The Party's Over! Bain Capital Under Investigation For Tax Evasion

[kpete]

ROMNEY’S FORMER COMPANY UNDER INVESTIGATION FOR TAX EVASION | Bain Capital, the private equity firm founded by presidential candidate Mitt Romney, is under investigation for questionable tax practices, according to the New York Times. Since July, New York Attorney General Eric Schneiderman has been issuing subpoenas to private equity firms including Bain, which he believes intentionally changed management fees into capital gains as a way of hanging onto millions of dollars that would have otherwise been taxed at a higher rate. Bain alone is estimated to have saved “more than $200 million in federal income taxes and more than $20 million in Medicare taxes.” It is unclear whether the tax strategy was used while Romney was at the helm of the company, but the Times reports that Romney is still making money on funds that are using the method in question. A lawyer who handles Romney’s money says he “can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.” Still, little is known about Romney’s finances, except that he makes a windfall on capital gains each year, since he has refused to release his tax returns.

http://thinkprogress.org/politics/2012/09/01/787661/romneys-former-company-under-investigation-for-tax-evasion/
http://www.nytimes.com/2012/09/02/business/inquiry-on-tax-strategy-adds-to-scrutiny-of-finance-firms.html?_r=1&pagewanted=all
http://www.dailykos.com/story/2012/09/01/1126874/-TP-Bain-Capital-Under-Investigation-For-Tax-Evasion

[SunSeeker]

1. I love the NY A.G.

[Historic NY]

59. Me too, he has courage.

[benld74]

2. Karma is a female dog, and Rmoney doesn't care when you go down!!!!!

[brewens]

3. Boy, I sure do hope they don't leak anything! That just wouldn't be right

this close to an election!

[central scrutinizer]

4. Someone's got some 'splaining to do!

And when you're 'splaining, you're losing!!!

[Rosa Luxemburg]

79. There's no smoke without fire, as they say!

[Politicalboi]

5. More "negativity" LOL!

"How dare Obama sick his dogs on Rmoney", will be spewing out of Limpballs mouth come Tuesday. Of course to them this would be the only way Obama can win.

[Generic Brad]

6. Shouldn't we grant those guilty bastards the presumption of innocence?

Until they are inevitably convicted for the crimes they committed, I believe we are supposed to withhold judgement.

[2pooped2pop]

33. fuck them

GUILTY GUILTY GUILTY spread it far and wide. It's at the least of what they would do to us.

[Vincardog]

61. Eggzactly they deserve a fair public hearing before they are sent to club fed for 10 months.

[derby378]

7. Rut roh... (n/t)

[Panasonic]

8. I want grand jury indictments against Rmoney and trial before November.

so he has to focus on the tax evasion matter than his campaign.

[ohheckyeah]

9. This same tactic was used in 2009

by 40 percent of the 35 buyout firms based in the United States. Just think how much money could have been in the Medicare system which these same people declare as unsustainable. No wonder it's friggin' unsustainable.

[Capn Sunshine]

84. not just that

It looks like they are truly motivated to end Medicare, just for this rea$on alone.

[Live and Learn]

10. Time to show your taxes Romney

Now we have every reason for needing to see them. No more excuses, just show em.

[kickysnana]

11. Ftizmas, Arpaio, etc, etc. Not over, but not bad news.n/t

[nanabugg]

12. Freeper brains will explode because they won't understand any of this. nt

[Marie Marie]

83. I am sure that Fox news will be covering this in great detail and in easy to understand

language for their intellectually challenged audience. They are, after all, Fair and Balanced and would never pass up the chance for an in depth expose on the unethical/illegal dealings of a candidate just because there is an R after his name. Oh, must I add:????

[SugarShack]

13. I hope they hound him for this! No respect for those who don't pay taxes.

[HiPointDem]

14. Glad to hear that bain isn't the only one. i hope something comes of this.

[PearliePoo2]

15. Come On Harry Reid!

Give us another installment!

[Astazia]

16. We want a perp walk for halloween!

RJLobo & I think that a perp walk on or by 10-31-12 would be our choice for an October surprise. n/t.

Eric Schneiderman is the AG that has been on this from the get-go. Saw Matt Taibbi on Spitzer's show Friday & he was as frustrated as ever. Check out Rolling Stone's current cover story.

