Global Corruption
Follow
Find
10.7K views | +5 today
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
Curated by Jim Wesberry
Your new post is loading...
Your new post is loading...
Scooped by Jim Wesberry
Scoop.it!

Corruption in Brazil - The Economist

Corruption in Brazil - The Economist | Global Corruption | Scoop.it
The Economist
Corruption in Brazil
The Economist
SO RARELY has political corruption led to punishment in Brazil that there is an expression for the way scandals peter out.

The supreme-court trial of themensalão (big monthly stipend), a scheme for buying votes in Brazil’s Congress that came to light in 2005, ended on December 17th. Of the 38 defendants, 25 were found guilty of charges including corruption, money-laundering and misuse of public funds. Many received stiff sentences and large fines.

The supreme court must still write its report on the trial, and hear appeals—though it is unlikely to change its mind. So in 2013 Brazilians should be treated to an unprecedented sight: well-connected politicos behind bars.

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

In Wal-Mart's Mexico: There's a Bribe for That

In Wal-Mart's Mexico: There's a Bribe for That | Global Corruption | Scoop.it
RT @99_film: In Wal-Mart's Mexico: There's a Bribe for That #ows #occupy via @commondreams http://t.co/r44LlXc6
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Emails Show How Corrupt Financial Traders Bragged About Rigging Global Markets

Emails Show How Corrupt Financial Traders Bragged About Rigging Global Markets | Global Corruption | Scoop.it
The Swiss bank UBS will pay $1.5 billion in fines to international regulators for manipulating the LIBOR interest rate, which helps set rates on financial products across the world.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Global Financial Integrity - Reports - Illicit Financial Flows from Developing Countries 2001-2010 - Overview

Global Financial Integrity - Reports - Illicit Financial Flows from Developing Countries 2001-2010 - Overview | Global Corruption | Scoop.it
Crime, corruption, and tax evasion cost the developing world $859.8 billion in 2010, just below the all-time high of $871.3 billion set in 2008—the year preceding the global financial crisis.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Four Banks Found Guilty of Fraud

Four Banks Found Guilty of Fraud | Global Corruption | Scoop.it
An Italian judge found Deutsche Bank, UBS, JPMorgan and Depfa guilty of fraud in a case involving the sale of derivatives to the city of Milan.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

No Bidding, No Kidding

No Bidding, No Kidding | Global Corruption | Scoop.it

Over the last decade, the government has awarded nearly a third of its advertising, marketing and public relations business without full and open competition designed to ensure taxpayers get the best price. 

Many of the contracts were awarded without full bidding even though the work involved predictable or routine tasks far removed from the urgent or national security circumstances originally envisioned for exempting contracts from the normal procurement rigors, an investigation by the Washington Guardian and Medill News Service found.

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

SEC Charges TheStreet with Accounting Fraud

SEC Charges TheStreet with Accounting Fraud | Global Corruption | Scoop.it

The Securities and Exchange Commission has charged the media company TheStreet Inc., which publishes the financial news site TheStreet.com, and three of its executives with accounting fraud, accusing them of artificially inflating company revenues and misstating their operating income to investors.

The SEC alleges that TheStreet Inc filed false financial reports throughout 2008 by reporting revenue from fraudulent transactions at a subsidiary it had acquired the previous year.  The company did not immediately respond to a request for comment.

The co-presidents of the subsidiary – Gregg Alwine and David Barnett – entered into sham transactions with friendly counterparties that had little or no economic substance, according to the SEC.  They also allegedly fabricated and backdated contracts and other documents to facilitate the fraudulent accounting.  Barnett has also been charged with misleading TheStreet’s auditor to believe that the subsidiary had performed services to earn revenue on a specific transaction when in fact it did not perform the services.  In addition, the SEC alleges that TheStreet’s former CFO Eric Ashman caused the company to report revenue before it had been earned.  

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Grading the Foreign Corrupt Practices Act Guidance by Mike Koehler :: SSRN

Grading the Foreign Corrupt Practices Act Guidance by Mike Koehler :: SSRN | Global Corruption | Scoop.it
Abstract:      
This article is a critical analysis of the Foreign Corrupt Practices Act Guidance released by the Department of Justice and Securities and Exchange Commission. Issues discussed in the article include the following: (i) the enforcement agencies' motivations in issuing the Guidance and the fact that it should have been issued years ago; (ii) the utility of the Guidance from an access-of-information perspective and how the Guidance can be used as a measuring stick for future enforcement agency activity; (iii) how the Guidance is an advocacy piece and not a well-balanced portrayal of the FCPA as it is replete with selective information, half-truths, and, worse information that is demonstratively false; (iv) how, despite the Guidance, much about FCPA enforcement remains opaque; and (v) how, despite the Guidance, FCPA reform remains a viable issue.
Jim Wesberry's insight:

Download the full paper here...

