Thursday, November 27, 2008
Wednesday, November 26, 2008
Here's why the FDA needs Peter Rost . . .
Ailing FDA May Need a Major Overhaul, Officials and Groups Say
By Rob Stein, Washington Post
The Obama administration will inherit a Food and Drug Administration widely seen as struggling to protect Americans from unsafe medication, contaminated food and a flood of questionable imports from China and other countries.
Shaken by a series of alarming failures, the FDA desperately needs an infusion of strong leadership, money, technology and personnel -- and perhaps a major restructuring, say former officials, members of Congress, watchdog groups and various government reports.
"Everywhere you go, you hear the same chorus: The agency's in trouble," said David A. Kessler, who served as FDA commissioner under Presidents George H.W. Bush and Bill Clinton. "There's a general perception the agency is suffering mightily."
With nearly 11,000 employees and an annual budget of more than $2 billion, the FDA is charged with overseeing products that account for one-quarter of consumer spending in the United States, including over-the-counter and prescription medications, heart valves, stents and other medical devices, the blood supply, and food.
But morale within the FDA, along with its credibility outside, has plummeted as the agency has been stretched to keep pace with its responsibilities and riven by accusations of ideological bias, a tilt toward industry rather than consumers, and internal dissension.
"FDA is close to being at a tipping point -- the agency is hanging on by its fingertips in protecting us," said William K. Hubbard, who worked for the agency for 27 years. "If something is not done, they could become a failed institution, and no one wants that. The FDA is not only important to protecting the public health but also to the industries it regulates."
Alarm about the agency began to spike after a series of highly publicized incidents, including the discovery that the painkiller Vioxx caused heart attacks. That has been followed by other safety issues, including questions about the widely used diabetes medication Avandia and several psychiatric drugs.
"I'm afraid we're going to see more horrible things happen if we don't get our act together on this," said David Ross, who was a drug reviewer at the agency for 10 years.
At the same time, there has been increasing alarm about the agency's ability to protect the food supply -- concerns highlighted by recent major outbreaks of E. coli infection in spinach and salmonella in spinach and peppers. That has prompted calls to split the agency in two -- with one dedicated to drugs and the other to food.
"Food safety tends to get short shrift," said Christopher Waldrop of the Consumer Federation of America. "The drug side tends to get much more attention than the food side. Food is equally important and needs to get the attention it deserves."
Both the food and drug parts of the FDA's responsibilities have been hobbled by its inability to adequately monitor goods pouring into the United States from around the world, including food, drugs and raw materials, many say. Such concerns were highlighted by contaminated toothpaste from China; tainted pet food that killed hundreds of dogs and cats; and the fouled blood thinner heparin, which took the lives of at least 81 Americans and caused hundreds of serious illnesses.
"The agency is still stuck at the border," said Carl R. Nielsen, who was in charge of the FDA's import operations for the last six of his 28 years at the agency. "There has to be radical reorganization -- no doubt about that."
Although the FDA has started opening offices overseas to try to better police safety standards at the source, experts say much more needs to be done. For starters, the agency needs to sharply boost inspections abroad, develop strict new regulatory standards, and update and integrate its computer systems, which are woefully antiquated and disjointed, Nielsen and others said.
"It's still largely a paper-driven agency," Nielsen said. "The agency has great information pigeonholed all over the place, but it cannot be applied in real time, which is what you need today."
The FDA has also been one of the many federal agencies where Bush administration critics say ideology has trumped science, citing the long delay in approving the over-the-counter sale of the emergency contraceptive Plan B.
"The agency needs to get back to using science as the basis for its decision-making," said Jane E. Henney, who ran the FDA under Clinton from 1998 to 2001.
Questions have also been raised about the agency's handling of suspected toxins such as bisphenol A in baby bottles and other products. And internal dissension has erupted publicly from the usually hermetically sealed agency. Last week, the House Energy and Commerce Committee released a letter from FDA scientists complaining about "serious misconduct" by top managers who oversee medical devices.
The turmoil comes as the FDA is facing a host of new demands, including the next wave of drugs and other products resulting from breakthroughs in genetics, nanotechnology and bioengineered foods, among others. And Congress may give the FDA the power to regulate tobacco for the first time.
"This would be a totally new regulatory responsibility that the FDA doesn't have expertise in," said Mark B. McClellan, who led the agency in President George W. Bush's first term.
While the agency has received some additional money and personnel to help implement new drug safety powers, many say it is overdue for a doubling of its budget.
"There's broad bipartisan recognition from consumer groups and from industry that the FDA needs more resources," McClellan said. "The most important thing is overall effective leadership that leads in a way that establishes public trust."
Many hope the new administration will quickly name a new FDA commissioner -- a post that has frequently been left in the hands of acting commissioners for long periods. An acting commissioner ran the agency for more than half of the past eight years.
"The FDA can't be left to drift," said Hubbard, the former official. "There's a lack of leadership when a caretaker is in charge, and the FDA can't afford that."
By Rob Stein, Washington Post
The Obama administration will inherit a Food and Drug Administration widely seen as struggling to protect Americans from unsafe medication, contaminated food and a flood of questionable imports from China and other countries.
Shaken by a series of alarming failures, the FDA desperately needs an infusion of strong leadership, money, technology and personnel -- and perhaps a major restructuring, say former officials, members of Congress, watchdog groups and various government reports.
"Everywhere you go, you hear the same chorus: The agency's in trouble," said David A. Kessler, who served as FDA commissioner under Presidents George H.W. Bush and Bill Clinton. "There's a general perception the agency is suffering mightily."
With nearly 11,000 employees and an annual budget of more than $2 billion, the FDA is charged with overseeing products that account for one-quarter of consumer spending in the United States, including over-the-counter and prescription medications, heart valves, stents and other medical devices, the blood supply, and food.
But morale within the FDA, along with its credibility outside, has plummeted as the agency has been stretched to keep pace with its responsibilities and riven by accusations of ideological bias, a tilt toward industry rather than consumers, and internal dissension.
"FDA is close to being at a tipping point -- the agency is hanging on by its fingertips in protecting us," said William K. Hubbard, who worked for the agency for 27 years. "If something is not done, they could become a failed institution, and no one wants that. The FDA is not only important to protecting the public health but also to the industries it regulates."
Alarm about the agency began to spike after a series of highly publicized incidents, including the discovery that the painkiller Vioxx caused heart attacks. That has been followed by other safety issues, including questions about the widely used diabetes medication Avandia and several psychiatric drugs.
"I'm afraid we're going to see more horrible things happen if we don't get our act together on this," said David Ross, who was a drug reviewer at the agency for 10 years.
At the same time, there has been increasing alarm about the agency's ability to protect the food supply -- concerns highlighted by recent major outbreaks of E. coli infection in spinach and salmonella in spinach and peppers. That has prompted calls to split the agency in two -- with one dedicated to drugs and the other to food.
"Food safety tends to get short shrift," said Christopher Waldrop of the Consumer Federation of America. "The drug side tends to get much more attention than the food side. Food is equally important and needs to get the attention it deserves."
Both the food and drug parts of the FDA's responsibilities have been hobbled by its inability to adequately monitor goods pouring into the United States from around the world, including food, drugs and raw materials, many say. Such concerns were highlighted by contaminated toothpaste from China; tainted pet food that killed hundreds of dogs and cats; and the fouled blood thinner heparin, which took the lives of at least 81 Americans and caused hundreds of serious illnesses.
"The agency is still stuck at the border," said Carl R. Nielsen, who was in charge of the FDA's import operations for the last six of his 28 years at the agency. "There has to be radical reorganization -- no doubt about that."
Although the FDA has started opening offices overseas to try to better police safety standards at the source, experts say much more needs to be done. For starters, the agency needs to sharply boost inspections abroad, develop strict new regulatory standards, and update and integrate its computer systems, which are woefully antiquated and disjointed, Nielsen and others said.
"It's still largely a paper-driven agency," Nielsen said. "The agency has great information pigeonholed all over the place, but it cannot be applied in real time, which is what you need today."
The FDA has also been one of the many federal agencies where Bush administration critics say ideology has trumped science, citing the long delay in approving the over-the-counter sale of the emergency contraceptive Plan B.
"The agency needs to get back to using science as the basis for its decision-making," said Jane E. Henney, who ran the FDA under Clinton from 1998 to 2001.
Questions have also been raised about the agency's handling of suspected toxins such as bisphenol A in baby bottles and other products. And internal dissension has erupted publicly from the usually hermetically sealed agency. Last week, the House Energy and Commerce Committee released a letter from FDA scientists complaining about "serious misconduct" by top managers who oversee medical devices.
