Big retailer profited from state office supply contract
California's state office supply contract was meant to benefit the small businesses while saving the state money, but an investigation by Kimberly Kindy of The San Jose Mercury News shows that the contract actually lined the pockets the big box retailer Office Depot. In 2007, the state's bill for office supplies ran over $32 million. "As for the savings, a Mercury News analysis shows the annual cost for office supplies rose 20 percent under the contract and included tens of thousands of dollars in overcharges."
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Profits balloon for business improperly certified as disadvantaged
Elizabeth Newell and Robert Brodsky of Govermnent Executive report that a Miami-based defense contractor saw a significant increase in his business after being improperly labeled as a small disadvantaged business. AEY, Inc. is currently under investigation for providing faulty munitions as part of a $289 million contract to provide the Afgahanistan Army and police force with ammunition. Since being incorrectly labeled as a SDB, AEY has earned over $204 million from federal contracts.
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Insiders profit from FDA's Fast Track
A seven-month investigation by The Plain Dealer's Joel Rutchick and Brie Zeltner into the FDA's Fast Track drug review program has proven benefits to investors while doing little or nothing to speed up the availability of new medical treatments, compared to expedited review options that already existed before the drug industry lobbied to create Fast Track."Fast The news of Fast Track designation creates a boon for day traders, hedge funds and others looking to make quick money off biotech stocks." Securities information shows that stocks surge at the announcement of Fast Track designations, resulting in hefty profits for company insiders.
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Inside the Seminoles' ascension from poverty to profit
The last three decades have seen the Seminole Tribe of Florida ascend from extreme poverty to substantial wealth thanks to their lucrative Indian gaming endeavors. A South Florida Sun-Sentinel investigation found that, while this wealth is shared throughout the tribe, a "a handful of tribal leaders have especially benefited, steering millions of the tribe's money and business to themselves, their families and their friends." As a sovereign nation, the Seminole's are not obligated to open their records, but the Sun-Sentinel obtained thousands of pages of documents and conducted extensive interviews providing a rare glimpse inside the tribe.
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Haven Healthcare riddled with problems
Lisa Chedekel and Lynne Touhy of the Hartford Courant exposed the patient care issues and financial troubles at Haven Healthcare, one of Connecticut's largest nursing home chains. The reporters utilized Medicare data and Connecticut Department of Public Health data to uncover patient care problems. The investigation also revealed that the chain's CEO funneled corporate resources into a country music record label he owns. The series prompted the government to intervene at facilities run by the company, which recently filed for bankruptcy protection.
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Young hunters twice as likely to cause accidents in Wisconsin
Milwaukee Journal Sentinel reporter Ben Poston analyzed hunting accident records kept by the Wisconsin Department of Natural Resources and found that in the past five years, hunters 21 and younger were more than twice as likely to cause accidents than all other hunters. The analysis also found that deer drives — "a method in which a small group of 'drivers' systematically cover an area to flush deer in a predetermined direction as 'standers' shoot at the scurrying animals" — remain a dangerous method of hunting, accounting for more than half of all deer-hunting accidents since the 1999 season.
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More mayhem in the Meadowlands
In an ongoing investigation, Jeff Pillets of The Record in Bergen County, N.J., uncovered how a taxpayer-supported plan to reclaim the North Jersey Meadowlands instead reopened the infamous garbage dumps to millions of cubic yards of contaminated waste. A review of some 10,000 pages of state documents revealed that the site's developers won a string of state government concessions that stripped down or eliminated key environmental safeguards. At the same time, those developers were makings millions in tipping fees for the contaminated waste being brought to the site as a "cap" for the old landfills. Recent stories in the series also trace the political ties behind the deal and the fallout for politicians who initially supported the development.
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Neglect plagues property holdings of ex-NBA star
An investigation by The Sacramento Bee's Terri Handy and Phillip Reese shows that former NBA star Kevin Johnson is responsible for a slew of neglected properties in the downtrodden area of Oak Park where his investments have been widely publicized and praised. "Within a two-mile radius, a Bee investigation found, half of the 37 parcels owned by Johnson or companies and organizations he founded have been cited by the city in the past decade, some multiple times. The 73 violations at those Oak Park properties resulted in 42 fines or fees totaling at least $32,080."
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One-third of S. Florida gas pumps inaccurate
A report by Mc Nelly Torres of the South Florida Sun-Sentinel shows that 34 percent of gas pumps in South Florida failed accuracy tests over the past three years. "The analysis found 580 of more than 2,500 stations in South Florida had at least one pump dispensing more gas than customers paid to purchase, while 477 provided less fuel than they should." A database of gas pump inspections is included online. There is also a map of those stations which failed 10 or more pump tests over three years.
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Investigation finds animal corpses in Colorado Humane Society trash
Over six weeks, CALL7 Investigators discovered more than a dozen dead animals in a dumpster outside the Colorado Humane Society," report Tom Burke and Tony Kovaleski of the CALL7 investigative team in Denver. Such disposal saves the Colorado Humane Society — a private organization not affiliated with the National Humane Society or any other animal shelter — about $12 per animal. Whistleblowers implicate the executive director in allowing this practice, a charge that the director denies. The reporting also raised questions of financial mismanagement and the society's continued drive to solicit donations despite a suspended license.
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Credit card promotions profitable for two Iowa universities
Clark Kauffman of the Des Moines Register reported in a two-part series that Iowa's two largest public universities are aggressively marketing credit cards to their students as part of an arrangement that generates millions of dollars for the schools' privately run alumni organizations. Records obtained by the Register showed that while the schools and their alumni have kept secret the details of their arrangement with Bank of America, they have given the bank access to mailing addresses, telephone numbers and e-mail addresses of students, parents and people who buy tickets to football and basketball games. One of the schools has used coaches and student athletes to promote the cards, promising the biggest spending cardholders lunches with football players and private, 90-minute Q&A sessions with coaches.
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Fugative fundraiser has been hiding in plain sight
Chuck Neubauer and Robin Fields of the Los Angeles Times report that Norman Hsu, a fugitive for over a decade, has been hiding in plain sight as a prominent Democratic fundraiser. Fifteen years ago, Hsu pleaded no contest to charges of grand theft agreeing to serve up to three years in prison. His identity was confirmed this week by his lawyer, who claimed Hsu had no recollection a plea that included prison time. As a top-tier fundraiser, Hsu "is credited with donating nearly $500,000 to national and local party candidates and their political committees in the last three years" and has been a significant contributor to Hillary Clinton's campaign.
