fisk quips. "I think what's actually happening is that the Lebanese do not want to embarrass the Saudis." According to Fisk, the story has already disappeared from the papers and it is still unclear where the drugs were intended to be delivered. "This after all, is a state that chops off the heads of drug traffickers usually from poor countries like Pakistan or Sri Lanka," Fisk adds. "They certainly don't want too much publicity when a Prince is suddenly found possessing all this stuff and trying to cheat his way through the airport."

Note: Despite being caught red-handed in what may be Lebanon's biggest drug bust ever, Fisk believes this royal prince will escape punishment. Remember Saudi Arabia is run by the royal family. How many other governments are secretly involved in drug running? Reports from 25-year veteran of the DEA turned best-selling author and journalist Michael Levine point towards a troubling answer.


Vatican Arrests 2 in Connection With Leaked Documents
2015-11-02, New York Times
Posted: 2015-11-08 20:32:01
http://www.nytimes.com/2015/11/03/world/europe/vatican-arrests-leaked-documen...

The Vatican announced Monday that two members of a commission set up by Pope Francis to study financial operations at the Holy See had been arrested on suspicion of leaking confidential documents to journalists. The arrests came days before the publication of two books - “Avarizia,” or “Avarice,” by Emiliano Fittipaldi, and “Merchants in the Temple,” by Gianluigi Nuzzi. Both books claim to offer glimpses of the turmoil surrounding Francis as he pursues his reforms of Vatican finances, the operations of the Curia and the Vatican bank. Those institutions had long been plagued by scandal and corruption that contributed to the resignation in 2013 of Francis’ predecessor, Pope Benedict XVI, the first pope to step down in nearly 600 years. Divulging confidential documents has been considered a crime in the Vatican since July 2013, after the leak of a cache of Vatican documents ... which Mr. Nuzzi published. Besides reporting on the church’s vast financial holdings, Mr. Fittipaldi said he had also discovered that money given to the church for the poor was used for other purposes. Mr. Nuzzi’s book ... suggests that the Vatican’s finances were in such chaos that Benedict had no choice but to resign. “I am certainly surprised that the Vatican responds to the imminent publication of a book with handcuffs,” Mr. Nuzzi said ... particularly “when handcuffs aren’t used to stop the thieves in the Vatican.”

Note: In 2012, leaked documents revealed that the Vatican Bank was used for money laundering. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.


EVOLUTION IN EUROPE; Italy Discloses Its Web Of Cold War Guerrillas
1990-11-16, New York Times
Posted: 2015-11-08 20:29:16
http://www.nytimes.com/1990/11/16/world/evolution-in-europe-italy-discloses-i...

A clandestine operation code-named Gladio [was] created decades ago to arm and train resistance fighters in case the Soviet Union and its Warsaw Pact allies invaded. There have been disclosures of similar organizations in virtually all Western European countries. Gladio ... was originally an Italian creation [that] evolved into a branch of an extensive network, operated within NATO and abetted by a 1956 agreement between the United States and Italian secret services. 622 Italians belonged to the operation - civilians who were trained by intelligence operatives. Germany, France, Belgium, the Netherlands, Greece and Luxembourg have all acknowledged that they maintained Gladio-style networks to prepare guerrilla fighters to leap into action. Similar programs have also existed in Britain, Norway, Portugal, Spain, Austria, Turkey and Denmark, and even in neutral countries like Switzerland and Sweden. These would-be fighters had stockpiles of weapons and explosives. In [Italy], secret arms deposits were dismantled as far back as 1972 but ... the secret services could not find 12 of them. Their disappearance has fueled speculation here that the weapons ended up in terrorist hands. Some of the underground "gladiators," as they have been dubbed, had close links to neo-Fascist groups and to intelligence organizations. New "gladiators" are still recruited. The major unsolved acts of terrorism that rocked Italy in the 1970's are all presumed to be the work of people on the far right. Left-wing terrorists like the moribund Red Brigades somehow were caught and imprisoned.

Note: Following WWII, the US government actively recruited and protected former nazis. For an abundance of excellent, reliable information on Operation Gladio and its ongoing operations, read the excellent chapter on this in Lifting the Veil. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and throughout intelligence agencies.


Spy vs. Spy: Inside the Fraying U.S.-Israel Ties
2015-10-23, Wall Street Journal
Posted: 2015-11-01 21:22:31
http://www.wsj.com/articles/spy-vs-spy-inside-the-fraying-u-s-israel-ties-144...

