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Doctor from Medina charged in $7.3M health-care fraud

Doctor from Medina charged in $7.3M health-care fraud | Global Corruption |

An ex-Army doctor in Texas has been indicted in a $7.3 million health care scam.

The 65-count federal indictment announced Thursday in El Paso names Dr. Richard Craig Rooney of Medina. Rooney worked at William Beaumont Army Medical Center in El Paso and Carl R. Darnall Army Medical Center at Fort Hood.

His wife, Dr. Angie Unchi Song, and her father, Charlie Takhyun Song of Grapeview, Wash., were indicted, plus her company Spondylos Consulting LLC. Also indicted were Julia Lynn Eller of Allure Spine LLC in Charlotte, N.C., plus that company.

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Global Corruption
Corruption is a particularly viral form of cancer. It is caught here and there but it reappears somewhere else as soon as vigilance is relaxed. It is not eliminated, just driven underground. The corrupt merely suspend their operations temporarily. It lingers, hovering always in the background for its next opportunity.
- Gerald E. Caiden
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Corruption Eruption E-Magazine > > > "On Planet Corruption every day a new Eruption"

Corruption Eruption E-Magazine >   >  >            "On Planet Corruption every day a new Eruption" | Global Corruption |

*** 10 members of Congress took trip secretly funded by foreign government


*** Guatemala wiretaps lead to fraud, bribery allegations that touch highest levels of government

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Malaysia prime minister Najib Razak accused of corruption

Malaysia prime minister Najib Razak accused of corruption | Global Corruption |

Malaysia's prime minister is facing the risk of a criminal charge over allegations that millions of dollars were funnelled from an indebted state fund to his personal bank accounts.

The attorney general confirmed late on Saturday that he had received documents from an official investigation that made the link between Prime Minister Najib Razak and the investment fund 1MDB.

A 1 Malaysia Development Berhad (1MDB) billboard at the funds flagship Tun Razak Exchange development in Kuala Lumpur. Photo: Reuters
Mr Razak has slammed the report that says investigations into troubled state fund 1MDB have traced nearly $US700 million ($930 million) of deposits into accounts that allegedly belonged to him, claiming it was a "continuation of political sabotage".

The Wall Street Journal report, if true, would be the first time the beleaguered prime minister has been directly linked to accusations of corruption surrounding the fund.

The documents sent to the attorney general pave the way for possible criminal charges.

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China’s military goes to war on corruption -

China’s military goes to war on corruption - | Global Corruption |

China’s military says it is moving to close loopholes in its financial regulations as part of a two-year crackdown on corruption that has snared more than 200 senior officers.
The People’s Liberation Army said it had found in the regulations 69 loosely worded areas it termed “vague” and “unclear”, and which experts said meant misappropriation of funds often went unpunished.

President Xi Jinping has targeted rampant corruption within the PLA as part of a military plan launched in 2013, the most significant such reforms since the 1980s. In addition to targeting corruption there will be a large reduction in numbers, while planners foresee a streamlined military in which the navy and air force have their own command structures.
The corruption drive will also buttress the Communist party’s authority over the military, which under Hu Jintao, Mr Xi’s predecessor, is thought to have become increasingly independent.
Reforming the financial regulations, according to auditors quoted in the PLA Daily, the army’s official newspaper, will make stealing harder by forbidding practices that had become endemic at senior levels. These include excessive spending on entertainment, irregular granting of subsidies, embezzlement and modifying budgets without proper approval, according to a report issued last week by PLA financial specialists.

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Army sergeant admits taking Afghan bribes |

Army sergeant admits taking Afghan bribes | | Global Corruption |
An Army sergeant stationed in Afghanistan admitted to accepting bribes from local vendors on Thursday.

Ramiro Pena Jr., 43, of Fort Campbell, Ky., pleaded guilty to conspiracy to one count of committing bribery. He will be sentenced Oct. 15.

From January 2008 through September 2009, as a sergeant first class at Bagram Airfield in Afghanistan, Pena was responsible for contracting with local vendors to buy humanitarian relief supplies. He and his supervisor, Jimmy Dennis, a master sergeant, entered into almost $31 million worth of contracts for the Army.

In exchange for rigging contracts, Pena received a Rolex watch and $100,000 cash, according to the Justice Department.