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Electric co-op to energy conglomerate
Margret Newkirk of the Atlanta Journal-Constitution reports on Georgia's Cobb EMC, one of the largest electric co-ops in the nation and described as "an aggressively expanding conglomerate." "While most co-ops reimburse that invested money to customers over time, Cobb EMC hasn't returned a nickel of it in more than 30 years: It was sitting on $240 million of ratepayer cash at the end of last year. Meanwhile, Cobb EMC has invested millions of its customers' dollars over the past decade to build a for-profit company called Cobb Energy." By operating the for-profit company as part of the co-op, it is possible to avoid regulation and transparency. In a similar situation in Alabama, members of Pioneer Electric Cooperative took a stand to end the monopoly by ousting incumbent board members.
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Contributions call school board president's ethics into question
James Pressley, school board president in Pleasantville, N.J., sought money from community businesses who were seeking contracts from the school board. John Froojian, of the Press of Atlantic City, reports that money was solicited for the James A. Pressley Scholarship and Community Youth Build Foundation, although neither the IRS nor the New Jersey Consumer Affairs Division have record of the registration of such a charity. Of nine businesses approached by Pressley, eight had no-bid contract proposals before the school board.
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Fresno suffers more power outages than neighboring communities
California and other states require investor-owned utilities to publish reliability statistics, including the number of minutes the average customer goes without power each year. Brad Branan of the Fresno Bee looked at those numbers to find that "customers in the Fresno division of Pacific Gas & Electric Co. go without power longer than those in most areas served by the utility in Central and Northern California, according to a report the utility filed with state regulators." Statistics from the past year show that Fresno experience 34% more outages than average for communities served by PG&E. California's reliability reports can be found here.
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WARN Act riddled with loopholes
In a four-part series, James Drew and Steve Eder of The (Toledo, Ohio) Blade report that a 19-year-old federal law that requires companies to give notice to workers losing their jobs is so full of loopholes and flaws that employers repeatedly skirt it with little or no penalty. A Blade analysis of 226 lawsuits filed in federal courts since 1989 revealed that judges threw out more than half of the cases alleging violations of the Worker Adjustment Retraining Notification Act, or WARN Act. In the majority of those decisions, judges cited loopholes in the law, ranging from companies that said they tried their best to give notice to employees to firms that claimed they couldn't predict bad financial times. A day after The Blade's series began, U.S. Sen. Sherrod Brown introduced a bill to overhaul the law.
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Computer security issues plague Boeing financial records
Andrea James and Daniel Lathrop of the Seattle Post-Intelligencer investigated security problems with Boeing's computer system which leaves it vulnerable to manipulation, theft and fraud. The issues relate to Boeing's failure to comply with the Sarbanes-Oxley Act, "a wide-ranging law aimed at preventing stockholder rip-offs such as the Enron scandal from happening again." For the past three years, Boeing has failed to prove its system is in compliance with the S-O Act.
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State pensions profit from nuclear waste, rogue states
Nevada's pension fund for state workers, legislators and judges holds investments in companies that have pushed to dump nuclear waste at Yucca Mountain— even though the state has fought to keep the shipments out. Steve Kanigher and Alex Richards of Las Vegas Sun discovered that the $23 billion portfolio, run by independent fund managers, holds hundreds of millions in controversial investments, such as companies that do business in Iran, which the United States accuses of sponsoring terrorists. The fund invests in firms accused by critics of war profiteering (Halliburton), using child labor (Nestle) and furthering toxic pollution (Newmont Mining Corp.)."
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Backgrounding South Florida businessman reveals criminal past
While looking into complaints about a local business, Florida Today reporter Sarah Okeson unearthed the criminal record of a top executive, exposing the questionable endeavors in his past and present. His current firm was booted from the Better Business Bureau. Along with the story, a video interview with the subject of the story was posted on the paper's Web site.
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Medical research group's conflicts of interest revealed
Reporters Susanne Rust and Cary Spivak of the Milwaukee Journal Sentinel detailed conflicts of interest involving the Constella Group, a private health research company that performs hundreds of millions of dollars worth of work for the federal government while also representing major pharmaceutical and biotechnology companies such as Merck and GlaxoSmithKline. The reporters analyzed federal contracts data to help tell the story. Among their findings: Constella got a federal contract four years ago to oversee a list of carcinogens. Three months later, the company added a virus to the list while two of its private sector clients were developing vaccines to treat that virus.
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Arizona developer's checkered past
Mark Flatten of the East Valley Tribune in Phoenix completed a series on Jim Rhodes who has become in the most influential developer in Arizona's East Valley. In December of 2006, he purchased over 1,000 acres of state trust land. The $58.6 million purchase gave him the right to "master-plan 7,700 acres in the area and set the tone for development of 275 square miles of state land extending from the eastern edge of Maricopa County to Florence." State officials claim they did not know of Rhodes' checkered past, which includes charges of fraud and theft, prior to the land purchase. The entire series can be viewed here.
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Squeezing millions from pennies
Ron Campbell of the Orange County Register reports on Irvine businessman Mark Ellis who made millions of dollars through his money-losing penny stock company, Winsted Holdings. By reverse-splitting the stock and then flooding the market with billions of new shares, he effectively drove down the stock's price to a hundredth of a penny.The story explores Winsted's tumultuous history and shows how penny-stock investors miss out on protections available to other investors.
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Insurance settlements often undercut victim's expenses
Investigative correspondent Drew Griffin, of CNN’s "Anderson Cooper 360" filed a report on how automobile insurance companies deal with victims of auto accidents. It follows the stories of accident victims who sustained soft tissue injuries in collisions that caused only minor damage to their vehicles. Victims and some industry watchdogs say that, in this accident scenario, major insurers appear to be systematically offering summary monetary settlements that often cover only a fraction of the victim’s expenses. Some industry critics suggest that the small-sum settlement policy stems from a consultant's advice aimed at improving profit margins. See part 1 and part 2 here.
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NJ taxpayers bankrolling Meadowlands development gamble
John Brennan and Jeff Pillets at The (Bergen County, NJ) Record went deep into the financial underpinnings of a developer's promise to transform the state's most infamous landmark from smelly garbage dumps and swamps into an Emerald City of golf courses, luxury condos and resort hotels. They emerged with a compelling story about the way business is done in New Jersey. The story reveals that, despite assertions to the contrary, the project relies overwhelmingly on public funds. In the wake of The Record's reporting, the governor has commissioned an investigation into how the politically connected developer cobbled together such an unprecedented series of government incentives.
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Gates Foundation investments scrutinized
Charles Piller, Edmund Sanders and Robyn Dixon of the Los Angeles Times explore the investments held by the Bill and Melinda Gates Foundation and found that it "reaps vast profits every year from companies whose actions contradict its mission of improving society in the United States and around the world, particularly the lot of people afflicted by poverty and disease." The two-part series highlights the conflicts created by its "blind-eye investment strategy" dictated by profit rather than its philanthropic priorities. "At the same time that the foundation is funding inoculations to protect health [in the Niger Delta], The Times found, it has invested $423 million in Eni, Royal Dutch Shell, Exxon Mobil Corp., Chevron Corp. and Total of France -- the companies responsible for most of the flares blanketing the delta with pollution, beyond anything permitted in the United States or Europe."
