McKinsey & Company agrees to pay $650 million to settle federal criminal and civil investigations into its role in helping Purdue Pharma ’turbocharge’ sales of OxyContin, the highly addictive opioid painkiller at the center of America’s overdose epidemic. This marks the first …
McKinsey & CompanyU.S. Department of JusticePurdue PharmaMartin EllingFood and Drug Administration (FDA)mckinseyopioid-crisispurdue-pharmaconsulting-scandalcorporate-crime+4 more
McKinsey Africa enters into a three-year deferred prosecution agreement with the U.S. Department of Justice, agreeing to pay more than $122 million (approximately R2.2 billion) to resolve criminal charges for conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. The …
McKinsey AfricaU.S. Department of JusticeVikas SagarSouth African National Prosecuting AuthorityTransnet+1 moremckinseysouth-africastate-capturebriberycorruption+5 more
A French Senate inquiry committee releases a 400-page report revealing that the French government has spent almost €1 billion in consulting fees since 2017, with very little to show for it. The scandal, dubbed ‘McKinsey Gate,’ centers on the deep ties between McKinsey & Company and …
McKinsey & CompanyEmmanuel MacronKarim TadjeddineFrench SenateJean Castexmckinseyfranceconsulting-scandaltax-evasionconflicts-of-interest+4 more
The Securities and Exchange Commission censured MIO Partners Inc. (McKinsey’s investment subsidiary) and ordered it to pay $18 million to settle allegations that it had access to material nonpublic information about Puerto Rico and other issuers while simultaneously overseeing investments that …
Securities and Exchange Commission (SEC)MIO PartnersMcKinsey & CompanyFinancial Oversight and Management Board for Puerto Ricomckinseysec-enforcementmio-partnerspuerto-ricoconflict-of-interest+4 more
The Puerto Rico Public-Private Partnership Authority recommended LUMA Energy—a joint venture between Quanta Services and Canadian Utilities Limited—to operate Puerto Rico’s electrical transmission and distribution system for 15 years in exchange for $1.5 billion, with annual management fees of …
U.S. Representative Pramila Jayapal (WA-07), Vice Chair of the House Judiciary Committee on Immigration and Citizenship, writes to Kevin Sneader, Global Managing Partner of McKinsey & Company, demanding detailed information about the firm’s work with ICE. The letter requests specific …
Pramila JayapalMcKinsey & CompanyKevin SneaderHouse Judiciary CommitteeImmigration and Customs Enforcement (ICE)mckinseyconsulting-scandalcongressional-oversightimmigration-enforcementdetention-conditions+2 more
ProPublica publishes a bombshell investigation co-published with The New York Times revealing the full extent of McKinsey’s controversial work with ICE, based on 1,500 pages of documents obtained through a Freedom of Information Act lawsuit. The documents expose that McKinsey proposed cuts in …
ProPublicaNew York TimesMcKinsey & CompanyImmigration and Customs Enforcement (ICE)mckinseyconsulting-scandalinvestigative-journalismfoia-litigationimmigration-enforcement+3 more
Centro de Periodismo Investigativo revealed that McKinsey’s conflict of interest in Puerto Rico extended beyond its own bond holdings to include connections with major creditors through hedge fund Whitebox Advisors, which held over $140 million in Puerto Rico bonds through various investment …
McKinsey & CompanyMIO PartnersWhitebox AdvisorsFinancial Oversight and Management Board for Puerto RicoCentro de Periodismo Investigativomckinseypuerto-ricoconflict-of-interesthedge-fundsconsulting-scandal+4 more
The New York Times discloses that McKinsey & Company has done more than $20 million in consulting work for Immigration and Customs Enforcement, triggering immediate outrage among McKinsey employees and alumni. The revelation comes on the same day that ICE announces an end to its ‘zero …
McKinsey & CompanyNew York TimesImmigration and Customs Enforcement (ICE)Kevin SneaderMcKinsey employeesmckinseyconsulting-scandalwhistleblowingjournalismimmigration-enforcement+2 more
ICE officials state in an October 2017 contracting document that McKinsey’s work has shown ‘quantifiable benefits,’ specifically citing ‘increased total removals and reductions in time to remove a detainee.’ This official acknowledgment reveals how McKinsey’s …
McKinsey & CompanyImmigration and Customs Enforcement (ICE)Migrant detaineesmckinseyimmigration-enforcementconsulting-scandaldeportation-accelerationdue-process+2 more
Hurricane Maria struck Puerto Rico on September 20, 2017, knocking out the entire electrical grid, leaving thousands without shelter, and causing thousands of deaths directly or indirectly—exposing catastrophic infrastructure failures resulting from decades of austerity and debt service …
McKinsey & CompanyFinancial Oversight and Management Board for Puerto RicoPuerto Rico Electric Power AuthorityNaomi Kleinhurricane-mariapuerto-ricodisaster-capitalismshock-doctrinemckinsey+5 more
McKinsey’s influence at ICE grows to such an extent that McKinsey staff ghostwrite a government contracting document that defines the consulting team’s own responsibilities and justifies the firm’s retention—a contract extension worth $2.2 million. When an ICE official discovers …
McKinsey & CompanyImmigration and Customs Enforcement (ICE)ICE contracting officersmckinseyconsulting-scandalgovernment-captureprocurement-abuseconflict-of-interest+2 more
In April 2017, McKinsey partners send a confidential final report to the New York City corrections commissioner after spending almost three years leading their project at Rikers Island. The contract, which ultimately cost $27.5 million, ends with violence at the jail complex having increased by …
McKinsey & CompanyNew York City Department of CorrectionBill de Blasiomckinseyprison-industrial-complexrikers-islandconsulting-scandalgovernment-waste+3 more
McKinsey consultants propose controversial ‘detention savings opportunities’ to ICE that include reducing spending on food for migrants, medical care, and supervision of detainees. An internal ICE email dated March 30, 2017 documents that McKinsey is ’looking for ways to cut or …
McKinsey & CompanyImmigration and Customs Enforcement (ICE)ICE career staffMigrant detaineesmckinseyimmigration-enforcementconsulting-scandalshock-doctrinedetention-conditions+3 more
The Financial Oversight and Management Board unanimously approved a brutal 10-year fiscal austerity plan (2017-2026) developed with McKinsey’s strategic consulting, imposing severe cuts to pensions, education, and healthcare to prioritize debt repayment to bondholders. The plan’s key …
McKinsey & CompanyFinancial Oversight and Management Board for Puerto RicoPuerto Rico GovernmentRafael Torregrosamckinseypuerto-ricoausterityshock-doctrinepension-theft+5 more
Just days after Trump takes office in January 2017, he issues executive orders directing ‘all legally available resources’ to be shifted to border detention facilities and calls for hiring 10,000 new immigration officers. ICE quickly redirects McKinsey’s existing organizational …
McKinsey & CompanyImmigration and Customs Enforcement (ICE)Donald TrumpEnforcement and Removal Operations (ERO)mckinseyimmigration-enforcementconsulting-scandalcorporate-captureice-contracts+4 more
McKinsey tests its new anti-violence strategy in what the firm calls ‘Restart’ housing units at Rikers Island, implementing its centerpiece algorithm called the Housing Unit Balancer (HUB) designed to predict each inmate’s propensity for violence. By July 2015, eight Restart units …
McKinsey & CompanyNew York City Department of CorrectionGeorge Motchan Detention Centermckinseyprison-industrial-complexrikers-islandconsulting-scandaldata-manipulation+3 more