In 1990 Bain Capital purchased the controlling interest in Damon Corp. a Medical Testing Company.... Mitt Romney joined the Board of Damon Corp. to help manage the Company...... two whistle blowers tipped off the government and Medicare Fraud Charges were brought against Damon Corp. In 1996 Damon Corp Plead Guilty to Frauding Medicare, they were fined $35,273,141.00 as a criminal fine in addition to $83,726,859.00 to resolve related liabilities.. Total Fines 119 Million Dollars.
This represented a recovery of $3 for every $1 that they Stole from Federal and State Healthcare Programs...The U.S. Attorney who prosecuted the case is quoted as saying "A case pure and simple of Corporate Greed Run Amok". The Company went Bankrupt in 2002, thousands of jobs were lost. Bain walk away with a Profit of 12 Million Dollars. Companies close all the time, what's at stake are the crimes, not job losses.
At one point Romney denied knowledge of the crimes and later yes he flip flopped to say he was aware and on top of the problem. Serial flip flopper, sure and then some. This story is important because the Obamabots have instant access to all medicare and justice records as well the Obama administration has been playing fast and loose with facts that help Obama. Feds say Romney did not help uncover the investigation and that Corning later bought the company and cleaned up the mess. Dems used medicare crimes (Columbia HCA) against in the Florida election against Rick Scott for Governor.......it was ugly but it will be small in comparison to 2012.
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)
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)
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)