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Auto execs' flight costs questioned
Steve Wilson of WXYZ-Detroit looked into Big Three auto executives' use of corporate jets for personal trips, despite cost-cutting pressures in the industry. The story estimated that non-business travel for a handful of top leaders costs in the neighborhood of $700,000 annually at both Ford and GM.
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Law opens boardroom doors
Jill Riepenhoff and Doug Haddix of The Columbus Dispatch used U.S. Securities and Exchange Commission proxy statements to examine the boards of directors of 30 companies based in central Ohio. They found huge increases in compensation and an increase in directors serving on multiple boards since the 2002 passage of the Sarbanes-Oxley Act. Companies defend the large raises because of new requirements and potential liability under Sarbanes-Oxley, which was passed in the wake of financial scandals at Enron and WorldCom. The newspaper ran large graphics with key findings and profiles of well-known board members, their compensation and other details.
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Complaints rampant in insurance industry
Mike Casey of The Kansas City Star reports on the rampant dissatisfaction many consumers have with their insurance providers. The paper conducted an 11-month investigation into insurance problems and analyzed almost 35 million records, including over 600,000 complaints logged in the National Association of Insurance Commissioners (NAIC) database from 2003 through 2005. The analysis shows that consumer satisfaction is less of a concern for insurance companies than other financial services, such as banks and brokerage firms. The biggest gripe by consumers is that insurance agencies take too long to settle claims, followed closely by claim denials. David Herzog of NICAR and the Missouri School of Journalism consulted on this story.
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Hurricane shutter fraud on the rise
Sarah Okeson of Florida Today reports that hurricane storm shutter fraud is on the rise in Florida. Records from the Better Business Bureau of Central Florida show that at least six companies offering storm shutters have unsatisfactory records, and at least one faces criminal charges. Complaints range from shoddy workmanship to theft of deposits. A listing of these companies is included in a sidebar.
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Empire Zone abuses afford millions to a lucky few
The (Syracuse, N.Y.) Post-Standard's Mike McAndrew and Michelle Breidenbach expose abuses of New York's "Empire Zone" tax breaks which negate the programs intended purpose:" to create jobs in targeted impoverished areas." One mall owner was able to cash in on about $14 million in tax breaks by paying the city of Geneva to expand the boundaries of its zone to include his property located over 30 miles away. Lawmakers and other business owners are disgusted by these abuses of a program meant to encourage economic development. The Post-Standard found that "none of the 10 businesses that claimed the biggest property tax refunds for 2003 created more than 20 jobs."
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"Lead Astray"
In a piece for MotherJones, CIR correspondents Sara Shipley Hiles and Marina Walker Guevara reveal how the St. Louis-based firm, Doe Run, expanded its operations abroad at a time when it was facing increasing scrutiny and regulation in the United States, milking money from its Peruvian operation while claiming it couldn't afford to finish its mandatory cleanup plan there. Meanwhile, ninety-nine percent of La Oroya's children are lead-poisoned - a price some families think they have to pay to put food on the table.
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Bond scam yields profits at the expense of the needy
William Selway, Martin Z. Braun and David Dietz of Bloomberg News exposed a phantom bond scam - over $7 billion in the past 10 years - which promise benefits for the needy (better housing, improvements to inner-city schools, etc.), yet the only ones profiting are banks, insurance companies and financiers. "The arrangements -- often called black box deals, because they're complicated and mysterious -- sometimes contain secret agreements that promise to pay the financial middlemen higher fees if none of the money from the bond offerings is used to help the public. The agencies that issue the bonds buy them back from investors. The money goes untapped, and the advisers keep their fees." CJR complemented the efforts of Bloomberg News for taking a "more expansive view of business news, one that values that seemingly quaint notion of the public good. In this case, Bloomberg's William Selway, Martin Z. Braun and David Dietz outline a scandal of staggering proportions, then make their case through exhaustive research and reporting that backs up the splashy start."
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Lax regulations for contractors a recipe for trouble
McNelly Torres of the South Florida Sun-Sentinel reports that loopholes state regulations allow corrupt business owners to continue defrauding their customers. Citing the example of John T. Pluto and his company All American Driveways and Pool Deck Inc., Torres documented how countless complaints have not impeded Pluto's business enterprises in Broward County. "State regulators and Broward County building licensing officials say there is no law preventing Pluto from continuing to take on new customers or requiring him to disclose the existing complaints or problems in his past."
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NY companies exploit loophole for massive tax breaks
Michelle Breidenbach of The (Syracuse, NY) Post-Standard shows how hundreds of New York companies pulled accounting gimmicks and exploited a loophole in the state law to collect millions of dollars in tax breaks. The companies created new corporations and passed themselves off as new on paper, thus becoming eligible for tax breaks intended for businesses that are truly new. Michelle used state records won through FOI law, corporation and property records, and interviews to identify the so-called "new" companies, which include business that have been in NY for a century.
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"Desert Connections"
Chuck Neubauer and Richard T. Cooper of the Los Angeles Times report on an epic development project in Nevada - a "67-square-mile tract of empty desert will blossom into one of the biggest cities in the fastest-growing state in the country and the projected home to more than 200,000 people." The project is on track largely due to close ties between Senator Harry Reid and developer Harvey Whittemore - a mutually beneficial relationship wherein Reid has used his influence to clear obstacles in the process and Whittemore has made significant campaign contributions to Reid and other Democrats.
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Companies find new way to win contracts
Michael Forsythe and Jonathan D. Salant of Bloomberg analyzed Federal Election Commission records and found that a growing number of companies had found "a new business model: locate facilities in lawmakers' districts and shower them with campaign cash. " The companies were taking advantage of lawmakers' increasing penchant for "earmarking,'' which was at the center of the scandal involving a California Republican serving a prison sentence after admitting he took $2.4 million in bribes to help secure defense-company contracts.
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Charities lose out in bingo game benefits
Darren Barbee of the Fort Worth Star-Telegram analyzed state records and found the proceeds of bingo games were going to the people running the games instead of benefiting the charities they were supposed to help. "No bingo proceeds were reported being spent by more than 40 Texas groups conducting bingo last year, though they raised about $11.5 million." The investigation also found that the state was the ultimate enforcer, but to some extent, charities were supposed to watch their own backs.
