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Top Google Executives Approved Illegal Drug Ads

Hugh Pickens writes "PC Magazine reports that the U.S. government used convicted con artist David Whitaker, owner of an online business selling steroids and human growth hormone to U.S. consumers, to help federal agents in a sting operation against Google when he began advertising with Google with advertisements that included the statement 'no prescription needed,' clearly violating U.S. laws. Google's settlement with the U.S. government for $500 million blamed AdWords sales by Canadian pharmacies, who allegedly were selling drugs to U.S. consumers. 'We banned the advertising of prescription drugs in the U.S. by Canadian pharmacies some time ago,' Google said then. 'However, it's obvious with hindsight that we shouldn't have allowed these ads on Google in the first place.' Peter Neronha, the U.S. attorney for Rhode Island who led the multiagency federal task force that conducted the sting, claims that chief executive Larry Page had personal knowledge of the operation, as did Sheryl Sandberg, a Google executive who now is the chief operating officer for Facebook. In 2009 Google started requiring online pharmacy advertisers to be certified by the National Association of Boards of Pharmacy's Verified Internet Pharmacy Practices Sites program and hired an outside company to detect pharmacy advertisers exploiting flaws in the Google's screening systems."

31 of 287 comments (clear)

  1. Once you go public... by GodfatherofSoul · · Score: 4, Insightful

    That's when the American business school ethic takes over. No right or wrong, legal or illegal, no such thing as pride in workmanship or quality; just whatever it takes to make the books look good for the next quarter. And, if it's illegal hope you're not the sorry sucker holding the bag before you get a chance to cash out.

    --
    I swear to God...I swear to God! That is NOT how you treat your human!
    1. Re:Once you go public... by geekoid · · Score: 4, Insightful

      Sorry, I have worked with to many public business at the C*O level. frankly, you are wrong.
      is that some peoples point of view? yes. But it's not common, and it is not the 'American Business school ethic'

      Did you read the article? it's form a Con-Man with no collaboration, and it reads like a classic tale that would be woven by a pathological liar.
      So, long term Con-Man and liar, no confirmation, any of the alleged specifics are common knowledge, and then the feds do nothing with this information. His interaction with Google certainly doesn't sound like the typical advertiser interactions

      Too Many Red Flags. Let me know when a reputable source confirms it. Until then, I'll choose to ignore the pathological liar.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Once you go public... by SaroDarksbane · · Score: 5, Funny

      Yes, how dare they accept ads from companies willing to sell drugs to American consumers at a low cost. Clearly, the ethical party here is the government, who props up the monopolies of the pharmacy industry by force and prevents sick Americans from getting what they need to live at an affordable price.

      Won't somebody please think of the Big Pharma CEOs??

    3. Re:Once you go public... by afabbro · · Score: 3, Funny

      That's when the American business school ethic takes over. No right or wrong, legal or illegal, no such thing as pride in workmanship or quality;

      I can think of endless private companies that could be described the same. Heck, just look at your local strip club.

      --
      Advice: on VPS providers
    4. Re:Once you go public... by Bob-taro · · Score: 3, Insightful

      Sorry, I have worked with to many public business at the C*O level. frankly, you are wrong. is that some peoples point of view? yes. But it's not common, and it is not the 'American Business school ethic'

      Did you read the article? it's form a Con-Man with no collaboration, and it reads like a classic tale that would be woven by a pathological liar. So, long term Con-Man and liar, no confirmation, any of the alleged specifics are common knowledge, and then the feds do nothing with this information. His interaction with Google certainly doesn't sound like the typical advertiser interactions

      Too Many Red Flags. Let me know when a reputable source confirms it. Until then, I'll choose to ignore the pathological liar.

      Mod parent up. The whole thing COULD be true, but it's interesting how quick people can be to believe anything that backs up their preconceived notions (e.g. rich executives are evil) and then pile on with "yes, we all know that" sort of comments without even reading, much less questioning, the story.

