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The Spectacle Blog
The newest attack on Mitt Romney by a Newt Gingrich-supporting Super PAC is a nearly 8-minute documentary entitled “Blood Money” which purports to describe Mitt Romney’s profiting from Medicare fraud perpetrated by Damon Corporation during the time that Romney was on its board of directors, representing Bain Capital’s majority stake in the company.
In fact, the PAC has made a website just to discuss the issue: mittsbloodmoney.com
One of the nation’s largest public sector unions, AFSCME, has spent about a million dollars in Florida running an ad with a similar message.
Separate from the issue of what the revival of the Damon Corp. story might mean for Romney’s fortunes, the fact that AFSCME is spending their money during the primary election instead of during the general election implies that they (as major supporters of Barack Obama) would much rather run against Gingrich than against Romney. DNC Chairwoman Debbie Wasserman “Who is more annoying than I am?” Schultz is sending out a memo with the same message, and other liberal and groups are running anti-Romney radio ads in Florida.
The Damon Corp. story certainly reads like — and probably is — an episode of corporate greed and fraud. It’s an old story, which Massachusetts voters have heard before, but most Americans haven’t. The reason that it could be a problem for Romney is that despite the fact that neither he nor Bain was ever charged with wrongdoing in the case, the coming narrative is that Romney has given two different answers regarding his involvement — which Obama supporters will try to use to mask the basic facts of the case. In one answer, he discovered that the company was overbilling Medicare for blood tests and called for an investigation. Some reports say that prosecutors gave credit for ending the fraud to Corning Inc. which purchased Damon in 1993. But ABC News notes, in the most balanced report I’ve found on the topic, that “Romney and the Damon board did, however, contact Damon’s lawyers, seek their counsel, and change Damon’s policies.” In another answer, Romney said he was unaware of any criminal investigation into the matter. To be sure, those two claims are not mutually exclusive; Romney could easily have both asked for an internal investigation and been unaware of a federal investigation.
The real question here is whether anybody cares about a “scandal” which occurred two decades ago. It’s potentially damaging to Romney by going after his aura of being honest and upstanding. And that’s just what the Democrats will try to do, especially trying to tie Romney to a Medicare scandal which might impact Romney’s appeal to older voters. Romney will likely say “If I had done anything wrong, don’t you think I or my firm would have been charged with something? Furthermore, here are copies of the documents I had sent to the company’s lawyers to ask them to investigate this issue, and we implemented all the changes the lawyers instructed.”
ABC News believes that “We can expect Romney’s opponents to keep surfacing one key number, however: the $473,000 Romney reportedly gained from the sale of Damon Corp.” I’m skeptical of that, or at least of the effectiveness of that tactic. After people have heard repeatedly that Romney is worth a quarter billion dollars, and that he’s made $40 million just in the last two years, they may be numb to a number which ends with the word “thousand” when it comes to thinking about Romney.
It will be interesting to see if this newest attack on Romney gains any traction. His ability to defuse the Damon bomb will say a lot about his ability to take on Barack Obama and the David Axelrod-led attack machine in a general election. One point Romney should make (with a smile) is that “Obama and his friends must really be afraid of me to work to help Newt Gingrich with this particular smear campaign.”
View all comments (58) | Leave a comment
More Blog Posts by Ross Kaminsky
http://spectator.org/blog/2012/01/29/romney-and-damon-corp-a-bomb-o
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JeffC| 1.29.12 @ 12:41PM
since its not a smear campaign I'm not sure Mitt wins this one ...
Diogenes| 1.30.12 @ 10:22AM
If Romney had not dumped this load in his own diapers by lying about his knowledge of involvement in Damon Corp, it can only become a smear if he wipes his own face in his Pampers.
Dai Alanye | 1.29.12 @ 12:47PM
The basic problem with Romney is his lack of political moxie. Without great gobs of money and the ability to buy organization and endorsements, Romney is just this guy with ambitions. Without money and what it could do for him he'd never have been a governor, never have been able to win a single state in 2008, would have dropped out earlier than Pawlenty in this go-around. He's no campainer on his own, and it's laughable to think what would have happened in Iowa if his resources had been no greater than those of Santorum.
And the saddest part... against Obama and the billion-buck-campaign, Romney's money won't be sufficient.
Jack in Wi.| 1.29.12 @ 12:58PM
More and more this campaign is coming down to the fact that the only person who is running in this campaign for the American people and the future of this Constitutional Republic is Ron Paul. The elites are shoving Romney down our throats. The radical Zionists are pushing old Newt. The party is so divided that nobody can put this humpty dumpty together again. It is time for a 3rd party. 70% of the people are sick of what is going on in this country.