Dennis was sentenced to 41 months in prison and fined $115,000 in January for his part in the scheme.
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News - Daily Corruption News: 3 July 2015

News - Daily Corruption News: 3 July 2015 | Global Corruption |
Uzbekistan: Top Uzbek dynasty figure sued in US $300m lawsuit
The Guardian

US justice department is seeking to recover money allegedly paid in bribes to a ‘close relative’ of Uzbekistan’s autocratic ruler, Islam Karimov.


Global: Federal agent pleads guilty to corruption charges in Silk Road case

Burundi: U.N. says Burundi did not hold fair election, human rights violated

Colombia: No sweat? Colombia turns to lie detectors to tackle government graft

Malaysia: Malaysia PM slams corruption report as continuing ‘political sabotage’

Thailand: Nearly 2,500 corruption cases filed in Northeast 
Bangkok Post

US: Corruption at US border security could undermine entire system, report says
Defense One


Indonesia: Jokowi lacks leadership on corruption
East Asia Forum
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Ex-N.Y. state senator gets seven years in prison for bribery

Ex-N.Y. state senator gets seven years in prison for bribery | Global Corruption |
A former Democratic state senator in New York was sentenced on Wednesday to seven years in federal prison for a bribery scheme, in one of a series of public corruption cases brought by U.S. prosecutors against state lawmakers.

Malcolm Smith, 58, was found guilty in February of trying to pay off Republican officials to secure a spot on the 2013 New York City mayoral ballot.

Smith’s initial trial ended in a mistrial last year after defense lawyers complained they had not been notified of more than 70 hours of secret recordings made by a government informant, many in Yiddish.

His co-defendant, former Queens Republican leader Vincent Tabone, 48, was convicted in February and sentenced on Wednesday to 3-1/2 years in prison.

A third defendant, former Republican New York City Councilman Daniel Halloran, was convicted last year.
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BRASIL: Petrobras corruption losses may be larger

BRASIL: Petrobras corruption losses may be larger | Global Corruption |

Brazilian prosecutors on Thursday said that Petrobras’ official estimates for losses it had suffered from corruption were too low, suggesting that the state-owned oil company may have to adjust its 2014 financial statements.
Petrobras in April told investors during the release of its 2014 financial statements that it estimated losses directly related to a vast corruption scandal at the company at R$6.2bn.

But one of the prosecutors working on the case, Carlos Fernando dos Santos Lima, said: “We have no doubt that the losses are significantly larger than the R$6bn that was announced”.
“That number in the balance sheet [on financial statements] of Petrobras is a valid number but it`s conservative,” he said.
The prosecutor’s statement will raise concerns among investors that there may be more bad news to come for Petrobras’ accounts from the scandal.
Once considered one of the most promising listed oil companies because of its huge offshore reserves, Petrobras is reeling from allegations that former executives and contractors conspired with politicians to extract kickbacks and bribes from the company.
The company tried to put the scandal behind it in April by releasing long-delayed 2014 financial results in which it detailed the losses from corruption and a further R$44.6bn in losses related to cost overruns and the fall in the oil price.
Petrobras declined to comment on Mr Santos Lima’s remarks. The company is facing shareholder lawsuits in the US over the scandal.

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No sweat? Colombia turns to lie detectors to tackle government graft

No sweat? Colombia turns to lie detectors to tackle government graft | Global Corruption |
Colombia's government plans to carry out lie detector tests on senior civil servants who allocate contracts to private companies as it tries to clamp down on widespread corruption and embezzlement of public funds.

Polygraphy will be used initially to test executives in the 72 government departments that have so far signed up to a transparency pact. The executives will be tested before and after concluding contracts for provision of goods and services to the government.

The Andean country's vice president, German Vargas Lleras, is promoting the lie detector tests as a means of boosting investor confidence as the government allocates contracts to upgrade the national road network, estimated to cost more than $20 billion.

In one of Colombia's most shocking public corruption scandals of the past decade, a family with links to a former mayor of the capital, Bogota, made off with up to $1 billion after the family's company won contracts it barely executed, claiming it ran out of cash.
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Dorsey Anti-Corruption Digest

Dorsey Anti-Corruption Digest | Global Corruption |
IAP Worldwide Services, Inc. has agreed to pay a $7 million penalty to resolve a DoJ investigation into an alleged conspiracy to bribe Kuwaiti officials to win a $4 million contract; updates from the healthcare sector where it is reported that Hebrew Homes Health Network Inc. is said to have agreed to pay $17 million to settle claims under the False Claims Act; and a former councilman of Moreno Valley being sentenced to five years in a federal prison for taking a $2.4 million bribe from an undercover FBI agent posing as a real estate broker. 