      --
      Prov 9:8 Do not rebuke mockers or they will hate you; rebuke the wise and they will love you.
    5. Re:Once you go public... by Anonymous Coward · · Score: 5, Informative

      Read the actual article, in the Wall St Journal, not the crappy pcmag article that was based on it.

      http://online.wsj.com/article_email/SB10001424052970204624204577176964003660658-lMyQjAxMTAyMDIwNTEyNDUyWj.html

      They cite numerous credible sources, including the US Attorney who led the investigation. Oh, and there's also the fact that Google admitted to wrongdoing as part of their settlement. Feel free to keep your head in the sand though.

    6. Re:Once you go public... by CharlyFoxtrot · · Score: 4, Informative

      The wall Street Journal (who wrote the original article) is a pretty reputable source as these things go. So when they write all the same facts and then follow up with :

      "Mr. Whitaker, who pleaded guilty and faced a maximum 65-year prison term, was sentenced in December to six years, following what federal prosecutors called "rather extraordinary" cooperation. He is due for release in two years."

      I tend to believe it.

      --
      If all else fails, immortality can always be assured by spectacular error.
  2. Oh noes the evil by Dyinobal · · Score: 5, Interesting

    Ya because Americans being able to get decently priced drugs, is such a crime. My father buys drugs from a company like the ones they mention in the ads. He can't afford drugs here in the USA even though the ones he gets from Canada are exactly the same, yet cost one tenth the price.

    1. Re:Oh noes the evil by ae1294 · · Score: 4, Informative

      Things that require a prescription in this country can't be bought in unknown quantities from places that don't require prescriptions.

      I assure you that they can...

    2. Re:Oh noes the evil by Dyinobal · · Score: 5, Informative

      The one my father uses doesn't sell pain killers, they sell actual medication. For things like arthritis, asthma and other such maladies. Though I imagine there is some truth to what you say but I'd imagine most people who want pain killers, just find a doctor who is willing to write them the prescription. They aren't terrible hard to find.

    3. Re:Oh noes the evil by 0123456 · · Score: 3, Insightful

      Now the drug companies are learning the true cost of not fighting the Canadian government extortionists.

      When did _not_ giving companies a government-granted monopoly become 'extortion'?

      I bet Canada will soon be paying market prices for its drugs.

      How can a price be a 'market price' when it's the result of a government-granted monopoly? If you want people to pay a market price for a drug, then eliminate drug patents.

  3. And now we have proof that by geekoid · · Score: 5, Informative

    the Wall Street Journal has fallen far under murdochs ownership.

    Everything in the story comes from either a Con Artists claiming it's true, or known events that do not contridict the original story.

    I was ready to rail against this, but after reading the article, it's all shit.

    And then end?
    " allegedly from Jason Corriente's brother, saying the online entrepreneur died in a car crash."
    So, they got all the evidences and did nothing?

    Sorry, not buying it. Lets have the feds come forward to confirm this story.

    Of course, people on slashdot won't bother to consider the source, they'll just pounce on the headline to 'prove' their ideological belief about Google or business.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:And now we have proof that by CharlyFoxtrot · · Score: 3, Insightful

      So you don't trust the con man, how about Google itself :

      "Google acknowledged in the settlement that it had improperly and knowingly assisted online pharmacy advertisers allegedly based in Canada to run advertisements for illicit pharmacy sales targeting U.S. customers."

      Or the prosecutor :

      "Mr. Page, now Google's chief executive, knew about the illicit conduct, said Mr. Neronha, the U.S. attorney for Rhode Island who led the multiagency federal task force that conducted the sting."
      "But the company's ad executives worked with Mr. Whitaker to find a way around Google rules, according to prosecutors and Mr. Whitaker's account."
      "The federal task force, which also included the Food and Drug Administration's Office of Criminal Investigation, was preparing criminal charges against the company and its executives for aiding and abetting criminal activity online, prosecutors said."
      "Suffice to say this was not two or three rogue employees at the customer service level doing this on their own," said Mr. Neronha, the U.S. attorney. "This was corporate decision to engage in this conduct."

