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. wellywellup

    How is this not a huge frigging deal? Mitt ripped off the government and commited fraud. This should be a huge deal, he is a thief and broke the law.

    October 31, 2012 03:52 pm at 3:52 pm |
  2. Kirk in michigan

    Stupid is voting in a tax cheat to set tax code, after he already said he was going to eliminate taxes on the wealthy, and then call obamas plan trickle down , he must think we are stupid, and mitt is very smart, sonif you believe him he is right , your stupid if you believe him, the lies and misinformation, are clear to see if you want to, if not, get what you deserve, all because its more important to see a blackbpres. fail, you need help badly, and soon

    October 31, 2012 03:56 pm at 3:56 pm |
  3. SaintM


    YAWN–Right wing, mysoginistic, patriarchical, backwater Republicans are pathetic

    October 31, 2012 03:57 pm at 3:57 pm |
  4. scmom

    Any way to make the all mighty dollar. That's the only thing he cares about and knows how to do. He has sold his soul to make more money any way he can. Any he wants the presidency to help add even more to his bank accounts.

    October 31, 2012 03:59 pm at 3:59 pm |
  5. Khaleeshi

    Willard and Lyin Ryan will destroy medicare for a useless voucher, privatize social security, repeal affordable healthcare all so the wealthy can get another tax break – I guess that will take Willard down to 1% in taxes. No thanks! I want what I paid for – medicare. Willard is going to rob anyone under 55 of their medicare that we've paid for our entire working lives. This is crazy!

    Obama/Biden 2012

    October 31, 2012 04:01 pm at 4:01 pm |
  6. Gurgyl

    Mitt is a total FRAUD. Ask Bain-Capital, SENSATA factory... Obama12. Period.

    October 31, 2012 04:02 pm at 4:02 pm |
  7. Robert

    wellywellup And Obama is one huge fraud

    October 31, 2012 04:04 pm at 4:04 pm |
  8. Rick McDaniel

    The Democrats can only attack........without just cause.........because Obama has been such a tremendous disaster, they have NOTHING positive about the record, at all.

    So they have to resort to lies, to try to convince voters, to keep the disaster for 4 more yrs.

    The people are really NOT that stupid!

    October 31, 2012 04:05 pm at 4:05 pm |
  9. Gurgyl

    I do not think entire this well regulated nation is that stupid to fall trap in mitt net of fraud. He has no clue. Obama12.

    October 31, 2012 04:05 pm at 4:05 pm |
  10. Robert


    its more important to see a blackbpres. fail He has already failed, not because he is black but because he is incompetent.

    October 31, 2012 04:06 pm at 4:06 pm |
  11. Jasoner

    ezduzit – another uninformed lib. The husband lost his job after Bain was unable to revive one of the many steel companies that went out of business, but she still had her own healthcare at her job. She was not diagnosed until several years after he lost his job which had no bearing on her insurance. Thanks for the mindless vote.

    October 31, 2012 04:06 pm at 4:06 pm |
  12. Crambone Jones

    It our right to steal from the peasant and working classes. It is our divine right. We are more intelligent and have better DNA.

    October 31, 2012 04:08 pm at 4:08 pm |

    There is so much dirt on this guy! He is just a bad person at heart!
    OBAMA Forward!

    October 31, 2012 04:08 pm at 4:08 pm |
  14. jinx88

    American people, this is another prime example of why Mittens will not release his tax records. All this would be for everyone to see what kind of joke he is.

    October 31, 2012 04:09 pm at 4:09 pm |
  15. Claudia, Houston, Tx

    Why isn't Republican Darrell Issa who is ahead of the Ethics Committee investigating Romney, Scott and others for medicare theft and fraud instead of investigating Attorney General Eric Holder who has done more to stop this medicare fraud than any other administration. Oh, I know, Issa's hands are dirty too and there can't possibly be any other reason..