Reports from the UK include an update on the ongoing investigation into allegations of inappropriate payments to police and public officials by the press, Operation Elveden, where a journalist has been sentenced to a suspended term of 18 months’ imprisonment for making payments to a public official between 2008 and 2011; the trial of the first individual following the investigation into the manipulation of Libor, who stands accused of conspiring to rig the key interest rate between 2006 and 2010; and a speech by the Joint Head of Bribery and Corruption at the SFO, in which he stated that the office has issued its first invitation letters, giving corporates the opportunity to enter into deferred prosecution agreements.

Global updates include reports on FIFA, the governing body of world football, which is under investigation amid allegations of endemic corruption; China’s ongoing anti-corruption campaign, including news that China’s former head of security has been sentenced to life in prison for allegedly accepting bribes; reports that an anti-corruption watchdog has claimed that it has “proof” that British oil and gas company, Soco, made alleged payments of thousands of dollars to a Congolese military officer, whose soldiers have been accused of bribing and intimidating opponents to the company’s oil exploration in a Unesco World Heritage site in the DRC; plus anti-corruption developments in Algeria, Brazil, Croatia, Italy, Russia and more from around the globe.
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Corruption Currents: Russia Vows Response to Canadian Sanctions

Corruption Currents: Russia Vows Response to Canadian Sanctions | Global Corruption |

The U.S. Justice Department is seeking to seize $300 million claimed to be proceeds of an international bribery conspiracy involving two Russian phone companies. One company said it was cooperating, and the other declined to comment. (Bloomberg)

FIFA President Sepp Blatter won’t attend the Women’s World Cup final, his U.S. lawyer said, while the soccer body faces two criminal investigations. (AFP, BBC)

South American soccer’s governing body may be forced to use a $10 million reserve fund to pay expenses due to a cash-flow problem.  (AP)

A Uruguayan judge seized nine properties belonging to Eugenio Figueredo, a FIFA vice president who faces possible extradition to the U.S. Mr. Figueredo is being held in Zurich; he didn’t appear to be contacted. (Reuters)

The lawyer for a Costa Rican soccer official arrested in Switzerland in the FIFA probe said there’s no evidence his client took bribes, and he called the prosecution “a legal absurdity.” (Reuters)

Do FIFA’s sponsors care about corruption? (Bleacher Report)

An Indian state’s anti-corruption office is under scrutiny for alleged bribery. A special investigative team is probing the case. (New Indian Express, NDTV)

Damage inflicted by Brazil’s widening bribery scandal is leaving deep scars in the country’s overseas bond market. (Bloomberg)

In local politics: A bribery case was opened against a high-level federal tax inspector in Crimea; he didn’t appear to be contacted. A former American Samoa official was sentenced to nearly two years in prison. (Moscow Times)


The Office of Personnel Management will next week reveal details on another breach. The agency suspended use of one of its background-check systems because of a vulnerability. (National Journal, Federal Times, Ars Technica)
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China’s Auditor Says State Firms Falsified Revenue and Profit

China’s Auditor Says State Firms Falsified Revenue and Profit | Global Corruption |
Some of China’s biggest state firms were found to have falsified revenue and profits, while some state lenders doled out loans to unqualified borrowers, the nation’s auditor said amid an intensifying crackdown on corruption.
Fourteen state-owned companies, including State Grid Corp., Cosco Group and China Southern Power Grid Co., falsified 29.8 billion yuan ($4.8 billion) in revenue and 19.4 billion yuan in profits, the National Audit Office said in a statement on its website Sunday. The office issued its 2014 work report Sunday, along with several statements and audit reports for individual companies.
A key focus of the National Audit Office’s work last year was revealing violations in the approval, allocation and management of public funds, state-owned assets and resources, the office said in the statement. The comments come amid an anti-graft campaign by President Xi Jinping -- who calls corruption a threat to the Communist Party’s survival -- that has snared about 100,000 officials in the past two years.
Inadequate due diligence and violations in decision-making procedures had cost the firms as much as 1.64 billion yuan in wasted resources and 35.4 billion yuan in “losses or idle assets,” the auditor said.
The statement said 4 billion yuan had been recouped from the state-owned companies and more than 250 people had been penalized. The audit office handed over 56 serious cases to “relevant departments,” it said.
Violations also were found in the nation’s financial industry, the audit office said. Some 16.8 billion yuan in loans from Bank of Communications Co., China Development Bank Corp. and China Export & Credit Insurance Corp. were found to have violated rules.
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Tear Gas Used to Attack Guatemala Village: Official Corruption Ransacking Nation's Treasury and Natural Resources,