The U.S. closely monitored Israel’s military bases and eavesdropped on secret communications in 2012, fearing its longtime ally might try to carry out a strike on Fordow, Iran’s most heavily fortified nuclear facility. Nerves frayed at the White House after senior officials learned Israeli aircraft had flown in and out of Iran in what some believed was a dry run for a commando raid on the site. Worried that Israel might ignite a regional war, the White House sent a second aircraft carrier to the region and readied attack aircraft, a senior U.S. official said, “in case all hell broke loose.” The two countries, nursing a mutual distrust, each had something to hide. Instead of talking to each other, the allies kept their intentions secret. To figure out what they weren’t being told, they turned to their spy agencies to fill gaps. They employed deception, not only against Iran, but against each other. After working in concert for nearly a decade to keep Iran from an atomic bomb, the U.S. and Israel split over the best means: diplomacy, covert action or military strikes. In 2010, the risk of covert action became clear. A computer virus dubbed Stuxnet, deployed jointly by the U.S. and Israel to destroy Iranian centrifuges ... had inadvertently spread across the Internet. The Israelis wanted to launch cyberattacks against a range of Iranian institutions, according to U.S. officials. But the breach made Mr. Obama more cautious, officials said, for fear of triggering Iranian retaliation, or damaging the global economy if a virus spread uncontrollably.

Note: This article is also available at this link. When the Stuxnet computer virus got loose, it began attacking European companies. For more along these lines, see concise summaries of deeply revealing intelligence agency corruption news articles from reliable major media sources.


Saudi prince held after seizure of two tons of amphetamines at Beirut airport
2015-10-26, The Telegraph (One of the UK's leading newspapers)
Posted: 2015-11-01 21:20:13
http://www.telegraph.co.uk/news/worldnews/middleeast/lebanon/11955937/Saudi-p...

A Saudi prince has been detained at Beirut airport in Lebanon after two tons of an amphetamine drug popular with Syrian rebels was found on a private jet. Prince Abdel Mohsen Bin Walid Bin Abdulaziz and four other men were held after what was described as the biggest ever drugs bust at the city’s main Rafik Hariri International Airport. They were allegedly "attempting to smuggle about two tons of Captagon pills and some cocaine", a security source was quoted as saying. Captagon is a brand name for the widely used amphetamine phenethylline. Although this type of amphetamine has been prescribed in the past to treat childhood and other behavioural disorders, it is now used overwhelmingly as a stimulant in the Middle East. It has long been banned in the West. It is the drug of choice for front-line fighters on both sides in the Syrian war. It is unclear where the pills allegedly found in Beirut were ultimately to be sold, although the plane was said to be heading back to Saudi Arabia. That would fit one of the more unexpected side-effects noted of the Syrian war – the country’s growing role as an exporter of illegal drugs. There have been reports that Syrian suppliers to both sides of the conflict have become so successful in manufacturing Captagon that it is now an export product, smuggled through Lebanon to a broader Middle East market. The drugs were stuffed into 40 suitcases, according to reports.

Note: So the Saudi royals are caught red-handed in possibly Lebanon's biggest drug bust ever. Remember Saudi Arabia is run by the royal family. How many other governments are secretly involved in drug running? Reports from 25-year veteran of the DEA turned best-selling author and journalist Michael Levine point towards a troubling answer. Read this report to learn more about how Saudi crimes are covered up by powerful forces and why this prince will be freed.


Why putting bank bosses behind bars is still nigh on impossible
2015-05-23, The Guardian (One of the UK's leading newspapers)
Posted: 2015-11-01 21:14:16
http://www.theguardian.com/business/2015/may/23/putting-bankers-in-jail-nigh-...

Since the 2008 banking crisis led to multibillion-pound bailouts, some bankers have ended up behind bars. However, to many, the list seems short when compared with the $235bn of fines that Reuters calculates have been imposed on 20 major banks in the past seven years for market rigging, sanctions busting, money laundering and mis-selling mortgage bonds in the runup to the 2008 crisis. Robert Jenkins, a former Bank of England policymaker [says] one reason regulators backed away from proceedings against individuals is fear. This dates back to 2002, when accountancy firm Arthur Andersen was convicted of destroying documents related to its audits of Enron. The prosecution was overturned in 2005, too late to save what had been one of the world’s biggest accountants from collapse. There was, Jenkins said, “fear by the US authorities of a banking version of Arthur Andersen at a time of financial fragility”. But he lists other problems, [such as] lobbying by bankers and the naivete of regulators. Jenkins added the banks should ... face the threat of being broken up: “When it comes to the systematic wrongdoing on their watch, either the senior executives knew, did not know or cannot be expected to know. If they knew they are complicit. If they did not know they are incompetent. And if the banks are so large and complex that they cannot be expected to know, then they are a walking argument for breaking up the banks.”