Oldefarte| 1.29.12 @ 1:08PM
There you go again with your [and Clit's] more than obvious bigotry...it's all them Jews, right? And as to'...70% of the people are sick of what is going on in this country...', especially sick of what is going on in Wisconsin with the Democrat labor union thugs assault of your Republican governor Walker!!!!!!!!!!!!
Clint| 1.29.12 @ 2:07PM
That's A Lie.
You're An Israel Firster Smear Bund Serial Sociopathic Liar, Fart Pants.
" Written By : Eric Dondero
Fmr. Senior Aide, US Cong. Ron Paul, 1997 – 2003
Campaign Coordinator, Ron Paul for Congress, 1995/96
National Organizer, Draft Ron Paul for President, 1991/92
Travel Aide/Personal Asst. Ron Paul, Libertarian for President
1987/88
I have been asked by various media the last few days for my comments, view of the current situation regarding my former boss Ron Paul, as he runs for the presidency on the Republican ticket.
I’ve noticed in some media that my words have been twisted and used for an agenda from both sides. And I wish to set the record straight with media that I trust and know will get the story right: conservative/libertarian-conservative bloggers.
Is Ron Paul a “racist.” In short, No. I worked for the man for 12 years, pretty consistently. I never heard a racist word expressed towards Blacks or Jews come out of his mouth. Not once. And understand, I was his close personal assistant. It’s safe to say that I was with him on the campaign trail more than any other individual, whether it be traveling to Fairbanks, Alaska or Boston, Massachusetts in the presidential race, or across the congressional district to San Antonio or Corpus Christi, Texas.
He has frequently hired blacks for his office staff, starting as early as 1988 for the Libertarian campaign. He has also hired many Hispanics, including his current District staffer Dianna Gilbert-Kile. "
The Tea Party Steps On Fart Pants, Again.
Oldefarte| 1.29.12 @ 4:25PM
No it's the TRUTH and everyone knows it, Clit! This whole neoconservatism philosophy is ANTI-SEMETIC at it core. Certainly there is TRUTH in same based on an honest desire to extract American involvement from foreign countries, but it goes way beyond that in the extreme, since it subversively implies that the Jews and Israel is behind this neoconservatism movement in order to have America conduct a war against Arab countries in the ME on their/Jews-Israelis behalf. All/most discussions of neoconservatism will usually describe a supposedly involvement of Jewish-Israeli political influence [either Israeli leaders BIBI etc or editorial writers of news publications KRYSTAL/GOLDBERG etc] involved which is BULLEXCREMENT. So don't attempt to tell another FALSEHOOD-LIE by denying same!!!!!!!!!!
Clint| 1.29.12 @ 6:47PM
Wow !
Fart Pants Says, " This whole neoconservatism philosophy is ANTI-SEMETIC at it core."
I'm Dueling With An Unarmed Asshat.
Diogenes| 1.30.12 @ 10:24AM
Why do you think the RED party Court gave his backers carte blanche anonimity? Only the noble 9minus5 couldn't forsee Republicans axing each other with such marvelous aplomb, expense and delight?
JJ| 1.29.12 @ 12:56PM
Newt is barking down the wrong tree. He should be challenging Romney as a Socialist who brought socialized medicine to Massachusetts. Romney has already lined up the AG of Florida to lead his effort to bring RomneyCare to all states.
With this approach you still get a mandate and a single option is added, and socialized medicine is complete.
Jack in Wi.| 1.29.12 @ 1:02PM
Newt has been a shill of the indivigual mandate for many years. He was paid tens of millions of dollars by the insurance lobby to push it after he left Congress. How is Newt supposed to challenge either Romney or Obama on the subject?
Oldefarte| 1.29.12 @ 1:11PM
He has recanted his political position on that and you know that.....TELL THE TRUTH AND STOP YOUR FABRICATIONS!!!!!!
aware| 1.29.12 @ 3:39PM
Did he give back the money?
Oldefarte| 1.29.12 @ 4:33PM
Does Paul give back the money from his newsletters? Does Obama give back the money from the ME? Did Clinton give back the money from the Chinese? Did Edwards give back the money from the insurance companies? Do Democrats give back the money from labor unions? Did Kerry give back the money to his wife? Did the auto manufactures totally pay back the money to taxpayers? Did Obama give back the money to oil companies that have to move from the Gulf due to their inability to obtain legally drilling permits ? Does Obama/Democrats give Arizona and other states back money expended from their financial supporting illegals due to the fed's non-enforcement of immigration????????
aware| 1.29.12 @ 6:36PM
So that would be no?
Clint| 1.29.12 @ 6:49PM
That's A Newtonian, " No".