Tear Gas Used to Attack Guatemala Village: Official Corruption Ransacking Nation's Treasury and Natural Resources, | Global Corruption |
Soon after the re-discovery of sources of Mayan jadeite jade, an enterprise to make jade into carved objects and jewelry was begun. Entrepreneurs started to market it successfully. Today there are several jade factories and retail stores headquartered in the old Spanish colonial city of Antigua, a popular tourist attraction.

As it became apparent that another illegal jade strip-mining operation was taking place, not far from legally licensed jade mining concessions, the archaeologists made contact with a former Guerrilla leader Cesar Montes. Their first meeting was held in secret. During this meeting it was revealed that Guatemala’s congressional investigators identified a front company that obtained title to land in the mountains above El Arco. This revelation led to the Vice President of Guatemala Roxana Baldetti.

Montes, a seasoned veteran of many guerrilla wars against dictators and tyranny, was shocked. It finally made sense. If the operation first fronted by named criminals, transferred at gunpoint to a straw man then to a paper company identified as K-Rally, operated in a protected biosphere reserve, it could only operate flagrantly with the ultimate protection of ranking government officials.

While Vice President Baldetti was in South Korea between April 13-16, 2015 with Korean jade operator Cesar Kim and her private secretary Juan Carlos Monzon alias ‘robacaros’ or car thief, she was implicated at home in the theft of millions of dollars from a worthless Israeli backed project to use chemicals to purify water in Lake Amatitlan. The so-called chemicals the Guatemala government paid 137 million Quetzals for, or about $18 million, turned out to be nothing more than salt water.

Another scandal was revealed that involved diversion of millions of dollars from the country’s Treasury Department. Baldetti’s secretary, Monzon, disappeared in Korea and did not return with her to Guatemala when the scandal broke. He is being sought as a fugitive from justice.

Guatemala’s embattled vice president was forced to resign after thousands of protestors demanded an end to government corruption. Protestors likewise demanded the resignation of Guatemala’s President Otto Perez Molina. Candidates for the next presidential election in September 2015 have also been tainted by scandal.

In the wake of revelations of rampant fraud, Guatemala Cabinet members were forced to resign. A Supreme Court Justice has been implicated, the Guatemala Director of Mines has resigned and arrests of minor and major figures charged with various crimes involving fraud have been made. In one case a fraudulent health care contract resulted in the incompetent care of kidney patients causing the death of thirteen people.
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Gary Hart: America's Principles Are in Danger of Corruption

can anyone seriously doubt that our republic, our government, is corrupt? There have been Teapot Domes and financial scandals of one kind or another throughout our nation’s history. There has never been a time, however, when the government of the United States was so perversely and systematically dedicated to special interests, earmarks, side deals, log-rolling, vote-trading, and sweetheart deals of one kind or another.

What brought us to this? A sinister system combining staggering campaign costs, political contributions, political action committees, special interest payments for access, and, most of all, the rise of the lobbying class.

Worst of all, the army of lobbyists that started relatively small in the mid-twentieth century has now grown to big battalions of law firms and lobbying firms of the right, left, and an amalgam of both. And that gargantuan, if not reptilian, industry now takes on board former members of the House and the Senate and their personal and committee staffs. And they are all getting fabulously rich.

This development in recent years has been so insidious that it now goes without notice. The key word is not quid-pro-quo bribery, the key word is access. In exchange for a few moments of the senator’s time and many more moments of her committee staff’s time, fund-raising events with the promise of tens, even hundreds, of thousands of dollars are delivered.

Corruption in a federated republic such as ours operates vertically as well as horizontally. Seeing how business is conducted in Washington, it did not take long for governors of both parties across the country to subscribe to the special-interest state. Both the Republican and Democratic governors’ associations formed “social welfare” organizations composed of wealthy interests and corporate executives to raise money for their respective parties in exchange for close, personal access to individual governors, governors who almost surely could render executive decisions favorable to those corporate interests. A series of judicial decisions enabled these “social welfare” groups, supposedly barred from political activity, to channel virtually unlimited amounts of money to governors in exchange for access, the political coin of the realm in the corrupted republic, and to do so out of sight of the American people. Editorially, the New York Times commented that “the stealthy form of political corruption known as ‘dark money’ now fully permeates governor’s offices around the country, allowing corporations to push past legal barriers and gather enormous influence.”