I heard something a week ago.that really stayed with me as an arguement to smaller govt. Every time you hear or see politicians or pols say government, substitute " We the people" for it. See how different that sounds. (John Fugelsang said this on Bill Press' show while filling in for him.

Looking "forward" to Charlotte!

[Yo_Mama_Been_Loggin]

17. Rmoney will write it off as a political witch hunt.

[rucky]

20. ...on next year's tax returns.

[reflection]

68. Well played!

[Incitatus]

23. Of course, but it isn't going to help and it brings the issue of his taxes into the news again. nt

[railsback]

18. Who the Hell would want to vote for this guy?

I don't get it. Can't be just racism.

[Major Nikon]

21. It isn't just racism

It's homophobia, misogyny, xenophobia, and intolerance with a generous helping of demagoguery just for good measure.

The entire GOP platform is tied to hate and irrational fear in one way or another.

[magical thyme]

32. actually their fear isn't irrational

We all tend to view others based on our own core beliefs. So people who are trustworthy will tend to be trusting; people who are compassionate will tend to expect compassion from others, etc.

When you believe in a "dog eat dog" world, social darwinism, "winner takes all" and win/lose, it doesn't take a lot of brainpower to realize that there might be a bigger dog than you lurking around the corner or under every bush. From there, it's a tiny logical step to chronic, incipient primal fear of all others. So their fear really is rational, due to their core belief system.

The challenge is how to change their core beliefs away from "dog eat dog." You can't reason with them, because they will assume you are trying to get their guard down so you can launch a sneak attack, so will fear you all the more.

Unless and until they decide they want to change, I really don't think you can change their beliefs.

I really think all we can do is overpower them, keep them in metaphorical chains, and show by example the benefits of a cooperative society. Those that are sufficiently sane that they don't get off on others suffering may, by way of observation and desire, begin to emulate and take on a better world view.

But I'm not holding my breath...

[TahitiNut]

44. It's "the Prisoner's Dilemma" and the recommended tactic is clear.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=1253293

[Major Nikon]

46. I can't agree

Many politicians, including Democrats, commonly use irrational fear to further political ambitions. The difference is the Republicans have honed this into an art form. Is it rational to fear that raising taxes on the rich equals socialism? Is it rational to fear that allowing same sex marriage will destroy opposite sex marriage? Many people think bigotry is based on hate, and certainly it's hard to imagine bigotry without hate, but the actual root cause of bigotry is irrational fear paired with ignorance, which feeds hate.

[magical thyme]

50. fear can be rational if your premise is all wrong

if you've been taught your entire life that the earth is flat, it is not irrational to fear falling of the edge if you continue in one direction for too far. It is incorrect, but not irrational.

I understand your point, but if your core is nothing but fear, then that's going to be your reaction to anything and everything.

[Major Nikon]

54. That might be true in a society where information isn't widely available

You can't blame someone for ignorance if information isn't available to them, but outside of extreme cults this just isn't the case for the vast majority of Americans. Becoming an adult means you have to take responsibility for your own ignorance. That's why ignorance of the law is generally not a valid defense for unlawfulness. When ignorance becomes willful, you lose the right to use it as an excuse for poor decisions.

[magical thyme]

69. 20 or so years ago, www did not exist.

and it took many years for it to become the massive resource that it is. Accurate information was not so readily available; everything came through somebody else's filter. If you haven't learned critical thinking, but have had "my way or the highway" literally beaten into you and your siblings and your schoolmates are the same, it warps your basic premise.
There are probably a surprising number of people without the access to good information, or the time, or the ability. I have a computer. If I depended on our local library, well, the open hours are very limited and computer time is limited to 30 minutes.

When I first moved here (rural Maine) 9 years ago, people I hired to do some work on my property looked at the check I paid them with as though they'd never seen one before.

There are people here with outhouses, who live in 3rd world shacks with corrogated tin roofs, etc.

And its amazing how many local kids go to the local "Christian school." I've met college-educated young women here who fervently believe "Darwin is bunk."

My former neighbors lived in a camp for years before trading it in for a mobile with electricity.

It's a universe that I never realized existed in America. Yet Appalachia is far more backward, as are many rural areas.

