|Frederic Zalac, Alex Shprintsen, Zach Dubinsky and Harvey Cashore||May 22nd 2013|
Lawyer Tony Merchant, Canada’s “class action king,” sought secrecy for Cook Islands trust. A prominent Canadian lawyer, husband to a Liberal senator, moved CA$1.7 million (US$1.1 million) to secretive financial havens while he was locked in battle with the Canada Revenue Agency over his taxes, according to documents in a massive leak of offshore financial data.
Tony Merchant of Saskatchewan, dubbed Canada's class-action king because of the large settlements he has won for his clients, transferred the money to a tax haven in the South Pacific and then onward to an account in the Caribbean, according to the files. His wife, Canadian Senator Pana Merchant, and their three sons were named in the documents as beneficiaries of the funds.
The transactions are detailed in a leak of offshore financial information obtained by the Washington, D.C.-based International Consortium of Investigative Journalists. The data covered more than 120,000 offshore companies and private trusts in the Cook Islands and other offshore havens. The Merchants are among the more than 400 Canadians whose names are included in the secret records. Tony Merchant didn’t reply to several requests from CBC News to discuss the matter. Read more ..
Azerbaijan on Edge
|Stefan Candea||May 22nd 2013|
Members of Azerbaijan’s first family have had been shareholders in at least four offshore companies, newly revealed records show.
A corporate mogul whose business empire has won building contracts worth billions of dollars amid Azerbaijani President Ilham Aliyev’s massive construction spree is tied to the president’s family through secretive offshore companies.
The businessman, Hassan Gozal, is the director of three British Virgin Islands (BVI) companies set up in 2008 in the name of the president’s daughters, according to secret documents obtained by the International Consortium of Investigative Journalists. The daughters were 19 and 23 years old at the time. The documents obtained by ICIJ also show that the president and his wife, Mehriban, a member of Parliament, acquired their own BVI company in 2003, Rosamund International Ltd. Read more ..
Mongolia on Edge
|Gerard Ryle and Nicky Hager||May 21st 2013|
Deputy speaker of Mongolia’s Parliament admits he had $1 million Swiss account. One of Mongolia’s most senior politicians says he is considering resigning from office after being confronted with evidence that he has an offshore company and a secret Swiss bank account.
“I shouldn’t have opened that account,” Bayartsogt Sangajav, Mongolia’s deputy speaker of Parliament, told the International Consortium of Investigative Journalists (ICIJ).
“I don’t worry about my reputation. I worry about my family,” he said after ICIJ asked him about records revealing his offshore holdings. “I probably should consider resigning from my position.” Bayartsogt, who says his Swiss account at one point contained more than $1 million, became his country’s finance minister in September 2008, a position he held until a cabinet reshuffle in August 2012. Read more ..
|Michael Beckel||May 17th 2013|
Center for Public Integrity
When Ed Sheehy looked at his mail one day last fall, he was startled to see his face staring back at him, posed alongside the notorious “Christmas Day Killer.” Sheehy, as a public defender, had represented the man a year earlier. Now Sheehy was running for a seat on the Montana Supreme Court and someone was using the double-murder to accuse him of being soft on crime.
“I was furious,” the 60-year-old Sheehy, who was born in Butte, Mont., and now resides in Missoula, told the Center for Public Integrity. “It was misrepresenting what I did and what I do as a lawyer.” So who was behind the attack?
The mailer showed only that it was paid for by the “Montana Growth Network,” a “social welfare” nonprofit, registered under Section 501(c)(4) of the U.S. tax code. Montana election records revealed next to nothing about the organization, which, because of its tax status, is not required to disclose its donors. The nonprofit’s website says its goal is to make Montana “more business friendly.” Read more ..
The War on Terror
|Matthew Leavitt||May 17th 2013|
|Wassim el Abd Fadel in Paraguayan custody.|
In December 2012, Paraguayan authorities detained Wassim el Abd Fadel, a suspected Hezbollah member with Paraguayan citizenship, and charged him with human trafficking, money laundering, and narco-trafficking. International authorities had connected Fadel to Nelida Raquel Cardozo Taboada, a Paraguayan national arrested in France the same month with 1.1 kilograms of cocaine in her stomach. Cardozo Taboada had claimed that Fadel and his wife hired her as a drug mule, prompting an Interpol investigation into Fadel’s finances.
According to Paraguayan police, Fadel deposited the proceeds of narco-trafficking and pirated music and movies into Turkish and Syrian bank accounts linked to Hezbollah.The Fadel arrest cast new light, and fresh international attention, on a long-running phenomenon. Read more ..
|Marina Walker Guevara & Emilia Díaz-Struck||May 15th 2013|
Francisco Illarramendi often called on Moris Beracha when he needed an infusion of cash.