Frustrated, irate discussions of this legalized corruption are met in the Washington media with a shrug. So what? Didn’t we just have dinner with that lobbyist for the banking industry, or the teachers’ union, or the airline industry at that well-known journalist’s house only two nights ago? Fine lady, and she used to be the chairman of one of those powerful committees. I gather she is using her Rolodex rather skillfully on behalf of her new clients. Illegal? Not at all. Just smart . . . and so charming.

There is little wonder that Americans of the right and many in the middle are apoplectic at their government and absolutely, and rightly, convinced that the game of government is rigged in favor of the elite and the powerful. Occupiers see even more wealth rising to the top at the expense of the poor and the middle class. And Tea Partiers believe their tax dollars are going to well-organized welfare parasites and government bureaucrats.
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Decades of fraud have swindled Greeks out of billions

Decades of fraud have swindled Greeks out of billions | Global Corruption |

Decades of widespread tax and pension fraud have swindled the country out of tens of billions of dollars a year, a new book claims.
And those frauds have been as brazen and bizarre as they’ve been rampant, according to the book, “The Full Catastrophe: Travels Among the New Greek Ruins,” by James Angelos.
Take the beautiful Greek island of Zakynthos, where almost 2 percent of the population was registered as blind and thus entitled to $400-a-month disability pensions and other charity perks.
That’s a blindness rate some nine times higher than elsewhere in Europe.
Trouble is, the island’s supposedly vision-impaired residents included a taxi driver and a man whom one official described to Angelos as “a bird hunter.”
Among the 680 residents registered as blind in 2011, some 500 weren’t blind at all.
And an astonishing 61 were actually driving around the island, Angelos found.
“It appears the ‘blind’ of Zakynthos saw only the color of money,” the Greek newspaper Ethnos wrote of the scam.
Here’s another scam from Angelos’ book: pensions for the dead.
A recent Greek government investigation — undertaken as part of an anti-fraud crackdown mandated by the country’s creditors — found a highly suspicious 8,500 pensioners had passed age 100.
A closer look showed some 40,000 pensions were being “collected” by people who were no longer among the living.
In a country where even “blind” taxi drivers can collect disability, it came as no surprise to Angelos when he found a treasury employee who remained on his town’s payroll three years after he was sentenced to life in prison for murdering his mayor with an Uzi.

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Nigera corruption: UK paid £9 MILLION to leather scheme – but containers filled with ROCKS

Nigera corruption: UK paid £9 MILLION to leather scheme – but containers filled with ROCKS | Global Corruption |
An investigation learned that massive amounts of aid was paid into a project designed to boost Nigerian leather exports.

But not only was the scheme breathtakingly corrupt but the Department for International Development turned a blind eye to any wrongdoing.

Radio 4's File on Four found £9million hard been spent on the scheme which, according to official figures led to a 700 per cent increase in exports.

However, a consultant said the figures were 'impossible' as they would have required the slaughter of millions of animals.

He said: "‘Over-invoicing is fairly simple but the level of this scam, I gather from talking to people in the industry internationally, is that the 2010 figures would have required tens of millions of animals to be slaughtered in that one year, an impossibility.

"So what you do is ship empty containers full of rocks, get someone in customs to sign off that they are official exports without checking their contents, get some paperwork done in the importing country and then collect up some unbankable cash that needs cleaning so to speak and send it back to Nigeria where the government pays you an extra 30 per cent for your laundry work and issues you with a trade able foreign currency certificate.

"The funds are now as white as snow and fully legal. You don’t even need to export the leather."
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USA: Corruption On The Border: Dismantling Misconduct In The Rio Grande Valley

USA: Corruption On The Border: Dismantling Misconduct In The Rio Grande Valley | Global Corruption |

The Rio Grande Valley of Texas is a world apart, isolated by empty ranch land to the north, the Gulf to the east, and Mexico to the south. A million and a half people live there amid dazzling wealth and stark poverty.

But federal authorities say "the Valley" is steeped in corruption of every stripe: drug smuggling, vote stealing, courthouse bribery, under-the-table payoffs and health care fraud. Late last year, the feds launched the Rio Grande Valley Public Corruption Task Force to clean up South Texas.

