A cache of 2.5 million files has cracked open the secrets of more than 120,000 offshore companies and trusts, exposing hidden dealings of politicians, con men and the mega-rich the world over.

The secret records obtained by the International Consortium of Investigative Journalists lay bare the names behind covert companies and private trusts in the British Virgin Islands, the Cook Islands and other offshore hideaways.

They include American doctors and dentists and middle-class Greek villagers as well as families and associates of long-time despots, Wall Street swindlers, Eastern European and Indonesian billionaires, Russian corporate executives, international arms dealers and a sham-director-fronted company that the European Union has labeled as a cog in Iran’s nuclear-development program.

The leaked files provide facts and figures — cash transfers, incorporation dates, links between companies and individuals — that illustrate how offshore financial secrecy has spread aggressively around the globe, allowing the wealthy and the well-connected to dodge taxes and fueling corruption and economic woes in rich and poor nations alike. The records detail the offshore holdings of people and companies in more than 170 countries and territories.

The hoard of documents represents the biggest stockpile of inside information about the offshore system ever obtained by a media organization. The total size of the files, measured in gigabytes, is more than 160 times larger than the leak of U.S. State Department documents by Wikileaks in 2010.

To analyze the documents, ICIJ collaborated with reporters from The Guardian and the BBC in the U.K., Le Monde in France, Süddeutsche Zeitung and Norddeutscher Rundfunk in Germany, The Washington Post, the Canadian Broadcasting Corporation (CBC) and 31 other media partners around the world.

A New York state senator and five other political officials have been named in a sweeping federal corruption case — the latest in a series of scandals that helped earn the Empire State a D grade from the State Integrity Investigation.

At the heart of the complaint unsealed Tuesday: federal prosecutors say Sen. Malcolm Smith, a Democrat from Queens, used a series of contacts in an attempt to bribe New York City Republican Party officials to approve his bid for mayor on the GOP ticket.

The case, which allegedly involved tens of thousands of dollars in bribes and agreements to secure state and city funds for development projects, highlights some of the endemic  corruption problems that have plagued New York’s legislature in Albany, where politicians are frequently accused of exchanging cash for securing state funds and candidates exchange donations for political support. The image was reinforced by the State Integrity Investigation, a state-by-state ranking of accountability and transparency carried out last year by the Center for Public Integrity, Global Integrity and Public Radio International.

According to the complaint, Smith had ambitions to run for mayor of New York City, but wanted to run as a Republican. As a Democratic state senator, he needed support from the party to get on the ticket. The solution presented itself in the form of a New York real estate developer, who was cooperating with an undercover FBI agent in exchange for leniency on unspecified charges.

In Sen. Ted Cruz’s twisted vision of economic history, Ronald Reagan cured double-digit unemployment by cutting spending and reducing the federal debt, and Jimmy Carter was guilty of “out-of-control regulation.”

In the real world:

• Total federal spending soared during Reagan’s deficit-plagued first term, and the national debt nearly doubled. His budget director later resigned and wrote a book criticizing Reagan’s failure to cut spending.
• And Carter signed landmark bills freeing airline, railroad and trucking rates from federal regulation, easing regulation of natural gas prices and eliminating federal regulation of interest rates paid by banks to small savers.

These are only a few of the disconnects between economic reality and Cruz’s oversimplified, often inaccurate attempt to paint President Obama’s record as the “exact opposite” of Reagan’s. The freshman Texas Republican said during his March 16 keynote address at the Conservative Political Action Conference (starting about 22 minutes and 20 seconds into the recording):

It’s been exactly one year since publication of the State Integrity Investigation, an unprecedented, data-driven analysis of transparency and accountability in all 50 states — and a lot has happened since. The project — a collaboration of the Center for Public Integrity, Global Integrity and Public Radio International, with cooperation from the Investigative News Network — has been quoted, praised, assailed or otherwise cited by hundreds of news outlets, good-government groups and legislators. The project was also a finalist for the prestigious Goldsmith Prize for Investigative Reporting awarded by Harvard’s Kennedy School of Government. Clearly, the idea of measuring accountability and transparency in state government has touched a reformist nerve — and our package is continuing to resonate across the country.

Since the State Integrity Investigation was launched, reform efforts have been initiated in 16 states. Four of those states — Delaware, Iowa, Maine and Rhode Island — have passed laws or issued executive orders improving disclosure and access to public information. Lawmakers in seven other states have proposed a broad slate of measures that would strengthen ethics oversight, tighten campaign finance reporting and more.

SANTA FE — On February 20, New Mexico’s House Energy and Natural Resources Committee gathered for one of its regular meetings in a drab room here at the capitol, a circular building known as the Roundhouse. On the agenda: a bill that would hike fees and penalties for energy companies drilling wells in the state.

The votes fell along party lines, with five Republicans lining up against the bill and the committee's Democratic majority voting to send the legislation to the House floor. The Republicans argued the bill would stifle business and cost jobs, and for one lawmaker, the issue hit particularly close to home. Rep. James Strickler spends most of the year running his own small oil and gas production company, JMJ Land & Minerals Co. The bill would directly affect his profits.

Strickler, a 58-year-old from the sparsely populated, gas-rich northwest corner of the state, speaks with a gentle western drawl. In an interview after the committee vote, he said the bill would put New Mexico’s regulations out of line with those in other states. Ultimately the bill was voted down on the House floor, and Strickler was among those voting ‘no.’ Over seven years in office, Strickler has been a staunch advocate for his own industry and has twice introduced legislation to reduce the amount of renewable energy that utilities must purchase. He has never recused himself from a vote on energy issues, he said, even when it directly affects his bottom line.