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Car repair stores charge for work they don't do
Joel Grover and Matt Goldberg of KNBC-Los Angeles used test cars with hidden cameras to show the apparent scheme at car repair stores: charging customers for the work they never even done. "'Does this happen to customers a lot?' NBC4's Joel Grover asked a former employee of America's biggest Lube and tune chain, Jiffy Lube. 'Every day,' the insider replied. "
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Fla. officials profit from weak ethics laws
Bob Mahlburg of the Sarasota Herald-Tribune reviewed state financial disclosure records to show Florida's weak ethics laws and how state and local officials with real estate investments walk a tightrope between their public posts and personal profits. "State Sen. Mike Bennett has made more than $2 million renting office space to a state agency he helps oversee." The investigation also explained how Florida, which once had some of the nation's toughest ethics laws, now lags most major states and shows little apparent interest in changing.
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State records show complaints about 'death care' business
Rick Anderson of the Seattle Weekly reviewed state files and revealed Washington consumer complaints about funeral homes and cemeteries. Consumers were "being 'penalized' by funeral homes for buying coffins elsewhere." There were "complaints about bodies buried in the wrong graves, cremated when they should have been planted, or occupying plots that have been resold" and "protests over misspelled headstones, mishandled remains, and high-pressure sales pitches by the industry's 'grief counselors.'" A sidebar tells the story of two teenage crime victims buried in the same grave, unbeknownst to parents, and another examines "low-cost, do-it-yourself, eco-conscious burial options."
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Farm subsidy payments in Denmark go up
Farmsubsidy.org has released new data on farm subsidy payments, with an analysis by Nils Mulvad, co-founder of farmsubsidy.org and director of the Danish International Center for Analytical Reporting, analyzed new data on farm subsidy payments in Denmark in 2005 and found that "the new Single Farm Payment Scheme has dramatically increased the number of farm subsidy recipients in Denmark, though many of these new recipients receive relatively small payments." "The Danish authority paid €1.3 billion to more than 70,649 recipients. There was a significant increase in the number of recipients compared to former years. Some 17,290 'first time' recipients were paid a total of DKK 440.645.234 or just less than 5 percent of all farm subsidies paid out over course of 2005." The Single Farm Payment Scheme also increased the concentration of payments among the largest recipients, with more than 80 percent of payments going to the top 20 percent of recipients. See the report of the new data.
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Hundreds of Texas racehorses fatally injured
John Tedesco of the San Antonio Express-News examined the Texas Racing Commission's database of horse injuries, which never had been analyzed by outsiders, and found that "at the state's five licensed tracks, Marsh and other veterinarians with the Texas Racing Commission have euthanized or documented the deaths of 300 horses in the past five years, usually after the animals broke ankles, legs or even spinal cords during races." Although thousands of horses compete safely in Texas, the investigation reveals an ugly side to a industry struggling to fill empty seats.
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High-interest payday loans increase in N.H.
Karen Spiller of The (Nashua, N.H.) Telegraph found that payday loans with high interest rates — as high as 500 percent or more — are increasing in New Hampshire, the only state in New England not to regulate them. "Last year alone, more than 100,000 payday loans were written in the state for an average loan of about $360, according to the New Hampshire Banking Department. " The number of loans rose 28 percent from 2004 to 2005, according to data The Telegraph requested from the state banking commissioner.
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Utility district spent ratepayers' money on sports
Andrew McIntosh of The Sacramento Bee found that "the Sacramento Municipal Utility District has spent more than $1 million in ratepayers' money on partnership deals with the Sacramento Kings and Monarchs since 2002." The public utility's contracts with Maloof Sports, disclosed under the state's Public Records Act, offer a rare glimpse into an NBA team's advertising and sponsorship dealings with businesses — and the hospitality perks that go with such agreements. See the 2005 contract and 2003 contract.
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Firms employ brokers who have regulatory records
Paul Foutch and Will Deener of The Dallas Morning News used state securities board data to show that four firms in the Dallas-Fort Worth brokerage industry have brokers with extensive regulatory records. The investigation used NASD data (the industry's self-regulatory body, formerly known as the National Association of Securities Dealers) obtained from the Texas State Securities Board, and analyzed the regulatory records of the 14,450 brokers with offices in D-FW as of April 7. "The paper focused on firms with a minimum of 15 brokers, about 125 firms including some insurance, mutual fund and other financial companies."
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Judicial nominee violated ethics law
Will Evans of the Center for Investigative Reporting, writing for Salon.com, reviewed the financial filings of Judge Terrence W. Boyle, a key circuit court nominee touted by the White House and Senate Majority Leader Bill Frist, to show that he ruled in multiple cases involving corporations in which he held investments. For instance, Boyle bought stock in General Electric while presiding over a lawsuit in which the corporation stood accused of illegally denying disability benefits to a long-standing employee. "Two months later, he made his ruling: Boyle shot down the plaintiff's claims to long-term and pension disability benefits, granting him only a fraction of the money in short-term compensation for a debilitating mental condition." The investigation revealed that Boyle apparently violated federal law prohibiting judicial conflicts of interest — not only in the G.E. case, but in many instances since his nomination five years ago.
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Delphi executives fly high as company sinks
Steve Wilson of WXYZ-Detroit found that although Delphi, the giant auto parts company, was facing bankruptcy, scores of top executives and officers were reaping sizeable special bonuses and cash incentives. Delphi admits such benefits are not available to its hourly workers because they claim that while executives are making less than competitive salaries, American workers are already making more than the market should bear. "After making $2 billion in its first two years on its own, Delphi began to hemorrhage red ink, posting loss after loss totaling a whopping $6.3 billion in the last seven quarters reported. The company says it lost more than a billion just last December." The investigation also found that, contrary to Delphi claims that its most-senior American workers earn more than $70 an hour, the truth is even counting all the benefits, it's closer to $50 an hour. Also, the CEO's pledge to work for a dollar a year turned out to be no more than a PR ploy after he collected a $3 million sign-on bonus and nearly a million more in paychecks for just six month's work last year.
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Tax breaks prove costly for Detroit
David Josar of The Detroit News used State Tax Commission data, property assessments and tax records to show that Detroit is losing more than $63 million in annual revenue because of property tax breaks given to people moving into new houses, condos and lofts. The tax breaks have cost the city and school district more than $400 million since 2000. "The loss in revenue has become so dire that Detroit Public Schools has begun sending its chief financial officer, Dori Freelain, to weekly City Council meetings urging pragmatism with abatements." The investigation found the tax breaks don't always go to the disadvantaged. In one case, the owner of one of America's most successful Chevrolet dealerships, who bought a $1.3 million house, saves $41,999 a year because of several exemptions. When the breaks expire in 2011, the businesswoman will have saved $371,345 in property taxes.