The Venezuelan-born Illarramendi was a manager of a Connecticut-based investment advisory firm. Beracha was a Venezuelan financier close to the Hugo Chavez government who, a lawsuit against him claims, could produce multi-million-dollar advances of cash with relative ease — for the right price. On Nov. 2, 2007, Beracha emailed Illarramendi instructions to deposit more than $10 million — Beracha’s share of profits from a transaction — into three HSBC bank accounts in Switzerland, via an HSBC account in New York. “Dude, I am your biggest producer hahahahaha,” Beracha wrote in Spanish before he sent the message off to Illarramendi. Read more ..
Greece on Edge
|Harry Karanikas and Marina Walker Guevara ||May 15th 2013|
Greek citizens who own or direct offshore companies in the British Virgin Islands and other tax havens rarely declare them to Greek tax officials, an International Consortium of Investigative Journalists' review of more than 100 companies shows. Just four out of 107 offshore companies investigated by ICIJ are registered with tax authorities as the law usually requires, particularly when the firms hold assets or conduct business in Greece.
Officials apparently have no record of the other 103 firms — or whether the owners declared any assets held by these entities or paid taxes on them. After learning about ICIJ's findings, the Greek Finance Ministry said it would examine the data and determine whether there's any evidence of improper or illegal conduct by owners of offshore companies. The companies’ owners are a surprising cross-section of Greek society, from the richest districts in Athens to remote northern villages. They include retail executives, shipping magnates and middle-class families. What these people have in common is that they are connected to offshore companies that appear to operate under the radar of tax authorities at a time when endemic tax evasion is fueling a financial crisis that has devastated Greece’s economy and threatened the future of the Euro. Read more ..
|Christoph Heinzle, Lena Guertler, Mareike Fuchs, Bastian Brinkmann and Christoph Giesen||May 11th 2013|
Germany’s largest financial institution, Deutsche Bank, helped its customers maintain more than 300 secretive offshore companies and trusts through its Singapore branch, an investigation by German newspaper Sueddeutsche Zeitung, German public broadcaster NDR and the International Consortium of Investigative Journalists has found.
More than 100 customer consultants at Deutsche Bank Singapore helped create or manage 309 offshore entities for its customers in the British Virgin Islands and other tax havens, according to secret records obtained by the news organizations. Most of the companies carry fantasy names like “Thrilling Returns Incorporated,” “Amazing Opportunity Limited” or “Market Dollar Group Limited.” Public sources don’t show any business activities for most of these companies. Read more ..
France on Edge
|Anne Michel and Raphaelle Bacque||May 5th 2013|
Jean-Jacques Augier says that his actions were fully legal and attributes his participation in these schemes to his “adventurous nature”.
French president François Hollande faces more embarrassment after it emerged that a close friend and treasurer for his presidential election campaign invested in offshore businesses in the Cayman Islands. The revelation comes at the worse possible time, as France is reeling from the Budget Minister Cahuzac scandal.
The name of 59-year-old Jean-Jacques Augier, a businessman and an unobtrusive figure on the French publishing scene who was François Hollande’s treasurer during the 2012 presidential campaign, features in documents obtained by the International Consortium of Investigative Journalists (ICIJ) and seen by Le Monde. These show that he has shares in two offshore firms in the Cayman Islands through his financial holding company Eurane. Read more ..
|Michael Hudson, Stefan Candea and Marina and Walker Guevara||May 5th 2013|
British Virgin Islands firm kept doing business with shady characters even as regulators prodded it to obey anti-money-laundering laws.
The tangled trail of the Magnitsky Affair, a case that’s strained U.S.-Russian relations and blocked American adoptions of Russian orphans, snakes through an offshore haven in the Caribbean.
The death of Moscow tax attorney Sergei Magnitsky sparked international outrage. It also fueled a push to unravel secret deals that had prompted him to claim that gangsters and government insiders had stolen $230 million from Russia’s treasury.
Magnitsky and other private attorneys investigating the affair on behalf of a major hedge fund followed a path from Russia to bank accounts in Switzerland and luxury properties in Dubai — ending up at a small firm based in the British Virgin Islands that specializes in setting up offshore companies for clients who want to remain in the shadows. Read more ..
|Roel Landingin||May 4th 2013|
Philippine government officials said Friday that they will look into a media organization’s disclosure that the eldest daughter of the late dictator Ferdinand Marcos was a beneficiary of a secret offshore trust in the British Virgin Islands.
Maria Imelda Marcos Manotoc, more popularly known as Imee Marcos, did not report her offshore trust on asset disclosure statements that she’s required to file every year as a public official, according to a story released Thursday by the International Consortium of Investigative Journalists and the Philippine Center for Investigative Journalism.
