Posted on 01/18/2012 8:28:27 AM PST by xzins
DAMON CLINICAL LABORATORIES
Romney Was Board Member Of Company Fined Over $100 Million For Medicare Fraud – At The Time, It Was The Largest Criminal Fine For Health Care Fraud In History
Romney Sat On Board Of Damon Clinical Laboratories, A Bain Capital Portfolio Company Fined Nearly $120 Million In 1996 Due To Medicare Fraud. “A Needham clinical laboratory agreed yesterday to pay $119 million in criminal and civil fines after pleading guilty to charges that it defrauded the nation’s Medicare system by seeking reimbursements on millions of dollars worth of unnecessary blood tests. … Damon Clinical Laboratories Inc. admitted it tried to boost its profits by submitting the unnecessary tests. The company, the government said, misled doctors into ordering the tests, ensuring that they would be covered by Medicare, the federal health care program for the elderly.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)
. At The Time, Largest Criminal Fine In Massachusetts History: “The settlement … would mark the largest criminal fine ever levied in Massachusetts.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)
. At The Time, Largest Health Care Fraud Criminal Fine In History: “The $35.3 million criminal fine in the Damon case, one piece of the $119 million total settlement, is the largest ever recovered in a health care fraud case.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)
Romney Was On Damon’s Board Of Directors While The Fraud Took Place – He Initially Claimed He Was Unaware Of Any Criminal Investigation. “Mitt Romney, former Republican challenger to US Sen. Edward M. Kennedy, who was a member of Damon’s board, said he was unaware of any investigation. … Romney said that [Damon’s 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.’” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)
. “Made Large Profits … From A Criminal Scheme To Fraudulently Bill The Federal Medicare System…”
“[Romney] and his venture capital firm made large profits from the 1993 sale of a Needham medical testing company whose robust revenues were generated in part from a criminal scheme to fraudulently bill the federal Medicare system for unnecessary blood tests.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)
. “Pure And Simple … Corporate Greed Run Amok.” “Damon Corp. pleaded guilty in 1996 to a federal conspiracy charge of defrauding the government of $25 million between 1988 and 1993. It paid a record $119 million fine and penalty for a scheme that then-US Attorney Donald Stern labeled ‘a case, pure and simple, of corporate greed run amok.’” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)
1993: Immediately Following Acquisition By Corning, Damon Closed Plant In Needham Heights, Laid Off 115 Massachusetts Workers. “Republican businessman Mitt Romney … helped direct a Massachusetts medical diagnostics company toward a merger that resulted in the permanent closure of a Needham Heights plant and layoffs of about 115 Massachusetts workers. Damon Corp. was headquartered in Massachusetts for more than 30 years until it was purchased by Corning Inc. in 1993 and the Needham facility was closed. … The day after the merger with Corning was completed, the new company notified the Massachusetts Department of Employment and Training that it was permanently closing the Needham plant and laying off about 115 people.” (Meg Vaillancourt, “Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)
. Romney “Feared” The Massachusetts Layoffs Would Come, But Voted To Approve Deal Anyway. “As a board member, Romney pointed out he had a legally binding ‘fiduciary responsibility’ to get the best deal he could for the shareholders, though he acknowledged that at the time he feared Corning would close down the plant and lay off the Massachusetts employees. … No one met Corning’s tender offer, which Romney described as ‘stunning.’ He said he voted to accept the offer, as did the vast majority of other shareholders. ‘There was nothing I could do.’” (Meg villancourt, “Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)
As A Gubernatorial Candidate, Romney Claimed He Helped “Uncover” And Stop The Fraud At Damon.
“[R]omney said Thursday he helped uncover the fraud at Damon and hired an outside law firm to investigate it.