“I don’t think it’s a conflict of interest,” Strickler said. “I think it’s a blessing that a few of us have some understanding of that industry.”

The Republican-controlled Florida Senate unanimously passed a landmark ethics reform package on Tuesday, the first day of the legislative session, setting the stage for what could be the first major changes to the state’s ethics laws in decades.

The bills would strengthen provisions that prevent lawmakers from immediately becoming lobbyists, expand the powers of the state’s ethics commission and require that financial disclosure reports be posted online.

"Public office is a public trust," Senate President Don Gaetz said in hailing the 40-0 vote. "This legislation means the Florida Senate is serious about ethics reform. Higher ethical standards is just one more difference between Florida senators and Washington senators."

But the measures also contain several changes that critics say would actually weaken existing laws.

“I think it would be a step forward in some ways but several steps backward in others,” said Philip Claypool, a lawyer who served as executive director of the Florida Commission on Ethics until retiring in 2011. “The net effect I don’t think would be progress.”

While the legislation allows lawmakers to place investments in a blind trust in an effort to prevent conflicts of interest, for example, it leaves out several safeguards contained in similar laws in other states and at the federal level, Claypool said.

The bills would also allow lawmakers who have filed erroneous or incomplete financial disclosure reports to correct the forms before the ethics commission can investigate, in essence preventing the body from fining officials for their transgressions.

“Basically, they can get away with paying even less attention to the accuracy of a report,” Claypool said.

Gaetz spokeswoman Katie Betta disputed the characterization that the bills loosen existing law. She said the legislation would strengthen the ethics commission by allowing it to receive referrals from other state agencies.

The House of Representatives passed federal legislation aimed at combating campus sexual violence on Thursday, including it in a bipartisan renewal of the Violence Against Women Act following months of congressional gridlock. The Senate has already approved the measure, which means passage is virtually assured; President Barack Obama could sign it into law as early as next week.

In a vote of 286 to 138, House members approved a reauthorization of VAWA that incorporates, as Section 304, the Campus Sexual Violence Elimination Act, known as Campus SaVE. The final tally came after lawmakers had defeated a Republican-backed amendment that would have omitted the act’s language from VAWA altogether.

Campus SaVE is meant to address problems highlighted in an investigation of campus sexual assault by the Center for Public Integrity. Published in a six-part series starting in 2009, “Sexual Assault on Campus: A Frustrating Search for Justice” — done in collaboration with National Public Radio — showed that campus judicial proceedings regarding allegations of sexual assault were often confusing, shrouded in secrecy, and marked by lengthy delays. Those who reported sexual assaults encountered a litany of institutional barriers that either assured their silence or left them feeling victimized again. Even students found “responsible” for alleged sexual assaults often faced little punishment, while their victims’ lives frequently turned upside down.

“The victims’ rights components [of Campus SaVE] were designed around the gaps identified by the Center for Public Integrity’s report,” said Daniel Carter, a long-time victims’ advocate now with the VTV Family Outreach Foundation, who helped draft the original bill. “This would not have been possible without that series.”

The Georgia legislature has taken a major step toward strengthening the state’s ethics laws by moving a package of reform legislation through the House. The two bills in the package would impose limits on gifts from lobbyists and restore powers to the state’s ethics enforcement agency, among other changes.

The measures, which are sponsored by Speaker David Ralston, attracted little opposition,  sailing through the House on Monday with just four dissenting votes. But their fate in the Senate remains clouded. In January, the upper chamber adopted a $100 cap on lobbyist gifts in a rule change that does not apply to the House. Ralston told reporters on Monday that he would not negotiate on changing his proposed ban on gifts to match the $100 limit that the Senate enacted. While some senators have called for passing the House legislation unchanged, others have sounded more cautious.

“I’m sure several of us are going to sit down and talk about where we go from here,” Senate Ethics Chairman Rick Jeffares told the Atlanta Journal-Constitution. Neither Jeffares nor Ralston could immediately be reached for comment.

Florida Sen. Marco Rubio and Kentucky Sen. Rand Paul made misleading or exaggerated claims in their responses to President Barack Obama’s State of the Union address. Rubio claimed that the federal health care law was causing people to lose “the health insurance they were happy with,” but that glosses over the fact that 27 million uninsured Americans are expected to gain coverage. Paul claimed the federal government borrows “$50,000 every second,” but the true figure is about $30,000. And he made a reference to an Internet rumor about Obama giving out free phones to the poor.

Rubio Lambasts Health Care Law

Rubio gave the Republican response immediately after Obama’s address, and he criticized the Affordable Care Act.

Rubio, Feb. 12: And because many government programs that claim to help the middle class often end up hurting them. For example, ObamaCare, it was supposed to help middle-class Americans afford health insurance. But now, some people are losing the health insurance they were happy with.

The fact is, the Affordable Care Act is expected to cause tens of millions of uninsured Americans — many of them likely falling under the vague “middle class” label — to gain health insurance, not lose it. In a fact sheet on his speech, Rubio’s office points to a nonpartisan Congressional Budget Office report that said 27 million of the uninsured would have coverage as early as 2017 (as shown in this more detailed CBO chart).

Rubio’s claim about some people losing “the health insurance they were happy with” references the CBO’s estimate that the number with employer-sponsored coverage would decline by 7 million, also as early as 2017. That’s a net reduction, with some workers gaining coverage, some losing it, and others deciding to obtain other insurance on their own.