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Showing Original Post only (View all)GIFT From McCain's Opposition Research On Mitt: Romney and Bain profited from massive Medicare Fraud [View all]
Romney and Bain profited from massive Medicare Fraud
From the delightful gift that is John McCains opposition research on Mitt (courtesy of namelessgenxer) comes the sordid tale of Mitts tenure on the board of Damon Clinical Laboratories, which plead guilty to charges of defrauding Medicare and agreed to pay what was at the time the largest health care criminal fraud fine in history $35,300,000. They also agreed to larger civil fines which totaled $83,700,000.
I originally published this back in January, but given the recent focus on Bain its worth a revisit. Also, Im republishing this to The Bain Files to add to that archive of Mitty evildoings.
The time line goes as follows.
1988: Damon begins a systemic practice of fraud. The government estimates later that the total cost to taxpayers of this fraud is around $40,000,000
1990: Bain Capital (CEO Mitt Romney) buys a minority stake in Damon. Mitt takes a seat on the board of directors
1990 to 1993: Mitt serves on the board of directors, earning ~$10,000 per year for doing so. He is on the companys Strategic Planning committee
1992: Romney said that [Damons then-CEO Robert] Rosen told the board in about 1992 that all current practices at the company were now in conformity with government regulations and that in the past there may have been practices which would not be deemed appropriate.
1993: Damon is taken over by Corning, with Mitt Romney voting in favor of the acquisition
1993: Corning immediately closes Damons Massachusetts plant and lays off 115 workers
1993: Corning uncovers the fraud and alerts authorities. The SEC filings made by Damon prior to the acquisition make no mention of any potential earnings write-downs or legal problems
1993: Mitt Romneys share of Bains profit from the Damon investment: $473,000
1993: Bains profit from its investment in Damon: $7,400,000, which represented a tripling of the initial investment
1994: Running for Senator, Mitt Romney says:
Im proud of the small part I played in the growth of Damon, Romney said yesterday. Its something that Ted Kennedy doesnt have a clue about creating real jobs in the private sector.
2002: While running for governor, Romney claims that he helped uncover the fraud by starting an investigation. This version of events is disputed by Corning and by the Federal Prosecutors. Mitt also says he never alerted the authorities, which no one disputes.
(read the rest)
1988: Damon begins a systemic practice of fraud. The government estimates later that the total cost to taxpayers of this fraud is around $40,000,000
1990: Bain Capital (CEO Mitt Romney) buys a minority stake in Damon. Mitt takes a seat on the board of directors
1990 to 1993: Mitt serves on the board of directors, earning ~$10,000 per year for doing so. He is on the companys Strategic Planning committee
1992: Romney said that [Damons then-CEO Robert] Rosen told the board in about 1992 that all current practices at the company were now in conformity with government regulations and that in the past there may have been practices which would not be deemed appropriate.
1993: Damon is taken over by Corning, with Mitt Romney voting in favor of the acquisition
1993: Corning immediately closes Damons Massachusetts plant and lays off 115 workers
1993: Corning uncovers the fraud and alerts authorities. The SEC filings made by Damon prior to the acquisition make no mention of any potential earnings write-downs or legal problems
1993: Mitt Romneys share of Bains profit from the Damon investment: $473,000
1993: Bains profit from its investment in Damon: $7,400,000, which represented a tripling of the initial investment
1994: Running for Senator, Mitt Romney says:
Im proud of the small part I played in the growth of Damon, Romney said yesterday. Its something that Ted Kennedy doesnt have a clue about creating real jobs in the private sector.
2002: While running for governor, Romney claims that he helped uncover the fraud by starting an investigation. This version of events is disputed by Corning and by the Federal Prosecutors. Mitt also says he never alerted the authorities, which no one disputes.
(read the rest)
http://www.balloon-juice.com/2012/08/18/mitt-romney-profited-from-massive-medicare-fraud-while-at-bain-capital/
So - Bain invests in a company. Mitt gets personally involved with managing said company. Company profits are significantly based upon Medicare Fraud. Bain & Romney never uncover the fraud in 4 years, Corning uncovers it immediately upon buying Damon. Despite the fraud, Bain triples its investment, and Romney's share of that profit is a cool half a million.
http://www.dailykos.com/story/2012/07/18/1111458/-Romney-and-Bain-profited-from-massive-Medicare-Fraud
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GIFT From McCain's Opposition Research On Mitt: Romney and Bain profited from massive Medicare Fraud [View all]
kpete
Aug 2012
OP
A country that is scraping the bottom of the barrel for a presidential nominee is in real trouble.
Gregorian
Aug 2012
#3
I don't think they will. Polls are close enough that they figure they can steal it just like it is.
AllyCat
Aug 2012
#6
Why not just pull the curtains back and run one of the GOP wizards, Charles or David Koch? Why hide?
freshwest
Aug 2012
#7
David Koch is one of the delegates from NY state and will be at the convention. Masks coming off?
freshwest
Aug 2012
#17
Glad you enjoyed the rant. I thought maybe you though I was nuts. I admit to the possibilty, so...
freshwest
Aug 2012
#27
YW. Spread the word about these folks, the DU link has the youtube video and a partial transcript.
freshwest
Aug 2012
#33
And speaking to all of those deluded by their front groups helps, too. Thanks for the link.
freshwest
Aug 2012
#32
Obama could use Newt Gingrich's campaign ad about Damon fraud - Romney blood money
Ian62
Aug 2012
#18
K&R. And please let's have more reporters actually do their jobs and ask, ask, ask about this.
Overseas
Aug 2012
#21
I'd like to kick this link over to CURRENT TV if someone else hasn't already
nightscanner59
Aug 2012
#29
There's a great video about this that I think Newt Gingrich used during his campaign
Poiuyt
Aug 2012
#37
Any and all things criminal Pitten's - I intend to give him a just due fitten's
laserhaas
Jan 2014
#48