Note: After the bailout in 2008, the percentage of US banking assets held by the big banks has almost doubled. Could this possibly have been planned? For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.


Powerful admiral punishes suspected whistleblowers, still gets promotion
2015-10-21, Washington Post
Posted: 2015-11-01 21:06:54
https://www.washingtonpost.com/world/national-security/powerful-admiral-punis...

The Navy is poised to promote the admiral in charge of its elite SEAL teams and other commando units even though Pentagon investigators determined that he illegally retaliated against staff members who he mistakenly suspected were whistleblowers. Rear Adm. Brian L. Losey was investigated five times by the Defense Department’s inspector general after subordinates complained that he had wrongly fired, demoted or punished them during a vengeful but fruitless hunt for the person who had anonymously reported him for a minor travel-policy infraction. After conducting separate, years-long investigations that involved more than 100 witnesses and 300,000 pages of e-mails, the inspector general upheld complaints from three of the five staff members. In each of those cases, it recommended that the Navy take action against Losey for violating whistleblower-protection laws, the documents show. The Navy, however, dismissed the findings this month and decided not to discipline Losey. He now leads the Naval Special Warfare Command. The previously undisclosed investigations into one of the Navy’s top SEALs underscore the weakness of the military’s whistleblower-protection law and how rarely violators are punished. Of the 1,196 whistleblower­cases closed by the Defense Department during the 12 months ending March 31, only 3 percent were upheld by investigators. The complaints against Losey also illustrate the Pentagon’s long-standing reluctance to discipline top brass for wrongdoing and how the military typically conceals misconduct investigations from public view.

Note: For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.


Ex-Goldman Banker and Fed Employee Will Plead Guilty in Document Leak
2015-10-26, New York Times
Posted: 2015-11-01 21:05:03
http://www.nytimes.com/2015/10/27/business/dealbook/criminal-charges-and-50-m...

A former Goldman Sachs banker suspected of taking confidential documents from a source inside the government has agreed to plead guilty, a rare criminal action on Wall Street, where Goldman itself is facing an array of regulatory penalties over the leak. The banker and his source, who at the time of the leak was an employee at the Federal Reserve Bank of New York, one of Goldman’s regulators, will accept a plea deal from federal prosecutors that could send them to prison for up to a year. Under a tentative deal ... Goldman would pay a fine of $50 million. For Goldman and the New York Fed, the case is likely to give new life to an embarrassing episode that illustrated the blurred lines between their institutions. Perhaps more than any other bank, Goldman swaps employees with the government, earning it the nickname “Government Sachs.” While the so-called revolving door is common on Wall Street, the investigation [affirms] the public’s concerns that regulators and bankers, when intermingled, occasionally form unholy alliances. The Goldman banker, Rohit Bansal, previously spent seven years as a regulator at the New York Fed.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.


Goldman pays $50M fine for Fed data leak
2015-10-28, USA Today
Posted: 2015-11-01 21:02:49
http://www.usatoday.com/story/money/business/2015/10/28/goldman-pays-50m-fine...

According to the New York Department of Financial Services, a banking regulator, Goldman hired Rohit Bansal from the Federal Reserve Bank of New York in May 2014, "in large part for the regulatory experience and knowledge he had gained while working at the New York Fed." Goldman hired Bansal despite the fact that he had been forced to resign from the Fed for breaking the rules there. Once at Goldman, Bansal was instructed to work on a bank that he had supervised while at the Fed, despite explicit prohibitions against him doing so, NYDFS said. Bansal later used confidential information, some of which he obtained from his prior employment at the NY Fed and some of which he obtained from from a former NY Fed colleague, in his work on the bank. To resolve the matter, Goldman has agreed to pay $50 million and accept a three-year "voluntary abstention" from accepting new consulting engagements of NYDFS regulated entities. Goldman also agreed to admit that a former employee engaged in the criminal theft of confidential information and that Goldman management "failed to effectively supervise its employee to prevent this theft from occurring," NYDFS said. In September 2014, for example, Bansal attended the birthday dinner of a former Fed colleague at Peter Luger's. Immediately after the dinner, Bansal emailed his boss at Goldman "divulging confidential information concerning the regulated entity, specifically, the relevant component of the upcoming examination rating," NYDFS said.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.