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‘We took action based on what was told to us by the law firm,’ Romney said …” (Ron DePasquale, “Romney Downplays Report He Profited From Firm Tied To Fraud,” The Associated Press, 10/10/02)
. Romney Tries To Take Credit: “Mr. Romney said yesterday that he aided in uncovering and stopping the fraud one year before the sale. … Mr. Romney said board members, including himself … had started an inquiry that led to the disclosure.” (John Monahan, “Ex-Presidents Stump For O’Brien, Romney,” Telegram & Gazette [Worcester, MA], 10/11/02)
. “Romney Has Said He Helped Uncover The Fraud But Never Reported It To Authorities.” (Tom Benner, “O’Brien Sees Savings Possible In Budget,” The Patriot Ledger [Quincy, MA], 10/23/02)
Federal Investigators Rebuffed Romney’s Claims, Saying The Fraud Continued Until Bain And OtherOwners Sold Damon To Corning In 1993. “A spokesman for Romney, Eric Fehrnstrom, said Thursday that Romney and other board members helped uncover the fraud at Damon after similar fraudulent practices were found at another laboratory in 1992. … But court records, including statements by prosecutors and by Damon officials, indicated that the fraud continued until Corning purchased the firm. Prosecutors gave Corning sole credit for cleaning up the fraud.” (“Report: Mass. Candidate Romney Profited From Sale Of Firm That Later Admitted Medicare Fraud,” The Associated Press, 10/10/02)
. “Federal Officials … Have Disputed Mr. Romney’s Claim That He Helped Stop And Correct The Practice.” “Mr. Romney was a director from 1990 to 1993 and said he and the board of directors learned of the problem in 1993 when its own legal staff investigated the billings. Federal officials who prosecuted the case have disputed Mr. Romney’s claim that he helped stop and correct the practice, saying the company did not report the fraud to federal authorities and the practice was stopped by the company’s new owners after it was sold.” (John Monahan, “Romney Talks To Crowd At Fallon,” Telegram & Gazette [Worcester, MA], 10/12/02)
. “No Corrective Action Was Taken When Romney Was On The Board…” “In the 1996 settlement, records show the [fraud] scheme was carried out between 1988 and the time that Damon was sold, indicating that no corrective action was taken when Romney was on the board and served as a member of its strategic planning committee.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)
. Officials Gave Corning Sole Credit For Cleaning Up Damon’s Fraudulent Practices. “[C]ourt documents
– and Damon’s admission – reveal that the fraudulent activity was occurring right up until the time Corning purchased the company from Bain and other owners. … [D]amon’s filings with the federal Securities and Exchange Commission during the weeks and months just prior to the sale contain no mention of possible legal problems over its billing system, or potential negative impact that would require downward revenue revisions.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02) “Damon’s Activities Cost US Taxpayers Nearly $40 Million, The Government Said.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)
Romney Personal Profit From Bain’s Sale Of Damon: More Than $470,000. “Republican gubernatorial candidate Mitt Romney and his venture capital firm made large profits from the 1993 sale of a Needham medical testing company whose robust revenues were generated in part from a criminal scheme to fraudulently bill the federal Medicare system for unnecessary blood tests. Romney personally made $473,000 when Corning Inc. purchased Damon Corp., on whose board he served between 1990 and 1993.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)
. Romney Earned Nearly $40,000 In Directors’ Fees Alone. “Romney’s firm, Bain Capital, and Romney himself were minority investors in Damon from 1990 through August 1993. The Belmont businessman sat on Damon’s board of directors, earning nearly $40,000 in directors’ fees, and was a member of the company’s strategic planning committee when Damon was sold to Corning.” (Meg Vaillancourt, “Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)
Bain Capital Tripled Its Investment On The Deal: “[Romney’s] firm, Bain Capital, tripled its initial investment, making a profit of $7.4 million over a four-year period for its investors, according to copies of Bain documents obtained by the Globe.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)
Romney “Proud” Of Role With Damon. “‘I’m proud of the small part I played in the growth of Damon,’ Romney said yesterday. ‘It’s something that Ted Kennedy doesn’t have a clue about – creating real jobs in the private sector.’” (Meg Vaillancourt, “Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)
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Ping to article and to greater romney file at link
This article reads like a Romney Opposition Research file. If this is coming out now, there has to be a ton more being held for later use.
Romney is not electable.
This article reads like a Romney Opposition Research file. If this is coming out now, there has to be a ton more being held for later use.
Romney is not electable.
Damn...that’s going to leave a mark!
Governor Romney, look at the bright side. You probably wouldn’t have been happy as president anyway.
Now THAT’s sexy!
Ping to S. Carolina Freepers.
How do you explain the fraud continuing DURING the time you were on the board of directors?
And how do you justify fraudulent, criminal profits as being "free market capitalism"?
And just how do you explain defrauding the US Taxpayer in a Medicare scam?
The more I hear, the less I like him - and I didn’t like him to begin with. I hate it that he is being shoved down our throats.
No way Romney will defeat Obama with this stuff in his file. No wonder Kennedy beat him to a pulp.
Just reading the research on his 2nd Amendment stand is enough to cement in my mind this guy is no good. He is a Liberal and holds the Constitution in contempt.
He has big hair and talks a good game. That's about it. Other than that, he is just another RINO loser who would rather compromise than fight for American liberty and freedom.
Nominating him would be the end of the Republic. Even if he won (doubtful) our downhill slide to government bondage and ruin would continue.
This crap coming out now is all the more reason we need everyone possible to stay in this race as long as possible just so everyone is properly vetted. I'm in no hurry.
The Dems want to keep the lid firmly on this pot of stew until Romney is nominated.
Let us hope the aroma of stewed Romney permeates the room in time to avert the coronation of Mitt Dukakis.
Three days to South Carolina’s votes.
And meanwhile mitt racks up votes and Newt/Perry/Santorum are splitting the anti-romney votes? Not a smart move at all! It’s handing the nomination to mitt.
Wow.
Hey, Hussein and his party are part of a criminal enterprise that commits voter fraud, enslaves human beings to a welfare state, and pisses away goodwill among our allies all over the globe.
I’ll take any of our candidates over the Demonrats any time.
Do we really want this "slickster", more slick than Slick Willy.
"Slick Mitts"
Romney is not an improvement over Obama. They are the same.
The only real candidates we have are Gingrich, Santorum, and Perry.
This stuff coming out on Romney would knock anyone else out of the race. Reveal this on Perry, Santorum, or Gingrich and the media would be all over it.
But, there is “The Mittens Protection Association” throughout the mainstream and Fox.
Do we really want this "slickster", more slick than Slick Willy.
"Slick Mitts"
Romney was born into an entitled GOP establishment family.
A protected slickster.
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