Diogenes| 1.30.12 @ 10:26AM
Recanting your testimony A) doesn't take it off the record and B) just further sullies one's reputation for honesty.
Dorothy K Carter| 1.30.12 @ 2:18AM
How is it conservatives can blame Romney for Romneycare when it was beloved Heritage Foundation who helped him design it? You can watch video here day was rolled out at Heritage http://www.heritage.org/events.....are+Reform Newt supported mandates for 20 yrs he just wasn't in power to do anything about it! Look the Fla A.G. Pam Bondi who is suing on behalf of 27 states is backing Romney as are the majority of the 27 state Gov and A.Gs. Pam has accepted position with Romney to head up repeal of Obamacare should he be elected POTUS.
Rick| 1.29.12 @ 1:01PM
GO Newtie/Cain. New theme song: We're Just a Swinging!! LOL
aware| 1.29.12 @ 3:18PM
Am I laffin'!
Clint| 1.29.12 @ 6:50PM
The Pillsbury DoughBoy Loves His Muffins.
Oldefarte| 1.29.12 @ 1:19PM
Ross, thanks for ID'ing the source of this Damon attack as being Democrats and Shultz. The news article I saw did not indicate same, but I should have figured it out. IMO much of this smear attack ads against both Newt and Mitt is probably coming from the community organizing, Acorn, Axelrod, Chicago, DWS crowd; in trying as you indicated to either play Newt against Mitt or vice-versa for their general election advantage. While n this subject, I'd appreciate your/Ross' [if possible] investigating/reporting on the no doubt situation of Obama's hugmongeous political contricutions to date and the sourcing of same [with his three year assault upon business, oil companies, wall street etc; I can't see any of them contributing to his coffers now and beyond Hollywood, all of his money has to be coming from questionable sources AND POSSIBLY THE MIDDLE EAST Muslim oil interests etc ???????]!!!!
Diogenes| 1.30.12 @ 10:29AM
Nice little paranoid rabbit hole you live in there Oldefarte! I guess being so small would tent to make one feel diminished in capacity , particularly at your age...
Mimi| 1.29.12 @ 2:22PM
Stuff like this is the reason we need to keep vetting....Sarah as usual, is always right on the money! I would love her to be Vice President...Who ever gets in there she would keep them close to the thinking of the PEOPLE!
Bill Hussein O'Stalin| 1.29.12 @ 3:44PM
I used to think she was sincere. But she has became a lame half wit opportunist whose handlers keep her on a short leash.
Mimi| 1.29.12 @ 8:36PM
Bill...something is going on with Sarah, that we don't know.....nothing nefarious... there is a very valid reason she could not get into the fray this year...God bless her, her heart is with us...she is doing what she can and is helping......She is sincere....always was and always will be. Appreciate what she does!!!
Diogenes| 1.30.12 @ 10:34AM
EVEN SHE is not THAT stupid! I mean we expectthat kind of vapid power lust from Bachmann, but SP knows the value of $2 (it's how she got through 6 years of college! $2 a trick for her 'magic show'). She wasn't going to go broke like the rest of the losers.
Diogenes| 1.30.12 @ 10:32AM
... Become.. a lame halfwit? I thought that was whythe doddering fool chose her, for some intellect presence on the 2008 ticket! Granted, the opportunist part she grew into quickly. Particularly love the Paul Revere story she told on her National Bus tour!!!!! "The British are comming to get your guns. RING RING go the bells. Eva Peron she is N
OT!
RJ| 1.29.12 @ 2:34PM
I wish the candidates would stop with the distractions. The central issue of this race is that our government has become corrupt and has choked the economy. Its time to do away with the favor factory and reform the government so that all Americans are treated equally under the law: no bias, no favoritism, no prejudice.
Diogenes| 1.30.12 @ 10:36AM
I agree about the favor factory, but the system failed because the government has been corrupt ever since Nixon hired burglars!
RJ| 1.30.12 @ 12:18PM
Nixon wasn't the first. Barry Goldwater found bugs in one of his offices during the 1964 race and, if I recall correctly, Senator Sam Ervin said it was only politics. Truman and Eisenhower ran fairly honest administrations; there was corruption in the Kennedy & Johnson administrations, Nixon's record is well known and I have been told by the sister of a very prominent national Democrat that I "couldn't imagine what the Clintons got away with in Arkansas."
somnolence| 1.29.12 @ 2:35PM
How does anyone know that Romney won't have a billion dollar campaign come the fall?