She has been governor of Ilocos Norte province, her father’s traditional political bailiwick, since 2010, and was a member of the Philippine’s House of Representatives from 1998 to 2007.
“We are duty bound to investigate and, depending upon informed preliminary findings, decide whether to pursue the matter,” Andres Bautista, the chairman of the Presidential Commission on Good Government, told Agent France-Presse. The commission is tasked with recovering the Marcos family’s alleged ill-gotten wealth. Read more ..
|Bastian Obermayer, Frederik Obermaier and Titus Plattner||April 29th 2013|
He's known as Brigitte Bardot’s husband, photographer, director, art collector. Now another aspect has come to light: a man who set up an intricate offshore scheme to manage his vast fortune, a scheme that remained inscrutable to the fiscal authorities until the end.
The hand that governs everything must remain invisible. It certainly must not sign anything. That is why Hanswerner Schwenk, a private secretary in his 50s, sets off for the Pacific island of Rarotonga.
Meanwhile, the man behind the scenes can relax: in London, Paris or St. Tropez, on one of his many estates. His name must not appear in any official document, for such is the nature of an anonymous enterprise. Otherwise one would not need to bother with all the hassle, after all: the South Seas, the lawyers and all that secretiveness.
It is a strenuous trip for Schwenk, who lives in Munich. Rarotonga is situated about halfway between New Zealand and Hawaii, and it takes him more than 40 hours to get there from Germany. At least his local partner, the International Trust Corporation Ltd., has arranged for a hotel and a rental car. Hanswerner Schwenk’s mission: confirm with his signature that the share issue of the recently founded company Triton Ltd. proceeded in a lawful way. Read more ..
|Anne Michel||April 27th 2013|
The “Offshore Leaks” files published around the world on April 4 show that, from the late 1990s until the end of the 2000s, two major French banks, BNP Paribas and Crédit Agricole, oversaw the creation of a large number of totally opaque offshore companies in the British Virgin Islands, Samoa and Singapore for clients in search of secrecy and lower tax rates.
These are the findings unearthed by the International Consortium of Investigative Journalists (ICIJ), which has been researching the story for over a year. According to these secret documents, BNP Paribas channels operations through its Singapore and Hong Kong subsidiaries, whereas Crédit Agricole relies on its Geneva-based Swiss subsidiary.
Both banks have set up companies through their Asian subsidiaries with the help of Portcullis TrustNet, a service provider that specializes in offshore business and turnkey companies (the famous “quick” companies that can be incorporated within 48 hours) for rich clients claiming to be domiciled in Asia and concealed by nominees. Read more ..
|Duncan Campbell and Craig Shaw||April 25th 2013|
Jailed British property developer Scot Young, an associate of Russian oligarch Boris Berezovsky, constructed a secret network of offshore companies to hold his assets during a multimillion-pound divorce battle, according to the International Consortium of Investigative Journalists (ICIJ's) research.
His story graphically demonstrates the way hideaways such as the British Virgin Islands (BVI) can be used by a man bent on cheating the law.
Young, 51, described as a fixer for the super-rich, rose suddenly from working-class origins in Dundee to occupy a $21 million Oxfordshire mansion and to throw his money about in spectacular fashion. He once bought his then wife, Michelle, a Range-Rover filled to the roof with couture dresses. For her 40th birthday, he gave her a $1.5 million necklace. Read more ..
The Defense Edge
|Richard H.P. Sia||April 24th 2013|
Center for Public Integrity
The Pentagon allowed a private firm providing food and water to U.S. troops in Afghanistan to overbill taxpayers $757 million and awarded the company no-bid contract extensions worth more than $4 billion over three years, according to the Pentagon’s chief internal watchdog and congressional investigators.
The deal represented one of the largest U.S. military contracts in Afghanistan. But the Defense Logistics Agency, which was overseeing the contract, failed repeatedly to verify that the contractor’s invoices were accurate, an official in the Defense Department inspector general’s office said. "This has to be one of the prime poster childs for a government contract spun out of control," Rep. John Mica, R-Fla., said last week.
Mica and other members of the House Oversight and Governmental Reform Subcommittee on National Security expressed outrage at a hearing last week about the Pentagon’s handling of the deal, especially two contract extensions awarded amid a dispute between the government and the company over as much as $1 billion. Read more ..
|Gerard Ryle and Stefan Candea||April 23rd 2013|
On November 14, 2006, a man going by the name Paul William Hampel was arrested at a Canadian airport on charges of being a Russian spy. Hampel’s carefully constructed identity portrayed him as a successful businessman, yet for a decade his company did no business.
Only months before his capture, the same apparatus used to create his alias was also employed by a very different spy agency - the U.S. Central Intelligence Agency —to build a secret prison in Lithuania, where U.S. agents interrogated suspected al-Qaeda terrorists.