The turmoil comes as the FDA is facing a host of new demands, including the next wave of drugs and other products resulting from breakthroughs in genetics, nanotechnology and bioengineered foods, among others. And Congress may give the FDA the power to regulate tobacco for the first time.
"This would be a totally new regulatory responsibility that the FDA doesn't have expertise in," said Mark B. McClellan, who led the agency in President George W. Bush's first term.
While the agency has received some additional money and personnel to help implement new drug safety powers, many say it is overdue for a doubling of its budget.
"There's broad bipartisan recognition from consumer groups and from industry that the FDA needs more resources," McClellan said. "The most important thing is overall effective leadership that leads in a way that establishes public trust."
Many hope the new administration will quickly name a new FDA commissioner -- a post that has frequently been left in the hands of acting commissioners for long periods. An acting commissioner ran the agency for more than half of the past eight years.
"The FDA can't be left to drift," said Hubbard, the former official. "There's a lack of leadership when a caretaker is in charge, and the FDA can't afford that."
Tuesday, November 25, 2008
Monday, November 24, 2008
Join Facebook Cause: Dr. Peter Rost for FDA Commissioner
Go to cause and join!
And . . . if you haven't voted yet in the online poll, go to Pharma Marketing and vote for your favorite candidate!
Here you can view latest survey results for who should be the new FDA Commissioner.
Sunday, November 23, 2008
FIAR supports Dr. Rost for FDA Commissioner.
Hi,
I just read your email that you are (masochistically??) seeking the job of FDA Commissioner. I think it would be a welcome change to have someone like you in the job!
Among other things you note, it would be great if, among other things, FDA would end the despicable Direct To Consumer advertising.
In any event, I wish you the best of luck in your endeavor and happy to support you in any way we might be able to. I have had some meetings as an AIDS activist with FDA officials over the years.
George
George M. Carter
Director, FIAR
www.fiar.us
I just read your email that you are (masochistically??) seeking the job of FDA Commissioner. I think it would be a welcome change to have someone like you in the job!
Among other things you note, it would be great if, among other things, FDA would end the despicable Direct To Consumer advertising.
In any event, I wish you the best of luck in your endeavor and happy to support you in any way we might be able to. I have had some meetings as an AIDS activist with FDA officials over the years.
George
George M. Carter
Director, FIAR
www.fiar.us
Friday, November 21, 2008
Brad Pitt and Matt Damon want to do Big Pharma movie
Brad Pitt and Matt Damon want to do movie about Big Pharma. Their production companies are looking at Andy Behrman's tell-all about his days as spokesman for Bristol-Myers Squibb's schizophrenia med, Abilify.
Behrman, author of "Electroboy: A Memoir of Mania," calls his latest "Adventures in the Drug Trade: I Was a Big Pharma-Pusher." The manuscript is due to go to publishers in January, after Behrman's nondisclosure agreement with BMS expires.
No word yet about the joy over at BMS related to this announcement.
Source NY Daily News.
Behrman, author of "Electroboy: A Memoir of Mania," calls his latest "Adventures in the Drug Trade: I Was a Big Pharma-Pusher." The manuscript is due to go to publishers in January, after Behrman's nondisclosure agreement with BMS expires.
No word yet about the joy over at BMS related to this announcement.
Source NY Daily News.
Thursday, November 20, 2008
Will Obama provide new hope for whistleblowers?
"We teach our children to tell the truth. We should expect the same thing from our public officials. But in this Administration, the only thing the truth will get you is fired," said Rahm Emanuel, referring to the Bush administration.
More.
More.
Wednesday, November 19, 2008
Tom Daschle accepts Obama offer to lead Health and Human Services
And that's pretty cool . . . since back in September 2004 I did a press conference with Senator Daschle about reimportation of drugs, on the lawn next to the U.S. Capitol. I also note that whomever becomes FDA Commissioner would be working for Mr. Daschle.
Tuesday, November 18, 2008
Dr. Rost is increasing lead in vote for FDA Commissioner . . .
I'm honored and greatful that my lead appears to have increased from around 24.2% to 28.6% in the online poll for who President Obama should choose as new FDA Commissioner.
What is even more noteworthy is the following message from John Mack, who is administering this survey:
"How's this for a surprise: When I look at US pharma respondents to my survey, you are the #1 choice: 21.7% of US pharma respondents voted for you compared to 17.4% who voted for Susan Wood, Robert Califf, and DAVID KESSLER (all tied for 2nd place)."
So even pharma employees hope for change at the FDA . . . and are voting for my candidacy.
If you haven't voted yet, go to Pharma Marketing and vote for your favorite candidate!
Here you can view latest survey results.
Monday, November 17, 2008
World of DTC Marketing is "surprised majority of people who are taking poll want Dr Peter Rost as the new chairman of the FDA"
"In reading John Mack's BLOG this morning I was surprised to see that a majority of people who are taking his poll want Dr Peter Rost as the new chairman of the FDA."
More on DTC Marketing, which is asking if Peter Rost has an "axe to grind."
More on DTC Marketing, which is asking if Peter Rost has an "axe to grind."
My publisher at Soft Skull Press is getting excited about "Peter Rost for FDA Commissioner" campaign.
This is what my publisher writes over at Soft Skull Press. Apparently he was in such a rush to get this up so he didn't even spell check . . .
His excitement is understandable, after all, a lot more people may read my book "The Whistleblower, Confessions of a Healthcare Hitman" if I get the job as new FDA Commissioner.
His excitement is understandable, after all, a lot more people may read my book "The Whistleblower, Confessions of a Healthcare Hitman" if I get the job as new FDA Commissioner.
"Peter Rost for FDA Commissioner" campaign is going Viral!
Here's another endorsement, from Julia Schopick, http://www.honestmedicine.com/. Thank you Julia!
Hi, Dr. Rost:
I posted a very similar comment on John Mack’s blog, but am hoping that by posting on your blog, as well, I will be helping you to BECOME FDA COMMISSIONER. (Won’t that be exciting?)
I forwarded John’s email about you to several people on my email list, and asked them to read the story on his blog, to vote for you -- and then, to pass the emails (mine and his) on to others.
I am including my email here. If anyone would like to copy and use it, I'd be delighted. (I believe the saying, "Plagiarism is the highest form of flattery," applies here!)
Here is my email letter:
I am on John Mack’s (http://pharmamkting.blogspot.com) list, and just received this email from him. (Please scroll way down, below.) I am forwarding it on to a very few people, in hopes that you will read it, vote for Peter Rost (former VP of Marketing for Pfizer) for FDA Commissioner, and then forward it on to others.
The whole incredible story is below. But basically, Peter Rost, former VP of Marketing for Pfizer (and Pfizer whistleblower) is actually in the running for the post of FDA Commissioner. I voted for him on the Pharma Marketing blog, and it seems that so did 99 others! Now both the story and the voting are “going viral” -- and even a German newspaper has written about Rost’s candidacy.
The thing that makes this within the realm of actually becoming a reality is that, four years ago, Rahm Emanuel, Barack Obama’s new Chief of Staff, released the following statement about Peter Rost:
“I would like to nominate Dr. Rost for the Guts of the Year award. Courageous whistleblowers like Dr. Rost have helped make the tobacco industry accountable for misconceptions about the health risks of smoking. Over the past several years, whistleblowers have uncovered major accounting scandals with consequences for millions of Americans. I want to thank Dr. Rost for blowing the whistle on the pharmaceutical industry, breaking down myths perpetuated by the industry that help keep prices – and profits – high at the expense of American families.”
The usual way things happen is that Pharma insiders become FDA Commissioner. We have a new President (whom many of us worked for). Let’s help him to take notice, and to change the way things are done at the FDA!!
Thanks so much for reading this, for voting for Peter Rost, and for passing this email on to others. Let’s continue to make a difference by making this happen!
Julia Schopick
www.HonestMedicine.com
Hi, Dr. Rost:
I posted a very similar comment on John Mack’s blog, but am hoping that by posting on your blog, as well, I will be helping you to BECOME FDA COMMISSIONER. (Won’t that be exciting?)
I forwarded John’s email about you to several people on my email list, and asked them to read the story on his blog, to vote for you -- and then, to pass the emails (mine and his) on to others.
I am including my email here. If anyone would like to copy and use it, I'd be delighted. (I believe the saying, "Plagiarism is the highest form of flattery," applies here!)