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Sonics' owners are a secretive team
Jim Brunner of The Seattle Times used public records to construct the most complete roster to date of the investors of Seattle's basketball team, the Sonics. "Some were announced when they bought the team in 2001; others were identified in public records or interviews. Several were recently confirmed by the team for the first time after repeated inquiries by the newspaper. " The team still will not identify about a dozen owners; some are family members of other owners. With a combined wealth in the billions, the owners represent a cross section of Pacific Northwest money and influence. It is a millionaires' club with solid political connections. Owners have contributed more than $2 million to state, federal and local campaigns since they bought the team.
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Drug companies sponsored FDA staff travel
Alexander Cohen of The Center for Public Integrity analyzed FDA reports of privately sponsored trips taken by agency officials between October 1999 and September 2005 that cost more than $250 and found a loophole in the agency rules that has allowed its employees to receive more than $1.3 million in sponsored travel from groups closely tied to pharmaceutical and medical device companies. "The investigation found nonprofit associations that draw their members, their boards and even some of their funding from medical and pharmaceutical-related companies paying for the travel of hundreds of FDA employees." Among other findings, five organizations that were tied to FDA-regulated companies sponsored almost 1,000 trips, seventeen Drug Safety Oversight Board members took more than 160 privately-funded trips costing more than $220,000, and eleven Drug Safety Oversight Board members took 55 trips, costing roughly $75,000, sponsored by one or more of the five organizations.
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Mortgage industry employs felons
Geoff Dutton of The Columbus Dispatch continues to follow the predatory lending business and practices in Ohio. He finds that "leaders of the brokers association have urged lawmakers to reject new proposals designed to crack down on predatory lending and increase state oversight. The mortgage industry, they argue, can police itself without new state regulations." But Dutton finds those leaders have employed felons and some of their businesses are scrutinized by regulators.
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Builders, nonprofit have close ties
Reese Dunklin of The Dallas Morning News reports that "The low-income housing builders at the heart of the FBI's corruption investigation at City Hall created a nonprofit organization, stocked it with friends and political allies and used it to obtain more than $3 million in tax-free subsidies that earned their companies millions more in profit." The builders and the nonprofit failed to disclose their ties to the IRS and described the money as loans, "although a nonprofit official says there's no intention to repay."
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Execs benefit from backdating of stock options
Charles Forelle and James Bandler of The Wall Street Journal analyzed grant dates and stock movements and identified several companies with wildly improbable option-grant patterns. "The analysis bolsters recent academic work suggesting that backdating was widespread, particularly from the start of the tech-stock boom in the 1990s through the Sarbanes-Oxley corporate reform act of 2002. If so, it was another way some executives enriched themselves during the boom at shareholders' expense. And because options grants are long-lived, some executives holding backdated grants from the late 1990s could still profit from them today." Read more about the methodology used. (Links to the articles on the WSJ site will be good for seven days for non-subscribers. The article is also available through Factiva or for purchase on the WSJ Web site.)
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Dubious charities raise millions
Ronald Campbell of The Orange County Register reviewed more than 10,000 pages of court records, financial reports and other documents and found that former associates of imprisoned charity telemarketing king Mitch Gold have raised more than $83 million in four years for dubious charities. Fundraisers and managers kept almost all the cash, leaving just 7 cents on the dollar for charity. "A typical Gold-style contract guarantees a charity a set amount or a fixed percentage of the take — seldom more than 15 percent and sometimes far less. " The investigation analyzed a GuideStar database of more than 150,000 charities, concluding that only about 500 sizeable charities spend most of their money on fundraising. The package includes a social network analysis diagram (done with UCINET) showing how dozens of charities and fundraisers are related to each other and to Gold.
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Donations from gambling interests rise in Kan.
Steve Painter and Brent D. Wistrom of The Wichita Eagle analyzed campaign reports and found gambling contributions to legislative campaigns over six years were up by more than 300 percent, while the same period saw no change in Kansas' gambling laws. Well-financed gambling interests are waging an increasingly expensive political war over where Kansans will spend their gambling dollars. "Collectively, major gambling interests have given more than $700,000 to House and Senate candidates since 2000 and $98,150 to candidates for statewide office, most of that to Gov. Kathleen Sebelius." Another $123,250 went to party committees that distribute money to candidates. The investigation found that the rapid rise in contributions could be fueled by increasing acceptance of legalized gambling, a supportive governor or close votes on expanded gambling in the Legislature in recent years.
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Program for disabled exploited
Jeff Kosseff, Bryan Denson and Les Zaitz of The Oregonian used hundreds of interviews, thousands of pages of documents and visits to more than a dozen charities in seven states to show that a program created to benefit Americans with severe disabilities is being exploited at the cost of the people it was supposed to help. The program was started so federal agencies could reserve contracts for small nonprofit workshops that hired epileptics, paraplegics and the mentally retarded to make simple products such as mousetraps, blackboards and first-aid kits, thus helping the disabled gain a paycheck. "More than three decades later, the nonprofits increasingly are hiring workers who are mildly disabled, if at all, with aching backs, substance-abuse problems and other maladies common in the American workplace." This new class of federally subsidized worker is getting the highest-paid jobs, while many of the most severely disabled toil for pennies an hour. Their bosses are benefiting handsomely, with at least a dozen earning $350,000 or more a year, and average pay and benefits for some top executives have grown more than three times faster than their workers' pay.
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Tenn. Medicaid pays for most expensive transportation
Nancy Amons of WSMV-Nashville investigated Tennessee's TennCare (Medicaid) rides program and found that millions of dollars may have been wasted. The investigation found the program assigning patient trips to the most expensive companies, even though that is against its own regulations. "Taxpayers have been overpaying by 40% or more for some trips simply because TennCare used companies that charged a high rate per mile instead of companies that charged less." For instance, Sunshine Transportation, one of the biggest providers in the state, was overlooked in favor of a competitor who charged 50 cents more per mile. The state is revamping the program and putting the brakes on a system they admit is out of control.
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Tax delinquents still get public funding
Mark Greenblatt of KHOU-Houston used tax records to show that in Houston, though some local landlords haven't paid their property taxes in years, the government vault is still open to them. "Despite owing the government money, these property owners are still getting millions of dollars in public funding." For instance, the investigation found that in Houston and Harris County, a property owned by UCE Real Estate owed more than $5,000 in taxes dating back 10 years, and yet they received more than $100,000 in government funds. There were about 70 landlords who still owed the government tax money.
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Booming housing industry slows in South Fla.
Matthew Haggman, Lisa Arthur and Tim Henderson of The Miami Herald analyzed home sales over the past five years and found South Florida has gone through the most explosive housing boom in its history. "The land rush has transformed just about every corner and corridor of the region, sending prices skyward since 2000 — more than 150 percent in Pompano Beach, more than 200 percent in Hallandale Beach and Sunny Isles Beach, and 250 percent in North Bay Village. " But it is predicted that South Florida's 5-year run of annual price jumps of anywhere from 12 percent to more than 20 percent is ending. Prices have wobbled in recent months, with sellers lowering their expectations. Houses are sitting longer on the market — the average time needed to sell a single-family home in Broward County has jumped from 34 days six months ago to 53 days.
