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Allen Jones had had an uneventful career working as an investigator for the Office of Inspector General in Pennsylvania. But in July 2002, he noticed that a new account had been set up to receive payments from the Janssen division of Johnson & Johnson. What was that for?

The bank account, he was told, was meant to cover travel expenses for health department officials so that they could examine a program that their colleagues in Texas had told them about. It seemed like a promising way to create modern prescription guidelines for Pennsylvania’s use of antipsychotic drugs in state mental institutions and among Medicaid patients, including children, the officials explained to Jones.

By September 2002, Jones says, he was “pretty sure something was wrong here.” One of the state’s pharmacists, he found, had been accepting speaking fees in addition to travel expenses. J&J was…

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