JPMorgan Chase got out of two hedge funds linked to accused Ponzi schemer Bernard Madoff in the nick of time, and now says its losses related to any Madoff investments are “pretty close to zero”.  But the New York Times is reporting that some of the bank’s European clients who invested in the same funds through JPMorgan want to know why they weren’t told of the bank’s concerns.

Madoff was arrested on one count of securities fraud on December 11.  Madoff – once a chairman of the Nasdaq stock exchange – is the founder and primary owner of Bernard L. Madoff Investment Securities LLC. The firm is primarily known for its business in market-making, or serving as the middleman between buyers and sellers of shares. However, Madoff also oversaw an investment-advisory business that managed money for high-net-worth individuals, hedge funds and other institutions. (more…)

A massive, nationwide salmonella outbreak  linked to a Georgia peanut butter processing plant involves four types of pathogens.  According to Scientific American, the firm to blame apparently knew its products were tainted on a number of occasions over the past  two years, but shipped them to customers anyway.

Yesterday, the Associated Press (AP) reported that an official with Congress confirmed that health officials discovered four different salmonella strains connected with the outbreak.  Salmonella Typhimurium caused the illnesses; two other, different salmonella strains were discovered on the floor of the Peanut Corporation of America’s (PCA) Georgia facility; and, yet another strain was found in a container of peanut butter from the PCA plant, reported the AP. (more…)

Drug maker Pfizer, Inc. led the news with two announcements this week:  It took a record-breaking hit of $2.3 billion over investigations into its improper marketing of the painkiller Bextra and other medications and it is acquiring its rival, Wyeth, for $68 billion, reported Bloomberg News.  Pfizer recalled Bextra in 2005 over a rare skin condition and at the urging of the U.S. Food and Drug Administration (FDA).

Pfizer reached the $2.3 billion agreement with the Massachusetts U.S. Attorney to, it said, “resolve previously disclosed investigations” regarding Bextra and “other open investigations,” reported Bloomberg, which added that while Pfizer disclosed no other details, its fourth-quarter earnings dropped a massive 90 percent over the charges and investigation.  The Wall Street Journal blog (WSJ) noted that Pfizer’s fourth-quarter earnings dropped to $266 million from $2.72 billion the prior year. (more…)

The peanut butter maker at the center of a nationwide salmonella outbreak is recalling all peanuts and peanut products made at its Georgia factory since January 2007.  Peanut Corp. of America (PCA) announced the recall just a day after federal officials investigating the outbreak said that the company knowingly shipped tainted peanut butter and other products made at the Blakely, Georgia facility.

A multi-state salmonella outbreak that has sickened more than 500 people – possibly killing 8 – has been linked to peanut butter and other products  made at the PCA Georgia plant.  PCA makes peanut butter and peanut paste for 85 companies.  As a result of the outbreak, scores of firms that use PCA products, including General Mills and the Kellogg Company, have been forced to issue recalls. (more…)

High-fructose corn syrup (HFCS) has been found to contain mercury, according to two recent studies.  HealthDay News reported that in one study, about half of all samples of commercial high-fructose corn syrup were found to contain mercury; in the other study, mercury was found in about one in every three of the products tested.

Reuters reported that many ubiquitous food products contain commercially produced high fructose corn syrup containing mercury.  Mercury has been at the root of a long and expansive debate over its connection to vaccines and fish and the prevalence of autism and autism spectrum disorders plaguing children today. (more…)

ETHEX Corp.  is recalling scores of generic drugs that might be defective. The recall is part of a larger action taken by KV Pharmaceuticals – the parent of ETHEX Corp. – which we reported on earlier this week.

According to an ETHEX press release, the massive  recall is necessary because the medications  may have been manufactured under conditions that did not sufficiently comply with current Good Manufacturing Practices.  Some of the medications have had specific lots recalled earlier due to defects found, including oversized tablets delivering higher than labeled doses.  ETHEX said the additional products are being removed to assure that no other defective products remain in the marketplace. (more…)

Three defective children’s products have been recalled for violating U.S. lead standards.  According to the Consumer Products Safety Commission (CPSC), the recalls include Jesus Fish Beads sold by Discount School Supply; High School Musical Manicure Kits made by Fantas-Eyes, Inc.,; and Lip Gloss Key Chains made by Markwins Beauty Products

According to the CPSC, the  Jesus Fish Beads were sold in packages of 100 in five assorted colors (red, black, purple, light blue and green) with the word “Jesus” printed on each. The beads measure about 2 inches in length each.  The recalled beads were sold at Discount School Supply’s Web site from August 2006 through December 2008 for about $5.   Surface paint on the green fish can contain excessive levels of lead, violating the federal lead paint standard.  The recall involves about 500 beads. (more…)

Arthur Nadel, the Florida money manager who has been missing since January 14, has been found and arrested in Florida.  Nadel, who has been charged with securities fraud, apparently surrendered to the FBI in Tampa yesterday.

Nadel was president of Scoop Management Inc., a firm that managed six private investment funds.  The funds managed by Scoop included Viking IRA, Valhalla Investment Partners LP, Viking, Victory, Victory IRA and Scoop Real Estate.  Viking IRA, Valhalla and Viking funds were managed by Nadel under contract with his partner and Valhalla founder Neil Moody.  The other three were Nadel’s own funds. Scoop Management managed money for around 600 investors. (more…)

The U.S. Food and Drug Administration (FDA) just issued a warning to consumers regarding a so-called dietary supplement that contains an undeclared drug.  The FDA is advising consumers not to take Venom HYPERDRIVE 3.0, a product sold as a dietary supplement and which contains the controlled, potent substance sibutramine, which has risks for abuse or addiction and which poses potential safety and health risks.

“Sibutramine is the active ingredient in an FDA-approved prescription drug used as an appetite suppressant for weight loss,” said Janet Woodcock, M.D., director of the FDA’s Center for Drug Evaluation and Research. “But when present in a dietary supplement, it may harm unsuspecting consumers because sibutramine can substantially increase blood pressure and heart rate (pulse), and may present a significant risk for people with a history of heart disease, heart failure, irregular heart beats or stroke.” (more…)

The problem with Chinese Drywall is not improving and now, according to a number of real estate attorneys and environmental testing firms, there are at least 20 builders in the southwest Florida area that are known to use Chinese Drywall, reports MSNBC.

CBS4 Miami also reports that one of the builders—Lennar Corporation, says, to date, it has identified about 80 homes in the area which were likely built using the defective Chinese Drywall.  And, yesterday, the Bradenton Herald reported that a class-action suit was filed in Florida’s Sarasota County and complaints registered with the Florida Department of Health increased from 30 to 54. (more…)