Here is my email letter:
I am on John Mack’s (http://pharmamkting.blogspot.com) list, and just received this email from him. (Please scroll way down, below.) I am forwarding it on to a very few people, in hopes that you will read it, vote for Peter Rost (former VP of Marketing for Pfizer) for FDA Commissioner, and then forward it on to others.
The whole incredible story is below. But basically, Peter Rost, former VP of Marketing for Pfizer (and Pfizer whistleblower) is actually in the running for the post of FDA Commissioner. I voted for him on the Pharma Marketing blog, and it seems that so did 99 others! Now both the story and the voting are “going viral” -- and even a German newspaper has written about Rost’s candidacy.
The thing that makes this within the realm of actually becoming a reality is that, four years ago, Rahm Emanuel, Barack Obama’s new Chief of Staff, released the following statement about Peter Rost:
“I would like to nominate Dr. Rost for the Guts of the Year award. Courageous whistleblowers like Dr. Rost have helped make the tobacco industry accountable for misconceptions about the health risks of smoking. Over the past several years, whistleblowers have uncovered major accounting scandals with consequences for millions of Americans. I want to thank Dr. Rost for blowing the whistle on the pharmaceutical industry, breaking down myths perpetuated by the industry that help keep prices – and profits – high at the expense of American families.”
The usual way things happen is that Pharma insiders become FDA Commissioner. We have a new President (whom many of us worked for). Let’s help him to take notice, and to change the way things are done at the FDA!!
Thanks so much for reading this, for voting for Peter Rost, and for passing this email on to others. Let’s continue to make a difference by making this happen!
Julia Schopick
www.HonestMedicine.com
Pharma Marketing: "Peter Rost Gets Serious About Becoming Obaman's Choice for the New FDA Commissioner"
Check out this article on Pharma Marketing.Pretty good description on the start of my candidacy for FDA commissioner.
And if you haven't voted in the survey yet, vote now!
Here's what's interesting about the results:
Not only did it come as a bit of surprise to me that I appear to have taken the top spot so far, but the
background of those who voted made this even more interesting:- 17% consumer/patient
- 22% drug company employees
- 6% physician healthcare employees
- 21% advertising/pr agency employees.
- 3% FDA or other government employees
- 15% academia
- 14% journalist/blogger
Also, about 80% of those who voted were neutral to very supportive of the drug industry.
Learn more details of the most recent results of the vote for FDA commissioner.
Sunday, November 16, 2008
Friday, November 14, 2008
Comments on Pharma Marketing vote for FDA commissioner . . .
John Mack said...
Peter,
Here are some other comments I have received from people who have voted for you:
he is the best looking
because he knows the industry in and out, has shown to have a lot of integrity. His marketing experience is also an interesting plus for the job.
Rost is not afraid to "take on" the pharmaceutical industry when they take advantage of the American citizen. He has proved he has the guts to call it like he sees it.
1.His tremendous integrity. 2.His commitment to protect interests of consumers by fearlessly exposing wrongdoing by Drug Companies. 3.His Qualifications For This Job:: (a) His educational qualifications and knowledge of medical science. (b) Inside-out knowledge of Pharmaceutical and Healthcare Industry backed by super-experience. (c) Experience as an Expert Witness. (d) Intelligent, shrewd and excellent grasping of subject matter (only a fool will attempt to fool him). (e) Assertive yet collaborative.
He's smart, fiesty, tenacious, moral, determined, and motivated. He's seen the good, the bad, and the ugly and can cite examples of each. You couldn't do better.
He's honest
Given Rost's professional qualifications and career experience, he is the ideal commissioner because he knows the industry and will not put the interests of Pharma ahead of public safety.
Management skills and insight into pharma industry.
He knows how Big Pharma operates, isn't owned by them and probaly wouldn't be bought, either. He is also two cents short of a dollar, which helps.
The perfect poacher turned gamekeeper; knows all the tricks!
Brilliant intellect. Uncorruptable.
Peter Rost has stood up and blown the whistle when Big Pharma has been corrupt. He would be excellent.
Peter Rost said...
Humbling, thank you John!
Germany discusses possibility for Dr. Rost to become new FDA Commissioner
Vom Blogger zum Chef der FDA?
Wird ein kritischer Pharma-Blogger demnächst über die Zulassung von Arzneimitteln in den USA wachen? Darüber spekulieren zur Zeit einige US-Pharmablogs, seitdem bekannt geworden ist, dass der zukünftige Stabschef im Weissen Haus, Rahm Emanuel, den Ex-Pfizer-Manager und Blogger Peter Rost sehr schätzt und auch sonst kein ausgewiesener Freund der Pharmaindustrie ist.
Die Arzneimittelaufsichtsbehörde U.S. Food and Drug Administration (FDA) verfügt über einen einzigartigen Aufgabenbereich. Sie ist unter anderem, zuständig für Arzneimittel, Nahrungsmittel, Kosmetika und Nahrungsergänzungsmittel. Mit 9300 Mitarbeitern und einem Jahresetat von 2,1 Milliarden Dollar wacht sie über Produkte im Wert von 1 Billion Dollar. Bei 25% der jährlichen Ausgaben von US-Konsumenten gibt die FDA indirekt ihr Plazet. Da vieles davon aus anderen Ländern stammt, macht dies über ein Drittel der US-Importe aus. Zudem ist die FDA eine Referenz, an deren Entscheidungen sich die Aufsichtsbehörden in anderen Ländern orientieren.
Eine solche Mammtbehörde ist eine ewige Baustelle. Seit langem werden bei der FDA ein Mangel an regulatorischen Befugnissen, eine chronische Unterfinanzierung, organisatorische Probleme und damit eine eingeschränkte Möglichkeit attestiert, die Risiken und Vorteile von neuen Medikamenten nach ihrer Zulassung zu prüfen. Aktuell wird kitisiert, dass die FDA Hersteller von Medikamenten, Lebensmittel und chemische Vorprodukten in China, die nach Amerika liefern, nicht genügend kontrolliert. Dies wird als Ursache für eine Reihe von Lebens- und Arzneimittelskandalen in den letzten Monaten angesehen Obama hat schon Verbesserungen angekündigt. Die FDA wird Büros in China, Indien und Europa eröffnen.
In der Regel ist der FDA-Chef ein Arzt, was Peter Rost schon mal qualifiziert. Die bisherigen Amtsinhaber waren vorher Wissenschaftler oder dienten in der Politik und Verwaltung. Die Ernennung von Peter Rost würde ein Zäsur bedeuten. Rost hat Karriere in der Pharmaindustrie gemacht, was ihn bis zum Vize-Präsidenten für Marketing bei Pharmacia und Pfizer brachte. Er ist unbequem. Als Whistleblower zeigte er das illegale Marketing des Wachstumhormons Genotropin und Unregelmässigkeiten in der Bilanzierung bei Pharmacia an. Bei der Übernahme von Pharmacia hatte Pfizer ihn als unsicheren Kantonisten kalt gestellt. Trotz Pfizers Aufgebot von renomierter Anwaltskanzleien hat Rost die meisten Klagen gegen seinen früheren Arbeitgeber gewonnen. Die Erlebnisse und Erfahrungen schrieb er in einem Sachbuch und einen Thriller nieder. Der Pharmakritiker ist heute tätig als Autor, Redner, Gutachter, Experte - und Blogger.
Hier ist Peter Rost in Aktion zu sehen:
Mit Peter Rost als Chef der einflussreichen Behörde würde Barack Obama ein Zeichen setzen und der Pharmaindustrie die Richtung vorgeben. Der Pharmamarketing-Blogger John Mack lässt über den Posten seine Leser abstimmen, um Obama auf die Sprünge zu helfen. Ob Peter Rost den Job überhaupt will? Vielleicht würde er lieber Gesundheitsminister werden?
In jedem Fall hat Obamas Entscheidung für Rahm Emanuel für die Pharmaindustrie die schlimmsten Träume wahr werden lassen, was zu Spekulationen reizt.
[Ausland]
Source
Wird ein kritischer Pharma-Blogger demnächst über die Zulassung von Arzneimitteln in den USA wachen? Darüber spekulieren zur Zeit einige US-Pharmablogs, seitdem bekannt geworden ist, dass der zukünftige Stabschef im Weissen Haus, Rahm Emanuel, den Ex-Pfizer-Manager und Blogger Peter Rost sehr schätzt und auch sonst kein ausgewiesener Freund der Pharmaindustrie ist.