It's housed in the FBI building, a three-story, bunker-like edifice in an office park across the street from public housing in McAllen, Texas.

"The public's perception is that the problem is inordinately grave and that it is worse here than other places," says FBI supervisory special agent Rock Stone. "We're being very vocal and very public about the fact that [public corruption] is wrong, it is immoral and you're betraying the public's trust."

Rock Stone — that's his actual name — looks the part: 6 foot 3 inches, buff, career FBI agent and son of a cop. He says the task force has five times the number of investigators than in years past, including Texas Rangers and agents of the Office of Inspector General of the Department of Homeland Security. Since his office opened its doors last November, they've gotten a steady stream of tips from the public about corrupt officials.

"And we're going to pursue all of these people; school board, city, county, state, judicial, executive, legislative. We're going to pursue them and we're going to lock them up," Stone says.

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'No more corruption': Thousands of demonstrators in Honduras call for their president to resign

'No more corruption': Thousands of demonstrators in Honduras call for their president to resign | Global Corruption |
Tens of thousands Hondurans poured onto the streets of the capital Tegucigalpa on Friday to demand the resignation of President Juan Orlando Hernandez in the biggest demonstration yet against the country's leader over allegations of corruption.

An estimated 60,000 demonstrators, many of them holding torches, took part in the noisy protest that converged on the presidential palace, the sixth Friday evening march in a row.

"No more corruption, JOH out," protesters called, chanting the president's initials into the gathering darkness.

A coalition of opposition political groups is demanding an independent probe into a $200-million corruption scandal at the Honduran Institute of Social Security, where companies, some formed by institute officials, overcharged for services.

The opposition groups want an independent prosecutor staffed by foreigners, similar to a United Nations-backed commission that has led corruption probes in neighboring Guatemala.

Hernandez has admitted his 2013 presidential campaign took some $150,000 from firms linked to the scandal, but said that he and his party did not know where the money was from.
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Arrest order issued for vice president of Honduran Congress in health corruption scandal

Arrest order issued for vice president of Honduran Congress in health corruption scandal | Global Corruption |

Honduras' Supreme Court has ordered the arrest of the vice president of Congress and 15 other people accused of defrauding the country's health care system in a corruption scandal that has sparked large street protests.

Court President Jorge Rivera said Tuesday the arrest warrant for lawmaker Lena Gutierrez, her father, two brothers and 12 others was issued to prevent them from leaving the country.

Gutierrez is a member of the governing National Party and has said she will prove her innocence. She and her family she own Astropharma, a company described as a wholesaler of medicines made by pharmaceutical companies.

The scandal involves alleged embezzlement that cost the Social Security Institute as much as $120 million. At least some of the money allegedly went to finance governing party political campaigns.

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Former UN consultant accepted bribes to rig £40m contract to supply life saving drugs

Former UN consultant accepted bribes to rig £40m contract to supply life saving drugs | Global Corruption |
A former United Nations consultant accepted bribes to rig a £40 million contract to supply life saving drugs to the Democratic Republic of the Congo, a court heard.
Sijbrandus 'Art' Scheffer, 62, allegedly took kickback payments from Danish pharmaceutical company Missionpharma in return for ensuring the company won a contact worth "in excess of $65 million (£40 million)".
Mr Scheffer worked as a consultant to to the United Nations Development Programme and, together with Guido Bakker, 41, orchestrated the corrupt award of the contract to supply drugs treating HIV and malaria to the war-torn country, it was said.
The Dutch nationals then used British lawyer Patrick Orr, 47, to flush bribes worth $1.1 million through a UK company and into an offshore account, jurors heard.
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Corruption Currents: Italy Accuses Berlusconi of Bribing Bunga-Bunga Girls

Corruption Currents: Italy Accuses Berlusconi of Bribing Bunga-Bunga Girls | Global Corruption |

Italian authorities accused Silvio Berlusconi of paying more than 10 million euros to buy the silence of 21 girls who testified in the so-called “Bunga Bunga” trial. Lawyers for Mr. Berlusconi previously said they offered money to compensate the girls for stress. (IBT)

Two former Singaporean executives were charged in a bribery case. They didn’t appear to be contacted. (CNA)

An appeals court rejected charges of aggravated bribery against four executives of defense company Patria. (YLE)