Congress insiders: Above the law?
2011-11-11, CBS News
Posted: 2015-11-01 20:59:27
http://www.cbsnews.com/news/congress-insiders-above-the-law/

The same insider trading that can land a regular citizen in jail is perfectly legal for members of Congress. Steve Kroft reports on how America's lawmakers can legally make tidy profits on information only they know, simply because they won't pass a law against themselves. Among the revelations in Kroft's report: Members of Congress have bought stock in companies while laws that could affect those companies were being debated in the House or Senate. At least one representative made significant stock purchases the day after he and other members of Congress attended a secret meeting in September 2008, where the Fed chair and the treasury secretary informed them of the imminent global economic meltdown. The meeting was so confidential that cell phones and other digital devices were confiscated before it began. Efforts to make such insider trading off limits to Washington's lawmakers have never been able to get traction. Former Rep. Brian Baird says he spent half of his 12 years in Congress trying to get co-sponsors for a bill that would ban insider trading in Congress and also set some rules up to govern conflicts of interest. In 2004, he and Rep. Louise Slaughter introduced the "Stock Act" to stop the insider trading. How far did they get? "We didn't get anywhere. Just flat died," he tells Kroft.

Note: To better understand how the US Congress protects itself in insider trading, read this NPR article and this one from the Intercept.


WikiLeaks: US Should Retaliate Against EU for Genetically Modified Resistance
2010-12-20, Huffington Post
Posted: 2015-11-01 20:57:51
http://www.huffingtonpost.com/jeffrey-smith/wikileaks-us-should-retal_b_79927...

WikiLeaked cables released over the weekend revealed more about the US' role as a global bully. In a 2007 cable from Craig Stapleton, then US Ambassador to France, he encouraged the US government to "reinforce our negotiating position with the EU on agricultural biotechnology by publishing a retaliation list." A list, he added, that "causes some pain across the EU since this is a collective responsibility." The stated reason for their attack was that "Europe is moving backwards not forwards" on GMOs, with "France playing a leading role, along with Austria, Italy and even the [EU] Commission." The Ambassador was concerned that France and others would put a ban on the cultivation of Monsanto's GM corn seeds. According to the cable, the Ambassador ... was also upset about France's draft biotech law that "would make farmers and seed companies legally liable for pollen drift." This concept that the "polluter pays" is a foundational principle of US law - except for GMOs. Offering consumers a choice on GMOs is not on the US government agenda. Stapleton's tone in the letter was insistent. "We should not be prepared to cede on cultivation because of our considerable planting seed business in Europe." He said, "Moving to retaliation will make clear that the current path has real costs to EU interests and could help strengthen European pro-biotech voices."

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Is Money Corrupting Research?
2015-10-09, New York Times
Posted: 2015-10-25 21:38:08
http://www.nytimes.com/2015/10/10/opinion/is-money-corrupting-research.html?_r=0

The integrity of research and expert opinions in Washington came into question last week, prompting the resignation of Robert Litan, an economist, from his position as a nonresident fellow at the Brookings Institution. Senator Elizabeth Warren raised the issue of a conflict of interest in Mr. Litan’s testimony before a Senate committee. The testimony was based on a paper Mr. Litan had prepared for the Capital Group, a mutual fund company. Mr. Litan disclosed that the Capital Group, which has a stake in the debate, had funded his paper, but he did not disclose that it had also commissioned it. At stake is the integrity of the research process and the trust the nation puts in experts, who advise governments and testify in Congress. Had [Litan's] conclusions not pleased the Capital Group, it would probably have found a more compliant expert. And the reputation of not being “cooperative” would have haunted Mr. Litan’s career as a consultant. The practice of bending an opinion for money is so widespread as to be the norm. By shedding light on how funding of research can affect its content, Senator Warren increased the reputational penalty for experts who bend to special interests. But we need two more changes. Congressional testimony and policy papers should be posted online at least two weeks in advance of a hearing and open for comments. And all expert witnesses should be disclosed to the public, with a time delay if needed for confidentiality.

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