Die Arzneimittelaufsichtsbehörde U.S. Food and Drug Administration (FDA) verfügt über einen einzigartigen Aufgabenbereich. Sie ist unter anderem, zuständig für Arzneimittel, Nahrungsmittel, Kosmetika und Nahrungsergänzungsmittel. Mit 9300 Mitarbeitern und einem Jahresetat von 2,1 Milliarden Dollar wacht sie über Produkte im Wert von 1 Billion Dollar. Bei 25% der jährlichen Ausgaben von US-Konsumenten gibt die FDA indirekt ihr Plazet. Da vieles davon aus anderen Ländern stammt, macht dies über ein Drittel der US-Importe aus. Zudem ist die FDA eine Referenz, an deren Entscheidungen sich die Aufsichtsbehörden in anderen Ländern orientieren.
Eine solche Mammtbehörde ist eine ewige Baustelle. Seit langem werden bei der FDA ein Mangel an regulatorischen Befugnissen, eine chronische Unterfinanzierung, organisatorische Probleme und damit eine eingeschränkte Möglichkeit attestiert, die Risiken und Vorteile von neuen Medikamenten nach ihrer Zulassung zu prüfen. Aktuell wird kitisiert, dass die FDA Hersteller von Medikamenten, Lebensmittel und chemische Vorprodukten in China, die nach Amerika liefern, nicht genügend kontrolliert. Dies wird als Ursache für eine Reihe von Lebens- und Arzneimittelskandalen in den letzten Monaten angesehen Obama hat schon Verbesserungen angekündigt. Die FDA wird Büros in China, Indien und Europa eröffnen.
In der Regel ist der FDA-Chef ein Arzt, was Peter Rost schon mal qualifiziert. Die bisherigen Amtsinhaber waren vorher Wissenschaftler oder dienten in der Politik und Verwaltung. Die Ernennung von Peter Rost würde ein Zäsur bedeuten. Rost hat Karriere in der Pharmaindustrie gemacht, was ihn bis zum Vize-Präsidenten für Marketing bei Pharmacia und Pfizer brachte. Er ist unbequem. Als Whistleblower zeigte er das illegale Marketing des Wachstumhormons Genotropin und Unregelmässigkeiten in der Bilanzierung bei Pharmacia an. Bei der Übernahme von Pharmacia hatte Pfizer ihn als unsicheren Kantonisten kalt gestellt. Trotz Pfizers Aufgebot von renomierter Anwaltskanzleien hat Rost die meisten Klagen gegen seinen früheren Arbeitgeber gewonnen. Die Erlebnisse und Erfahrungen schrieb er in einem Sachbuch und einen Thriller nieder. Der Pharmakritiker ist heute tätig als Autor, Redner, Gutachter, Experte - und Blogger.
Hier ist Peter Rost in Aktion zu sehen:
Mit Peter Rost als Chef der einflussreichen Behörde würde Barack Obama ein Zeichen setzen und der Pharmaindustrie die Richtung vorgeben. Der Pharmamarketing-Blogger John Mack lässt über den Posten seine Leser abstimmen, um Obama auf die Sprünge zu helfen. Ob Peter Rost den Job überhaupt will? Vielleicht würde er lieber Gesundheitsminister werden?
In jedem Fall hat Obamas Entscheidung für Rahm Emanuel für die Pharmaindustrie die schlimmsten Träume wahr werden lassen, was zu Spekulationen reizt.
[Ausland]
Source
Endorsement for Dr. Rost as new FDA Commissioner
"Dr. Rost has a unique combination of sterling qualifications for FDA Commissioner: knowledge of pharmaceutical medicine, knowledge -- both as an insider and as a reformer -- of how the drug industry actually works, knowledge of the political and legislative processes at work, and passion second to none for those things an FDA Commissioner should be most concerned about -- the integrity of the pharmaceutical industry and how it affects the health and welfare of the public."
Douglas Drenkow
http://douglasdrenkow.com/
Douglas Drenkow
http://douglasdrenkow.com/
Thursday, November 13, 2008
Wednesday, November 12, 2008
Tuesday, November 11, 2008
Monday, November 10, 2008
Saturday, November 08, 2008
Friday, November 07, 2008
President Obama's Chief of Staff, Rahm Emanuel's, position on the drug industry.
Obama Already Turning Into a Nightmare for Big Pharma from BNet
FDA Intern Supports Peter Rost for New FDA Commish! from the Pharma Marketing blog
Chief Of Staff Rahm Emanuel: A Friend To Pharma? from Pharmalot
The Swede with access to Obama from Affärsvärlden in Sweden. (English translation).
FDA Intern Supports Peter Rost for New FDA Commish! from the Pharma Marketing blog
Chief Of Staff Rahm Emanuel: A Friend To Pharma? from Pharmalot
The Swede with access to Obama from Affärsvärlden in Sweden. (English translation).
Thursday, November 06, 2008
Rahm Emanuel becomes President Obama's chief of staff . . . so exactly what did Mr. Emanuel say about Peter Rost?
SEPTEMBER 23, 2004
Emanuel Statement: Importation Press Conference with Pfizer Vice President Dr. Peter Rost
WASHINGTON, D.C.—U.S. Representative Rahm Emanuel released the following statement today at a press conference with members of the tri-partisan Rx Drug Coalition and Pfizer Vice President, Dr. Peter Rost debunking the myth that prescription drugs from abroad are unsafe. Dr. Rost is the first executive from a major drug company to come forward and speak out against the drug industry’s scare campaign. Dr. Rost and members of Congress will urge the U.S. Senate to take action this year on prescription drug market access legislation.
“I would like to nominate Dr. Rost for the Guts of the Year award. Courageous whistleblowers like Dr. Rost have helped make the tobacco industry accountable for misconceptions about the health risks of smoking. Over the past several years, whistleblowers have uncovered major accounting scandals with consequences for millions of Americans. I want to thank Dr. Rost for blowing the whistle on the pharmaceutical industry, breaking down myths perpetuated by the industry that help keep prices – and profits – high at the expense of American families.
It is clear from the letter I received last night from Pfizer the industry is trying to discredit Dr. Rost and disparage his expertise on the issue. It shows you how they turn on one of their own. Dr. Rost is lending his voice to the chorus of Americans exclaiming that drug prices are simply too high, and that importation of affordable drugs can be a safe and effective way to hold down prices in the U.S.
It’s not just politicians standing around and talking about why we need importation. How many studies do we need to show that the American people are convinced that drugs are too expensive in this country and committed to doing something about it?
Here’s a recent one by the nonpartisan Civil Society Institute. One-third of American adults - with health insurance - either purchase their medication from other countries or plan to do so soon. Another--66 percent of Americans believe that drug prices are “unreasonably high.” And a Kaiser Family Foundation poll found that four fifths of Medicare recipients support importation.
There is no clearer example of these startling price differences than the AIDS drug Norvir, marketed by Abbott Laboratories and developed with American taxpayer dollars. What do American taxpayers get for their generous investment? They get to pay $642.90 a month for this lifesaving drug, while it costs $52.04 in Australia for a month’s supply.
The pharmaceutical industry and Congressional Leadership continue to hide behind the facade of safety concerns, while Americans continue go without the drugs they need.
With the help of Dr. Rost, we will continue to break down the safety myth, and the other myths perpetuated by the industry. However long it takes, we will not back down until a comprehensive, meaningful importation bill is passed into law.”
###
Back to Home PageRahm Emanuel statement on Rost.
SEPTEMBER 23, 2004
Emanuel Statement: Importation Press Conference with Pfizer Vice President Dr. Peter Rost
WASHINGTON, D.C.—U.S. Representative Rahm Emanuel released the following statement today at a press conference with members of the tri-partisan Rx Drug Coalition and Pfizer Vice President, Dr. Peter Rost debunking the myth that prescription drugs from abroad are unsafe. Dr. Rost is the first executive from a major drug company to come forward and speak out against the drug industry’s scare campaign. Dr. Rost and members of Congress will urge the U.S. Senate to take action this year on prescription drug market access legislation.
“I would like to nominate Dr. Rost for the Guts of the Year award. Courageous whistleblowers like Dr. Rost have helped make the tobacco industry accountable for misconceptions about the health risks of smoking. Over the past several years, whistleblowers have uncovered major accounting scandals with consequences for millions of Americans. I want to thank Dr. Rost for blowing the whistle on the pharmaceutical industry, breaking down myths perpetuated by the industry that help keep prices – and profits – high at the expense of American families.
It is clear from the letter I received last night from Pfizer the industry is trying to discredit Dr. Rost and disparage his expertise on the issue. It shows you how they turn on one of their own. Dr. Rost is lending his voice to the chorus of Americans exclaiming that drug prices are simply too high, and that importation of affordable drugs can be a safe and effective way to hold down prices in the U.S.