The Church of England sold its stake in SOCO International SIA.LN +3.18%, saying the firm failed to address allegations of bribery and human rights abuses. There was no immediate response from the company, but it previously said it paid for security services while denying bribery. (Daily Telegraph, Christian Today)

A Pakistani official found a way to stop bribe demands by bureaucrats: Citizens call in the demands. (Foreign Policy)

An Indian court stayed a bribery investigation into a state’s anti-corruption office, but the son of one official faces an information notice in the case. The office has come under a cloud. (IANS, PTI, Firstpost)

Tom Fox focuses on tone in the middle. The FCPA Professor breaks down what you need to know from the second quarter. Mike Volkov shines a light on boardroom diversity, or the lack thereof.


Donald Trump’s hotel chain was reportedly hacked. (Krebs, The Hill)

The FBI warned that Chinese malware was possibly behind the attack on the U.S. Office of Personnel Management. (The Hill)

Money Laundering:

Unsealed court records reportedly show a Mexican governor stole money from his state and laundered it in Texas, prosecutors say. A lawyer for the governor said his client isn’t involved in money laundering or in theft of state funds. (San Antonio Express-News)

A former DEA agent pleaded guilty to extortion, money laundering and obstruction of justice, which he committed while working as an undercover agent investigating Silk Road. (Department of Justice, Forbes, ComputerWorld)

Bangladesh asked financial institutions to tighten up their anti-money laundering compliance programs. (Daily Star)

Did an Iranian art auction become a money-laundering opportunity? (Al Monitor, Hopes & Fears)

Caribbean prosecutors joined together to fight money laundering. (Curacao Chronicle)
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BRASIL: Corruption Research 2015

This research builds a strong foundation and content regarding the highly complex dynamics of corruption in Brazil providing a better picture and understanding…
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The Ponzi Scheme Blog: June 2015 Ponzi Scheme Roundup

The Ponzi Scheme Blog: June 2015 Ponzi Scheme Roundup | Global Corruption |
activity reported for June 2015. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 140 years of newly imposed sentences for people involved in Ponzi schemes; at least 7 new Ponzi schemes involving over $240 million; and an average age of approximately 51 for the alleged Ponzi schemers.
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PHILIPPINES: Ombudsman sacks Purisima, 10 others from PNP

PHILIPPINES: Ombudsman sacks Purisima, 10 others from PNP | Global Corruption |
In an unprecedented move, the Ombudsman on Tuesday, June 30, ordered the dismissal of two police generals with close ties to President Benigno Aquino III for an allegedly dubious deal in the Philippine National Police Civil Security Group (CSG) and the Firearms and Explosives Office (FEO).

Police Director General Alan Purisima, resigned chief of the PNP, and Chief Superintendent Raul Petrasanta, former police chief of Central Luzon, were ordered dismissed by the Ombudsman.

Purisima and Petrasanta served as aides of the late President Corazon Aquino, mother of President Aquino.

The dismissal of Purisima, Petrasanta, and the other officials was based on two separate complaints filed in 2014 by Glenn Gerard Ricafranca and the Office of the Deputy Ombudsman for the Military and Other Law Enforcement Offices' Fact-Finding Investigation Bureau over a deal inked between the PNP FEO and Werfast, a courier company tapped to deliver firearms licenses cards.

According to the Ombudsman, the officers in the case will also be forfeited of their retirement benefits, barred from taking civil service examinations, and forever barred from being employed by the government.

The police officials and representatives of Werfast may also be charged criminaly for violating Section 3(e) of the Anti-Graft and Corrupt Practices Act pending preliminary investigation, the Ombudsman said.
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Corruption Currents: Trinidad Receives Extradition Papers for Jack Warner

Corruption Currents: Trinidad Receives Extradition Papers for Jack Warner | Global Corruption |

Trinidad & Tobago received extradition papers from the U.S. seeking Jack Warner, who was indicted in the FIFA investigation. He has denied the allegations. (Trinidad Express)

FIFA President Sepp Blatter says his resignation was “liberating,” telling a Swiss newspaper he won’t stand in an election next year. The head of FIFA’s audit and compliance committee told Mr. Blatter to confirm his exit. Meanwhile, the scandal will be made into a movie. (AP, Reuters, AP, Hollywood Reporter)

South America’s soccer federation might try to annul its contract with a marketing firm charged in the FIFA probe, its treasurer said. Meanwhile, the federation faces a cash crisis due to the graft investigation. (Reuters, ESPNFC)

