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Dollars for Docs Mints a Millionaire

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By Tracy Weber and Charles Ornstein, ProPublica

Dr. Jon W. Draud, the medical director of psychiatric and addiction medicine at two Tennessee hospitals, pursues some eclectic passions. He's bred sleek Basenji hunting dogs for show. And last summer, the Tennessee State Museum featured "African Art: The Collection of Jon Draud."

But the Nashville psychiatrist is also notable for a professional pursuit: During the last four years, the 47-year-old Draud has earned more than $1 million for delivering promotional talks and consulting for seven drug companies.

By a wide margin, Draud's earnings make him the best-paid speaker in ProPublica's Dollars for Docs database, which has been updated to include more than $2 billion in payments from 15 drugmakers for promotional speaking, research, consulting, travel, meals and related expenses from 2009 to 2012.

Payouts to hundreds of thousands physicians are now included.

Draud is not the only high earner: 21 other doctors have made more than $500,000 since 2009 giving talks and consulting for drugmakers, the database shows. And half of the top earners are from a single specialty: psychiatry.

"It boggles my mind," said Dr. James H. Scully Jr., chief executive of the American Psychiatric Association, referring to the big money paid to some psychiatrists for what are billed as educational talks.

Paid speaking "is perfectly legal, and if people want to work for drug companies, this is America," said Scully, whose specialty has often been criticized for its over-reliance on medications. "But everybody needs to be clear — this is marketing."

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Fort Berthold in North Dakota

By Abrahm Lustgarten, ProPublica

Native Americans on an oil-rich North Dakota reservation have been cheated out of more than $1 billion by schemes to buy drilling rights for lowball prices, a flurry of recent lawsuits assert. And, the suits claim, the federal government facilitated the alleged swindle by failing in its legal obligation to ensure the tribes got a fair deal.

This is a story as old as America itself, given a new twist by fracking and the boom that technology has sparked in North Dakota oil country. Since the late 1800s, the U.S. government has appropriated much of the original tribal lands associated with the Fort Berthold reservation in North Dakota for railroads and white homesteaders. A devastating blow was delivered when the Army Corps of Engineers dammed the Missouri River in 1953, flooding more than 150,000 acres at the heart of the remaining reservation. Members of the Three Affiliated Tribes — the Mandan, Hidatsa and Arikara — were forced out of the fertile valley and up into the arid and barren surrounding hills, where they live now.

But that last-resort land turns out to hold a wealth of oil, because it sits on the Bakken Shale, widely believed to be one of the world's largest deposits of crude. Until recently, that oil was difficult to extract, but hydraulic fracturing, combined with the ability to drill a well sideways underground, can tap it. The result, according to several senior tribal members and lawsuits filed last November and early this year in federal and state courts, has been a land grab involving everyone from tribal leaders accused of enriching themselves at the expense of their people, to oil speculators, to a New York hedge fund, to the federal government's Bureau of Indian Affairs.

The rush to get access to oil on tribal lands is part of the oil industry's larger push to secure drilling rights across the United States. Recent estimates show that the U.S. contains vast quantities of oil and gas. As fracking has opened new fields to drilling, and the U.S. has striven to get more of its energy from within its borders, leases from Louisiana to Pennsylvania have been gobbled up. Now the pressure is increasing on one of the last sizeable holdouts — lands owned by Native Americans.

A review of tribal and federal records as well as lawsuit documents reveals a dizzying array of lowball, non-competitive deals brokered by numerous companies, often entwined with the tribal council and with individual landholders on the reservation. But at heart the alleged practices are simple: Tribal leaders and outsiders set up companies to buy drilling rights cheap and flip them later for spectacular profits — in one case earning as much as a 200-fold return in just four years.

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Crumbling Levees Leave U.S. Cities Vulnerable

There are hundreds of federal flood control systems at risk of failing across 37 states in the U.S., leaving millions of people and property endangered.

Via:

When Hurricane Katrina passed over New Orleans in 2005, more than 50 deficient levees were breaches, killing 1,464 people who were in close proximity to the flood control systems. Another natural disaster could subject hundreds, thousands or even millions more Americans to the same fate if the government doesn’t address the issue.

Inspectors discovered 326 deficient levees across the US, whose likely failures could leave millions of people dead. A breach could demolish homes and cost local governments millions of dollars. By failing to repair the defective structures, the US is choosing to risk the lives of its citizens who are walking on eggshells with their proximity to the flood zones. In its first ever inventory of the nation’s flood control systems, inspectors raised the overdue alarm that hundreds of levees may be unable to regulate water levels and prove useless in face of heavy rains. Such populated cities as Washington DC, Sacramento, Dallas, Cleveland and many others might be flooded at any moment.

The US Army Corps of Engineers has only issued ratings for 58 percent of the 2,487 flood control systems, which means inspectors could still discover hundreds more deficient levees. Many of the earthen levees are crumbling under the effect of trees, shrubs and animal holes. Decaying pipes and pumping stations could also cause the flood control systems downfall, while some of the levees are dangerously close to houses or even have houses built on top of them.

Although the Army Corps has no estimates as to how many people are endangered by the defective systems, the 2,487 federally regulated flood control systems protect about 10 million people. The failures of several hundred levees could therefore impact millions of US residents.

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Romney Steel Mill Bailed Out by Feds After Bankruptcy

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[Photo: Vanity Fair]

Mitt Romney says that he's the man to fix our nation's ailing economy because of his extensive business skills. Well, he is a wealthy member of the one percent, however, he's not always such a successful businessman. Actually, one Kansas City company in that Romney purchased a majority share was bankrupt within a decade. Also, your tax dollars likely helped hand Romney a nice bail out.

Reuters:

In October 1993, Bain Capital, co-founded by Mitt Romney, became majority shareholder in a steel mill that had been operating since 1888.

It was a gamble. The old mill, renamed GS Technologies, needed expensive updating, and demand for its products was susceptible to cycles in the mining industry and commodities markets.

Less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health insurance they'd been promised, and their pension benefits were cut by as much as $400 a month.

What's more, a federal government insurance agency had to pony up $44 million to bail out the company's underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees (Emphasis mine).

Lost jobs, no severance pay, no health insurance, drastically cut pensions...these are the business skills Romney is going to use to turn our economy around? These things sound horribly familiar. Just how did things work out for the people who worked for Mitt Romney's company?

Before the bankruptcy filing:

Veteran crane operator Ed Mossman says he was ordered to pick up a load of steel that was 50 percent above the recommended weight limit - a prospect that could have toppled the crane and sent Mossman plunging to his death. When he refused, he says, he was fired after putting in 29 years at the mill.

"The first 15 years, I had the best job in the United States, as far as I was concerned," Mossman said. "The last five years down there got to be pure hell."

And after the plant shutdown?

After nearly 30 years as a steelworker, Joe Soptic found a job as a school custodian. The $24,000 salary was roughly one-third of his former pay, and the health plan did not cover his wife, Ranae.

When Ranae started losing weight, "I tried to get her to the doctor and she wouldn't go," Soptic said. She ended up in the county hospital with pneumonia, where doctors discovered her advanced lung cancer. She died two weeks later.

Soptic was left with nearly $30,000 in medical bills. He drained a $12,000 savings account and the hospital wrote off the balance.

"I worked hard all my life and played by the rules, and they allowed this to happen," Soptic said.