It’s not just politicians standing around and talking about why we need importation. How many studies do we need to show that the American people are convinced that drugs are too expensive in this country and committed to doing something about it?
Here’s a recent one by the nonpartisan Civil Society Institute. One-third of American adults - with health insurance - either purchase their medication from other countries or plan to do so soon. Another--66 percent of Americans believe that drug prices are “unreasonably high.” And a Kaiser Family Foundation poll found that four fifths of Medicare recipients support importation.
There is no clearer example of these startling price differences than the AIDS drug Norvir, marketed by Abbott Laboratories and developed with American taxpayer dollars. What do American taxpayers get for their generous investment? They get to pay $642.90 a month for this lifesaving drug, while it costs $52.04 in Australia for a month’s supply.
The pharmaceutical industry and Congressional Leadership continue to hide behind the facade of safety concerns, while Americans continue go without the drugs they need.
With the help of Dr. Rost, we will continue to break down the safety myth, and the other myths perpetuated by the industry. However long it takes, we will not back down until a comprehensive, meaningful importation bill is passed into law.”
###
Back to Home PageWednesday, November 05, 2008
Scott Adams of Dilbert fame on the election and the stock market.
I was expecting stocks to rally sharply ahead of the election, and pull back when the results were announced. It looks like that prediction came true.
I based my prediction on the conspiracy theory that the market is controlled by a relatively small group of ultra rich people who preferred McCain for president. A phony surge in stocks ahead of the election might have convinced some people that the economic downturn was already on the mend, so no need for a change.
I have long suspected that all major movements in the markets are manipulated by billionaires who would like to become trillionaires. They know in advance which way the market will move, because they cause the movement, so they sell high and buy low while the unwashed masses are doing the opposite.
If you based your investing on the conspiracy theory that markets are manipulated by the rich, you would do very well, even if that theory is wrong. For example, you would have bought stocks every time the media told you the economy was doomed, and sold stocks whenever the market was testing new bubble highs, because you cynically believed all financial news was intentionally misleading.
Unfortunately it's psychologically hard to buy stocks when the economy is circling the drain (according to the media) and even harder to avoid investing when things look bubble-iscous. The way to get past that is to convince yourself the billionaires are manipulating all information about the economy in order to fool you. When the media says sell, it's time to buy. (Disclaimer: Do not get your investment advice from cartoonists.)
On an unrelated note, I heard someone refer to President-elect Obama as Halfrican-American. I can't decide if that is clever or racist.
The Dilbert blog.
I based my prediction on the conspiracy theory that the market is controlled by a relatively small group of ultra rich people who preferred McCain for president. A phony surge in stocks ahead of the election might have convinced some people that the economic downturn was already on the mend, so no need for a change.
I have long suspected that all major movements in the markets are manipulated by billionaires who would like to become trillionaires. They know in advance which way the market will move, because they cause the movement, so they sell high and buy low while the unwashed masses are doing the opposite.
If you based your investing on the conspiracy theory that markets are manipulated by the rich, you would do very well, even if that theory is wrong. For example, you would have bought stocks every time the media told you the economy was doomed, and sold stocks whenever the market was testing new bubble highs, because you cynically believed all financial news was intentionally misleading.
Unfortunately it's psychologically hard to buy stocks when the economy is circling the drain (according to the media) and even harder to avoid investing when things look bubble-iscous. The way to get past that is to convince yourself the billionaires are manipulating all information about the economy in order to fool you. When the media says sell, it's time to buy. (Disclaimer: Do not get your investment advice from cartoonists.)
On an unrelated note, I heard someone refer to President-elect Obama as Halfrican-American. I can't decide if that is clever or racist.
The Dilbert blog.
President Obama to the Peter Rost blog: All of this happened because of you.
Because of me, President Obama!!???
I'm so flattered!
After all, I'm just running a humble blog. But yes, anyone who Googles for images of Sarah Palin now gets to my blog right away.
Black Man Given Nation's Worst Job
Black Man Given Nation's Worst Job
November 5, 2008 Issue 44•45
WASHINGTON—African-American man Barack Obama, 47, was given the least-desirable job in the entire country Tuesday when he was elected president of the United States of America. In his new high-stress, low-reward position, Obama will be charged with such tasks as completely overhauling the nation's broken-down economy, repairing the crumbling infrastructure, and generally having to please more than 300 million Americans and cater to their every whim on a daily basis. As part of his duties, the black man will have to spend four to eight years cleaning up the messes other people left behind. The job comes with such intense scrutiny and so certain a guarantee of failure that only one other person even bothered applying for it. Said scholar and activist Mark L. Denton, "It just goes to show you that, in this country, a black man still can't catch a break."
The Onion
November 5, 2008 Issue 44•45
WASHINGTON—African-American man Barack Obama, 47, was given the least-desirable job in the entire country Tuesday when he was elected president of the United States of America. In his new high-stress, low-reward position, Obama will be charged with such tasks as completely overhauling the nation's broken-down economy, repairing the crumbling infrastructure, and generally having to please more than 300 million Americans and cater to their every whim on a daily basis. As part of his duties, the black man will have to spend four to eight years cleaning up the messes other people left behind. The job comes with such intense scrutiny and so certain a guarantee of failure that only one other person even bothered applying for it. Said scholar and activist Mark L. Denton, "It just goes to show you that, in this country, a black man still can't catch a break."
The Onion
Tuesday, November 04, 2008
I wasn't allowed to vote!
So two months ago I sent in my voter registration to the state of NJ.
As I arrived to vote my name was nowhere to be found and I had to cast a provisional ballot.
Thanks for nothing New Jersey. What a waste of time.
As I arrived to vote my name was nowhere to be found and I had to cast a provisional ballot.
Thanks for nothing New Jersey. What a waste of time.
Monday, November 03, 2008
Twenty Things You Should Know About Corporate Crime
Number 20
Corporate crime inflicts far more damage on society than all street crime combined.
Whether in bodies or injuries or dollars lost, corporate crime and violence wins by a landslide.
The FBI estimates, for example, that burglary and robbery – street crimes – costs the nation $3.8 billion a year.
The losses from a handful of major corporate frauds – Tyco, Adelphia, Worldcom, Enron – swamp the losses from all street robberies and burglaries combined.
Health care fraud alone costs Americans $100 billion to $400 billion a year.
The savings and loan fraud – which former Attorney General Dick Thornburgh called "the biggest white collar swindle in history" – cost us anywhere from $300 billion to $500 billion.
And then you have your lesser frauds: auto repair fraud, $40 billion a year, securities fraud, $15 billion a year – and on down the list.
Number 19
Corporate crime is often violent crime.
Recite this list of corporate frauds and people will immediately say to you: but you can't compare street crime and corporate crime – corporate crime is not violent crime.
Not true.
Corporate crime is often violent crime.
The FBI estimates that, 16,000 Americans are murdered every year.
Compare this to the 56,000 Americans who die every year on the job or from occupational diseases such as black lung and asbestosis and the tens of thousands of other Americans who fall victim to the silent violence of pollution, contaminated foods, hazardous consumer products, and hospital malpractice.
These deaths are often the result of criminal recklessness. Yet, they are rarely prosecuted as homicides or as criminal violations of federal laws.
Number 18
Corporate criminals are the only criminal class in the United States that have the power to define the laws under which they live.
The mafia, no.
The gangstas, no.
The street thugs, no.
But the corporate criminal lobby, yes. They have marinated Washington – from the White House to the Congress to K Street – with their largesse. And out the other end come the laws they can live with. They still violate their own rules with impunity. But they make sure the laws are kept within reasonable bounds.
Exhibit A – the automobile industry.
Over the past 30 years, the industry has worked its will on Congress to block legislation that would impose criminal sanctions on knowing and willful violations of the federal auto safety laws. Today, with very narrow exceptions, if an auto company is caught violating the law, only a civil fine is imposed.
Number 17
Corporate crime is underprosecuted by a factor of say – 100. And the flip side of that – corporate crime prosecutors are underfunded by a factor of say – 100.
Big companies that are criminally prosecuted represent only the tip of a very large iceberg of corporate wrongdoing.
For every company convicted of health care fraud, there are hundreds of others who get away with ripping off Medicare and Medicaid, or face only mild slap-on-the-wrist fines and civil penalties when caught.
For every company convicted of polluting the nation's waterways, there are many others who are not prosecuted because their corporate defense lawyers are able to offer up a low-level employee to go to jail in exchange for a promise from prosecutors not to touch the company or high-level executives.
