http://www.bloomberg.com/news/2011-...aw-getting-richer-with-secret-iran-sales.html
[h=1]Koch Brothers Flout Law Getting Richer With Secret Iran Sales[/h]Q
By Asjylyn Loder and David Evans - Oct 3, 2011 1:28 PM ET
Bloomberg Markets Magazine
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[h=3]Charles and David Koch[/h]
Patrick McMullan/PatrickMcMullan.com
Charles and David Koch, with singer Samuel Ramey at the New York City Opera's Theater Debut Celebration at Lincoln Center in New York in Nov., 2009.
Charles and David Koch, with singer Samuel Ramey at the New York City Opera's Theater Debut Celebration at Lincoln Center in New York in Nov., 2009. Photographer: Patrick McMullan/PatrickMcMullan.com
Play Video Q
Oct. 3 (Bloomberg) -- Koch Industries Inc. is a global industrial company run by brothers Charles and David Koch. Bloomberg Markets magazine's November issue examines some of the company's questionable practices and political lobbying. Bloomberg's Peter Cook reports. (Source: Bloomberg)
Play Video Q
Oct. 3 (Bloomberg) -- Danny Smalley speaks with Bloomberg's David Evans about his daughter, Danielle Smalley, and the foundation which promotes pipeline safety that bears her name. In 1996 a leak in a Koch Industries Inc. butane pipeline led to an explosion that killed 17 year-old Danielle. The November issue of Bloomberg Markets magazine examines the history of some illegal and improper practices of the global empire run by the billionaire brothers Charles and David Koch. (Source: Bloomberg)
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[h=3]Koch Industries Executive Vice President David H. Koch[/h]
Amanda Gordon/Bloomberg
Koch Industries Executive Vice President David H. Koch, left, poses for a photo with Julia Koch during the opening night at the Metropolitan Opera in New York on Sept. 26, 2011.
Koch Industries Executive Vice President David H. Koch, left, poses for a photo with Julia Koch during the opening night at the Metropolitan Opera in New York on Sept. 26, 2011. Photographer: Amanda Gordon/Bloomberg
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[h=3]The cover of the November 2011 issue of Bloomberg Markets[/h]
The cover of the November 2011 issue of Bloomberg Markets magazine.
The cover of the November 2011 issue of Bloomberg Markets magazine.
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[h=3]Phil Dubose, former Koch manager[/h]
Brent Humphreys/Bloomberg Markets via Bloomberg
Phil Dubose, photographed in Church Point, Louisiana on Sept 12, 2011. Phil is a former Koch manager, says company stole oil.
Phil Dubose, photographed in Church Point, Louisiana on Sept 12, 2011. Phil is a former Koch manager, says company stole oil. Photographer: Brent Humphreys/Bloomberg Markets via Bloomberg
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[h=3]Judge Janis Graham Jack[/h]
David Evans
Judge Janis Graham Jack, photographed at the federal courthouse in Corpus Christi, TX on June 2, 2011.
Judge Janis Graham Jack, photographed at the federal courthouse in Corpus Christi, TX on June 2, 2011. Photographer: David Evans
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[h=3]Sally Barnes-Soliz, a former Koch employee[/h]
Corpus Christi Caller-Times via Bloomberg Markets
Sally Barnes-Soliz, a former Koch employee, is seen leaving federal court in Corpus Christi, Texas on Oct. 2000. She testified that the company filed a false report in Corpus Christi.
Sally Barnes-Soliz, a former Koch employee, is seen leaving federal court in Corpus Christi, Texas on Oct. 2000. She testified that the company filed a false report in Corpus Christi. Photographer: Corpus Christi Caller-Times via Bloomberg Markets
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[h=3]Bill Koch at the America's Cup[/h]
Dale Frost/Port of San Diego via Bloomberg Markets
Bill Koch at the America's Cup at San Diego Yacht Club in 1992. His young son is next to him.
