Mitt Romney and charges of Medicare fraud
Winning Our Future, a Super PAC supporting Republican presidential candidate Newt Gingrich, has released another attack on rival Mitt Romney’s business practices. A one-minute “trailer” and a 30-second TV ad (see below) that amplify the themes of corporate malfeasance accompany the nearly eight-minute video, “Blood Money.” (The title refers to the fact that a company once partly owned by Bain Capital, Romney’s firm, was found guilty of charging Medicare for unnecessary blood tests.)
We were highly critical of Winning Our Future’s “King of Bain” film, awarding it Four Pinocchios, in part because it focused on business failures in which Romney was only tangentially involved. And anyone living in Massachusetts would find this Medicare fraud case to be old news because the case first emerged in 1992 as an issue in Romney’s successful race for governor.
Still, this time Winning Our Future gets closer to the mark. The case concerning Damon Clinical Laboratories is relevant because 1) Romney was a director of the firm while the fraud took place; 2) the fraud appears to have ended only after Bain sold the firm; 3) Romney earned nearly $500,000 from the sale of Damon; and 4) Romney’s statements about what he knew and when he knew it have been inconsistent.