For every corporation convicted of bribery or of giving money directly to a public official in violation of federal law, there are thousands who give money legally through political action committees to candidates and political parties. They profit from a system that effectively has legalized bribery.
For every corporation convicted of selling illegal pesticides, there are hundreds more who are not prosecuted because their lobbyists have worked their way in Washington to ensure that dangerous pesticides remain legal.
For every corporation convicted of reckless homicide in the death of a worker, there are hundreds of others that don't even get investigated for reckless homicide when a worker is killed on the job. Only a few district attorneys across the country have historically investigated workplace deaths as homicides.
Corporate crime prosecutors are underfunded by a factor of say – 100.
White collar crime defense attorneys regularly admit that if more prosecutors had more resources, the number of corporate crime prosecutions would increase dramatically. A large number of serious corporate and white collar crime cases are now left on the table for lack of resources.
Number 16
Beware of consumer groups or other public interest groups who make nice with corporations.
There are now probably more fake public interest groups than actual ones in America today. And many formerly legitimate public interest groups have been taken over or compromised by big corporations. Our favorite example is the National Consumer League. It’s the oldest consumer group in the country. It was created to eradicate child labor.
But in the last ten years or so, it has been taken over by large corporations. It now gets the majority of its budget from big corporations such as Pfizer, Bank of America, Pharmacia & Upjohn, Kaiser Permanente, Wyeth-Ayerst, and Verizon.
Number 15
It used to be when a corporation committed a crime, they pled guilty to a crime.
So, for example, so many large corporations were pleading guilty to crimes in the 1990s, that in 2000, we put out a report titled The Top 100 Corporate Criminals of the 1990s. We went back through all of the Corporate Crime Reporters for that decade, pulled out all of the big corporations that had been convicted, ranked the corporate criminals by the amount of their criminal fines, and cut it off at 100.
So, you have your Fortune 500, your Forbes 400, and your Corporate Crime Reporter 100.
Number 14
Now, corporate criminals don’t have to worry about pleading guilty to crimes.
Three new loopholes have developed over the past five years – the deferred prosecution agreement, the non prosecution agreement, and pleading guilty a closet entity or a defunct entity that has nothing to lose.
Number 13
Corporations love deferred prosecution agreements.
In the 1990s, if prosecutors had evidence of a crime, they would bring a criminal charge against the corporation and sometimes against the individual executives. And the company would end up pleading guilty.
Then, about three years ago, the Justice Department said – hey, there is this thing called a deferred prosecution agreement.
We can bring a criminal charge against the company. And we will tell the company – if you are a good company and do not violate the law for the next two years, we will drop the charges. No harm, no foul. This is called a deferred prosecution agreement.
And most major corporate crime prosecutions are brought this way now. The company pays a fine. The company is charged with a crime. But there is no conviction. And after two or three years, depending on the term of the agreement, the charges are dropped.
Number 12
Corporations love non prosecution agreements even more.
One Friday evening last July, I was sitting my office in the National Press Building. And into my e-mail box came a press release from the Justice Department.
The press release announced that Boeing will pay a $50 million criminal penalty and $615 million in civil penalties to resolve federal claims relating to the company's hiring of the former Air Force acquisitions chief Darleen A. Druyun, by its then CFO, Michael Sears – and stealing sensitive procurement information.
So, the company pays a criminal penalty. And I figure, okay if they paid a criminal penalty, they must have pled guilty.
No, they did not plead guilty.
Okay, they must have been charged with a crime and had the prosecution deferred.
No, they were not charged with a crime and did not have the prosecution deferred.
About a week later, after pounding the Justice Department for an answer as to what happened to Boeing, they sent over something called a non prosecution agreement.
That is where the Justice Department says – we’re going to fine you criminally, but hey, we don’t want to cost you any government business, so sign this agreement. It says we won’t prosecute you if you pay the fine and change your ways.
Corporate criminals love non prosecution agreements. No criminal charge. No criminal record. No guilty plea. Just pay the fine and leave.
Number 11
In health fraud cases, find an empty closet or defunct entity to plead guilty.
The government has a mandatory exclusion rule for health care corporations that are convicted of ripping off Medicare.
Such an exclusion is the equivalent of the death penalty. If a major drug company can’t do business with Medicare, it loses a big chunk of its business. There have been many criminal prosecutions of major health care corporations for ripping off Medicare. And many of these companies have pled guilty. But not one major health care company has been excluded from Medicare.
Why not?
Because when you read in the newspaper that a major health care company pled guilty, it’s not the parent company that pleads guilty. The prosecutor will allow a unit of the corporation that has no assets – or even a defunct entity – to plead guilty. And therefore that unit will be excluded from Medicare – which doesn’t bother the parent corporation, because the unit had no business with Medicare to begin with.
Earlier, Dr. Sidney Wolfe was here and talked about the criminal prosecution of Purdue Pharma, the Stamford, Connecticut-based maker of OxyContin.
Dr. Wolfe said that the company pled guilty to pushing OxyContin by making claims that it is less addictive and less subject to abuse than other pain medications and that it continued to do so despite warnings to the contrary from doctors, the media, and members of its own sales force.
Well, Purdue Pharma – the company that makes and markets the drug – didn’t plead guilty. A different company – Purdue Frederick pled guilty. Purdue Pharma actually got a non-prosecution agreement. Purdue Frederick had nothing to lose, so it pled guilty.
Number 10
Corporate criminals don’t like to be put on probation.
Very rarely, a corporation convicted of a crime will be placed on probation. Many years ago, Consolidated Edison in New York was convicted of an environmental crime. A probation official was assigned. Employees would call him with wrongdoing. He would write reports for the judge. The company changed its ways. There was actual change within the corporation.
Corporations hate this. They hate being under the supervision of some public official, like a judge.
We need more corporate probation.
Number 9
Corporate criminals don’t like to be charged with homicide.
Street murders occur every day in America. And they are prosecuted every day in America. Corporate homicides occur every day in America. But they are rarely prosecuted.
The last homicide prosecution brought against a major American corporation was in 1980, when a Republican Indiana prosecutor charged Ford Motor Co. with homicide for the deaths of three teenaged girls who died when their Ford Pinto caught on fire after being rear-ended in northern Indiana.
The prosecutor alleged that Ford knew that it was marketing a defective product, with a gas tank that crushed when rear ended, spilling fuel.
In the Indiana case, the girls were incinerated to death.
But Ford brought in a hot shot criminal defense lawyer who in turn hired the best friend of the judge as local counsel, and who, as a result, secured a not guilty verdict after persuading the judge to keep key evidence out of the jury room.
It’s time to crank up the corporate homicide prosecutions.
Number 8
There are very few career prosecutors of corporate crime.
Patrick Fitzgerald is one that comes to mind. He’s the U.S. Attorney in Chicago. He put away Scooter Libby. And he’s now prosecuting the Canadian media baron Conrad Black.
Number 7
Most corporate crime prosecutors see their jobs as a stepping stone to greater things.
Spitzer and Giuliani prosecuted corporate crime as a way to move up the political ladder. But most young prosecutors prosecute corporate crime to move into the lucrative corporate crime defense bar.
Number 6
Most corporate criminals turn themselves into the authorities.
The vast majority of corporate criminal prosecutions are now driven by the corporations themselves. If they find something wrong, they know they can trust the prosecutor to do the right thing. They will be forced to pay a fine, maybe agree to make some internal changes.
But in this day and age, in all likelihood, they will not be forced to plead guilty.
So, better to be up front with the prosecutor and put the matter behind them. To save the hide of the corporation, they will cooperate with federal prosecutors against individual executives within the company. Individuals will be charged, the corporation will not.
Number 5
The market doesn’t take most modern corporate criminal prosecutions seriously.
Almost universally, when a corporate crime case is settled, the stock of the company involved goes up.
Why? Because a cloud has been cleared and there is no serious consequence to the company. No structural changes in how the company does business. No monitor. No probation. Preserving corporate reputation is the name of the game.
Number 4
The Justice Department needs to start publishing an annual Corporate Crime in the United States report.
Every year, the Justice Department puts out an annual report titled "Crime in the United States."
But by "Crime in the United States," the Justice Department means "street crime in the United States."
In the "Crime in the United States" annual report, you can read about burglary, robbery and theft.
There is little or nothing about price-fixing, corporate fraud, pollution, or public corruption.
A yearly Justice Department report on Corporate Crime in the United States is long overdue.
Number 3
We must start asking – which side are you on – with the corporate criminals or against?