Adidas said it won’t change its FIFA sponsorship deal over the next few years. (Reuters)

Argentina’s FIFA-linked probe continues. (Reuters)

A suspect in the Petrobras scPETR4.BR -3.83%andal told investigators he used proceeds from the scheme to donate to political campaigns. (EFE)

Papua New Guinea wants Australia’s help with investigating bribery allegations. (AAP)

A cloud hangs over an Indian anti-graft body facing allegations of its own. (Firstpost, Times of India)

In local politics: New documents were filed in the case against a California lawmaker. Former Utah Attorney General Mark Shurtleff pleaded not guilty to public corruption charges. The U.S. Supreme Court rejected an Arizona congressman’s appeal against his conviction. Indian authorities told a finance minister there wasn’t evidence to prosecute him in a bribery case. A former Kentucky state lawmaker was convicted on a bribery charge. (SF Weekly, Deseret News, Reuters, The Hindu, press release)

The FCPAProfessor answers some questions about the FCPA landscape. Tom Fox talks about the compliance defense. Mike Volkov goes back to the Petrobras scandal for updates. Richard Bistrong describes how corruption can become normal. The FCPA Blog details a U.K. move on beneficial ownership.
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Lack of funding for State Ethics Commission invites corruption, experts worry

Lack of funding for State Ethics Commission invites corruption, experts worry | Global Corruption |
Behind the 1960s-era frosted glass doors of the Pennsylvania State Ethics Commission, several offices where dogged investigators once spent their days sniffing out governmental corruption are empty.

Abandoned cubicles are graveyards for boxes of old documents and unused office furniture.

For Rob Caruso, the commission's executive director, it's a grim reminder of all that is lost at the agency with the gargantuan mission of enforcing ethics rules for public officials, from executive branch employees and state lawmakers to members of school boards and borough councils.

Caruso's staff stands at 17, down 30 percent from the 24 who once worked there.

The commission's funding topped 2009 levels for the first time this year at just more than $2 million.

But this year's $222,000 increase went to the bare essentials: upgrading outdated computers and software and hiring one investigator, the first hire in six years, Caruso said. The commission has six investigators and a director of investigations to handle complaints from around the state.

With the legislature's June 30 deadline for passing a 2015-16 budget looming, Caruso doesn't know what's in the offing for his agency.

But he knows that with its funding and staffing levels, the commission can't fully investigate all of the 400 to 500 sworn complaints filed each year.
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An Unprecedented Uprising Against Impunity in Guatemala

An Unprecedented Uprising Against Impunity in Guatemala | Global Corruption |
A massive tax fraud scheme exposed in Guatemala this April might once have been viewed as business as usual in a country that has struggled with corruption at the highest levels for decades.

Instead, Guatemalans got angry.

A protest organized via social media quickly erupted, sparking an ongoing wave of demonstrations that's drawn the participation of tens of thousands. For the first time in Guatemala's recent history, a broad cross section of society - including politicians, students from both private and public universities, the country's powerful business lobby, indigenous peoples, and members of a historically passive middle class - joined together in a unified call for the removal of corrupt officials.

Vice President Roxana Baldetti was the first to step down, handing in her resignation on May 8. Although she wasn't implicated in the initial corruption investigation, she was plunged into controversy when her private secretary, Juan Carlos Monzón Rojas, was identified as the leader of the fraud ring. Shortly after her resignation, Baldetti was also placed under investigation.

As investigations continue, high-level officials in a number of major executive branch offices have resigned or been fired. President Otto Pérez Molina has dismissed or asked for resignations from his chief of intelligence, the ministers of the environment and of energy and mines, and his interior minister, among others. Many of the ousted officials are members of Pérez Molina's inner circle and are under investigation for various acts of alleged corruption.

These ministry shake-ups have not been enough to quell calls for the president's resignation, and weekly protests continue to fill Guatemala City's central plaza. With the curtain pulled back to expose what many have called one of the most corrupt administrations in Guatemala's history, the country is facing its biggest political crisis in years - and just a few months before September's general elections.

On June 10, Guatemala's Supreme Court accepted a petition to allow congress to decide whether to revoke President Pérez Molina's immunity from prosecution for possible involvement in acts of corruption. Whatever the president's fate, sustained public outrage has united a diverse Guatemalan public and represents an incredible opportunity for the country to undergo historic and positive changes.
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