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Oilman's donation invested in his fund
Stephanie Strom of The New York Times investigated Boone Pickens, the Texas oilman turned investor, to show the $165 million that he gave to a tiny charity set up to benefit the golf program at Oklahoma State University was invested in a hedge fund controlled by Pickens' BP Capital Management. The gift, which helped Pickens get a tax deduction, propelled him into the ranks of the nation's top philanthropists last year. "By giving the money before 2005 expired, Mr. Pickens was able to take advantage of a provision in Hurricane Katrina relief legislation that allowed him a deduction for a charitable gift equal to 100 percent of his adjusted gross income, double the normal limit of 50 percent."
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Contractors are invisible casualties in Iraq
Alejandra Fernandez-Morera of the Scripps Howard News Service found there are significant invisible casualties of the Iraqi occupation. Almost 505 civilian contractors have died in Iraq since the beginning of the war. "Another 4,744 contractors have been injured, according to insurance claims by 209 companies on file at the Department of Labor." The investigation found that neither the Pentagon nor American corporations who hire contractors to support the U.S. military in Iraq will identify the Americans and foreign nationals who have died, citing privacy and security reasons. The unnamed civilians have become a significant part of the cost of the Iraqi occupation, accounting for at least one-sixth of U.S. fatalities suffered. Because the Pentagon has outsourced thousands of jobs, American contractors have become a new kind of Unknown Soldier.
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Federal loans granted for risky businesses
Ben Welsh of the Columbia Missourian used Small Business Administration loan records to show that over the past five years, the number of government-backed loans to Columbia's bars and restaurants has skyrocketed far beyond previous levels. "Between August 2000 and August 2005, 33 cents of every loan dollar the SBA backed in Columbia — more than $7.7 million of the $22.3 million total — went to finance bars and restaurants. That is more than double what was given out to Columbia bars and restaurants in the previous five years." The investigation found that Columbia surpasses a national trend. Last year the agency's inspector general found that restaurants received 9 percent of all government-backed loan dollars between 1996 and 2003, more than any other industry. And not only were restaurant loans the most common, they were also the most likely to go unpaid. (Editor's Note: In reporting this story, Welsh used SBA 7a data, which is available from IRE and NICAR.)
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Food, tobacco giants share expertise
Patricia Callahan, Jeremy Manier and Delroy Alexander of the Chicago Tribune examined tobacco-lawsuit documents to show that America's largest foodmaker and its biggest cigarette company have pooled expertise in search of more alluring foods and cigarettes since the dawn of their corporate pairing two decades ago. "Documents show Northfield-based Kraft collaborated on flavor issues with some of the same Philip Morris brain researchers who probed what gives cigarettes their kick. None of those scientists was more controversial than Frank Gullotta, a former top Philip Morris researcher whose brain experiments suggested the company knew more than it claimed about cigarettes' addictive nature." The documents reveal Kraft and Philip Morris discussed investing jointly in brain scans to study how the brain processes tastes and smells. Food scientists even helped their tobacco counterparts make experimental cigarettes — working after-hours in a German coffee plant.
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University leader serves on 10 boards
Eleanor Yang of the The San Diego Union-Tribune used calendar records obtained under the California Public Records Act to show that UC San Diego Chancellor, Marye Anne Fox, has served as a director for 10 corporations and nonprofit organizations, while running the university for the past year and a half. Fox spent more than 180 hours attending board meetings — many of them on the East Coast — in the past 12 months. "For all of her outside positions, Fox, 58, an organic chemist, receives compensation that rivals her university salary of $359,000. " In the past year, she received cash and stock worth at least $339,260 from her board memberships, according to corporate annual reports, proxy statements and tax returns from the nonprofit organizations.
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Kinko's deal costly for Dallas schools
Kent Fischer, Pete Slover and Tawnell D. Hobbs of the The Dallas Morning News used district records to show that a plan by Dallas schools to outsource copying and printing to industry giant Kinko's, started to slash copying and printing expenses by 21 percent, has in fact quadrupled expenses. "Across the entire Dallas Independent School District, copying and printing costs more than doubled. In 2003, the district spent $5.87 million; by 2005 it was spending $12.82 million, according to records obtained by The Dallas Morning News. " The investigation also found the contract obliges schools to lease equipment from FedEx/Kinko's, so hundreds of printers the district already owned sit in warehouses, wrapped in plastic. Some school budgets are breaking under the cost of operating new equipment leased through the program.
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Hurricane shutter company failed to deliver
Mc Nelly Torres of the South Florida Sun-Sentinel reviewed bankruptcy records, county licensing records and complaints filed with the local consumer affairs division to show that Palms West Shutter & Screen Inc., a company supplying hurricane shutters, had taken about $1.5 million in deposits from 672 Palm Beach residents before it sought Chapter 11 bankruptcy protection in October & mdash; the same month Hurricane Wilma hit the area. "Residents gave their money to the company — licensed to install screened closures in Broward since 1978 — in many cases more than 20 percent — expecting hurricane shutters and screen enclosures for their homes that have yet to be completed." Bankruptcy records show that the company also owes money to vendors, suppliers, the Internal Revenue Service and other businesses. The high demand for and shortage of shutters, screen enclosures and materials have caused problems and backlogs for many local shutter companies.
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Foreclosures growing burden on low-income communities
Lisa Hammersly Munn, Binyamin Appelbaum and Ted Mellnik of The Charlotte Observer used county records in a three-part series that looks into the rapidly rising numbers of home foreclosres, and the effects on neighborhoods where failed home loans have concentrated since the advent of easy credit by government and lenders. "Home loan failures have more than quadrupled in Mecklenburg County, NC since 1999. More foreclosures are filed here, per person, than any other county in the state."The neighborhoods are often new subdivisions priced for first-time buyers. But instead of building wealth through ownership, the buyers often lost their homes and badly damage their credit. Neighbors who pay their mortgages on time get hurt, too, because concentrated foreclosures can depress home values. Also see how this story was investigated.
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College boosters wield powerful influence
Mike Fish of ESPN.com examines the role of the college booster, finding "It's a love-hate relationship that binds a college and its boosters. They are often the first ones pointed to when recruiting violations surface. And the first ones called upon when facilities need an upgrade. With their money comes their two cents. Some call it influence. Others say it's meddling." The series looks at Phil Knight's relationship with University of Oregon; Oklahoma State University benefactor T. Boone Pickens; Joe Malugen's support of Troy University's football team; Tulane's athletes as ambassadors for the storm-ravaged university; and mandatory donations tied to college ticket sales.