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

How Wal-Mart Used Payoffs to Get Its Way in Mexico

How Wal-Mart Used Payoffs to Get Its Way in Mexico | Global Corruption | Scoop.it
The Times has now picked up where Wal-Mart’s internal investigation was cut off, traveling to dozens of towns and cities in Mexico, gathering tens of thousands of documents related to Wal-Mart de Mexico permits, and interviewing scores of government officials and Wal-Mart employees, including 15 hours of interviews with the former lawyer, Sergio Cicero Zapata.
The Times’s examination reveals that Wal-Mart de Mexico was not the reluctant victim of a corrupt culture that insisted on bribes as the cost of doing business. Nor did it pay bribes merely to speed up routine approvals. Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law otherwise prohibited. It used bribes to subvert democratic governance — public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals.
Through confidential Wal-Mart documents, The Times identified 19 store sites across Mexico that were the target of Wal-Mart de Mexico’s bribes. The Times then matched information about specific bribes against permit records for each site. Clear patterns emerged. Over and over, for example, the dates of bribe payments coincided with dates when critical permits were issued. Again and again, the strictly forbidden became miraculously attainable.
Jim Wesberry's insight:

The WalMex case is a classic practical study in bribery and corruption that will probably be studied for years by students of fraud and forensic auditing. It has been extensively documented in the two major New York Times articles so far published.

more...
Jim Wesberry's curator insight, December 18, 2012 5:56 PM

The WalMex case is a classic practical study in bribery and corruption that will probably be studied for years by students of fraud and forensic auditing. It has been extensively documented in the two major New York Times articles so far published.

Scooped by Jim Wesberry
Scoop.it!

IMF Board to Decide Whether to Censure Argentina in Late January

IMF Board to Decide Whether to Censure Argentina in Late January | Global Corruption | Scoop.it
Jim Wesberry's insight:

Argentina is on track to be the first country ever censured by the Washington-based fund for not sharing accurate data aboutinflation and economic growth under a procedure that can end in expulsion from the IMF. The board in September called on the government to implement remedial measures “without delay”.

President Cristina Fernandez de Kirchner has denied any wrongdoing even as the government’s official figures have been disputed by the IMF, economists and politicians since 2007. 

That’s when her late husband and former President Nestor Kirchner replaced senior staff at the statistics institute, known as Indec. Since then, Argentina has reported average inflation of 8.8 percent a year, versus a 23 percent estimate by private economists.

The official inflation rate of 10.6 percent in November, less than half the private estimates, has enabled Argentina to save about $6.8 billion since 2007 on debt payments, according to Buenos Aires-based research firm ACM Consultores.

According to IMF rules for countries that either fail to provide information or provide inaccurate information, a declaration of censure may follow several failed attempts to have the country that breached its obligations take remedial measures.


more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

China's Red Cross fights corruption allegations (again): Shanghaiist

China's Red Cross fights corruption allegations (again): Shanghaiist | Global Corruption | Scoop.it
China's Red Cross is once again fighting accusations of corruption, denying allegations that it purchased luxury villas using public funds. The Red Cross said Thursday that it did not own any of the Beijing villas, a claim supported by a spokesperson from the Beijing Olympic Forest Park.
The accusation came less than a week after the Red Cross announced the formation of a new oversight committee to supervise the collection and management of donations.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Ponzitracker - Ponzitracker - Madoff's Former Lawyer Seeks to Intervene in Zeek Receivership, Dissolve Receiver's Appointment

In a wild turn of events Friday evening, Bernard Madoff's former lawyer sought to intervene on behalf of two potential clawback targets in the $600 million Zeek Rewards Ponzi scheme, disputing the Securities and Exchange Commission's ("SEC") characterization that the scheme violated federal securities laws and seeking to end the brief tenure of the court-appointed receiver. The motion, filed by famed New York criminal attorney Ira Lee Sorkin on behalf on Trudy Gilmond ("Gilmond") and Kellie King ("King"), takes issue with the SEC's determination that the fraud perpetrated by Zeek and its principals involved the sale of securities - thus bringing the operation under the ambit of federal securities laws. King and Gilmond are currently being pursued by the court-appointed receiver, Kenneth Bell, for over $1.5 million in "false profits" they received from the scheme based on an original investment of $4,597 - thus giving them plenty of incentive to seek the requested relief.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Squeezing the sleazy

Squeezing the sleazy | Global Corruption | Scoop.it
IMPUNITY and euphemism used to be daunting obstacles for graft-busters. Not any more. International efforts are bearing fruit. New laws have raised the cost of...
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

So Admitting Fraud and Bribery as a Megabank Means $1.5 Billion?

