Romney Was Board Member Of Company Fined Over $100 Million For Medicare Fraud -- Criminal Fine

Daily Caller ^ | PDF Pg 140 | McCain Campaign

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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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[reaganaut]

Decades of psychological abuse and plunder of the innocent, the meek and the needy will do that to you.

I know, I was a breakaway LDS sect leader until only 4 years ago.

What you see in Romney is pure, intentional, satanic evil.

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Sentinel is absolutely correct. Mitt is typical LDS.

[OPS4]

Remember who your trying to oust from White house, spewing against any of the candidates helps the left.

Here’s one that still goes unsolved about Obama’s pals.
http://patdollard.com/2011/11/report-mother-of-obama%E2%80%99s-murdered-gay-lover-speaks-up/

Why not circulate it and ask a young mans murder is unsolved.

[LibsRJerks]

Oh, for God’s sake ..it will be one thing after another with this jerk. Come ON S. Carolinians ...do your job and OUST this PIA!!!

[OPS4]

Obama’s Alliance with Marxists

http://www.americanthinker.com/blog/2008/06/obamas_alliance_with_marxists.html

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Are you suggesting Romney shouldn’t be vetted?

[OPS4]

I’m suggesting someone should be vetting Obama on here with the same energy. Ignoring the opponent and bashing all of our candidates is not helping our cause in this election cycle.

All should be vetted but not only Republicans, I have failed to see any of the vetting on Obama here lately.

[SENTINEL]

Above all else, RINOs must be punished ! We are in a war for the survival of our country and Mitt Romney is the Benedict Arnold of 2012 ! This must be dealt with BEFORE we can win against our enemies the democrats.

I intend to write in George Washington for president and vote conservative on all other ballot measures.

"If we must have an enemy at the head of Government, let it be one whom we can oppose, and for whom we are not responsible, who will not involve our party in the disgrace of his foolish and bad measures." - Alexander Hamilton

[OPS4]

That was done allready now we must oppose the Socialist take over of our Country, that means anyone but Obama.
Obama Has Achieved Little, Most Americans Say in New Poll
http://www.newsmax.com/InsideCover/obama-failed-america-poll/2012/01/18/id/424593

[OPS4]

A Lesson in Capitalism for Republican Candidates

http://www.newsmax.com/WayneAllynRoot/Capitalism-Republican-Romney-Bain/2012/01/17/id/424430

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That’s because we’re in primary season. Obama’s been vetted, and we don’t want him.

On the other hand, we don’t want to run against him a loser like Romney, who, because of this kind of stuff, will be beaten to all pulp by his oneness.

[OPS4]

‘The Obamas’ Confirms Worst Fears About the President

http://www.newsmax.com/RonaldKessler/The-Obamas-Kantor-book/2012/01/17/id/424414

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That link is not applicable to this article. It is not free market capitalism to engage in welfare fraud.

[OPS4]

Primary season carry forward to regular election.
All the ammo will be then used by the Left.

Yet we on here are not loading the ammo for the right.
So I will load it as always, Im voting for Santorum,
but if Romney makes it, he will be my vote not Obama.

[xzins]

I will not vote for Obama, Romney, or Paul.

There’s another reason for you not to support Romney. He’ll lose in the general.

[OPS4]

That’s your opinion anyone will beat Obama if the right attacks with the real gut busters, and I will keep the flow of the real vetting for all to see.

If you would like to see Our site,
click it http://www.freewebs.com/globalwatch/

Tea Party Gulf Coast Florida!

[Prolixus]

The Truth is more important than the Facts.

We are being served a litany of negative "facts" about Mitt Romney. Yes, he has a thick resume. No doubt he's broken a lot of eggs as he's made many omelets.

One truth about Mitt Romney is that he will be infinitely better a POTUS than the current holder of the position. Does anyone believe that to not be true?

Another truth about Mitt Romney: He ran for and got elected Governor of Massachusetts as a Republican. Unless you've lived in and voted in Massachusetts you do not understand what an accomplishment that is: the looks of horror the poll workers give you when you request a Republican ballot, the campaign against Scott Brown where the Democrats thought they could win just by branding Scott Brown as a "Republican".

We live in a country that voted for "change" and "yes we can". It seems to me that the U.S. as a whole is becoming a big Massachusetts. Will Massachusetts vote for Rick Santorum, Newt Gingrich, Rick Perry, etc.? Do you want to see more appointees like Sonya Sotomayor or Elena Kagan?

[Recovering_Democrat]

Yeah, I am not here to be a Romney spokesman. I am just going to tell you it is delusional to equate any Republican candidate with Hussein.

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Romney, as governor of Massachusetts, did not nominate a single conservative to be a judge.

Romney banned the Boy Scouts because they wouldn’t accept gay Scout leaders.

Romney Wanted Vet Benefits rolled into Welfare

Romney Signed State Paid Abortion Legislation

Romney Signed Gay Marriage Legislation

Romney claimed to be more liberal than Ted Kennedy.

There is no way I will ever vote for Romney. He is a liar, a scoundrel, and an Anti-Life, Anti-Gun, Anti-Family, Pro-Big Government liberal.

How is that different than Obama?

[xzins]

If it looks like a duck, waddles like a duck, and quacks like a duck....it’s a duck.

(PS: Not to be confused with Moose Hunting in Montana.)

[reaganaut]

One truth about Mitt Romney is that he will be infinitely better a POTUS than the current holder of the position. Does anyone believe that to not be true?

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I don’t believe it. Mitt is a democrat pretending to be a republican. Policy wise he is the SAME as Obama - not better at all.

Romney will lie and say ANYTHING to get elected and once elected, will keep the status quo and keep this country on track for destruction.