Showing posts with label Congress. Show all posts
Showing posts with label Congress. Show all posts

Sunday, May 27, 2012

FDA Chemist Exploits “Sensitive Inside Information” | Judicial Watch

FDA Chemist Exploits “Sensitive Inside Information” | Judicial Watch

In the latest scandal to rock the Food and Drug Administration (FDA), a veteran chemist at the beleaguered agency has been sentenced to prison for using “sensitive inside information” to engage in illegal insider trading that fattened his bank account by millions.  The Justice Department says the corrupt FDA chemist (Cheng Yi Liang), who worked in the Office of New Drug Quality Assessment, traded on multiple occasions by using non-public information obtained through the agency’s password-protected internal tracking system for new drug applications. Liang made nearly $4 million off the deals and recently reached a plea agreement with federal prosecutors. This week he was sentenced to five years in prison.

Perhaps the FDA will find a way to keep him on its payroll.  A few years ago a congressional report exposed that government scientists convicted of felonies are allowed to conduct essential drug and biologics research because the FDA doesn’t bother removing them, even though federal law demands it. This means Liang may very well get his job back after he’s done serving time.

His case is simply the most recent of many controversies to hit the federal agency responsible for protecting public health and safety. In the last few years the FDA has been embroiled in a number of transgressions, mostly involving its failure to enforce federal laws to please wealthy pharmaceuticals that pay hundreds of millions of dollars in “fees.”
In fact, the appalling arrangement has even been documented in various federal probes. One scathing congressional reportoutlines in detail how the FDA allows companies that annually pay it more than $400 million in fees to compromise public safety.

Judicial Watch has exposed one deadly example—Gardasil— that was fast-tracked by the FDA to protect against cervical cancer. JW uncovered droves of government records listing thousands of adverse reactions associated with the vaccine, which is manufactured by pharmaceutical giant Merck. They include paralysis, convulsions, blindness and dozens of deaths. Based on the records JW published a special report detailing Gardasil’s approval process, side effects, safety concerns and marketing practices.

Wednesday, November 16, 2011

Why is it OK for Congress to Have 'Insider Trading' but not the Average Martha Stewart/Person?


Bill filed to prohibit congressional insider trading



Washington (CNN) -- Members of Congress and their staffs would be prohibited from using insider legislative information for investment purposes under legislation filed Tuesday in the wake of a CBS News "60 Minutes" report.
On Sunday, "60 Minutes" aired a report highlighting instances in which congressional officials reportedly bought stocks around the same time Congress was discussing legislation affecting those companies or industries.

The show looked at the investments of various lawmakers -- including House Minority Leader Nancy Pelosi, House Speaker John Boehner and Republican Rep. Spencer Bachus of Alabama.





The buying or selling of a security by someone who has access to material, nonpublic information about the security.
Investopedia Says
Investopedia explains Insider Trading
Insider trading can be illegal or legal depending on when the insider makes the trade: it is illegal when the material information is still nonpublic--trading while having special knowledge is unfair to other investors who don't have access to such knowledge. Illegal insider trading therefore includes tipping others when you have any sort of nonpublic information. Directors are not the only ones who have the potential to be convicted of insider trading. People such as brokers and even family members can be guilty.

Insider trading is legal once the material information has been made public, at which time the insider has no direct advantage over other investors. The SEC, however, still requires all insiders to report all their transactions. So, as insiders have an insight into the workings of their company, it may be wise for an investor to look at these reports to see how insiders are legally trading theirstock.


Read more: http://www.investopedia.com/terms/i/insidertrading.asp#ixzz1dvDY0BZr
The bill filed Tuesday by Massachusetts Republican Sen. Scott Brown would make it illegal for elected congressional officials, their staffs and executive branch employees to use information about pending bills that's not available to the general public in making investment decisions. It would also forbid them from making such information public for personal gain.

Brown's bill, which he called the Stop Trading on Congressional Knowledge, or STOCK Act, would clarify insider trading regulations that do not clearly identify whether the use of inside government information constitutes insider trading.
"Members of Congress should live under the same laws as everyone else. If they trade on inside knowledge to line their own pockets, they should be punished," Brown said in a statement, without referencing any of the officials named in the report. "Serving the public is a privilege and honor, not an opportunity for personal gain."
On Sunday, Pelosi fired back at the report, dismissing claims that her 2008 purchase with her husband of 5,000 shares of the initial public offering of credit card company Visa conflicted with a piece of legislation -- opposed by credit-card companies -- that was making its way through the House.