Windy City Commentary| 1.29.12 @ 2:41PM
The problem is that every time Newt's SuperPac runs ads that come from the Left, Rush Limbaugh and everyone who would defend and promote Newt just can't do it. Capitalism first! Obamneycare 2nd! It is annoying that Rush this big capitalist tea salesman is so concerned that Newt tramples over capitalism when Romney's architecture of Obamacare leads to the govt. taking over 1/6 of the economy. Then again, Rush's priorities get jumbled all the time.
PattyMor| 1.29.12 @ 3:34PM
I am beginning to think we really don't have capitalism is the U.S. Just an oligarchy of government princes and corporatists (that's corporations that use gov't to bend to their will). And George Soros as puppetmaster directing and funding the demise of America. All dancing to the puppetmaster's tune.
aware| 1.29.12 @ 4:11PM
You think? Capitalism died in 1913, the autopsy was over in 1933, the grave was finished in 1971, and the wake is just about over. It's just taken a while for the burial. Now it's just corporatism, command economy, central planners, and central banks. Your choices have been narrowed to those deemed "safe" for you by the Wise Rulers. They only have your best interest at heart. They are the Professionals after all.
ayrnieu| 1.29.12 @ 5:46PM
And we didn't have capitalism before then, 'cause of all the muggers, pirates, highway robbers, tax collectors, and princely manipulation of the silver content of various coins!
Or, alternate story for those who think that maybe 'one mugger' doesn't really alter the character of an economic order: we still have capitalism; we also have a lot of crime, notably from government agencies whose criminal activities are merely proclaimed by politicians to be otherwise.
aware| 1.29.12 @ 7:03PM
If you added up all the privately acquired plunder in history, it wouldn't equal 10 years take by the State. Same goes for number of victims.
Of course we have had "capitalism", or more accurately free markets, before. Any where the coercive hand of the State has been weak or non-existent or limited and people have been present no other mechanism but direct exchange between buyer and seller is possible.
Like today's Black Market, there was occasional "outlawry" involving theft and even murder, but the vast majority of transactions proceed routinely everyday, with both buyer and seller satisfied.
Bill Hussein O'Stalin| 1.29.12 @ 3:42PM
Unbeknownst to Newt, the campaign has moved passed the I caught you peeing on my mother's bushes stage.
The Damon charge will be shown to be fruitless because it was beaten to death when Romney ran for governor.
More than a decade later, when Romney was in pursuit of the Massachusetts governorship, his Democratic opponent Shannon O’Brien accused him of lax oversight at Damon and failing to report the fraud. Prosecutors later claimed that Corning actually cleaned up the mess but let's face it, Corning wouldn't have purchased a company with severe legal liabilities.
The next punch will come when Newt claims the company went bankrupt. It did, after Bain sold it.
Newt is in a flame out and he's taking everything and everyone down with him if he can't have his way. Ego.
From the Deseret News:
"Romney replied that he had helped uncover the illegal activity at Damon, asking the board’s lawyers to investigate. As a result, he said, the board took “corrective action” before selling the company in 1993 to Corning Inc.
Drek| 1.29.12 @ 4:48PM
Are we going to get a story about Domino Pizza and Bain?
Domino wasn't in need of any "turnaround," in fact, Domino was thriving.
Take a good look at the amount of debt that Domino is presently saddled with, and all courtesy of that wonderfully capitalistic Bain corporate model.
Bill Hussein O'Stalin| 1.29.12 @ 4:58PM
Dominoe's stock went up 113% last year. Apparently , not everyone shares your concern.
Drek| 1.29.12 @ 7:28PM
Take a look at the debt they're carrying........
Now what did Bain do with that debt, where did that money they took out in loans go?
What was the purpose of their taking on that much debt? It wasn't for expansion, nor was it for capital investment. So where did the money go?
Diogenes| 1.30.12 @ 10:40AM
From alltime low's? From the new improved sliced cardboard? Papa Murphy's with Mushrooms and Peppers from My garden!!! hot and fresh in front of the Super Bowl.
JimH| 1.29.12 @ 4:57PM
I haven't seen seen any of the anti Mitt videos. I have read some stories detailing some of Bain Capitals deals. This link is to a story about one. If you are a B.C. investor, I'm sure you'd be happy and in fact no laws may have been broken. But when looking to show the success and moral goodness of capitalism, I just don't see Mitt as Hank Reardon.
http://www.nytimes.com/2011/11.....wanted=all
Bill Hussein O'Stalin| 1.29.12 @ 5:00PM
The only moral goodness is that the weak companies or plans are destroyed and the better companies remain and thrive.
On the other hand, where is the moral victory in government? Just the same screwed up ideas over and over until you pile up a debt of 16 trillion at the federal level and many more billions at the state levels.