Earlier again, it was used by the regime of former Iraqi dictator Saddam Hussein to cheat the Oil for Food program.
All three deceptions employed a common subterfuge: far-flung corporate entities used as anonymous fronts, with “executives” who lacked knowledge of what the firms were up to. The activities of these so-called nominee directors are a little noticed part of the world of secretive offshore finance that’s grown so vast that it touches more than 170 of the globe’s 206 countries, but it’s one that’s often drenched in intrigue. Read more ..
|Aisila Razak, Kuek Ser Kuang Keng, Wong TeckChi, and Steven Gan||April 18th 2013|
Key members of the Malaysian government, their families, and well-heeled associates are among those owning secretive offshore companies in Singapore and the British Virgin Islands, according to a cache of leaked documents.
They include former prime minister Mahathir Mohamad's son Mirzan, Federal Territories and Urban Well-Being Minister Raja Nong Chik Zainal Abidin and Michael Chia, the alleged ‘bagman' for Sabah Chief Minister Musa Aman.
The files, which were obtained by the Washington-based International Consortium of Investigative Journalists (ICIJ) and examined by Malaysiakini, show more than 1,500 Malaysians owning offshore companies in Singapore – dubbed as the new Switzerland – as well as the British Virgin Islands (BVI), an international tax haven. The ICIJ list comprises a curious mix of Forbes-listed tycoons, parliamentarians, retired politicians, civil servants and their spouses, members of royal families, famous and infamous businesspeople, underworld kingpins and even former beauty queens. Read more ..
|Aamir Latif and Marina Walker Guevara||April 17th 2013|
The scandal-buffeted heir to one of Pakistan’s most powerful political dynasties, the Chaudhry family, owned a secret company in the British Virgin Islands he created with the help of Swiss bank UBS, according to documents obtained by the International Consortium of Investigative Journalists.
Moonis Elahi, son of Chaudhry Pervaiz Elahi, who has just stepped down as deputy prime minister, was the sole shareholder in an offshore company called Olive Grove Assets Ltd, created in 2006 in the British Virgin Islands according to corporate records reviewed by ICIJ. In 2008 Moonis Elahi won a seat in the Punjab Provincial Assembly.
Elahi was swept up in scandal in 2011 when government prosecutors accused him of obtaining illegal payments in an alleged land scam involving the government-owned National Insurance Company Limited (NICL). Read more ..
|Nicky Hager||April 17th 2013|
The story of Portcullis TrustNet and its birthplace — the Cook Islands — is in many ways the story of the offshore system itself.
It’s a largely invisible world, a curious blend of the parochial and the global that’s made up of the minor personalities and politics inside each offshore jurisdiction — many with populations no larger than a small town.
But by establishing special zones, these tiny provinces have changed the face of international finance and business and impacted law enforcement, tax policies and political and economic transparency across the planet. Read more ..
|Anne Michel and Emily Menkes||April 16th 2013|
International Consortium of Investigative Journalists
Baron Elie de Rothschild, the guardian of the French branch of the famed Rothschild banking dynasty, built an offshore empire in the palm-fringed Cook Islands between 1996 and 2003. Rothschild, a businessman and arts patron who died in 2007 at the age of 90, constructed a complex network of offshore trusts and front companies, according to secret documents obtained by the International Consortium of Investigative Journalists (ICIJ) and reviewed by Le Monde. The complex nature of the financial arrangements in the Pacific islands and their near-total secrecy made it difficult to identify his hand in the offshore entities. The internal documents reveal at least 20 trusts and 10 holding companies were set up for Rothschild in the Cook Islands, an independent territory in the South Pacific with close ties to New Zealand. The trusts have typically opaque names, Anon Trust, followed by the Benon Trust (apparently set up by Rothschild’s daughter Nelly) and Denon Trust, being notable examples. Read more ..
|Titus Plattner, Catherine Boss and François Pilet ||April 16th 2013|
International Consortium of Investigative Journalists
Little did Zurich-based lawyer Peter Hafter imagine how things would turn out when he ordered a $2,700 offshore kit to create a front company in the Cook Islands on September 13, 1993. Twenty years on from that day, the fax he sent, the ensuing emails and all his business correspondence with Portcullis TrustNet in Rarotonga, the largest island in the archipelago, have been copied and passed on to journalists around the world. Nor did the lawyer imagine that the internal revenue service would then reopen the case of one of his clients, and yet that is precisely what the spokesperson for the tax authorities in Berne, Yvonne von Kauffungen, announced on Thursday. This announcement was triggered by the publication of a preview based on our investigations into two decades of correspondence between Portcullis TrustNet and Peter Hafter. Matin Dimanche and SonntagsZeitung have reviewed hundreds of pages of confidential documents that are part of a cache of 2.5 million files obtained by the International Consortium of Investigative Journalists – probably the largest set of confidential financial data ever disclosed to the media. Read more ..
|Nicky Hager||April 15th 2013|
Nine of Indonesia’s 11 richest families have found shelter in tropical tax havens, holding ownership of more than 190 offshore trusts and companies, secret records obtained by the International Consortium of Investigative Journalists show.