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UFW strays far from Chavez's legacy
Miriam Pawel of the Los Angeles Times examines the current state of United Farm Workers to find that Cesar "Chavez's heirs run a web of tax-exempt organizations that exploit his legacy and invoke the harsh lives of farmworkers to raise millions of dollars in public and private money." Pawel's reporting finds there is little to link the UFW with the impoverished farmworkers for whom Chavez crusaded. "The UFW is the linchpin of the Farm Worker Movement, a network of a dozen tax-exempt organizations that do business with one another, enrich friends and family, and focus on projects far from the fields: They build affordable housing in San Francisco and Albuquerque, own a top-ranked radio station in Phoenix, run a political campaign in support of an Indian casino and lobby for gay marriage."
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Vehicle planned for Marines said to be 'dangerous'
Joseph Neff of The (Raleigh, N.C.) News & Observer reports that a vehicle the Marines plan to use for transport of troops and mortars may be inadequate. The vehicles, called Growlers, look "a lot like a Vietnam-era jeep. But this model, a modified dune buggy, costs $127,000 each and doesn't have armor. Some experts worry that it is vulnerable to attack, too slow and too prone to rolling over, making it dangerous in combat." The Growlers would be carried on the V-22 Osprey, a tilt-rotor aircraft that can fly as both helicopter and airplane and has had its own share of problems.
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Ga. hotel bill for Katrina evacuees tops $19 million
Yolanda Rodriguez of The Atlanta Journal-Constitution, with assistance from Craig Schneider, Leon Stafford and database editor David A. Milliron, used a FOIA request to show that “Georgia hotels have billed taxpayers more than $19 million to house evacuees who fled after hurricanes Katrina and Rita ravaged the Gulf Coast last year.” The agency has paid for rooms in 650 Georgia hotels, ranging from Atlanta’s Ritz-Carlton to lower-priced hotels. A map shows the location of the hotels.
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Congressmen tried to stop investigation
Richard A. Serrano and Stephen Braun of the Los Angeles Times used documents to report that “Reps. John T. Doolittle and Richard W. Pombo joined forces with former House Majority Leader Tom DeLay of Texas to oppose an investigation by federal banking regulators into the affairs of Houston millionaire Charles Hurwitz.” The lawmakers inserted regulatory agency investigation files into the Congressional Record, giving Hurwitz’s attorneys access to them. “Soon afterward, in 2002, the FDIC dropped its case against Hurwitz, who had owned a controlling interest in the United Savings Assn. of Texas. United Savings’ failure was one of the worst of the S&L debacles in the 1980s.”
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Mine agency more lenient since 2001
Seth Borenstein, Linda J. Johnson and Lee Mueller of Knight Ridder Newspapers used federal data to find that “since the Bush administration took office in 2001, it has been more lenient toward mining companies facing serious safety violations, issuing fewer and smaller major fines and collecting less than half of the money that violators owed.” The Mine Safety and Health Administration has a smaller budget and has won fewer convictions or guilty pleas.
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Mercury in seafood at unsafe levels
Sam Roe and Michael Hawthorne of the Chicago Tribune published a three-part series on the presence of mercury in fish sold in supermarkets. “In one of the nation’s most comprehensive studies of mercury in commercial fish, testing by the newspaper showed that a variety of popular seafood was so tainted that federal regulators could confiscate the fish for violating food safety rules. The testing also showed that mercury is more pervasive in fish than what the government has told the public, making it difficult for consumers to avoid the problem, no matter where they shop.” In addition to conducting its own tests, the paper relied on documents and interviews for the series.
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Gulf Coast homeowner loans lagging
Leslie Eaton and Ron Nixon of The New York Times used federal data to show the pace of homeowner loans in the Gulf Coast is lagging. “The Small Business Administration, which runs the federal government’s main disaster recovery program for both businesses and homeowners, has processed only a third of the 276,000 home loan applications it has received. And it has rejected 82 percent of those it has reviewed, a higher percentage than in most previous disasters.” The loans that have been approved have been going to higher-income neighborhoods.
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Smoking bans not affecting businesses
Jason Hoppin and MaryJo Sylwester of the Saint Paul Pioneer Press analyzed Minnesota Department of Revenue data on taxable sales at establishments that sell alcohol to see if there was any evidence of widespread economic hardship due to smoking bans that were enacted in some areas of the Twin Cities on March 31. Because tax return information for individual businesses is not public, the reporters persuaded the Department of Revenue to provide summary data by ZIP code. They also created interactive maps using ArcIMS and ASP so readers could click on individual ZIP codes and see the data behind it.
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Data on European farm subsidy payments made available
Farmsubsidy.org is a project coordinated by the Danish International Center for Analytical Reporting (DICAR) and EU Transparency, a nonprofit organization in the United Kingdom. The Web site obtains detailed data relating to payments and recipients of farm subsidies in every EU member state and makes this data available to European citizens. Subsidies paid to farmers under the European Union's Common Agricultural Policy amount to approximately €43.5 billion a year, more than 40% of European Union's entire annual budget, or around €100 a year for each EU citizen. Coordinated from Denmark and the UK, the Web site is the product of intensive collaboration across more than 10 countries.
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D.C. officials violate spending laws
Dan Keating and David S. Fallis, with contributions from Bobbye Pratt, of The Washington Post used District of Columbia purchasing records to show that of $2.5 billion in purchases last year, the city spent roughly $425 million in unauthorized payments and no-bid contracts. "District officials routinely violate city spending laws by avoiding competitive bidding, masking purchases under unrelated contracts and paying vendors without contracts or legal authority. "Studies of no-competition contracts elsewhere indicate that the city is overpaying by $50 million a year. The examination found problems that go far beyond sloppy paperwork as employees skirt the laws designed to prevent waste and fraud. A second story examines one the relationship between city government and a contractor who promised big but delivered little.
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'Guest workers' suffer from exploitation, neglect
A nine-month investigation by Tom Knudson and Hector Amezcua of The Sacramento Bee "has found pineros [Latino forest workers in the United States] are victims of employer exploitation, government neglect and a contracting system that insulates landowners — including the U.S. government — from responsibility." The report, "based on more than 150 interviews across Mexico, Guatemala and the United States and 5,000 pages of records unearthed through the Freedom of Information Act" shows responsibility for these "guest workers" is spread among several federal agencies and private contractors with no effective oversight. Part two shows the government has been aware of problems with the program but has failed to do anything to fix it. "First in 1980 and again in 1993, Congress expressed shock at the abuse of Latino forest workers in America's woods and the hypocrisy of undocumented workers doing government work." The third part of the series focuses on "The number one cause of death among pineros" — van accidents. "They are the byproducts of fatigue, poorly maintained vehicles, ineffective state and federal laws, inexperienced drivers and poverty-stricken workers hungry for jobs."