[Major Nikon]

70. I grew up well before the internet was widely available

Information was still available for those who wanted it. I grew up in rural west Texas and every large city had a well stocked library, and even farther away from the city it was possible to request books from larger libraries and have them delivered. If someone was telling you the world was flat and has 4 corners, it wasn't that hard to find out the truth. Certainly the internet made things a lot easier, but if anything you have even more information going through someone's bullshit filter. So while it may be more convenient, it's also easier to be led down the wrong path. If anything it seems like there are even more people who believe in superstitious nonsense today, or at least those that spew such nonsense have a much wider access to their audience and it just seems that way.

[2pooped2pop]

34. and brought to them by our Baghdad Bob style of lying

traitorous news media.

It's the media. Once they controlled the media, it was simple marketing techniques to control the minds of the non self thinkers.

[wake.up.america]

28. I asked a priest friend of mine the same thing. How can any sane peson vote for this guy, unless...

that person is filthy rich?

[Bernardo de La Paz]

40. They view Romney as a Socialist but that better than the Communist Obama. nt

[Major Nikon]

19. So now we know why Rmoney won't release his tax returns

[rbrnmw]

22. lil Mittens is going to Jail

[Major Nikon]

25. He won't go to jail for it

If anything he'll just wind up paying back taxes and penalties and maybe not even that depending on where he is on the statute of limitations. You only go to jail if the government can prove the evasion was intentional. The tactics that Bain used were being used by lots of corporations before the IRS finally ruled on it. All they have to say is that they didn't know it was wrong until the IRS challenged the practice.

However, if he is ever compelled to release his returns the evasion will be revealed and Willard will have a lot of splainin' to do. That's why I suspected he wasn't releasing them all along. That's also why Willard sent his wife out to make the claim that they did nothing wrong. That way Willard isn't on tape making a claim he damn sure knows is false. He knows his wife can just act stupid so well you would be hard pressed to believe it was an act.

[mick063]

26. Too wealthy for jail

You only get jail if you are homeless and get caught stealing some food.

When you shrink the middle class and WalMart sets the standard for employee benefits, this injustice looks glaringly bad unless you are a FOX lemming.

[2pooped2pop]

35. plus his attorneys will spend quite a lump of money

defending him. Something that the rest of us don't have when the IRS comes calling. We might go to jail over a minor cheat, but Rmoney never will.

99% of us are being screwed by the laws the 1% buy.

[progressoid]

60. Nope

No body will go to jail.

Jail is for pot smokers.

[lunasun]

74. +1

[awoke_in_2003]

64. No, he won't...

the rich rarely pay for their crimes.

[mick063]

24. Very well timed

Carl Rove couldn't top this execution and he is considered to be a master. It gives the convention a little more "ooomph". Senator Reid probably had his hand slapped for hinting at it too soon.

And for those that may question it, the truth is not "dirty" politics nor is revealing it at a time when it will have the most impact.

The GOP is notorious for this. Just look at the timing of Herman Cain's adultery revelations. Didn't happen until it looked like he was a serious threat and it was a faction of the GOP that spilled the beans. Herman's campaign manager even said so.

In short, the GOP even does this to themselves.


Edit: Old man talking to an empty chair as compared to investigation for tax fraud. Which would a critical thinking voter take more seriously?

[wake.up.america]

27. This could backfire...

Sorry, but I don't think anything will come from this and RMoney will come out unscathed. Mitt will claim everything is simply peaches with his finances, which I seriously doubt. The GOP will scream dirty politics and detract from the, if not illegal nature of his financial arrangements and dealings, the moral aspects of Mitt's transactions at BAIN and elsewhere.

[2pooped2pop]

36. yes they will scream about it

but damage is done. This will put much more pressure on Mittens to reveal his taxes, which he won't.

[oldbanjo]

45. IRS may ask to see them

[heaven05]

39. yeah

my cynicism creates the same pattern of thinking. First this guy has enough rmoney to tie this thing up in court until he dies of actuarial old age. Next Roves spin machine and a by and large complicit MSM will keep it tamped down and lastly, the anti-christ can't be guilty of anything. KOLOB??????