The nine families, worth an estimated $36 billion among them, are at the top of a wealthy class that dominates Indonesia’s politics and economy. Six were closely tied to the late dictator Suharto, who helped a special circle of Indonesians grow rich during his 31-year rule by granting economic fiefdoms to family and friends. The billionaires are among nearly 2,500 Indonesians found in the files of Singapore-headquartered offshore services provider Portcullis TrustNet, which ICIJ has been analyzing and began reporting on last week. Read more ..
|Scott Hingham, Michael Hudson, and Maria Walker Guevara||April 12th 2013|
A New York hedge fund manager allegedly swindles $12 million from a prominent Baltimore family. An Indiana couple is accused of bilking hundreds of customers by charging for free trials of cosmetic products. A financial manager in Texas promises 23-percent returns but absconds with $33.5 million of his investors’ money in a classic Ponzi scheme.
All three cases have one thing in common: money that ended up in offshore accounts and trusts set up in tax havens around the world.
The existence of the trusts surfaced during a joint examination of the offshore world by The Washington Post and the International Consortium of Investigative Journalists, a D.C-based nonprofit news organization. ICIJ obtained 2.5 million records of more than 120,000 companies and trusts created by two offshore companies, Commonwealth Trust Ltd. (CTL) in the British Virgin Islands and Portcullis TrustNet, which operates mostly in Asia and the Cook Islands, a South Pacific nation. The records were obtained by Gerard Ryle, ICIJ’s director, as a result of an investigation he conducted in Australia. Read more ..
|Joop Bouma and Martijn Roessingh||April 11th 2013|
The Dutch banks ING and ABN Amro registered dozens of companies for their clients in offshore refuges with lovely beaches and low tax rates such as the British Virgin Islands, the Cook Islands and the Malaysian island of Labuan, an investigation by Dutch newspaper Trouw and the International Consortium of Investigative Journalists has found.
Trouw found the information in leaked documents and emails from two companies — Singapore-based Portcullis TrustNet and British Virgin Islands-based Commonwealth Trust Limited — that specialize in helping customers set up and manage companies in offshore centers known as havens for individuals who want to reduce their taxes. ING and ABN Amro said they have never been party to tax evasion. “The companies were set up for international clients and always in compliance with local and international laws,” ABN Amro said in a statement. Read more ..
Foreign nationals seeking to enter the United States illegally have been known to avoid Border Patrol screening procedures by surreptitiously crossing into areas between these ports of entry, including Indian reservations, many of which have been vulnerable to illicit cross-border threat activity, such as drug smuggling, according to the Department of Homeland Security officials in a report released on Friday. The Government Accountability Office was requested by U.S. lawmakers to investigate DHS's efforts to coordinate border security activities on Indian reservations. In complying with Congress' request, GAO researchers examined DHS's efforts to coordinate with tribal governments to address border security threats and vulnerabilities on Indian reservations. GAO investigators reported that they interviewed DHS officials at headquarters and conducted interviews with eight tribes, selected based on factors such as proximity to the border, and the corresponding DHS field offices that have a role in border security for these Indian reservations. While GAO cannot generalize its results from these interviews to all Indian reservations and field offices along the border, they provide examples of border security coordination issues. Read more ..
|Ronnie Greene||March 19th 2013|
Center for Public Integrity
A Department of Energy loan program, infused with $25 billion to spur a wave of fuel-efficient vehicles, has not closed a loan in two years and is likely to leave two-thirds of the money unspent amid fallout over the Solyndra debacle and other factors.
Those findings, revealed Friday in a U.S. Government Accountability Office report, rekindle questions over how effectively the Energy Department picks winners and losers for its lucrative green energy portfolio.
The audit focuses on DOE loan programs, including one known as ATVM — the Advanced Technology Vehicles Manufacturing program.
That program was pitched as part of a broader government campaign to spur innovative, clean technologies that would both rev up the economy and clean the environment. Under ATVM, the government would help bankroll electric cars and other fuel-saving initiatives; this seed money would, in turn, trigger a domino effect for industry and consumers.
Yet the last loan closed in March 2011, and just $8.4 billion has been spent so far in five projects. Read more ..
