Skip to comments.Romney Was Board Member Of Company Fined Over $100 Million For Medicare Fraud -- Criminal Fine
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 nations 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 Damons 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 Damons board, said he was unaware of any investigation. 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. (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 Cornings 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.
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 OBrien, Romney, Telegram & Gazette [Worcester, MA], 10/11/02)
. Romney Has Said He Helped Uncover The Fraud But Never Reported It To Authorities. (Tom Benner, OBrien Sees Savings Possible In Budget, The Patriot Ledger [Quincy, MA], 10/23/02)
Federal Investigators Rebuffed Romneys 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. Romneys 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. Romneys 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 companys 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 Damons Fraudulent Practices. [C]ourt documents
and Damons admission reveal that the fraudulent activity was occurring right up until the time Corning purchased the company from Bain and other owners. [D]amons 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) Damons 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 Bains 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. Romneys firm, Bain Capital, and Romney himself were minority investors in Damon from 1990 through August 1993. The Belmont businessman sat on Damons board of directors, earning nearly $40,000 in directors fees, and was a member of the companys 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: [Romneys] 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. 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. (Meg Vaillancourt, Romney-Aided Deal Closed Damon Plant, The Boston Globe, 10/9/94)
Yea, but how do you know we won’t get similar stories about Newt? Don’t assume he’s any cleaner.
yes, he is an improvement over Hussein.
my position, never successfully refuted, is that Hussein hates America: Judeo-Christian tradition, the Constitution, and capitalism.
Romney (and the rest of our candidates, I hasten to add) does NOT hate America.
For that reason, I will support, happily, the Republican nominee.
Therefore, we should go ahead and vote for Romney, because we already know he has this kind of stuff in his background that will kill him in the general election.
Vote for Romney 'Cause He'll Lose to Obama???
Not a very good campaign slogan, cgg. :>)
OH,OH OH, BUT WAIT, HE'S A MORMON LIKE HARRY REID, AND EVERYONE KNOWS MORMONS ARE HONEST !
YOU MUST BE QUOTE MINING !
MAYBE HE SAID THAT OR DID THAT BUT IT'S NOT "DOCTRINE" !
YOU JUST GOT THIS FROM AN ANTI-MORMON WEBSITE !
THE REASON YOU CAN EVEN READ THIS IS BECAUSE A MORMON INVENTED THE CATHODE RAY TUBE !
I HAVE A TESTIMONY THAT THIS STORY IS FALSE, WAS MADE UP COMPLETELY BY JESUS'S BROTHER, SATAN, AND THAT ROMNEY IS INNOCENT !
You misunderstand. I was making a case for continuing this campaign—not voting for any particular person. Go back and read the posts. In no way was I advocating voting for Romney, only that we get the cleanest candidate.
I think Romney is pro-Romney, an entitled narcissist. There’s nothing in his life or service to suggest he is pro-America.
Banning Boy Scouts because they won’t accept gay leaders?
Trying to end veteran’s hiring preferences?
Wanting to roll veteran’s benefits under welfare?
Veto of funding for a veteran’s cemetery?
Signing gay marriage legislation?
Which of the above suggests to you that Romney is pro-America?
They have a reputation as being filthy rich and ruthless in business.
They stole through fraud and deception two full days of hard labor from me when I was 17 years old. I am not in the least surprised to other branches of the family in league with Romney in this venture.
This is wealthy mormons folks.
We’ve posted to each other in the past, so I was just pulling your chain.
Shame on you!! :)
Hilarious how McCain’s own opposition file comes out right after the old prick endorsed Mittens. It will destroy him!
I agree. I feel great, great remorse....sorta
Pretend that I just gave you a free cup of coffee to make amends. :>)
The only thing better would be if we could drink it together.
With pastry, of course.
Of course, we need the calories to continue the fight.
Romney does not act anything like the Mormons I know. This man oozes a level of dark arrogance that is through the roof. It's disgusting And I hate to say it but every time I see his wife and sons they look just like an abused family would look if they had to put on a face for the camera.
The man is not just fake..underneath he is eerie. Others have said he seems deceptive..like a used car salesman..I'm thinking he is more of a dark shadows kind character..profoundly sinister.
I know, I was a breakaway LDS sect leader until only 4 years ago.
What you see in Romney is pure, intentional, satanic evil.
And then there are those who are the true believers like Coulter, Rove and others who just will railroad anyone opposed to Willard.
Romney is a temple mormon, only 15% of mormons are.
There are rules and regulations that you must abide by to reach this status, one of which is total alliance to SLC lds corporation.
What are you seeing is the core of who he really is.