[MannyGoldstein]

29. Bain and Romney are as fucked as Arpaio

And Goldman-Sachs.

[Floyd_Gondolli]

55. arpaio is in the clear apparently

You probably missed the Justice Dept.'s Friday news dump that they were closing their investigation into this sociopath. Very disappointing.

[Ty Templeton]

57. No, the point of that post was that Arpaio and Goldman Sachs WEREN'T punished.

It was cynical sarcasm.

[Dustin DeWinde]

30. If mitt romney is indeed a felon

Then the constitution says he can't be president. tax evasion is a felony. maybe mitt can run. for president of his future cell block

[wake.up.america]

38. Interesting, but time is on Mitt's side. Can a President pardon himself?

[BadgerKid]

42. The question is would Mitt's VP become President?

Oh the horror....

[B Calm]

31. It's about damn time, but I fear it's too late!

[2pooped2pop]

37. what does happen now if Romney bows out?

I don't think he will unless it is forced that he gets out or shows his taxes, but what happens if he did step aside?

Does Ryan get top spot and get to pick a new running mate?

Does the RNC get to put anyone they want in?

What would be the procedure if Rmoney left the ticket?

[BrainMann1]

48. He's going to do a Paul Atkin

I'm not going anywhere!

[2pooped2pop]

52. yes most likely

He has wanted the repiglican nomination for president for about a decade now. He won't go quietly into this goodnight. But I want to know, what would happen if he did?

[juajen]

85. I do not believe it is that simple. He was not chosen, so it does not automatically go to him.

The big wigs (money bags) in the Republican party will not let him have it. He only got vp to shut up the tea baggers, which was a huge mistake on their part. The horror of him running this country could actually start a revolution. My God, the thought of it boggles the mind.

[spanone]

41. k&r...

[Hubert Flottz]

43. I think we need a Federal Prosecutor on this case, ASAP!

Far more important than "Whitewater"

[BrainMann1]

47. You can run

but you can not hide Mitt.

[Doc_Technical]

49. I'm going to sit here and hold my breath

until executives of Bain Capital are arrested,
tried, convicted, and sent to prison.

[hughee99]

72. At which point, the repukes will insist

that it was a politically motivated investigation.

[Amonester]

73. Please do not, Doc.

Once convicted, these sleazy 0.01% will just offer a "settlement" of less than 10% of the total stolen, and guess what...

It's always the same tune, "Oh! We're sorry! We've made a just dumb mistake. We promise to never do it again! Here is some chump change. We apologize!"

Guess what. They're gonna get away with it.

These CORPORATIONS always get away with it.

Prison???? That's for the 'you people' ya know?

[ProSense]

51. "Did you know that Romney had a serious stake in the CDO-Derivatives game?"

Live long, and Foreclose

by jamess

Remember Romney's startling heartless statement (... I know, Which one?)

This one:

Romney rejects foreclosure relief
by Steve Benen, washingtonmonthly -- October 18, 2011

“Don’t try to stop the foreclosure process. Let it run its course and hit the bottom,” Romney said when asked what he would do to jump-start the floundering housing market.

Which is worse -- that one, or his startlingly callous Let Detroit Go Bankrupt screed?

Hmmph! That some contest!

<...>

Did you know that Romney had a serious stake in the CDO-Derivatives game?

(you know those same Toxic Assets that tanked the economy -- during Romney's "unmentionable years.&quot

Island tax havens factor into Romney's business success
by Bob Drogin Los Angeles Times, Staff Writer -- December 17, 2007

<...>
In Bermuda, Romney served as president and sole shareholderf or four years of Sankaty High Yield Asset Investors Ltd. It funneled money into Bain Capital's Sankaty family of hedge funds, which invest in bonds and other debt issued by corporations, as well as bank loans.
<...>
"It's just a mail drop, essentially," said Marc B. Wolpow, who worked with Romney for nine years at Bain Capital and who set up Sankaty Ltd. in October 1997 without ever visiting Bermuda. "There's no one doing any work down there other than lawyers."
<...>

Did you know that Romney's Sankaty operation, at the depth of the housing market crash, tried "like heck" to profit from other people's misfortune -- tried to re-leverage those lemons, by re-issuing even more of those same Collateralized Debt securities ... to "Buy Low" ...

