Ad connecting Romney to company in Medicare fraud case “mostly true”

January 27, 2012

Last week a public workers union launched a television ad that raised an old question about presidential candidate Mitt Romney’s connection to Damon Corp, a company that defrauded Medicare by the millions while under the watch of Romney’s private equity firm Bain Capital. Thursday, the Super PAC Winning Our Future, which supports Romney’s Republican rival Newt Gingrich released the trailer for a campaign video titled “Blood Money” that echoes the same criticism.

The ad created by AFSCME equates Romney with Florida Governor Rick Scott whose approval rating is one of the lowest in the country. Scott is the former CEO of the hospital chain Columbia/HCA that became embroiled in a Medicare fraud case in the late 1990s.

A narrator speaking over black and white photos of Romney says he was director of Damon Corp, which was later fined $100 million for medicare fraud. Romney’s image morphs into that of Rick Scott as the narrator asks, “Corporate greed … Medicare fraud. Sound familiar?”

PolitiFact, a fact-checking site run by the Tampa Bay Times, called the ad “Mostly True.” Although it is true Romney was head of Damon Corporation, which did defraud Medicare by the millions, Romney was never personally implicated, the site says.

See the video from AFSCME here, from PolitiFact’s site:

See the trailer for Winning Our Future’s campaign video (much more dramatic) here, from their Youtube page:


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Romney has a direct connection to Damon Corp at the time of the fraud. Romney had an agreement with Bain Capitol and to this day is still receiving over $13 million in retirement from Bain Capitol.

Posted by BlueBelly | Report as abusive

This should play real well among the Republican retirees that are supposed to be the base of Romney’s support. Of course, for many of America’s great corporations, board membership is just a sinecure for the 1%, allowing them to pick up coffee tip money for no work or responsibility. However, when the board member is appointed as a part of an investment baking takeover, as with Bain and Damon, the board member is expected to truly supervise the business.. How much did Romney make for what is, at best, misfeasance

Posted by Phrank | Report as abusive

Reuters, why would you repeat something stated by Politifact. Politifact is a blatantly liberal source run by the Tampa Bay Times. It’s not a “fact” just because they say it is.

Politifact saying the above is like Fox News saying it’s “mostly true” that unemployment has risen under Obama. You can make a technical argument that indeed it has, but it belies the reality of what’s going on. Only a purely partisan voice would cling to that kind of argument. Why not do your own analysis.

Posted by Sensibility | Report as abusive

The Tampa Bay Times, formerly the St. Pete Times, writes for a notoriously conservative base. Politifact draws ire from both sides because they are critical of everyone. For example, their “Lie of the Year” this year was from the Democratic Party (it was from Republicans the two years prior). They are providing unbiased independent analysis when all the other news agencies are afraid to.

Posted by TrueIronPatriot | Report as abusive