The Toxic Edge
|David Heath & Ronnie Greene||February 13th 2013|
The Center for Public Integrity
In September 2010, scientists at the Environmental Protection Agency came to a startling conclusion: Even a small amount of a chemical compound commonly found in tap water may cause cancer.
The compound, hexavalent chromium, gained infamy in the Oscar-winning film Erin Brockovich, based on the David-vs.-Goliath legal duel between desert dwellers in Hinkley, Calif., and Pacific Gas & Electric Co. The film ends in Hollywood fashion, with the corporate polluter paying $333 million to people suffering from illnesses.
But in real life, the drama continues. More than 70 million Americans drink traces of chromium every day, according to the Environmental Working Group, a nonprofit research organization. And now, more than a decade after the film, EPA scientists cite “clear evidence” that the chemical compound, also known as chromium (VI), can cause cancer. The federal agency was poised to announce its findings in 2011, a step almost certain to trigger stricter drinking-water standards to prevent new cancers and deaths. Read more ..
|Rachel Ehrenfeld||January 12th 2013|
Economic Warfare Institute
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Under Obama’s administration, the U.S. Agency for International Development, or USAID, bears little resemblance to the international aid agency that President John F. Kennedy initiated on Nov. 3, 1961. USAID’s stated goal was to further “America’s foreign policy interests in expanding democracy and free markets while also extending a helping hand to people struggling to make a better life, recover from a disaster or striving to live in a free and democratic country.”
However, upon issuing the first USAID loan guarantee of $1.15 million to an Islamic bank in Indonesia in August 2011, the agency’s blog justified the move, stating: “The finance guarantee agreement builds on President Obama’s speech in Cairo, which called for deeper engagement with the Muslim world.”
The development of Islamic banking was made possible by Malaysia. A recent Economist article, “Banking on the ummah,” reviewed the country’s Islamic banking industry and pointed out the lack of standardized regulations and transparency. But the piece ignored the country’s role in implementing the Muslim Brotherhood’s larger agenda to create a “parallel economy“ by first infiltrating and co-opting the Western economy.
The Battle for Syria
|Zach Pontz||January 9th 2013|
As fears surfaced that Syria could use chemical weapons against rebels and citizens in the country, Israel led the charge to halt the decisive action.
According to a report in the New York Times, in late November top Israeli commanders alerted the Pentagon to intelligence picked up by satellite that suggested Syrian troops were mixing chemicals at two storage sites, probably the deadly nerve gas sarin, and filling dozens of 500-pounds bombs that could be loaded on airplanes.
Soon after U.S. President Obama was informed, and officials told him that were the Syrians to use the weapons the U.S. might not be able to stop them. According to the Times, what followed next was a “a remarkable show of international cooperation” in which both opponents and supporters of Bashar al-Assad, such as China and Russia, pressed Syria to halt whatever steps towards the use of chemical weapons the country might have been taking. Read more ..
|Kristen Lombardi||January 8th 2013|
Center for Public Integrity
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Notre Dame’s high-profile re-emergence among college football’s elite has focused new attention on the university’s long-standing claims that it does things “the right way” — that football players are treated like anyone else on campus, with no special favors.
The boasts of lofty moral standards have long struck other schools’ fans as a bit sanctimonious. But they are getting fresh scrutiny now, in part because the bright lights of college football’s biggest stage have brought renewed attention to a two-year-old case involving a Notre Dame player and chilling allegations of sexual assault.
In August 2010, 19-year-old freshman Lizzy Seeberg accused the athlete of sexually assaulting her in his dorm. She filed a report with campus police, which sat on it for two weeks before even interviewing him. By then, Seeberg had committed suicide. Administrators would later convene a closed-door campus disciplinary hearing—three months after Seeberg’s death became national news—in which the player was found “not responsible.” In the university's only direct comment on the case, Notre Dame's president, the Rev. John I. Jenkins, told the South Bend Tribune in December 2010 that university police had conducted a "thorough and judicious investigation that followed the facts..." He acknowledged, however, that the inquiry could have been conducted "more quickly, perhaps." The player, who has not been publicly identified, reportedly has never missed a game, nor presumably will he miss tonight’s national championship contest with Alabama’s Crimson Tide. Meanwhile, a small but vocal number of critics are asking pointed questions about how this case was handled, and wondering aloud whether Notre Dame’s righteous rhetoric is really a fiction.
The New Egypt
|Zach Pontz||January 4th 2013|
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In two separate 2010 interviews with Al-Quds TV in Lebanon, Egyptian President Mohamed Morsi makes disparaging remarks about Jews and dismisses peace negotiations between Israel and the Palestinian Arabs. In one interview, dated September 23, Morsi refers to Jews as “the descendants of apes and pigs.” During the interview, which was released by The Middle East Research Institute’s (MEMRI) today, Morsi also declares that peace negotiations are futile and promotes the use of force. “There should be military resistance within the land of Palestine against those criminal Zionists, who attack Palestine and the Palestinians,” he says.
