More Details on Bloomberg’s Report on the Koch Brothers

October 3, 2011

Knowing most folks simply won’t want to read the report put out last night about the Koch brothers, I thought I just give you a few of the highlights. No don’t go to sleep on me, OK?

  • researchers had found evidence of improper payments to secure contracts in six countries dating back to 2002.
  • Ludmila Egorova-Farines, compliance officer, was fired for bringing the illicit payments to the attention of the company.
  • sold millions of dollars of petrochemical equipment to Iran, a country the U.S. identifies as a sponsor of global terrorism.
  • rigged prices with competitors, lied to regulators and repeatedly run afoul of environmental regulations, resulting in five criminal convictions since 1999 in the U.S. and Canada.
  • taken oil it didn’t pay for from federal land by mismeasuring the amount of crude it was extracting.
  • Phil Dubose, a Koch employee, said he and his colleagues were shown by their managers how to steal and cheat — using techniques they called the Koch Method.
  • the company’s negligence had led to a butane pipeline rupture that fueled an explosion that killed two teenagers.
  • Sally Barnes-Soliz said her bosses and a company lawyer at the Koch refinery in Corpus Christi, Texas, asked her to falsify data for a report to the state on uncontrolled emissions of benzene, a known cause of cancer.
  • Koch Industries has spent more than $50 million to lobby in Washington since 2006
  • The brothers have backed a foundation that has trained thousands of Tea Party activists.
  • donated $50,000 to Texans for Rick Perry last year for his gubernatorial campaign
  • On Anti-trust Conspiracy: “Officers, directors, managers or employees participated in the conspiracy” between September 1999 and January 2001.
  • Koch environmental technician Sally Barnes- Soliz walked into the offices of Texas regulators in Corpus Christi and told them the company had lied about spewing benzene into the air.
  • Koch used unlined ditches, pits and ponds to dispose of hazardous waste.
  • Koch simply refuses to pay its share [of clean-up cost] as ordered by this court.
  • David Koch’s twin brother told a U.S. Senate special committee on investigations that Koch Industries was stealing oil on American Indian reservations, cheating the federal government of royalties.
  • The investigators caught Koch Oil’s employees falsifying records so that the company would get more crude than it paid for, shortchanging Indian families. Koch’s records showed that the company took 1.95 million barrels of oil it didn’t pay for from 1986 to 1988.
  • Former company employees testified that Koch Industries trained them to steal. [One employee] testified that he was able to steal 2,000 barrels a month from one customer.
  • Koch Industries had made 24,587 false claims in buying oil, underpaying the U.S. government for royalties on Native American land from 1985 to 1989.
  • Koch Industries clashed with regulators over its failure to properly maintain its pipelines. In 1995, the EPA sued the company, saying poor maintenance resulted in corrosion that contributed to hundreds of spills. before the EPA case was resolved, a leak in a Koch butane pipeline led to an explosion that killed two teenagers.
  • The 570-mile-long pipeline carrying liquid butane from Medford, Oklahoma, to Mont Belvieu, Texas had corroded so badly that one expert, Edward Ziegler, likened it to Swiss cheese.
  • “You feel totally betrayed”, said sales engineer George Bentu. “Everything Koch stood for was a lie.”
  • For six decades around the world, Koch Industries has blazed a path to riches — in part, by making illicit payments to win contracts, trading with a terrorist state, fixing prices, neglecting safety and ignoring environmental regulations. At the same time, Charles and David Koch have promoted a form of government that interferes less with company actions.


lemming



Leave a Reply

Your email address will not be published. Required fields are marked *

*