      No ? How about the shareholders :

      "Six private shareholder lawsuits have so far been filed against Google's executives and board members, alleging they damaged the company by not taking earlier action against the illegal pharmacy ads."

      --
      If all else fails, immortality can always be assured by spectacular error.
  4. Re:500 million?? by Anonymous Coward · · Score: 5, Interesting

    Sounds like a good cash grab for the government.

    500 million is petty chump change for the US federal government. You could define the Planck time in terms of how long 500 million dollars would keep the US government in operation.

    The whole thing is stupid anyway. Good drug dealers don't deliver ads to your browser. They use networks of trust.

    Like all such restrictions on what consenting adults do, these laws are a sort of IQ test -- the dumb ones get caught. The smart ones? Unless you participate you never even know they are there. This overuse of police power and regulatory authority breeds smarter dealers who are harder to catch just like what overuse of antibiotics does to staph.

    Seriously some of you really think all this regulation of some things and straight up prohibition of other things is changing anything? Every day you get in your car and drive to work I guarantee you, other drivers around you are high on something, carrying something, transporting something, about to sell something. This foolishness just makes them hide it, that's all.

  5. Why is this against the law? by revscat · · Score: 4, Insightful

    I should preface this by saying that I am no Google fan. I think they have made many poor decisions over the past few years, and the GPYW initiative has caused me to switch over to DuckDuckGo full time.

    Having said that...

    Why is it illegal for Canadian drug companies to advertise their goods in the United States? The US has insanely high drug prices, and Canadian imports of those same products are (or could be) beneficial to the lives, health, and finances of who knows how many people. This is an unjust law, and am having an incredibly difficult time finding a justification for it.

    This seems like yet another instance of the pharmaceutical lobby protecting their vast profits from competition.

    1. Re:Why is this against the law? by causality · · Score: 5, Insightful

      The same reason it's illegal to import DVDs from Africa to sell in the US. The drug companies find they can sell drugs in the US for a LOT more than they can almost anywhere else, so they do. Allowing imports from other countries would defeat that.

      You see, when they say "globalism" and "global economy" what they mean is that corporations can off-shore to get the cheapest prices available for human labor.

      When humans want to do things the other way around by making an "off-shore" international purchase to get the cheapest prices available for goods, that's a crime and suddenly the government wants to enforce a brand of protectionism.

      It's standard hypocrisy.

      --
      It is a miracle that curiosity survives formal education. - Einstein
  6. Re:Sudden influx of Google is Evil Stories by iluvcapra · · Score: 3, Funny

    Bavarian illuminati, freemasons, elders of zion, the psyops corps of the PLA and the shade of Osama bin Laden.

    --
    Don't blame me, I voted for Baltar.
  7. Re:500 million?? by EvilBudMan · · Score: 4, Insightful

    Have to agree. Sting? Google? They could have just told them. If the government wants to steal there money and ours, I would prefer plain old taxes. No speed traps, crazy fines in some cities that will get everyone about once a year, etc. Sometimes things get past the Mexican border too. Why should Google do their job anyhow?

    I know Google has a lot of money, but a $500,000 fine is plain theft. Has the government stopped drugs coming in thru Mexico? Maybe they should be fined for that. It's all silly.

  8. Re:500 million?? by shaitand · · Score: 3, Interesting

    Agreed, no fees for drivers licenses and plates and marriage licenses. No tolls or other charges. All this crap is just a way to avoid using the tax system to pay for government services.

    Its made to SOUND fair, the people using the service pay the fee, but if you are pulling in a few billion a year its far more preferable to pay a $50 fee for your license plate* than to pay your fair share of the cost to provide everyone with plates under the progressive tax system. Who pays the difference between your million dollar fair share of that cost and the $50 you paid instead? The single mother of four whose kids went hungry last night, she works in a factory owned by the billionaire.

    Because nobody's time is worth billions. Those billions represent the labor of millions of fellow citizens and those citizens needed millions of license plates in order to produce those billions. The guy who ends up with the billions should pay for the license plates it represents, not the fellow citizens who did the work.