Bill Koch at the America's Cup at San Diego Yacht Club in 1992. His young son is next to him. Photographer: Dale Frost/Port of San Diego via Bloomberg Markets
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[h=3]Danny Smalley, Smalley Fouindation[/h]
Brent Humphreys/Bloomberg Markets via Bloomberg
Danny Smalley, photographed at the Smalley Fouindation in Texas, Sept. 15, 2011. Smalley started a foundation for his daughter Danielle after she died in an explosion at a Koch Pipeline.
Danny Smalley, photographed at the Smalley Fouindation in Texas, Sept. 15, 2011. Smalley started a foundation for his daughter Danielle after she died in an explosion at a Koch Pipeline. Photographer: Brent Humphreys/Bloomberg Markets via Bloomberg
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[h=3]George Bentu, former Koch sales engineer[/h]
Thorsten Futh/Bloomberg Markets via Bloomberg
George Bentu, former Koch-Glitsch sales engineer, questioned his managers about the sales to Iran, photographed in Frankfurt, Germany on Sept. 2, 2011.
George Bentu, former Koch-Glitsch sales engineer, questioned his managers about the sales to Iran, photographed in Frankfurt, Germany on Sept. 2, 2011. Photographer: Thorsten Futh/Bloomberg Markets via Bloomberg
In May 2008, a unit of Koch Industries Inc., one of the world’s largest privately held companies, sent Ludmila Egorova-Farines, its newly hired compliance officer and ethics manager, to investigate the management of a subsidiary in Arles in southern France. In less than a week, she discovered that the company had paid bribes to win contracts.
“I uncovered the practices within a few days,” Egorova- Farines says. “They were not hidden at all.”
She immediately notified her supervisors in the U.S. A week later, Wichita, Kansas-based Koch Industries dispatched an investigative team to look into her findings, Bloomberg Markets magazine reports in its November issue.
By September of that year, the researchers had found evidence of improper payments to secure contracts in six countries dating back to 2002, authorized by the business director of the company’s Koch-Glitsch affiliate in France.
“Those activities constitute violations of criminal law,” Koch Industries wrote in a Dec. 8, 2008, letter giving details of its findings. The letter was made public in a civil court ruling in France in September 2010; the document has never before been reported by the media.
Egorova-Farines wasn’t rewarded for bringing the illicit payments to the company’s attention. Her superiors removed her from the inquiry in August 2008 and fired her in June 2009, calling her incompetent, even after Koch’s investigators substantiated her findings. She sued Koch-Glitsch in France for wrongful termination.
Much, much more at link.
[h=1]Koch Brothers Flout Law Getting Richer With Secret Iran Sales[/h]Q
By Asjylyn Loder and David Evans - Oct 3, 2011 1:28 PM ET
Bloomberg Markets Magazine
Enlarge image
Charles and David Koch, with singer Samuel Ramey at the New York City Opera's Theater Debut Celebration at Lincoln Center in New York in Nov., 2009.
Charles and David Koch, with singer Samuel Ramey at the New York City Opera's Theater Debut Celebration at Lincoln Center in New York in Nov., 2009. Photographer: Patrick McMullan/PatrickMcMullan.com
Play Video Q
Oct. 3 (Bloomberg) -- Koch Industries Inc. is a global industrial company run by brothers Charles and David Koch. Bloomberg Markets magazine's November issue examines some of the company's questionable practices and political lobbying. Bloomberg's Peter Cook reports. (Source: Bloomberg)
Play Video Q
Oct. 3 (Bloomberg) -- Danny Smalley speaks with Bloomberg's David Evans about his daughter, Danielle Smalley, and the foundation which promotes pipeline safety that bears her name. In 1996 a leak in a Koch Industries Inc. butane pipeline led to an explosion that killed 17 year-old Danielle. The November issue of Bloomberg Markets magazine examines the history of some illegal and improper practices of the global empire run by the billionaire brothers Charles and David Koch. (Source: Bloomberg)
Enlarge image
Koch Industries Executive Vice President David H. Koch, left, poses for a photo with Julia Koch during the opening night at the Metropolitan Opera in New York on Sept. 26, 2011.
