Vanity Fair Looks Into ROMNEY'S OFFSHORE FINANCES

[Segami]

Where the Money Lives

"..For all Mitt Romney’s touting of his business record, when it comes to
his own money the Republican nominee is remarkably shy about disclosing
numbers and investments. Nicholas Shaxson delves into the murky
world of offshore finance, revealing loopholes that allow the very wealthy
to skirt tax laws, and investigating just how much of Romney’s fortune
(with $30 million in Bain Capital funds in the Cayman Islands alone?) looks
pretty strange for a presidential candidate..."



VANITY FAIR Excerpt:

To give but one example, there is a Bermuda-based entity called Sankaty High Yield Asset Investors Ltd., which has been described in securities filings as “a Bermuda corporation wholly owned by W. Mitt Romney.” It could be that Sankaty is an old vehicle with little importance, but Romney appears to have treated it rather carefully. He set it up in 1997, then transferred it to his wife’s newly created blind trust on January 1, 2003, the day before he was inaugurated as Massachusetts’s governor. The director and president of this entity is R. Bradford Malt, the trustee of the blind trust and Romney’s personal lawyer. Romney failed to list this entity on several financial disclosures, even though such a closely held entity would not qualify as an “excepted investment fund” that would not need to be on his disclosure forms. He finally included it on his 2010 tax return. Even after examining that return, we have no idea what is in this company, but it could be valuable, meaning that it is possible Romney’s wealth is even greater than previous estimates. While the Romneys’ spokespeople insist that the couple has paid all the taxes required by law, investments in tax havens such as Bermuda raise many questions, because they are in “jurisdictions where there is virtually no tax and virtually no compliance,” as one Miami-based offshore lawyer put it.



That’s not the only money Romney has in tax havens. Because of his retirement deal with Bain Capital, his finances are still deeply entangled with the private-equity firm that he founded and spun off from Bain and Co. in 1984. Though he left the firm in 1999, Romney has continued to receive large payments from it—in early June he revealed more than $2 million in new Bain income. The firm today has at least 138 funds organized in the Cayman Islands, and Romney himself has personal interests in at least 12, worth as much as $30 million, hidden behind controversial confidentiality disclaimers. Again, the Romney campaign insists he saves no tax by using them, but there is no way to check this.



Bain Capital is the heart of Romney’s fortune: it was the financial engine that created it. The mantra of his campaign is that he was a businessman who created tens of thousands of jobs, and Bain certainly did bring useful operational skills to many companies it bought. But his critics point to several cases where Bain bought companies, loaded them with debt, and paid itself extravagant fees, thereby bankrupting the companies and destroying tens of thousands of jobs.



Come August, Romney, with an estimated net worth as high as $250 million (he won’t reveal the exact amount), will be one of the richest people ever to be nominated for president. Given his reticence to discuss his wealth, it’s only natural to wonder how he got it, how he invests it, and if he pays all his taxes on it.


cont'

http://www.vanityfair.com/politics/2012/08/investigating-mitt-romney-offshore-accounts

.

[ananda]

1. This is a good article.

It shows how shady and sleazy Romney and his business practices were,
and sheds light on what kind of president he would be. Shudder.

[russspeakeasy]

2. +1

[Segami]

3. Including Bain business practices against employees.

"...Bain engaged in startling penny-pinching with the laid-off employees. Their contracts stipulated that if they left early they would have to pay back the costs of relocating to Miami—but in spite of all that Dade had done to them, it refused to release the employees from this clause. “They said they would go after them for that money if they left before Bain was finished with them,” Hewitt recalls. Not only that, but the company declined to give workers their severance pay in lump sums to help them fund their return home..."


.

[magical thyme]

6. no different than how Ann Romney treated the horse she claims to have been fond of

They knew that horse had a soundness issue and she rode him into the ground, masking symptoms with anti-inflammatory drugs (which is grounds for elimination and banning from recognized competition).

And when the anti-inflammatory drugs were no longer sufficient to hide the problem, instead of giving the horse a decent retirement, after he had given her so much, they masked his unsoundness with 2 surgery-level sedatives and analgesics and pawned him off on an unsuspecting buyer for $125K.

Furthermore, they didn't let the pre-purchase vet know the poor horse already had sedatives in his system and the vet gave him another 2 surgery level sedatives during the x-rays (normal practice). So that horse could literally have dropped dead during the vet exam. He had 4 sedatives in his system, all 4 of which cause bradycardia (decreased heart rate) and all 4 of which depress respiration.

They are vile, vile people. To them, everybody is a disposable slave. No more than a tissue to wipe their nose and toss in the trash.

[The Wielding Truth]

28. This is an amazing look into the way they treat creatures they own. Are you a horse person? How did

you hear this account?