    *Analogy is slightly flawed since license plates exist primarily for the purpose of systematically charging fees and really should be gotten rid of.

  9. Illegal != Wrong by tylersoze · · Score: 5, Insightful

    Yet another example highlighting the fact that "illegal" does not necessarily equate to "wrong".

  10. Re:Why would you buy drugs on the internet? by bky1701 · · Score: 5, Interesting

    Not everyone can afford the alternative.

  11. How about we instead turn our rightful indignation by melted · · Score: 4, Insightful

    How about we instead turn our rightful indignation against Big Pharma and ask why the fuck is it not legal to buy the same drugs from Canada for less? When I moved to the US, I was shocked by how badly US residents are being gouged when it comes to pharmaceuticals. Nowhere else in the world do drugs cost as much as they do in the US. In some places the same exact drugs by the same exact companies are sold at 1/5th to 1/10th the price.

  12. Re:Why would you buy drugs on the internet? by coyote_oww · · Score: 3, Insightful

    This issue is not whether you have a prescription or not, but whether you need them. You can know you need drugs without having a prescription.

    In my own case, I am on some pricey immuno-suppressive drugs. One is Prograf, which is a brand name for Tacrolimus. I know I will need this in some quantity for the rest of my life. I am currently well insured, so it's not an issue. However, I would still need Tac if I was unemployed, and I would certainly consider getting it from a reputable non-US pharmacy. The prescription I have for this is issued annually - 90 days + 3 refills, or 30 days +11 refills, typically. Now, if i wanted to get really cheap, i'd stop seeing the doctor, get the lab work done on my own dime (i'd have to pay for it anyhow) and do my own analysis of the results (not rocket science, desired tac-levels for post-transplant are well established, and printed on the lab report. Then I'd buy drugs to fill the need at the lowest cost available internationally.

    Really, once you know your getting accurate dosing and purity, the government doesn't have much additional to offer.

    The idea that pharmacies should be forced to provide drugs cheaply outside the US, and Americans can fund R&D and profit margins is unfair. Those costs should be spread equally amongst all the developed nations of the world, not just the US. So, I am in favor of opening the borders, or imposing some stiff taxes on cost differentials between the US and other countries.

  13. Re:500 million?? by TheGratefulNet · · Score: 4, Insightful

    they were linking to it!

    and if you're been breathing at all during the last few years, you know that if you LINK to things, its the same as DOING those things.

    you know what I'm talking about.

    --

    --
    "It is now safe to switch off your computer."
  14. Re:Sudden influx of Google is Evil Stories by squiggleslash · · Score: 5, Insightful
    Well, maybe they are, maybe they're not, but of the three articles published in the last 24 hours by Slashdot:
    1. One was an outright falsehood. (The claim Google is forcing all new sign-ups to create Google+ profiles.)
    2. One was misleading, and arguably the truth was positive (spin was "Google is changing their ToS so that everyone has to share their details across all their websites!"), reality was "Google has always shared information across their websites, and the ToS is being standardized and hence made easier to understand.
    3. And then there's this one, which appears to take a negative incident for Google (Google did, indeed, take ads from online pharmacies), and add some serious but unsubstantiated (and dubiously sourced) allegations to it (Billion-dollar-a-year Google's CEOs for some reason deciding, directly, to chase the million dollar market for online pharmacy ads. Does this one even make sense?)
    --
    You are not alone. This is not normal. None of this is normal.
  15. Re:500 million?? by fluffy99 · · Score: 4, Interesting

    Sounds like a good cash grab for the government.

    500 million is petty chump change for the US federal government. You could define the Planck time in terms of how long 500 million dollars would keep the US government in operation.

    500 million is a huge windfall for the small agency that conducted the sting. Unfortunately it gives them the resources to setup and entrap other large companies. This happens all the time. Another example is the Michigan State agency that figured out how to go after people buying cigarettes over the internet and not paying state taxes - they got enough cash from the first round of lawsuits to triple the number of people working in that dept.