JimH| 1.30.12 @ 9:11AM
There is at least a whiff around some of Bain Capital’s activities similar to that of that of someone who collects the fire insurance on losing real estate investments. In the case of B.C. they may not have lit the match, but they don’t seem to have been very careful regarding the conditions under which a fire could occur.
Diogenes| 1.30.12 @ 11:22AM
When Bain set the theaters on fire, they never bothers to YELL fire.
ayrnieu| 1.29.12 @ 5:36PM
Well, then see him as the catcher in the rye. To buy failing companies and turn them around is a hugely moral enterprise. And any imperfections in one's pursuit of this are blown away by one's being any good at it at all - by being able to manage unalike companies better-enough than prior management, who surely know more about the enterprise, to do more than dig the company out of its hole.
ayrnieu| 1.29.12 @ 5:30PM
So, having plumbed the lefty anti-capitalist wing of Republican primary voters, Newt's new target is the only-malice-can-explain-anyone-getting-on-the-bad-side-of-a-simple-and-straighforward-and-explicit-thing-like-Medicare wing of the party? With the possibility of hitting the giant "If you invested in Enron before it collapsed, any money you made convicts you of accounting fraud" voting bloc?
Seriously, this guy's campaign strategy is freakin' bizarre. Maybe he wasn't really aiming for the (_actually_ substantial) anti-media Republican with that one outburst; maybe he actually thought he was appealing to the open-marriage wing of the party.
Bill| 1.29.12 @ 7:29PM
Romney will buy FL with his "Bain Money", just like he bought NH with his "secret money", but he can run but cannot hide the truth.
-Romneycare
-abortion
-gay marriage
-gun control
-cap & trade
We all know his records and know how to defeat a "New England RINO."
TomH| 1.29.12 @ 10:54PM
Everyone NOW knows that Romneycare was a State's rights issue - no damage to Romney.
Real Conservtives (Ann Coulter) know that what the Conservative movement is trying to do is cause people to flip-flop on Abortion. Romney chose to be pro-life. This is a celebration.
Romney has always been against gay-marriage. Iowa has a staunch Evangelical Christian Governor, yet gay marriage is legal. Whatever judgements you have for Romney about gay marriage, try and apply those to the Governor of Iowa.
Romney is for gun rights. Nuff said.
When Romney was fighting against cap and trade, Newt Gingrich was sitting down with Nancy Pelosi on a sofa encouraging it.
Sorry Teavangelicals - you're all out of excuses.
It's just time to admit that your religious bigotry is irrational and accept and embrace Romney.
OLDRAY| 1.29.12 @ 8:57PM
Interesting how your Romney supporters consider the Damon story "just old stuff" but the Newt slams (which is old stuff) is treated as if it happend last night.
TomH| 1.29.12 @ 10:50PM
The problem isn't "oldness or newness."
At Damon, Romney was courageous and displayed real leadership by righting their ship.
In Congress, Newt committed ethics violations, resigned in disgrace, and let the Republican Party and the Conservative cause down. Newt failed at leadership.
See the important distinction?
Bill| 1.29.12 @ 9:58PM
If Romney wins in FL, Obama will have 4 more years. If Gingrich wins in FL, Obama is doomed. SC kicked ass of Romney because he is no conservative, but a "New England RINO." FL is no place for RINOs.
FBConservative | 1.30.12 @ 8:58AM
I'd rather vote for Gingrich, he arouses excitement unlike Romney, but any Republican on the stage is better than Obama.
Diogenes| 1.30.12 @ 10:19AM
Why would a stripsearch capitalist vulture like Romney order an internal investigation into extra profits if he WASN'T under external Federal investigation? he wouldn't, because he would think he was getting away with his scheme! he is lying at least out of one side of his multifaceted mouth.
Considering that altruistic Patriotism is NOT a RED party attribute, the author could NEVER understand that the DNC investment in yet more Romney misrepresentation and profitable corruption could just be doing the right thing to protect America from capitalist villians.
somnolence| 1.30.12 @ 11:03AM
I have read more than one article this week about the myth of Obama's "one billion dollar" campaign. Did you know that Romney will possibly have $500-700 million collected? Let me know when your man Gingrich accumulates this. Romney is dead even with Obama right now in polls in the swing states, and he has the money and the resolve to push ahead. Gingrich will have no money, since his gambler financier reneged on his promise in Florida, and is 14 POINTS BEHIND OBAMA in the polls: 54-40. So keep on dreamin' with Newt.
somnolence| 1.30.12 @ 11:04AM
BTW the USA is not SC, where 60% are Evangelicals. Under the banner of Joseph Smith and Brigham Young keep slamming pretender Obama in the dirt.