[riderinthestorm]

37. Its pretty common knowledge now. Ann Romney's horse Super Hit was fraudulently sold

Here's a previous DU thread about it.

http://www.democraticunderground.com/?com=post&forum=1002&pid=897041#


Super Hit had Butorphanol, Delomidine, Romifidine, and Xylatine in its system at the time of his sale, according to court documents. Testified an expert: “In my 38 years of practice, I have never come across a drug screen such as this where the horse has been administered so many different medications at the same time.”


MORE:

Romney and her trainers sold the horse, Super Hit, in 2008 for $125,000. And Super Hit had what a prominent veterinarian described as a staggering quantity of drugs in its system at the time of its examination before being sold, according to a toxicology report that's part of the lawsuit over the horse's condition.

According to a toxicology report provided to the horse's vet and testimony from a veterinarian, Dr. Steven Soule, included in the lawsuit, Super Hit had three sedative pain killers and one narcotic pain killer in her system when the horse was examined to check her condition pre-sale. The drugs were Butorphanol, Delomidine, Romifidine, and Xylatine.

Soule, who has been the United States Equestrian Team veterinarian since 1978, writes, “In my 38 years of practice, I have never come across a drug screen such as this where the horse has been administered so many different medications at the same time.” The horse had a defect in its foot, and Norris's lawyers alleged that the Ebelings had drugged the horse in order to hide its condition.

http://www.buzzfeed.com/rosiegray/ann-romneys-high-horse

[klook]

62. Jesus, "Super Hit"

If this was in a novel, critics would call it hackneyed writing. But it's real. It's the way these monstrous creeps live.

[magical thyme]

63. his name is a freakish coincidence

His sire is a popular Oldenburg stallion named Sandro Hit. German convention for the Oldenburg registry (also the Hanoverians) is to name foals with the same first initial as their sire as a marketing tool.

And then, a lot of breeders name their Sando Hit foals with "Hit" in their names to further advertise the bloodline. So they try to think of anything Sxxxx Hit to market the foals...

As soon as I saw his name, I could identify the sire line as Sandro Hit. Likewise, had his name started with: R he would be the Rubenstein line, W the World Cup line, usually Weltmeyer or Warkant, D would be the Donnerhall line, B traces to Bolero, F is confusing -- it goes to Wendekreis but they wanted to differentiate the World Cup line because they are such a specific "type" so changed the Wendekreis line to F, M usually goes to Matcho, and so on.

[klook]

65. Interesting history -- I've never heard of all this. Thanks. (n/t)

[freshwest]

58. +1.000

[riderinthestorm]

13. Nope, this is a great article. K&R nt

[Stargazer09]

4. More money than he can ever use

WHY does he want to be President? Seriously? Just for the bragging rights? WTF?

With that much money, he can't possibly understand how most of us live. And purchasing a political office just for the fun of it is a shitty way to pay back the country that allowed him to amass so much wealth without paying taxes on it.

[PatSeg]

7. Because his Daddy ran for president

and lost. Mitt has to one-up his father. Men with daddy issues running for political office can really be dangerous.

[Stargazer09]

11. Yep

That's what I figured. Another idiot trying to upstage Daddy.

Maybe republican men should start being real fathers, instead of treating their sons as if they aren't good enough.

[PatSeg]

19. Its interesting that our last two Democratic presidents

didn't really know their biological fathers. In Obama's case, it was a brief moment in time. Maybe not knowing their fathers pushed them to create their own identity instead of trying to live up to a childhood image.

I completely agree about republican fathers. I've seen it so many times and its downright ugly, not to mention it becomes a family tradition. The Bushs are a perfect example.

[Ganja Ninja]

10. I hear ya.

If I had that much money no one would even know my name.

[Stargazer09]

12. Exactly!

I wouldn't want that much money to begin with, but if I had it, I'd probably just live a quiet life with my family. And maybe take one trip into space.

[goclark]

16. If I had that much ~ I would be giving it away

allthe time.

There are so many worthy causes ~ how much does Rmoney give to causes that help the needy?

[The Wielding Truth]

32. Here is a breakdown of his past charitable gifts. CS Monitor is the source,but it seems plausible.

http://www.csmonitor.com/USA/Elections/President/2012/0124/Mitt-Romney-taxes-show-very-high-charitab

[JDPriestly]

38. Sorry, this page has moved or does not exist.

I think I saw a list of his charitable donations -- some of which were to "charitable" political organizations.

[Retrograde]

50. judging by the tax return he did make available

IIRC, about half his charitable contributions were to the LDS (is it charity if it's required?), and the vast bulk of the rest went to a foundation set up by the Romneys, one of whose beneficiaries was the LDS.