So Admitting Fraud and Bribery as a Megabank Means $1.5 Billion? | Global Corruption | Scoop.it
"We deeply regret this inappropriate and unethical behavior.

Even though the Rothschild Press/Reuters article writes that ” . . . senior managers at the Swiss bank directed dealers to keep Libor submissions low during the financial crisis to make the bank look stronger”, which involved at least 45 people at UBS and of course ” . . . never detected by compliance staff, despite five audits“, the news is that regulators/prosecutors are going after a few traders?

Thus far, the limp wristed regulator and prosecutor crowd stated that 36 UBS bankers were “implicated” in Libor, which meant that some of them may be subject to criminal charges and now, we have the story that senior management were actively involved and compliance looked the other way, numerous times? The story is not adding up, because the obvious implication written up by Reuters is that executives and everyone around them knew about this crime syndicate, probably directed encouraged, and helped plan it.

 

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

ON THE MONEY TRAIL: Corruption in the news - Dec. 19 - TrustLaw

A daily scrapbook of stories from major news media on corruption, bribery and financial crimes (RT @trustgovernance: TL-Governance News: ON THE MONEY TRAIL: Corruption in the news - Dec.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Brazil to probe ex-leader for graft - World News | IOL News | IOL.co.za

Brazil to probe ex-leader for graft - World News | IOL News | IOL.co.za | Global Corruption | Scoop.it
South Africa's Premier Online News Source. Discover the world of IOL, News South Africa, Sport, Business, Financial, World News, Entertainment, Technology, Motoring, Travel, Property, Classifieds & more.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

2012 Corruption Perceptions Index -- In Detail

2012 Corruption Perceptions Index -- In Detail | Global Corruption | Scoop.it
Transparency International is the global civil society organisation leading the fight against corruption. (Percepção corrupção. Brasil 69o lugar entre 176 países.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Justice IG: Marshals Service oversight of more than $521M lacking

Justice IG: Marshals Service oversight of more than $521M lacking | Global Corruption | Scoop.it
An audit by the Justice Department’s Office of Inspector General on Wednesday challenged oversight by the U.S.

“Specifically, the audit found that USMS procurement officials did not always maintain appropriate and necessary documentation in acquisition files to support the purchases reviewed,” Mr. Horowitz said, noting that approximately 20 percent of the procurement requests reviewed did not reflect the required advance approvals, and approximately 17 percent of the requests did not reflect the required certifications that funds were available to make the purchase.

 

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Signed, Sealed, Delivered...to Prison

Signed, Sealed, Delivered...to Prison | Global Corruption | Scoop.it

The former supervisor at an Atlanta mail distribution facility, a coworker and four others pled guilty this month to stealing $3 million in U.S. Treasury checks, including veterans benefits, tax refunds and Social Security checks.  By the time authorities figured out the scheme, the small theft ring had stolen or cashed 1,300 federal checks, officials said.

And the Georgia workers aren't alone. Between April and September of this year, 171 Postal Service employees were arrested for theft, willful delay or destruction of mail, according to a new report by the USPS inspector general. 

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Help, police! | CAmagazine.com

Help, police! | CAmagazine.com | Global Corruption | Scoop.it
What to know before calling police to investigate internal fraud
It's crucial to work through key considerations regarding involving police in an investigation of internal fraud. Many companies opt to deal with suspected fraud on their own, preferring to keep the matter quiet for fear of public embarrassment or of losing the trust of customers or shareholders. They also worry about opening their doors to a police fraud squad. “Once we are asked to investigate, we can seize any relevant documents and interview anyone who might prove helpful,” a senior police fraud investigator says. “And sometimes in doing so we uncover other things the company would prefer we didn’t find.” 
When companies do involve the police, many do not understand the preparation they need to undergo before taking that stepThe key for companies contacting the police...is in their preparation before making that call. Obtaining and organizing the supporting documents is critical. But it’s not just a collection exercise. The documents must tell a story, one that convincingly portrays a fraud in a professional format. “We’ve had people come in with what amounts to little more than scribblings on a napkin,” the officer says. “Maybe a memo or a bunch of emails or some points jotted down on paper. We’ll hear them out, of course, but can’t do much with something that flimsy. As much as possible, we want original documents and supporting evidence.” It helps...if the people preparing the material are familiar with what the police require. “A lot of forensic accounting firms have former senior law enforcement officers working with them. They can be a great resource as they can walk the victim’s team through the steps that police require.”