    October 31, 2012 04:10 pm at 4:10 pm |
  16. V

    My vote has been cast. Obama/Biden 2012!

    October 31, 2012 04:10 pm at 4:10 pm |
  17. Henry

    Why is Scott governor of Florida if he was involved with Medicare fraud and Romney was the owner/Bain. They should be seriously investigated. Know wonder he is trying to be president so, he can hide his dirt. How can someone work for Romney that he was not aware of what was going on? The attorney general should open an investigation, especially when it involve Medicare and anyother dealings. A federal court order to get his taxes and money hidden in offshore banks. This secretly has gone on too far. No wonder he want to be president, he can hide it. Also, some of his friends may be involved. Know wonder the bill was blocked regarding not paying companies who do business overseas.

    October 31, 2012 04:11 pm at 4:11 pm |
  18. Lynda/Minnesota

    Oh, well. You don't make 250+ million dollars without walking over the little people. Least not the Romney's of this world.

    October 31, 2012 04:13 pm at 4:13 pm |
  19. Kirk in michigan

    So,truth, all these allagations about mitt are false, right. no tax issues at all, why did it take him until september to release partial returns, your right, nothing to se there. your boy is no good, and you cant admit it. i wish things were better, but two party system requires both to participate. still managed to do alot. your a delusional fool, who is hellbent on getting the blackman out of office. careful what tou wish for

    October 31, 2012 04:15 pm at 4:15 pm |
  20. jinx88

    Wow Repukes talk like Mittens has a chance to win. They must have selective reading cause everywhere I read Obama is winning. Oh well denial is hard!!! LMAO

    October 31, 2012 04:16 pm at 4:16 pm |
  21. Strategic Bob

    hey, Dean,

    you just don't get it do you? times have been hard for the middle class over the last four years (longer than that, but Biden was talking about the last four) because things were going down so fast when Bush left office. the US economy is like a very big ship with a very tiny rudder. you can put the rudder over hard but it will be long time before the ship starts to change course, and it may never change course because there are other forces out there that can overpower the rudder. even before President Obama was elected, people in the know were saying that it would take a long time to turn things around. and they weren't even taking into account all the stupid, treasonous opposition that the President would have to face from the GOP in Congress. get a grip on reality, why don't you?

    October 31, 2012 04:18 pm at 4:18 pm |
  22. Justice4America

    Why does our President, who sealed his own records, continue to sink so low??!!
    He has accused this Romney of murder, tax evasion, now medicare fraud, because the polls are showing a close race?

    This is a man who has become a billionaire simply by running for president. Is he so desperate to win at all cost? We must ask ourselves, WHY?! WHY??!! WHY???!!! Why the desperation??!!

    October 31, 2012 04:25 pm at 4:25 pm |
  23. zzzzz

    Many do not follow politics Kirk from Mich. and they'll believe him.
    At least with GW Bush, he was quite and Karl Rove and campain (whihc 75% of Romney's campain staff), did the lying.
    Romney has no issue lying and doubling down on his lies. It started just a month before the election and with early voting had already started. No one has had time to ask him about his "multiple positions", during primaries, on his web site in time, debates, or chnages in answers to the same question in FoxNews vs ABC or CBS.
    One wonders if Karl Rove is not involved in all these lowest of the lowest politics in presidntiial elections.

    October 31, 2012 04:28 pm at 4:28 pm |
  24. Peter Y

    How is it possible that people will vote for someone so dishonest and distrustful. Romney doesn't have a clue about how anything other than the upper class live. And he will cheat and lie his way to win election

    October 31, 2012 04:34 pm at 4:34 pm |
  25. AnotherFLmom

    Florida let one fox (Gov. Scott) into the hen house, let's keep the big bad wolf (Romney) out of the piggy bank (our taxes!!).

    Vote OBAMA/BIDEN 2012!!!!!!!!!!!!!!

    October 31, 2012 04:36 pm at 4:36 pm |
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