Dem super PAC ad ties Romney to Medicare fraud
October 31st, 2012
03:13 PM ET
9 years ago

Dem super PAC ad ties Romney to Medicare fraud

(CNN) - A new ad from the Democratic group Priorities USA escalates the battle over Medicare, connecting GOP presidential nominee Mitt Romney to Medicare fraud.

"Romney was director of a company that stole millions from Medicare," the narrator in the ad says. "Now, Romney's plan would end Medicare as we know it."

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It cites news reports on Damon Corporation, which indicate the firm was owned by Romney's financial firm Bain Capital and on whose board he served from 1990 to 1993, when Bain sold the company.

The candidate "personally made $473,000" off of the sale, The Boston Globe reported, and Bain made over $7 million. "Damon Corp. pleaded guilty in 1996 to a federal conspiracy charge of defrauding the government of $25 million between 1988 and 1993," the Globe reported.

The newspaper reported that Romney said he helped discover the fraud and hired a law firm to investigate, leading to "corrective action" which was taken prior to the company's sale. But the Globe said prosecutors alleged and the company acknowledged statements which "tell a different story, and reveal that the fraudulent activity occurred right up until the time Bain and other owners sold the company to Corning." The scheme involved fraudulently billing for a "bundle" of services when only one service, such as blood testing, had been performed.

This ad is "one more recycled desperate attack by a discredited ally of the President," Romney campaign spokeswoman Michele Davis said in a statement.

"He has kicked the can down the road and refused any serious discussion of entitlement reform," Davis continued, speaking of Obama. "Mitt Romney will protect Medicare for today's seniors and ensure that the program is preserved and strengthened for future retirees."

The Damon story was previously raised this year by a super PAC supporting one of Romney's primary opponents, former House Speaker Newt Gingrich as well as the labor group AFSCME. "While Romney was a director of the Damon Corporation, the company was defrauding Medicare of millions," went the AFSCME ad.

The fact checking website Politifact rated the claim "mostly true," noting the ad made no mention that Romney was not personally accused of being involved in the fraud.

The Priorities ad also makes no mention that Romney was never personally accused.

Obama's campaign pushed hard at Romney over his tenure with Bain Capital, especially in the summer months, charging that the GOP candidate was responsible for outsourcing jobs and profiting from closing companies.

The ad asks viewers to "connect the dots" between Romney and Gov. Rick Scott of Florida, who is not on the ballot this year.

He was CEO of the health care company Columbia/HCA, which later paid $1.7 billion in fines and pleaded guilty to 14 felony charges for fraudulently billing the federal government. Scott was never personally charged, and said during his 2010 campaign that he learned from the experience and became a better leader.

"Scott ran a company that paid a record fine for committing Medicare fraud," the ad says. "Then, as governor, Scott cut millions from healthcare."

Again urging viewers to "connect the dots," it says, "If Mitt Romney wins, the middle class loses."

Filed under: 2012 • Bain Capital • Mitt Romney • Priorities USA
soundoff (58 Responses)
  1. Woman In California

    Remember, if you're under 55, you're considered "youth" to the Romney/Ryan ticket and THEY expect you to go out and start all over again by giving up your MediCare and social security. These people are insane and so are you if you give them the time of day and your vote.

    Obama 2012 ALL the way.

    October 31, 2012 03:17 pm at 3:17 pm |
  2. Romney Wants To Get Rid Of FEMA

    Fraud is what Fraud does.

    October 31, 2012 03:22 pm at 3:22 pm |
  3. Ind.

    Yes and he also gave that woman cancer and killed her.

    YAWN dems are patheic.

    October 31, 2012 03:22 pm at 3:22 pm |
  4. rs

    A surprise? That's what corporate raiders do. They only thing they can build is their wealth. Not business, not jobs.

    October 31, 2012 03:23 pm at 3:23 pm |
  5. heather

    wow...and to think people are voting for romney, people should have done some investigation on romney he is a crook.....

    October 31, 2012 03:27 pm at 3:27 pm |
  6. I Voted Early In NC

    Don't need frat boys running our country like they did from 2000-2008.

    October 31, 2012 03:27 pm at 3:27 pm |
  7. chupacabra

    1.7 billion,17 fines, cut millions from medicare,bla, la,bla I'm glad I already voted(early) for Obama/Biden.

    October 31, 2012 03:30 pm at 3:30 pm |
  8. bear

    One thing to remember about Mitt, if his lips are moving he is lying.