more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

The Story of the Foreign Corrupt Practices Act by Mike Koehler :: SSRN

The Story of the Foreign Corrupt Practices Act by Mike Koehler :: SSRN | Global Corruption | Scoop.it
Abstract:      
In the mid-1970s, Congress journeyed into uncharted territory. After more than two years of investigation, deliberation, and consideration, what emerged in 1977 was the Foreign Corrupt Practices Act (FCPA), a pioneering statute and the first law in the world governing domestic business conduct with foreign government officials in foreign markets. This Article weaves together information and events scattered in the FCPA’s voluminous legislative record to tell the FCPA’s story through original voices of actual participants who shaped the law. As the FCPA approaches thirty-five years old, and as enforcement enters a new era, the FCPA’s story remains important and relevant to government agencies charged with enforcing the law, those subject to the law, and policy makers contemplating reform.
Jim Wesberry's insight:

Download the full paper here...

more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

The anti-corruption movement: Human rights’ natural partner

The anti-corruption movement: Human rights’ natural partner | Global Corruption | Scoop.it
Riots across Tunisia, December 2010. Demonstrations in Moscow, December 2011. Fasts and street marches in New Delhi, March 2012 — plus street movements in Slovenia; Quebec; Iraq; Azerbaijan; and Wukan, southern China, among others, throughout the past two years. What do they all have in common? The answer is corruption, or, rather, the desire to end corruption, which is now the primary motivating factor in dozens of political movements around the world.
Of course, many of the recent riots, strikes, street demonstrations and political turmoil have other sources, too. But even in Tunisia, where protesters questioned the very legitimacy of the regime, political anger was fueled by stories of Zine el-Abidine Ben Ali, his wife and their relatives — as well as their hotels, factories and real estate, sometimes expropriated from other people and usually exploited by connections and outright extortion. The riots that followed were anti-regime, anti-corruption and anti-repression, all at once.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Did HP Just Lose $5 Billion Through Bad Accounting?

Did HP Just Lose $5 Billion Through Bad Accounting? | Global Corruption | Scoop.it
How could Hewlett-Packard find a $5 billion-plus hole in an $11.1 billion deal? The U.S. tech giant claims to have uncovered all kinds of accounting nasties at Autonomy, the British software outfit it bought last year. But HP won’t say quite how the allegations - strongly denied by Autonomy’s ex-boss Mike Lynch - could produce such a colossal writedown. Breakingviews tries a spot of reverse-engineering to see how it could be possible.

Given what it now believes about Autonomy’s profitability and growth, HP is effectively saying it would have paid a little more than half the sticker price for the Cambridge-based company. The writedown outstrips the deal’s $4.6 billion premium over Autonomy’s market value at announcement.

Autonomy doesn’t have much in the way of hard assets or outstanding invoices, so the charge can’t relate to a sudden revaluation of kit or the failure of existing customers to pay their bills. The last balance sheet shows just $43 million of plant and equipment, and “accounts receivable” - customer debts - of $330 million: 0.4 percent and 3 percent of the purchase price respectively. Even if, say, half of accounts receivable proved suspect, that would only make up 3 percent of the mega writedown.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Peru makes substantial progress in fighting corruption in 2012 - Andina - Agencia Peruana de Noticias

Peru makes substantial progress in fighting corruption in 2012 - Andina - Agencia Peruana de Noticias | Global Corruption | Scoop.it
"The country has made a real progress to reverse corruption. We have a number of signs that lead us to believe that 2012 has actually been a positive year in this field," she said in statements to Andina news agency.

Furthermore, she highlighted Peru’s National Plan to Combat Corruption issued this year, which was endorsed by Peru’s President, Ollanta Humala.

Peru’s government considers that a transparent and responsible fiscal management is crucial to reduce corruption.
more...
No comment yet.
Scooped by Jim Wesberry
Scoop.it!

Watch the Renowned Indonesian Anti-corruption Short Films - MSI Worldwide

Watch the Renowned Indonesian Anti-corruption Short Films - MSI Worldwide | Global Corruption | Scoop.it
The Kita versus Korupsi (US Against Corruption) film premiere was covered by more than 50 print, TV and online journalists including Jakarta Globe and The Jakarta Post. Comprised of four short films, Kita versus Korupsi has resonated with citizens, officials, government workers and police officers, including a mention in this week’s article on corruption in the Jakarta Post.

In partnership with Transparency International Indonesia (TII), MSI’s USAID-funded Strengthening Integrity and Accountability Program (SIAP-1) project provides prevention support to The Corruption Eradication Commission (KPK), which leads the country’s fight against corruption. TII conducted a competition for anti-corruption story ideas in mid-2011. SIAP-1 then worked with KPK to align the movie’s messages with broader government efforts and encouraged leading moviemakers and actors to engage in the process.

Now, these four short films are available on MSI’s YouTube page, as well as embedded with summaries:
more...
No comment yet.