Enron is a values scandal, and specifically a conservative values
scandal. Far from being an accident, the Enron affair is the inevitable
culmination of 20 years of agitation against government regulations, employee protections and other progressive policies that might have prevented, or at least
softened, the blow. Ever since Ronald Reagan took office, conservatives have treated nearly all such regulations as manacles on corporate behavior, rather than as
safeguards against corporate misbehavior. While it had help from some Democrats, the GOP in particular conflated its conservative philosophy of government with a
conservative moral code, while creating an environment of corporate permissiveness in which an Enron was bound to happen.
Ex-CEO of Sotheby's Tells of Price-Fixing
(Washington Post). The disgraced former chief executive of Sotheby's testified in federal court
that a scheme by the world's two largest auction houses
to rip off their well-heeled clientele was hatched during a series of secret meetings in 1993.
Diana Brooks told a jury that Sotheby's then-chairman, A. Alfred Taubman, and his counterpart at Christie's, Anthony Tennant, agreed behind closed doors that they
"were killing each other on the bottom line, and that it was time to do something about
it." Prosecutors allege that he and Tennant stole as much as $400 million in
commissions from sellers. Sotheby's has pleaded guilty to price-fixing charges and was fined $45 million. Christie's was granted amnesty for its
cooperation.
Crackdown on Bioterror Claims
(Washington Post) The Federal Trade Commission yesterday warned about 40 operators of Web sites to stop making what it called false claims that dietary supplements can prevent,
treat or cure anthrax, smallpox and other health hazards. “We found claims that a variety of dietary supplements like
zinc mineral water or oregano oil would be remedies for anthrax or other biological
agents."
SEC Cites 3 Firms For Exploiting Fear
(Washington Post) The SEC found that Disease Sciences and Classica Group had wrongfully claimed their technologies could kill
anthrax spores in mail or packages. It charged R-Tech Technologies with falsely stating it had "developed and patented" technology to protect
against biological and chemical attacks.
"It's exploiting the fear of a nation," said Linda Chatman Thomsen, associate director of the SEC's enforcement division. "These are publicly traded companies, and
the statements falsely affect their stock prices."
In Aftermath of Awful Events, Be Wary Of Pitches That Promise Quick Profits.
Wherever there is a tragedy, you can bet that con artists and unscrupulous businesses will try to profit from it.
Since Sept. 11, an increasing number of crooks are trying to get people to plunk down cash
for investments that "hedge" against the rise or fall of prices in such commodities as gold, heating oil, gasoline, corn, pork bellies and
foreign currency. The scams, often wrapped in patriotic appeals, might come in an e-mail, a letter, a
telemarketing call or on a late-night TV infomercial. [Good list of specific
tips to help spot fraudulent offers]
Medical Journals Set New Publication Rules
(Washington Post ) About 12 of the world's most prominent medical journals are issuing a joint editorial this week stating that they will reject any scientific studies that do not come with
an assurance that the sponsor -- whether a drug company or other organization -- gave researchers complete access to the data and freedom to report the findings.
The unprecedented stand by journals based in eight countries is a response to what editors say is excessive control by drug companies over
how the results of studies they sponsor are analyzed, interpreted and reported.
"This is a very widely prevalent problem which . . . has profound public health implications," said Richard Horton, editor of the British journal the Lancet, one of the
participating journals. In some cases, patients have died because published studies overstated drugs' benefits or minimized their risks, Horton said.
Media Companies Challenge FCC Ownership Rules
(Washington Post ) Long-standing government rules limiting the size and reach of the nation's largest broadcasting, newspaper and cable companies are facing new challenges in the
courts and federal regulatory agencies, increasing the likelihood they could be eliminated or relaxed in coming months.
Consumer advocates say further consolidation would be harmful to consumers, not only because it would give a small group of companies
greater control over news and entertainment, but also because companies would face less competitive pressure to hold down prices on services such as subscription
television and high-speed Internet access.
Lasik Surgery Sales Tactics Raise Eyebrows:
'Patient Counselors' Earn Bonuses for Each Customer
(Washington Post ) One of the largest national chains of laser eye surgery clinics pays sales commissions to at least some of its "patient counselors," who seek to collect nonrefundable
deposits from customers before they have been briefed on all possible risks of the procedure, according to former
employees, customers and company documents.
US Airways Sued Over Severance to Executives
(Washington Post) A shareholder of US Airways Group Inc. has sued its board of directors, seeking to overturn a provision that would award $45 million in severance benefits to the
airline's top three executives if they decided to resign. "The company is strapped for cash to such a degree that
it is embarking upon a massive restructuring," Rosenberg said. US Airways lost about
$195 million during the first six months of the year and is expected to lose more than $160 million in its third quarter.