    If you read the article, it details just how much effort the govt put into convincing and tricking Google execs into accepting the ads. It's important to note that Google initially refused the ads entirely until they changed the website so that you had to contact the company directly (which makes the website an advertisement for services and not a store, btw). Then the feds had to keep nagging and begging to get the ads released in the US. This is a classic case of entrapment.

    I think Google just paid the $500 million because it's chump change to them and they want this to quietly go away as a long trial could have cost more in lawyers fees and damage to their reputation..

    Is the next target going to be eBay because they knowingly allow counterfeit items to be sold? They've already tried zinging them for this before.

  16. Let the Free Market decide! by tekrat · · Score: 3, Insightful

    Come on all you Ron Paul supporters, let's hear it. We *should* be able to buy Canadian drugs at 1/10 the price of what we're being ripped off in the USA for the same crap.

    And before you bring up safety/prescriptions/handling/lifethreating issues as a factor, consider this: We buy food from China, which has far less controls regarding safety than Canada does.

    That Apple Juice you're buying in Walmart? Madde from Chinese grown Apples. Who knows what those apples were exposed to, what toxins are in the ground the were grown in, how they were handled/processed and what else the factory that makes this juice also makes?

    The Apple Juice you buy in Walmart could be as deadly, or even more deadly than any Canadian Pharmacy or drug "internet purchase".

    The *ONLY* reason that drugs are as heavily regulated as they are in this country is to protect Corporate interests (aka BigPharma). There is NO OTHER reason. Any other excuse you've been given by the talking heads on TV is window dressing.

    And if we had a real free market economy, sure, some people would die, but that's the way free market economies work. Frankly, that's the way this economy works as well, regulated or not.

    Think about how many people die because they are denied health care due to insurance rates, or they can't afford the medication they've been prescribed.

    No matter which way you go, people are going to die, that's just a reality. But to say that you're saving lives by not allowing Canadian Pharmacies to sell in the USA is a complete lie.

    --
    If telephones are outlawed, then only outlaws will have telephones.
  17. Re:American business school ethics... by Hognoxious · · Score: 4, Funny

    we were required to take several ethics courses

    Is it true the marks from those courses get deducted from your overall score?

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  18. Re:500 million?? by shaitand · · Score: 3, Informative

    Currently that would be the IRS and congress.

  19. consider this by alphatel · · Score: 3, Informative

    In all your yapping about who's right, wrong or has to support big pharma think of this:

    Number of Google employees that the government considered sending to prison: 0
    Number of people selling less than 1 ounce of marijuana sentenced to federal prison: 5,452
    Number of drug arrests per minute in the USA: 25

    --
    When the foot seeks the place of the head, the line is crossed. Know your place. Keep your place. Be a shoe.
  20. Re:500 million?? by hairyfeet · · Score: 4, Interesting

    Actually if you look at our history the times of the highest growth was when the top tax rate was 70% or above which makes perfect sense if you think about it. you see when you have a tax rate that high for the uber rich if they sit on the money then they don't sit on the money, they invest it instead since there was all these provisions that lowered their tax rates if they used the money to increase productivity. Now they simply set it overseas thanks to being able to electronically send it anywhere in a nanosecond or just dodge the taxes all together like the double dutch and Irish tax scams. For a good read on the subject i'd suggest this article where the author lays it out clearly and concisely and puts that 'job creators need lower taxes' myth to bed. to see what the lowest taxes on the top 1% in the history of our country has done for us follow it up with this article which again lays out the facts and shows if lower taxes on the wealthy were to actually create jobs they sure as fuck aren't being created here.

    in the end its not about fair or letting some fifth generation superrich continue the dynasty, its about a government doing what its supposed to do which is promote the welfare of the entire country and not just a specific class. As Buffet so accurately put it "We have had class warfare for years and we're winning" which all you have to do is look out a window at the boarded up homes and closed factories across this once great nation to know this is true.

    --
    ACs don't waste your time replying, your posts are never seen by me.