When Engineers Become Whistleblowers

They’re often the first to notice waste, fraud and safety issues

Compared to the technologically stagnant dark days in the auto industry of cruel suppression of technical dissent over safety and toxic emissions, a censorship that carried over to the industry-controlled Society of Automotive Engineers, today’s engineers are working in an improved environment for taking their conscience to work. Yet much more remains to be done to safeguard the ability of engineers to speak truth to the powers-that-be.

For starters, the word whistleblower—once popularly meant to describe a snitch or a disgruntled employee—now describes an ethical person willing to put his or her job on the line in order to expose corrupt, illegal, fraudulent and harmful activities. Indeed, in the aftermath of recent Boeing 737 MAX crashes, the media routinely and positively refers to disclosures by “Boeing whistleblowers.” Congressional investigating committees and federal agencies have called for whistleblowers to come forward and shed light on corporate misdeeds and governmental agency lapses. read more »

How Malaysia’s 1MDB Scandal Shook the Financial World

Malaysia’s state-owned investment fund, 1MDB, was supposed to promote development. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on deal-making, election spending and political patronage under former Prime Minister Najib Razak. The figures are mind-boggling: Of the $8 billion that 1MDB raised via bond sales, the U.S. alleges more than half was siphoned off. Angry voters ousted Najib in a 2018 election that ended his party’s 61 years of rule. A series of trials on corruption and other charges has begun in Malaysia and U.S. prosecutors have implicated at least three senior bankers from Goldman Sachs Group Inc., one of whom admitted to bribery. Malaysia has also filed criminal charges against the U.S. bank. read more »

Lyft’s revenues double, losses quintuple—and prospects darken

The same is likely to be true of Uber when it lists. Only more so

On march 29th Lyft became the first ride-hailing company traded on a stockmarket. The company’s share price jumped by 9% on its debut, valuing it at $22.4bn. By May 7th, the day it reported results for the first quarter as a public company, it was worth $17bn. Some investors thought even that was too generous. Lyft’s share price fell by another 11% the next day. read more »

New York Diagnostic Testing Facility Owners Plead Guilty in More than $18.5 Million Health Care Fraud Scheme

Two New York diagnostic testing facility owners pleaded guilty today for their roles in a more than $18.5 million health care fraud scheme.

The defendants admitted that they paid approximately $18.5 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili falsely reported to the IRS that the illegal kickback payments were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions, they further admitted. read more »