Bain Capital’s debt investment arm, Sankaty Advisors LLC, may buy as much as $949 million of collateralized loan obligations, according to two people familiar with the offer.

Sankaty, which manages $20 billion of debt, offered today to buy 51 pieces of collateralized loan obligations, according to a list obtained by Bloomberg News. CLOs are a type of collateralized debt obligation that pool high-yield, high-risk, or junk loans and slice them into securities of varying risk and return. Alex Stanton, a spokesman for Sankaty, declined to comment.

Boston-based Sankaty is seeking to take advantage of a 90 percent decline in the prices of some pieces of CLOs, even as the debt packaged in them has gained in value. [...]

CLO securities ranked AA, the third-highest level of investment-grade, are priced between 20 cents and 30 cents on the dollar, according to a Citigroup report yesterday. CLO securities ranked A and below are quoted at less than 10 cents, the report said.

- more -

http://www.dailykos.com/story/2012/07/22/1112576/-Live-long-and-Foreclose

[Freddie]

53. "Mitt, go home and call 211"

comment on Kos

[aint_no_life_nowhere]

56. Romney: "I can confirm - smack - that neither I nor my trust - smack - has ever done this - smack

nor have I ever engaged - smack - in the disgusting and distracting habit - smack - of lip smacking."

[pangaia]

58. Eric Schneiderman better watch his back.

remember what happened to another great NY AG with the initials ES....He's now a TV host.

[gollygee]

62. Ha!

I can't wait to see what comes out of this investigation.

We could find out lots of stuff, even if they're not guilty of that. We could find out Romney was lying about this whole stupid "retroactive retirement" thing. Who knows what!

[L0oniX]

63. Rmoney thought he could shit & flush ...and he walked away ...but the toilet was clogged...

...and his shit remains for all to see ...and smell.

[leftyohiolib]

65. mr.Schneiderman KEEP YOUR DICK IN YOUR PANTS AND STAY OUT OF SMALL AIRPLANES

[Bonhomme Richard]

66. You can bet the bank that Bain begged him not to run and........

draw attention to them.That is the absolute last thing they want.

[Dont call me Shirley]

67. Ooh! I smell a fresh (D) sex scandal1

[hue]

71. Excellent!!!!! K&R

[lunasun]

75. A president who says I am not a crook has already been done

[Left Coast2020]

76. So when does the NY Times, or ABC or NBC News run with story?

When and if it hits the lamestream media, it should be the end of a, well uh, certanily not a legacy of any kind. But certanily his campaign would be kapootz.

[dogknob]

77. Schneider-Man! Schneider-Man!

Does what-ever a Schneider can!
Serves a brief... any size!
Catches thieves... just like flies
Look out!
There goes the Schneider-Man!

Will they fall? Will they? When?
In the Federal pokey-pen?
They will dodge... they will spend
They will hire fat PR-men
No way!
Here comes the Schneider-Man!

*****

Anyone wanna tackle that confounded bridge?

[yoyossarian]

81. I tried to be positive as the start of this, but this is the best I could do...

But if Bain is caught
And they're tried for their crimes
The judges they bought
Will arrive just in time!

And Schneider-man! Schneider-man!
Ends up homeless collecting cans!
They'll accuse him of rapes!
They will say he made porno tapes!
And then
Bain will just change their name and
Continue with their mayhem!
Pity poor Schneider-man!

(edited twice in pursuit of POETIC PERFECTION!... haha!)

[Jeff In Milwaukee]

78. President Ryan

If Romney wins in November, be prepared for President Ryan.

If elected, Romney will resign in 2013 after being indicted for tax fraud.

Did you watch Ryan at the RNC? Be prepared for four years of THAT.

[ailsagirl]

80. I nearly lost my dinner

[DeSwiss]

82. Well I'll K&R ya.....

...but I won't believe it matters until I see these pricks in one of these ------->

[King_Klonopin]

86. Has anyone gone to prison for the Wall St. Grand Theft Party ?

Just askin'...

Not one person that I'm aware of.

Is anyone holding on to the hope that justice will prevail
and that SOMEBODY -- some greed-head scum-fuck -- will
end up in prison for the biggest theft in world history ???????????????