Most professionals in Washington work for, are paid by, or are under the control of the corporate crime lobby. Young lawyers come to town, fresh out of law school, 25 years old, and their starting salary is $160,000 a year. And they’re working for the corporate criminals.
Young lawyers graduating from the top law schools have all kinds of excuses for working for the corporate criminals – huge debt, just going to stay a couple of years for the experience.
But the reality is, they are working for the corporate criminals.
What kind of respect should we give them? Especially since they have many options other than working for the corporate criminals.
Time to dust off that age-old question – which side are you on? (For young lawyers out there considering other options, check out Alan Morrison’s new book – Beyond the Big Firm: Profiles of Lawyers Who Want Something More.)
Number 2
We need a 911 number for the American people to dial to report corporate crime and violence.
If you want to report street crime and violence, call 911.
But what number do you call if you want to report corporate crime and violence?
We propose 611.
Call 611 to report corporate crime and violence.
We need a national number where people can pick up the phone and report the corporate criminals in our midst.
What triggered this thought?
We attended the press conference at the Justice Department the other day announcing the indictment of Congressman William Jefferson (D-Louisiana).
Jefferson was the first U.S. official charged with violating the Foreign Corrupt Practices Act.
Federal officials alleged that Jefferson was both on the giving and receiving ends of bribe payments.
On the receiving end, he took $100,000 in cash – $90,000 of it was stuffed into his freezer in Washington, D.C.
The $90,000 was separated in $10,000 increments, wrapped in aluminum foil, and concealed inside various frozen food containers.
At the press conference announcing the indictment, after various federal officials made their case before the cameras, up to the mike came Joe Persichini, assistant director of the Washington field office of the FBI.
“To the American people, I ask you, take time,” Persichini said. “Read this charging document line by line, scheme by scheme, count by count. This case is about greed, power and arrogance.”
“Everyone is entitled to honest and ethical public service,” Persichini continued. “We as leaders standing here today cannot do it alone. We need the public's help. The amount of corruption is dependent on what the public with allow.
Again, the amount of corruption is dependent on what the public will allow.”
“If you have knowledge of, if you've been confronted with or you are participating, I ask that you contact your local FBI office or you call the Washington Field Office of the FBI at 202.278.2000. Thank you very much.”
Shorten the number – make it 611.
Number one.
And the number one thing you should know about corporate crime?
Everyone is deserving of justice. So, question, debate, strategize, yes.
But if God-forbid you too are victimized by a corporate criminal, you too will demand justice.
We need a more beefed up, more effective justice system to deal with the corporate criminals in our midst.
Thank you.
(This is the text of a speech delivered by Russell Mokhiber, editor of Corporate Crime Reporter to the Taming the Giant Corporation conference in Washington, D.C., June 9, 2007.)
Corporate crime inflicts far more damage on society than all street crime combined.
Whether in bodies or injuries or dollars lost, corporate crime and violence wins by a landslide.
The FBI estimates, for example, that burglary and robbery – street crimes – costs the nation $3.8 billion a year.
The losses from a handful of major corporate frauds – Tyco, Adelphia, Worldcom, Enron – swamp the losses from all street robberies and burglaries combined.
Health care fraud alone costs Americans $100 billion to $400 billion a year.
The savings and loan fraud – which former Attorney General Dick Thornburgh called "the biggest white collar swindle in history" – cost us anywhere from $300 billion to $500 billion.
And then you have your lesser frauds: auto repair fraud, $40 billion a year, securities fraud, $15 billion a year – and on down the list.
Number 19
Corporate crime is often violent crime.
Recite this list of corporate frauds and people will immediately say to you: but you can't compare street crime and corporate crime – corporate crime is not violent crime.
Not true.
Corporate crime is often violent crime.
The FBI estimates that, 16,000 Americans are murdered every year.
Compare this to the 56,000 Americans who die every year on the job or from occupational diseases such as black lung and asbestosis and the tens of thousands of other Americans who fall victim to the silent violence of pollution, contaminated foods, hazardous consumer products, and hospital malpractice.
These deaths are often the result of criminal recklessness. Yet, they are rarely prosecuted as homicides or as criminal violations of federal laws.
Number 18
Corporate criminals are the only criminal class in the United States that have the power to define the laws under which they live.
The mafia, no.
The gangstas, no.
The street thugs, no.
But the corporate criminal lobby, yes. They have marinated Washington – from the White House to the Congress to K Street – with their largesse. And out the other end come the laws they can live with. They still violate their own rules with impunity. But they make sure the laws are kept within reasonable bounds.
Exhibit A – the automobile industry.
Over the past 30 years, the industry has worked its will on Congress to block legislation that would impose criminal sanctions on knowing and willful violations of the federal auto safety laws. Today, with very narrow exceptions, if an auto company is caught violating the law, only a civil fine is imposed.
Number 17
Corporate crime is underprosecuted by a factor of say – 100. And the flip side of that – corporate crime prosecutors are underfunded by a factor of say – 100.
Big companies that are criminally prosecuted represent only the tip of a very large iceberg of corporate wrongdoing.
For every company convicted of health care fraud, there are hundreds of others who get away with ripping off Medicare and Medicaid, or face only mild slap-on-the-wrist fines and civil penalties when caught.
For every company convicted of polluting the nation's waterways, there are many others who are not prosecuted because their corporate defense lawyers are able to offer up a low-level employee to go to jail in exchange for a promise from prosecutors not to touch the company or high-level executives.
For every corporation convicted of bribery or of giving money directly to a public official in violation of federal law, there are thousands who give money legally through political action committees to candidates and political parties. They profit from a system that effectively has legalized bribery.
For every corporation convicted of selling illegal pesticides, there are hundreds more who are not prosecuted because their lobbyists have worked their way in Washington to ensure that dangerous pesticides remain legal.
For every corporation convicted of reckless homicide in the death of a worker, there are hundreds of others that don't even get investigated for reckless homicide when a worker is killed on the job. Only a few district attorneys across the country have historically investigated workplace deaths as homicides.
Corporate crime prosecutors are underfunded by a factor of say – 100.
White collar crime defense attorneys regularly admit that if more prosecutors had more resources, the number of corporate crime prosecutions would increase dramatically. A large number of serious corporate and white collar crime cases are now left on the table for lack of resources.
Number 16
Beware of consumer groups or other public interest groups who make nice with corporations.
There are now probably more fake public interest groups than actual ones in America today. And many formerly legitimate public interest groups have been taken over or compromised by big corporations. Our favorite example is the National Consumer League. It’s the oldest consumer group in the country. It was created to eradicate child labor.
But in the last ten years or so, it has been taken over by large corporations. It now gets the majority of its budget from big corporations such as Pfizer, Bank of America, Pharmacia & Upjohn, Kaiser Permanente, Wyeth-Ayerst, and Verizon.
Number 15
It used to be when a corporation committed a crime, they pled guilty to a crime.
So, for example, so many large corporations were pleading guilty to crimes in the 1990s, that in 2000, we put out a report titled The Top 100 Corporate Criminals of the 1990s. We went back through all of the Corporate Crime Reporters for that decade, pulled out all of the big corporations that had been convicted, ranked the corporate criminals by the amount of their criminal fines, and cut it off at 100.
So, you have your Fortune 500, your Forbes 400, and your Corporate Crime Reporter 100.
Number 14
Now, corporate criminals don’t have to worry about pleading guilty to crimes.
Three new loopholes have developed over the past five years – the deferred prosecution agreement, the non prosecution agreement, and pleading guilty a closet entity or a defunct entity that has nothing to lose.
Number 13
Corporations love deferred prosecution agreements.
In the 1990s, if prosecutors had evidence of a crime, they would bring a criminal charge against the corporation and sometimes against the individual executives. And the company would end up pleading guilty.
Then, about three years ago, the Justice Department said – hey, there is this thing called a deferred prosecution agreement.
We can bring a criminal charge against the company. And we will tell the company – if you are a good company and do not violate the law for the next two years, we will drop the charges. No harm, no foul. This is called a deferred prosecution agreement.
And most major corporate crime prosecutions are brought this way now. The company pays a fine. The company is charged with a crime. But there is no conviction. And after two or three years, depending on the term of the agreement, the charges are dropped.
Number 12
Corporations love non prosecution agreements even more.
One Friday evening last July, I was sitting my office in the National Press Building. And into my e-mail box came a press release from the Justice Department.