[pnwmom]

22. Overwhelming narcissism. He wants the recognition and power. n/t

[Stargazer09]

53. Yes

My question was mostly rhetorical. I can understand why a rich man would want the prestige of being President.

After everything he did at Bain and the mess he left in Massachusetts, doesn't he realize that he'd be a horrible President? Does he really want to be known as worse than GWB?

I know that he has his own reasons for pursuing the presidency. I just hope that he doesn't succeed in buying the office, since outrageous sums of money will be the only thing that could get him elected.

[notadmblnd]

51. or to fufill LDS prophecy

[Stargazer09]

54. I read about that, too.

Ugh.

[Jessy169]

61. Why does Romney want to be President?

Not for the money, that much is obvious. And please feel free to disagree, but from what I have seen and heard from Romney, I do not see any evidence of an inner fire burning that would motivate him to be President. I think a lot of Presidents are driven to obtain that office by ideals, by visions of what they hope to accomplish. But again, Romney doesn't seem to have that inner drive, as far as I can tell. My guess is that Romney "wants" to be President because he has been ordained by the extreme Christian/Mormon right as "The One" who can launch them into the Presidency, a position from which they will have every opportunity to cause extreme and perhaps irreversable mischief. In my point of view, this election has everything to do with the future of America. Since Reagan and probably before that, the extreme religious right has been scheming and manipulating and strong-arming their way into positions of political power. With Mitt, the crowing jewel in their quest for power is just a few stolen votes away. We truly do live in dangerous times.

[Bluerthanblue]

5. I was just reading about this the other day- using

"blocker corporations" .

There is some interesting info here:http://www.nytimes.com/2012/02/08/us/politics/romneys-returns-revive-scrutiny-of-offshore-tax-shelters.html?pagewanted=all

[hifiguy]

8. This is a closet sure to be filled with skeletons.

Let the light in.

[Ganja Ninja]

9. With that much money in the Caymans ...

shouldn't he be running for President there instead of here?

[amerciti001]

41. Now that's a point of thought to consider

[freshwest]

59. One of the issues about his having money on every continent, is to whom he owes loyalty.

[UTUSN]

14. R#27 & K n/t

[emulatorloo]

15. Important article - thanks for posting it.

[drm604]

17. Why do people like this run for office? Why take on all of those headaches and responsibilities?

If I had money like that I think I might just live on some tropical island.

[JHB]

23. 1) ego, 2) one-upping daddy, 3) it's just the next thing to tack onto the resume

No greater vision at work here.

[SunSeeker]

24. Spot on.

P.S. Great sig line.

[greymattermom]

48. because of the Mormon prophecy

http://en.wikipedia.org/wiki/White_Horse_Prophecy

[alcibiades_mystery]

18. Ball so hard muhfuckers wanna fine me...but first they gotta find me

What's 50 grand to a muhfucker like me?
Could ya please remind me...


Mittens in Paris.

[SDjack]

20. I have no admiration for anyone who gets their money by wrecking struggling

corporations and syphoning off the works retirement funds. Shameful.

[pnwmom]

21. I want to encourage more articles like this, so I just paid for a subscription.

Way to go, Vanity Fair!

[aquart]

33. You're right.

And I do love the perfume samples.

[iemitsu]

35. ripping out the perfume samples is the first

thing i do with vanity fair when it arrives at my door.
i can taste those pages for days.

[eridani]

66. If at least one other person does this, I feel like I'm not a pervo cheapskate

I put them in drawers and linen cabinets.

[iemitsu]

69. i throw them away.

my wife is allergic to those smells.

[aquart]

71. Me, too.

IT was one of those samples that introduced me to Cashmere Mist, my current favorite.

[SunSeeker]

25. K&R

[drm604]

26. K&R

[ChairmanAgnostic]

27. good. someone in journalism is actually practicing it.

[Coexist]

29. wow

[Chiyo-chichi]

30. Map: Overseas Locations of Mitt Romney's Finances

From Vanity Fair: A full 55 pages in his 2010 return are devoted to reporting his transactions with foreign entities. “What Romney does not get,” says Jack Blum, a veteran Washington lawyer and offshore expert, “is that this stuff is weird.”

[amerciti001]

42. With all these locations...

to stash away cash, are we sure that Mittens not, in fact, part of some sort of a vast Criminal Enterprise!?

[aquart]

31. Unpatriotic tax cheat. Thief.

[amerciti001]

43. A tax cheater or tax dodger...

is a criminal offender.

[AnotherMcIntosh]

34. ALL politicians who support the pending job-killing "free-trade" agreement should be required to

disclose their offshore finances.

Each and every one of them.

No one who supports the pending let's-send-even-more-jobs-to-foreign-countries "free trade" agreement should be presumed to only have finances in this country.