In another interview, dated March 20th, Morsi continues to promote the use of force against Israel. “We must all realize that resistance is the only way to liberate the land of Palestine,” he says. Then he dismisses Israel’s right to exist. “The Zionists have no right to the land of Palestine. There is no place for them on the land of Palestine.”
The Edge of Health
|Helen Dodson||January 2nd 2013|
In a study examining possible factors regarding the associations between fructose consumption and weight gain, brain magnetic resonance imaging of study participants indicated that ingestion of glucose but not fructose reduced cerebral blood flow and activity in brain regions that regulate appetite, and ingestion of glucose but not fructose produced increased ratings of satiety and fullness, according to a preliminary study published in the January 2 issue of JAMA.
"Increases in fructose consumption have paralleled the increasing prevalence of obesity, and high-fructose diets are thought to promote weight gain and insulin resistance. Fructose ingestion produces smaller increases in circulating satiety hormones compared with glucose ingestion, and central administration of fructose provokes feeding in rodents, whereas centrally administered glucose promotes satiety," according to background information in the article. "Thus, fructose possibly increases food-seeking behavior and increases food intake." How brain regions associated with fructose- and glucose-mediated changes in animal feeding behaviors translates to humans is not completely understood. Read more ..
The Darkest Edge
|John Christie, Naomi Schalitm Nathaniel Herz, and Theresa Sullivan Barger||January 2nd 2013|
Center for Public Integrity
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Taxpayers across the country are subsidizing the manufacturers of assault rifles used in multiple mass killings, including the massacre of 20 children and six adults at an elementary school in Newtown, Conn. last month.
An examination of tax records shows that five companies that make semi-automatic rifles have received more than $19 million in tax breaks, most within with the past five years.
“I feel horrified at the power of the gun industry over our political system, that it could exert such influence,” said Newtown resident Barbara Richardson, who lives between the homes of one of the 6-year-old victims and the shooter. Saying she respects hunters who are ethical and good neighbors, she “absolutely [does] not” support taxpayer subsidies to help manufacture assault rifles: “They’re weapons of mass destruction.”
The Education Edge
|Susan Ferriss||December 29th 2012|
Center for Public Integrity
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Even as Los Angeles authorities continue efforts to reform school-discipline standards, fresh data show that police from the city’s biggest school district are continuing to ticket thousands of young students, especially minorities, at disproportionate rates that critics charge are putting them on a track for dropping out.
Citation rates for this year are little changed from 2011 data. Disclosure of the 2011 data this past spring led to federal civil-rights scrutiny and promises that policies at the Los Angeles Unified School District would be reviewed, and likely changed.
In 2011, children 14 or younger in the school district, the area’s biggest, were issued 43 percent of the nearly 10,200 tickets school police handed out to students for fighting, daytime-curfew violations and other minor infractions — indiscretions that community groups and judges have maintained might better be handled by school officials or referred directly to community-based counseling.
The Toxic Edge
|Jim Morris||November 19th 2012|
Center for Public Integrity
For more than three decades, workers, most of them women, have complained of dreadful conditions in many of this city’s plastic automotive parts factories: Pungent fumes and dust that caused nosebleeds, headaches, nausea and dizziness. Blobs of smelly, smoldering plastic dumped directly onto the floor. “It was like hell,” says one woman who still works in the industry.
The women fretted, usually in private, about what seemed to be an excess of cancer and other diseases in the factories across the river from Detroit. “People were getting sick, but you never really thought about the plastic itself,” said Gina DeSantis, who has worked at a plant near Windsor for 25 years.
Now, workers like DeSantis are the focal point of a new study that appears to strengthen the tie between breast cancer and toxic exposures. The six-year study, conducted by a team of researchers from Canada, the United States and the United Kingdom, examined the occupational histories of 1,006 women from Ontario’s Essex and Kent counties who had the disease and 1,146 who didn’t. Adjustments were made for smoking, weight, alcohol use and other lifestyle and reproductive factors. Read more ..
The 2012 Vote
|Alexander Bolton ||November 3rd 2012|
The Obama administration is relying heavily on outside contractors to implement a core component of healthcare reform as it races to set up a federal health insurance marketplace before 2014. The fast-approaching deadline gives the administration little time to scrutinize private-sector partners for conflicts of interest.
The purchase of one of these contractors, Quality Software Services, Inc. (QSSI), by UnitedHealth Group, a major healthcare conglomerate, has sparked concerns about a potentially uneven playing field.
QSSI, a Maryland-based contractor, in January won a large contract to build a federal data services hub to help run the complex federal health insurance exchange. It will be working with several other contractors, including CGI Federal, Inc., to create the technological architecture for the exchange.