The press release announced that Boeing will pay a $50 million criminal penalty and $615 million in civil penalties to resolve federal claims relating to the company's hiring of the former Air Force acquisitions chief Darleen A. Druyun, by its then CFO, Michael Sears – and stealing sensitive procurement information.
So, the company pays a criminal penalty. And I figure, okay if they paid a criminal penalty, they must have pled guilty.
No, they did not plead guilty.
Okay, they must have been charged with a crime and had the prosecution deferred.
No, they were not charged with a crime and did not have the prosecution deferred.
About a week later, after pounding the Justice Department for an answer as to what happened to Boeing, they sent over something called a non prosecution agreement.
That is where the Justice Department says – we’re going to fine you criminally, but hey, we don’t want to cost you any government business, so sign this agreement. It says we won’t prosecute you if you pay the fine and change your ways.
Corporate criminals love non prosecution agreements. No criminal charge. No criminal record. No guilty plea. Just pay the fine and leave.
Number 11
In health fraud cases, find an empty closet or defunct entity to plead guilty.
The government has a mandatory exclusion rule for health care corporations that are convicted of ripping off Medicare.
Such an exclusion is the equivalent of the death penalty. If a major drug company can’t do business with Medicare, it loses a big chunk of its business. There have been many criminal prosecutions of major health care corporations for ripping off Medicare. And many of these companies have pled guilty. But not one major health care company has been excluded from Medicare.
Why not?
Because when you read in the newspaper that a major health care company pled guilty, it’s not the parent company that pleads guilty. The prosecutor will allow a unit of the corporation that has no assets – or even a defunct entity – to plead guilty. And therefore that unit will be excluded from Medicare – which doesn’t bother the parent corporation, because the unit had no business with Medicare to begin with.
Earlier, Dr. Sidney Wolfe was here and talked about the criminal prosecution of Purdue Pharma, the Stamford, Connecticut-based maker of OxyContin.
Dr. Wolfe said that the company pled guilty to pushing OxyContin by making claims that it is less addictive and less subject to abuse than other pain medications and that it continued to do so despite warnings to the contrary from doctors, the media, and members of its own sales force.
Well, Purdue Pharma – the company that makes and markets the drug – didn’t plead guilty. A different company – Purdue Frederick pled guilty. Purdue Pharma actually got a non-prosecution agreement. Purdue Frederick had nothing to lose, so it pled guilty.
Number 10
Corporate criminals don’t like to be put on probation.
Very rarely, a corporation convicted of a crime will be placed on probation. Many years ago, Consolidated Edison in New York was convicted of an environmental crime. A probation official was assigned. Employees would call him with wrongdoing. He would write reports for the judge. The company changed its ways. There was actual change within the corporation.
Corporations hate this. They hate being under the supervision of some public official, like a judge.
We need more corporate probation.
Number 9
Corporate criminals don’t like to be charged with homicide.
Street murders occur every day in America. And they are prosecuted every day in America. Corporate homicides occur every day in America. But they are rarely prosecuted.
The last homicide prosecution brought against a major American corporation was in 1980, when a Republican Indiana prosecutor charged Ford Motor Co. with homicide for the deaths of three teenaged girls who died when their Ford Pinto caught on fire after being rear-ended in northern Indiana.
The prosecutor alleged that Ford knew that it was marketing a defective product, with a gas tank that crushed when rear ended, spilling fuel.
In the Indiana case, the girls were incinerated to death.
But Ford brought in a hot shot criminal defense lawyer who in turn hired the best friend of the judge as local counsel, and who, as a result, secured a not guilty verdict after persuading the judge to keep key evidence out of the jury room.
It’s time to crank up the corporate homicide prosecutions.
Number 8
There are very few career prosecutors of corporate crime.
Patrick Fitzgerald is one that comes to mind. He’s the U.S. Attorney in Chicago. He put away Scooter Libby. And he’s now prosecuting the Canadian media baron Conrad Black.
Number 7
Most corporate crime prosecutors see their jobs as a stepping stone to greater things.
Spitzer and Giuliani prosecuted corporate crime as a way to move up the political ladder. But most young prosecutors prosecute corporate crime to move into the lucrative corporate crime defense bar.
Number 6
Most corporate criminals turn themselves into the authorities.
The vast majority of corporate criminal prosecutions are now driven by the corporations themselves. If they find something wrong, they know they can trust the prosecutor to do the right thing. They will be forced to pay a fine, maybe agree to make some internal changes.
But in this day and age, in all likelihood, they will not be forced to plead guilty.
So, better to be up front with the prosecutor and put the matter behind them. To save the hide of the corporation, they will cooperate with federal prosecutors against individual executives within the company. Individuals will be charged, the corporation will not.
Number 5
The market doesn’t take most modern corporate criminal prosecutions seriously.
Almost universally, when a corporate crime case is settled, the stock of the company involved goes up.
Why? Because a cloud has been cleared and there is no serious consequence to the company. No structural changes in how the company does business. No monitor. No probation. Preserving corporate reputation is the name of the game.
Number 4
The Justice Department needs to start publishing an annual Corporate Crime in the United States report.
Every year, the Justice Department puts out an annual report titled "Crime in the United States."
But by "Crime in the United States," the Justice Department means "street crime in the United States."
In the "Crime in the United States" annual report, you can read about burglary, robbery and theft.
There is little or nothing about price-fixing, corporate fraud, pollution, or public corruption.
A yearly Justice Department report on Corporate Crime in the United States is long overdue.
Number 3
We must start asking – which side are you on – with the corporate criminals or against?
Most professionals in Washington work for, are paid by, or are under the control of the corporate crime lobby. Young lawyers come to town, fresh out of law school, 25 years old, and their starting salary is $160,000 a year. And they’re working for the corporate criminals.
Young lawyers graduating from the top law schools have all kinds of excuses for working for the corporate criminals – huge debt, just going to stay a couple of years for the experience.
But the reality is, they are working for the corporate criminals.
What kind of respect should we give them? Especially since they have many options other than working for the corporate criminals.
Time to dust off that age-old question – which side are you on? (For young lawyers out there considering other options, check out Alan Morrison’s new book – Beyond the Big Firm: Profiles of Lawyers Who Want Something More.)
Number 2
We need a 911 number for the American people to dial to report corporate crime and violence.
If you want to report street crime and violence, call 911.
But what number do you call if you want to report corporate crime and violence?
We propose 611.
Call 611 to report corporate crime and violence.
We need a national number where people can pick up the phone and report the corporate criminals in our midst.
What triggered this thought?
We attended the press conference at the Justice Department the other day announcing the indictment of Congressman William Jefferson (D-Louisiana).
Jefferson was the first U.S. official charged with violating the Foreign Corrupt Practices Act.
Federal officials alleged that Jefferson was both on the giving and receiving ends of bribe payments.
On the receiving end, he took $100,000 in cash – $90,000 of it was stuffed into his freezer in Washington, D.C.
The $90,000 was separated in $10,000 increments, wrapped in aluminum foil, and concealed inside various frozen food containers.
At the press conference announcing the indictment, after various federal officials made their case before the cameras, up to the mike came Joe Persichini, assistant director of the Washington field office of the FBI.
“To the American people, I ask you, take time,” Persichini said. “Read this charging document line by line, scheme by scheme, count by count. This case is about greed, power and arrogance.”
“Everyone is entitled to honest and ethical public service,” Persichini continued. “We as leaders standing here today cannot do it alone. We need the public's help. The amount of corruption is dependent on what the public with allow.
Again, the amount of corruption is dependent on what the public will allow.”
“If you have knowledge of, if you've been confronted with or you are participating, I ask that you contact your local FBI office or you call the Washington Field Office of the FBI at 202.278.2000. Thank you very much.”
Shorten the number – make it 611.
Number one.
And the number one thing you should know about corporate crime?
Everyone is deserving of justice. So, question, debate, strategize, yes.
But if God-forbid you too are victimized by a corporate criminal, you too will demand justice.
We need a more beefed up, more effective justice system to deal with the corporate criminals in our midst.
Thank you.
(This is the text of a speech delivered by Russell Mokhiber, editor of Corporate Crime Reporter to the Taming the Giant Corporation conference in Washington, D.C., June 9, 2007.)
Chinese farmer builds his own airplane . . . from lawn mower.
Sorry, helicopter, it was!
No, gyro-copter!
Here's another one. A real helicopter.
Sunday, November 02, 2008
Sarah Palin punk'd by radio station.
A Canadian comedy duo called The Masked Avengers from CKOI 96.9 FM in Montreal, Quebec pranked Sarah Palin, convincing her (and her team) they were receiving a call from French President Nicolas Sarkozy.
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