Koch Industries Executive Vice President David H. Koch, left, poses for a photo with Julia Koch during the opening night at the Metropolitan Opera in New York on Sept. 26, 2011. Photographer: Amanda Gordon/Bloomberg
Enlarge image
The cover of the November 2011 issue of Bloomberg Markets magazine.
The cover of the November 2011 issue of Bloomberg Markets magazine.
Enlarge image
Phil Dubose, photographed in Church Point, Louisiana on Sept 12, 2011. Phil is a former Koch manager, says company stole oil.
Phil Dubose, photographed in Church Point, Louisiana on Sept 12, 2011. Phil is a former Koch manager, says company stole oil. Photographer: Brent Humphreys/Bloomberg Markets via Bloomberg
Enlarge image
Judge Janis Graham Jack, photographed at the federal courthouse in Corpus Christi, TX on June 2, 2011.
Judge Janis Graham Jack, photographed at the federal courthouse in Corpus Christi, TX on June 2, 2011. Photographer: David Evans
Enlarge image
Sally Barnes-Soliz, a former Koch employee, is seen leaving federal court in Corpus Christi, Texas on Oct. 2000. She testified that the company filed a false report in Corpus Christi.
Sally Barnes-Soliz, a former Koch employee, is seen leaving federal court in Corpus Christi, Texas on Oct. 2000. She testified that the company filed a false report in Corpus Christi. Photographer: Corpus Christi Caller-Times via Bloomberg Markets
Enlarge image
Bill Koch at the America's Cup at San Diego Yacht Club in 1992. His young son is next to him.
Bill Koch at the America's Cup at San Diego Yacht Club in 1992. His young son is next to him. Photographer: Dale Frost/Port of San Diego via Bloomberg Markets
Enlarge image
Danny Smalley, photographed at the Smalley Fouindation in Texas, Sept. 15, 2011. Smalley started a foundation for his daughter Danielle after she died in an explosion at a Koch Pipeline.
Danny Smalley, photographed at the Smalley Fouindation in Texas, Sept. 15, 2011. Smalley started a foundation for his daughter Danielle after she died in an explosion at a Koch Pipeline. Photographer: Brent Humphreys/Bloomberg Markets via Bloomberg
Enlarge image
George Bentu, former Koch-Glitsch sales engineer, questioned his managers about the sales to Iran, photographed in Frankfurt, Germany on Sept. 2, 2011.
George Bentu, former Koch-Glitsch sales engineer, questioned his managers about the sales to Iran, photographed in Frankfurt, Germany on Sept. 2, 2011. Photographer: Thorsten Futh/Bloomberg Markets via Bloomberg
In May 2008, a unit of Koch Industries Inc., one of the world’s largest privately held companies, sent Ludmila Egorova-Farines, its newly hired compliance officer and ethics manager, to investigate the management of a subsidiary in Arles in southern France. In less than a week, she discovered that the company had paid bribes to win contracts.
“I uncovered the practices within a few days,” Egorova- Farines says. “They were not hidden at all.”
She immediately notified her supervisors in the U.S. A week later, Wichita, Kansas-based Koch Industries dispatched an investigative team to look into her findings, Bloomberg Markets magazine reports in its November issue.
By September of that year, the researchers had found evidence of improper payments to secure contracts in six countries dating back to 2002, authorized by the business director of the company’s Koch-Glitsch affiliate in France.
“Those activities constitute violations of criminal law,” Koch Industries wrote in a Dec. 8, 2008, letter giving details of its findings. The letter was made public in a civil court ruling in France in September 2010; the document has never before been reported by the media.
Egorova-Farines wasn’t rewarded for bringing the illicit payments to the company’s attention. Her superiors removed her from the inquiry in August 2008 and fired her in June 2009, calling her incompetent, even after Koch’s investigators substantiated her findings. She sued Koch-Glitsch in France for wrongful termination.
Much, much more at link.