Washington, DC – Today, U.S. Senator Scott Brown (R-MA) will introduce the Stop Trading on Congressional Knowledge (STOCK) Act of 2011, which would prohibit members or employees of Congress, as well as Executive Branch employees, from using nonpublic information obtained through their public service for the purposes of investing or otherwise making a personal financial gain.  Senator Brown issued the following statement on the introduction of the STOCK Act:
“Members of Congress should live under the same laws as everyone else. If they trade on inside knowledge to line their own pockets, they should be punished. Serving the public is a privilege and an honor, not an opportunity for personal gain. I hope every Senator will join me in this effort to lend greater credibility to our work and restore trust in this institution. We serve the public, not our bank accounts, and no one should be allowed to enrich themselves based on inside government information that is not available to the general public.”

Thursday, October 13, 2011

Congress Ready to Approve FT Agreements


WASHINGTON, DC
Tuesday, October 11, 2011

The House and Senate will take their final votes today and likely approve trade agreements with South Korea, Colombia, and Panama – after nearly five years of negotiations over the pacts.
Yesterday, the Senate Finance Committee approved the measures in a mark-up, while the House began debate on the three trade agreements last night.
The trade bills have been hung up over differences between the Bush and Obama Administrations and Congressional Democrats and Republicans over worker rights and safety in Colombia, and concerns over U.S. workers who might lose their jobs as a result of less-expensive goods from the trading nations.

December 03, 2007

Liveblogging the Peru FTA Senate vote

5:35pm: I’m out.
5:18 pm: Sanders conceding that NAFTA has been good for some Mexicans… well, one. Carlos Slim, the world’s richest man.
5:14 pm: “If you like NAFTA, you’ll love the Peru FTA. Most people in America don’t like NAFTA.”
5:10 pm: Once you’ve been in DC a few years, it really is amazing how rarely you hear members talk about class and inequality in America – something that, after getting back from Chicago where my brother lives, most people in America are comfortable talking about. Sanders is not afraid of going there. Now, he’s citing IIE and CEPR studies that document the inequality…
5:06 pm: Sen. Bernie Sanders (I-Vt.), fair trade champion, bringing the pain on Peru FTA, leading off with unsafe imports
5:01 pm: By way of a little advance warning, I am probably going to head home within the next hour (got stuck overnight in Chicago last night, am fighting a cold… did I mention that airport contracted illnesses skyrocketed after NAFTA??!! We need a change in this trade model!), but if people want to liveblog it post 5:30 pm or so in the comment section, you can follow the awesome display of senatorial argumentation at C-Span 2 at this link.
4:50 pm: Grassley is taking on the argument that the Peru FTA will worsen our food safety laws… we wrote a report on this. He argues that there hasn’t yet been a challenge of U.S. food safety laws. This is a complex debate, but the WTO challenge of EU’s food safety regime is case one that it could happen. If we ever GET some good food safety laws, you can bet this could happen to us under the WTO, NAFTA and Peru FTA laws. The Peru FTA opens up our current food safety laws – low as they are – to claims for compenstation from corporations.
4:43 pm: Okay, we don’t work on Venezuela here, but the stuff that gets said about the country is ridiculous. If possible, the media misrepresentations of what goes on there rival or exceed what is said about trade policy. In particular, the proposal to have MORE elections, institute gay rights and other measures is commonly described as some sort of attempt to abolish democracy. Well, that measure was voted down democratically today, and the government is respecting the result. For more on that situation, check out an insightful and funny blog at www.BoRev.Net. A more academic take is here. Nevetheless, as we argue here, the best way to avoid more Chavez’s – if that’s the goal – is to avoid contributing to economic misery and displacement abroad. Last time I checked, that’s how populism succeeds…
4:40 pm: Grassley admits that the FTA will lock-in policies in Peru that current neo-liberal governments passed but which future governments will be bound to.
The Obama Administration renegotiated portions of the Colombia deal and Congress has agreed to pass an aid program for displaced workers called Trade Adjustment Assistance (TAA) along with the trade agreements.  The Senate has already passed TAA.
Please go to the c-span link to watch the Senators in Action
If the House and Senate pass the bills today and the House approves TAA, the trade agreement with South Korea would be in place when that country’s President meets with President Obama and addresses a joint meeting of Congress tomorrow.more from c-span