[JDPriestly]

40. +100000

[SunsetDreams]

36. Big K&R and Bookmarked

[Bill USA]

39. everybody should email this to everybody you know, and comment on it on other web-sites especially

those of the Corporate media!

recommended!

[patrice]

44. K&R and Shared.

[patrice]

45. They were encouraging SUBVERSION of their own clients. Wow!!!

[DearAbby]

46. He want's to be President...

YET HE WONT INVEST IN OUR COUNTRY...HE HAS IT STASHED.

http://t.co/WADewUIa

[spanone]

47. k&r

[Spitfire of ATJ]

49. You know what would be ironic?

If it turned out for tax reasons Romney held dual citizenship under an alias.

[Angry Dragon]

52. He has Mexican citizenship

[TexasTowelie]

67. What documentation do you have to support that claim?

I'm not a Romney fan in the least, but I don't want to make things up out of mid-air. We have Republicans to do that already.

[Angry Dragon]

70. I feel it is important to fight the republicans the same way

that they fight us

[elehhhhna]

55. that's rum point, grand cayman, where I learned to snorkle

gorgeous photo

[CoffeeCat]

56. PLEASE POST THIS TO YOUR FACEBOOK ACCOUNT!

Sorry, I don't mean to shout, but this is so important!

I am sure the "liberal media" will pass over this important story--as they are paid shills for the powerful. It's
up to us to spread the word.

Post this to Facebook and circumvent the ridiculous MSM!

[freshwest]

57. Oh, and they've been telling us for years that it's the poor not paying taxes is the problem. Huh.

[The Jungle 1]

60. tax returns

Ask every day when R/money is going to release his tax returns.
Every day over and over again.

[Segami]

64. I agree with you wholeheartedly.

The more Willard resists releasing years of HIS tax returns, the more suspect his off shore accounts become. 'What is Mitt hiding' would become the headline rally cry for all Democrats and hopefully, media.

[UTUSN]

68. Here's a brief intro by WOLCOTT to the full article:

*************QUOTE*************

http://www.vanityfair.com/online/wolcott/2012/07/Meet-the-Money-Man-Behind-Mitts-Offshore-Accounts

[font size=5]Meet the Money Man Behind Mitt's Offshore Accounts[/font]

By James Wolcott

The latest issue of Vanity Fair contains a blockbuster investigative report by Nicholas Shaxon about the [FONT style="BACKGROUND-COLOR: yellow"]untold millions salted away in offshore accounts[/FONT] by Republican presidential candidate and dashing jet-skiier Mitt Romney, who will travel this summer to the Holy Land to give Israeli prime minister Bibi Netanyahu a soothing neck massage. It was either that or rub Rush Limbaugh's feet and Mitt chose the latter(sic), and who among us can blame him? ....



The media soon noticed [FONT style="BACKGROUND-COLOR: yellow"]Romney’s familiarity with foreign tax havens[/FONT]. A $3 million Swiss bank account appeared in the 2010 returns, then winked out of existence in 2011 after the trustee closed it, as if to remind us of George Romney’s warning that one or two tax returns can provide a misleading picture. Ed Kleinbard, a professor of tax law at the University of Southern California, says the Swiss account “has political but not tax-policy resonance,” since it — like many other Romney investments — constituted [FONT style="BACKGROUND-COLOR: yellow"]a bet against the U.S. dollar, an odd thing for a presidential candidate to do[/FONT]. The Obama campaign provided a helpful world map pointing to the tax havens Bermuda, Luxembourg, and the Cayman Islands, where Romney and his family have assets, each with the tagline “[FONT style="BACKGROUND-COLOR: yellow"]Value: not disclosed in tax returns.[/FONT]”

As a fillip to Shaxon's must-read report, it confirms my suspicions, which I first divulged on Twitter, that [FONT style="BACKGROUND-COLOR: yellow"]the financial engineer of Mitt's offshore money-parking was none other than Roger Van Zant, the head of Malibu Equity and Investments, which laundered money in the Caymans and Canary Islands and trafficked in bearer bonds[/FONT] until Mr. Van Zant's violent demise in 1995, when he was gunned down in his glassy home while watching a hockey game by career criminal and existential philosopher Neil McCauley. ....



But I do think that any reporters who interview Mitt between now and the election, [FONT style="BACKGROUND-COLOR: yellow"]assuming he deigns to speak to anyone apart from the cloth puppets at Fox[/FONT] News, should ask him about his relationship in the nineties with Roger Van Zant, which raises troubling concerns about the character and integrity of his plutocratic octopus and exactly how far and wide the suction cups of his tentacles reach.

*************UNQUOTE*************

[Amonester]

72. K&R

OP needs to be kicked regularly.

Bookmarked.