The quiet nature of the transaction, which was not disclosed to the Securities and Exchange Commission (SEC), has fueled suspicion among industry insiders that UnitedHealth Group may be gaining an advantage for its subsidiary, UnitedHealthcare. UnitedHealth Group’s acquisition has caught the attention of Sen. Orrin Hatch (R-Utah), the ranking member on the Senate Finance Committee. He has expressed alarm over what he calls a lack of transparency in setting up a national insurance marketplace covering more than 30 states. He asked Health and Human Services (HHS) Secretary Kathleen Sebelius in an Oct. 19 letter for a full account of contractors hired to set up the national exchange and a list of administration officials who signed off on those awards. Read more ..
The 2012 Vote
|Denise Ross||October 24th 2012|
The Center for Public Integrity
In South Dakota, the ease with which campaign cash moves around has mostly put power in the hands of those who already had it — the wealthy and the state's top elected officials. Because of lax regulations regarding how money can flow into and out of political action committees, political party funds and individual candidate funds, the state's top officeholders are able to legally skirt existing fundraising limits and get relatively large sums into campaign coffers with little effort.
The lack of oversight was, in part, responsible for the Rushmore State’s "F" grade for regulation of political finances from the State Integrity Investigation, released earlier this year.
South Dakota is one of 19 states with a system of campaign finance regulation that allows money to effectively move "sideways," says Ed Bender, executive director of the National Institute on Money in State Politics. South Dakota and 12 other states place no limits on what state parties or political action committees can give individual candidates, according to research done by the National Conference of State Legislatures. Another six states limit PAC contributions but not party contributions. Read more ..
The 2012 Vote
|Paul Abowed and Alexandra Duszak||October 18th 2012|
Center for Public Integrity
At a campaign stop near Philadelphia early in his 2010 bid for governor, Republican Tom Corbett announced “we’ve got to raise money,” that it was the “number-one” priority. In an answer to his prayers, that same July day, a $1.5 million contribution arrived from — Wisconsin?
Officially, the donation was from the Wisconsin affiliate of a D.C.-based political organization called the Republican Governors Association. The $1.5 million could not travel directly from the RGA to Corbett. Pennsylvania law bans candidates from accepting corporate money and the RGA accepts millions of dollars from some of the nation’s largest businesses.
Also, state law requires all non-individuals to establish PACs in Pennsylvania. In a single day, the $1.5 million gift traveled from the D.C.-based parent organization to the RGA Wisconsin PAC, to the RGA Pennsylvania PAC and finally to Corbett’s campaign account.
By the time the donation reached Corbett, it was impossible to identify the original source of the cash or whether the donation was permissible under state law. The well-traveled donation is a prime example of “an elaborate money-laundering scheme, which is legal,” used by the RGA with success in a number of races for governor in 2010, according to Pennsylvania Common Cause Executive Director Barry Kauffman. Read more ..
|Jim Morris||October 5th 2012|
Center for Public Integrity
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Fifteen residents of Corpus Christi, Texas — so sickened by pollution they have been deemed crime victims — are asking a federal judge to force Citgo Petroleum Corp. to set up multimillion-dollar trust funds to cover medical and relocation costs, in a case with national ramifications. A jury in 2007 convicted Citgo of criminal violations of the Clean Air Act, concluding that the company’s Corpus Christi refinery allowed toxic chemicals to drift from two large, uncovered storage tanks into a nearby neighborhood for a decade. The company was to have been sentenced last month; the Department of Justice has proposed a fine of slightly more than $2 million. Lawyers for the 15 residents, however, asked U.S. District Judge John D. Rainey to grant the residents crime-victim status so they could testify at the sentencing hearing and, perhaps, win compensation from Citgo. Rainey granted that status on Sept. 14 and postponed the hearing.
The Edge of Terrorism
|R. Jeffrey Smith||October 3rd 2012|
Center for Public Integrity
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An alarming report published by the Department of Homeland Security in March 2010 called attention to the theft of dozens of pounds of dangerous explosives from an airport storage bunker in Washington state. Like many such warnings, it drew on information gathered by one of the department’s “fusion centers” created to exchange data among state, local and federal officials, all at a cost to the federal government of hundreds of millions of dollars.
There was just one problem with that report, and many others like it: the theft had occurred seven months earlier, and it had been highlighted within five days in a press release by the Justice Department’s Bureau of Alcohol, Tobacco, Firearms and Explosives, which was seeking citizen assistance in tracking down the culprits. The DHS report’s tardiness and its duplication of work by others has been a commonplace failing of work performed by fusion centers nationwide, according to a new investigation of the DHS-funded centers by the Senate Permanent Subcommittee on Investigations.
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