    October 31, 2012 03:33 pm at 3:33 pm |
  9. ezduzit757

    Ind. He didn't GIVE her cancer, he outsourced her job (or was it her husband's job?) thus causing her to loose her healthcare, without which she was not able to go to the doctor early enough to catch the cancer in time to save her life. There are consequences to everything one does.

    October 31, 2012 03:34 pm at 3:34 pm |

    The unhinged GOBP tea potty love Medicare fraud. They elected Scott in Florida.

    October 31, 2012 03:35 pm at 3:35 pm |
  11. Dean

    Nice try. Obama is burying the middle class (ask Joe). Hey, middle class...if you want to lose even more, vote for Obama.

    October 31, 2012 03:36 pm at 3:36 pm |
  12. truth hurts

    ahhhh.... the smell of desperation in the morning....

    October 31, 2012 03:36 pm at 3:36 pm |
  13. cbp

    Just scratch beneath the surface and you will find that Mr. Romney is not exactly telling the truth. His company was involved. If he was instrumental in finding the corruption why did he accept over $400,000. He did not need this money and it was money form a corrupt deal.

    People should have looked at other deals that Bain made while he was involved in the company. Jobs went overseas to improve the profits of companies. Top management in companies that merged or were in a takeover received Golden Parachute packages. What did the employees get besides pink slips and the los of benefits. How many lost health insurance? Before you vote for a man who says he will make 12 million jobs, see how many jobs he helped to eliminate. His family always did well.

    October 31, 2012 03:38 pm at 3:38 pm |
  14. sayer

    I'm so tired of Romney on TV pretending to care about people who are hurting. Clearly he is a different person behind closed doors with his boardroom buddies...

    October 31, 2012 03:38 pm at 3:38 pm |
  15. West Coast

    heather "wow...and to think people are voting for romney, people should have done some investigation on romney he is a crook....."

    Let me guess, you're one of the idiots that believe that there were no earmarks in the healthcare bill? Obama has been gambling with our tax money, yet that is perfectly ok with you?

    October 31, 2012 03:39 pm at 3:39 pm |
  16. Thomas

    I didn't trust him then , I don't trust him now .

    Thats why he has a law firm and a spin doctor

    October 31, 2012 03:41 pm at 3:41 pm |
  17. rs

    truth hurts-
    Yeah- the GOP is getting mighty desperate.

    October 31, 2012 03:41 pm at 3:41 pm |
  18. rs

    West Coast-
    Compared to Romney wanting to lather the rich in even more obscene tax cuts- yeah.

    October 31, 2012 03:42 pm at 3:42 pm |
  19. jkane sfl a vote for lady parts romney the tax cheat and lyin lady parts ryan willcut your moms medicare and soc sec . .can you afford to pay for them???

    If you want a crook proven lier and tax cheat and thief for president, vote romney Ryan and the gop goofball party soon to be known as the unamerican communist party !!!!!

    October 31, 2012 03:43 pm at 3:43 pm |
  20. Kirk in michigan

    Mitt romney is good at "extracting" wealth, from me and you,had enough yet? then vote for someone who has not made hundreds of millions, while putting hard working americans out of a job, and lets not forget, stealing your retirement fund too. as if he needed it more than you. vote your concience, but beware of the lying man.

    October 31, 2012 03:43 pm at 3:43 pm |
  21. Howard

    The main stream media's lack of investigating and reporting, in regards to the Benghazi tragedy, where four brave Americans were murdered, is a disgrace. In 2012, after Romney and Ryan replace the empty suit, in the empty chair, America needs to replace the corrupt main stream media, with real journalists.

    October 31, 2012 03:44 pm at 3:44 pm |
  22. FUBAR

    It never fails to amaze me just how stupid and gullable democrats are. How do you manage to get the right shoe on the right foot in the morning?

    October 31, 2012 03:46 pm at 3:46 pm |
  23. Data Driven

    This is excellent news!! For Romney!!!

    October 31, 2012 03:47 pm at 3:47 pm |
  24. Kirk in michigan

    Truth, that smell is romneys chances of winning ohio, penn, mich. cant wait to hear your comments next wendsday. wake up, people are not thatb stupid, and polls dont mean squat, i was never asked who i would vote for before they hung up. sounds like a romney vote to me, i would never be that stupid

    October 31, 2012 03:49 pm at 3:49 pm |
  25. th

    West coast, Obama has done more for this country in 4 years than the Repubs have done when the last two repub presidents were in office. The Republicans are screaming because Obama didn't get the mess that was handed to him cleaned up in 4 years when Romney wants eight years to do less than what Obama got done in four. You all have blinders on if you vote Republican and not a millionaire.

    October 31, 2012 03:50 pm at 3:50 pm |
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