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Ky. economic incentives fall short
A series of Lexington Herald-Leader reports from John Stamper and Bill Estep, with contributions from Linda J. Johnson, computer-assisted reporting coordinator, reporter Linda Blackford and news researcher Lu-Ann Farrar, examines Kentucky's expensive efforts to recruit industries and failures in the program. "Instead, at a cost of $1.8 billion, Kentucky's main economic-incentive programs have overburdened taxpayers and left citizens on the losing side of a high-stakes game with hard-bargaining corporate interests."
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Mortgage fraud surges in Chicago
David Jackson, with contributions from Ray Gibson, Todd Lighty and John McCormick of the Chicago Tribune, reviewed thousands of pages of land and court records and interviewed more than 100 people to show that a white-collar crime wave is raking Chicago's poorest communities, robbing vulnerable families of their homes and draining billions of dollars from the U.S. economy. During the past five years, mortgage fraud has surged as home loans become easier than ever to get and identity theft has blossomed. The five-part investigation found that blending face-to-face scams with computer forgery, fraud crews typically include home loan executives, appraisers and scouts who troll for victims. "Mortgage swindling has helped drug-dealing gangs, including Chicago's Black Disciples, solidify their control over street corners, launder money and gain safe houses to launch operations. " The story has prompted Sen. Barack Obama (D-Ill.) to call for an investigation into mortgage fraud.
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Farm insurance fraud on the rise
John Burnett, on National Public Radio's Morning Edition, reports a series on the growing incidence of crop insurance fraud among American farmers. Burnett looks at how some farmers commit felonies by inventing or overstating their crop losses, how the agricultural insurance companies let the problem get out of hand through their inattentiveness, and the political connections of the companies that built the fraud-prone program. "Once reliant on the honor system, the U.S. Department of Agriculture now looks over the farmer's shoulder to make sure he's not cheating the system. " Data analysts identified about 2,000 farmers every year with questionable insurance claims.
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Calif. conservators profit from vulnerable seniors
Evelyn Larrubia, Jack Leonard and Robin Fields of the Los Angeles Times examined records of more than 2,400 cases handled by California's professional conservators since 1997 to produce a detailed four-part series on the state's failure to protect its senior citizens from those hired to handle their affairs. More than 500 seniors were entrusted to for-profit conservators without their consent at hearings that lasted minutes. Some conservators misuse their near-parental power over fragile adults, ignoring their needs and isolating them from loved ones. One withheld the allowance that a disabled man relied on for food, leaving him to survive on handouts from a church. Another abruptly moved a 95-year-old woman to a care home and for a month refused to tell her daughter where she was. The investigation found that in most cases, evidence of these abuses was in the courts' own files. "An online registry created six years ago to identify and track problem conservators has proved a failure. The reason: Most county courts have ignored it, even though participation is mandatory"
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Flawed homes go unrepaired in hurricane-prone area
Mc Nelly Torres of South Florida Sun-Sentinel reports that, despite an engineer's independent study showing workmanship and materials that did not meet standards in a hurricane-prone area, homeowners have been waiting 10 years for their homes to be fixed. Torres reviewed hundreds of records, including a grand jury report, two independent studies, and other construction-related documentation to show that Arvida/JMB Partners and Disney World Co. failed to design and construct homes using the materials and workmanship required by the 1979 South Florida Building Code. Independent study by an engineer found evidence of shoddy construction with firewalls missing, no wall reinforcements and with roofs attached with staples instead of nails. The home owner's association filed a class-action lawsuit in 1995 against Arvida/JMB Partners and Disney.
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Land deal results in huge profits for developers
Bert Dalmer of The Des Moines Register analyzed land records to uncover an insider land deal that makes big-name developers rich but ends with taxpayers paying twice as much. The operators of a struggling scale-model air show sold 84 acres along Interstate Highway 35 at $15,000 an acre, though other land being sold in the area was going for almost twice that much or more. The land was sold to two developers who had helped bring the air show to central Iowa and who had appointed some of the directors who approved the sale. "The investigation showed that the the nonprofit expo benefited from tax breaks and government loans it would never fully repay for six years." The investigation also found that the state of Iowa last year bought seven acres of the former expo property at $130,000 an acre, a price that amounted to an 866 percent profit for the developers, in a transaction never debated publicly.
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Elevators lack safety inspections in Fla.
Dave Bohman of WTSP-Tampa Bay reviewed computer records from the state of Florida and found that in the Tampa Bay Area more than 800 elevators and escalators have not passed a sanctioned inspection in at least a year. This even though a yearly inspection is mandated by state law. State records show that three years had passed since some elevators and escalators had been inspected in some very busy shopping centers, movie complexes, and office buildings. "Records also show that accidents have increased 60-percent in the last two years. In the last 16 months, Tampa Fire and Rescue was called four times to free people trapped in an elevator. " In the last two years, the state has fined 245 elevator owners for a total of $40,000.
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Natural gas costs high in Ala.
Bill Finch and Ben Raines of the Mobile Register used an independent energy-use analysis to show that Alabama natural gas customers are likely to pay hundreds of dollars more for the same amount of natural gas than customers in neighboring states this winter. "The higher price that the Alabama Public Service Commission allows Alabama utilities to charge has reversed any cost advantage that homeowners using natural gas once enjoyed. " On surveying 23 Southern utilities, it was found that over the past year, Mobile Gas Service Corp.'s residential bills per unit of gas were the highest among 23 Southern utilities and more than 40 percent above the regional average. New research also shows that the price Mobile Gas and Alagasco charged for delivering gas and the prices they charged customers for the fuel itself during the last year were both significantly above the Southeastern average. Read more about the investigation. An investigation into the matter was called for by the Public Service Commissioner in response to the story.
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Despite donations, charities spend little on vets
Matthew Kauffman of The Hartford Courant conducted a computer-assisted analysis of federal financial records for nearly 300 veterans' charities across the country to show that veterans' charities, whose donations have increased since the start of the Iraqi War, lag well behind other charities when it comes to the percentage of money that goes directly to services for those in need. The report identified some charities that raised millions of dollars but provided no services to veterans. Among them are the American Veterans Coalition, a Seattle-based charity that raised $1 million in 2003 and spent nothing on veterans, and the American Veterans Relief Foundation of Santa Ana, Calif., which raised $3.6 million and spent less than 1 percent on veterans. "A handful of veterans' groups spend almost nothing on veterans' causes, diverting 90 percent or more of their money to administrative and fundraising costs. Scores of others claim hefty spending on charitable programs, but only by including a large portion of the cost of their fundraising drives as charitable expenses"
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