Bain Capital being investigated for tax evasion

[bripat9643]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.

Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.

Eric Schneiderman - Wikipedia, the free encyclopedia

In the 1998 Democratic primary , Schneiderman, an anti-crime activist, defeated Daniel O'Donnell, a civil rights attorney with 68% of the vote.[3] In the general election, he defeated Vincent McGowen with 82% of the vote.[4] He won re-election in 2000 (84%),[5] in 2002 (87%),[6] in 2004 (89%),[7] in 2006 (92%),[8] and 2008 (90%).[9]

 

[Papageorgio]

Eric Schneiderman is the only one with the balls to go after Wall Street.

Neither the Republicans nor the Democrats would do it.

He is a Democrat.

 

[bripat9643]

Obama on a witch hunt.

So blatant.

Except that it's not the Justice Department.

And Romney has been involved in fraud before.

Yep, it's a Democrat Party hack from New York state.

What "fraud" has Romney been involved in?

We already know Obama was involved in fraud with his pal Rony Rezko.

 

[bripat9643]

Tony Rezko - Wikipedia, the free encyclopedia

Public corruption charges

In October 2006, Rezko was indicted along with businessman Stuart Levine on charges of wire fraud, bribery, money laundering, and attempted extortion as a result of a federal investigation known as "Operation Board Games."[11][12] Levine was once a top Republican fund-raiser who had switched loyalty in recent years.[13] Rezko and Levine were charged with attempting to extort millions of dollars from businesses seeking to do business with the Illinois Teachers System Board and the Illinois Health Facilities Planning Board from 2002 to 2004. Levine pleaded guilty and agreed to testify against Rezko and others. While the charges carry a maximum sentence of life in prison, Levine expects to receive about a 5-1/2 year sentence in return for his testimony.[14] The case was prosecuted by Patrick Fitzgerald.

Rezko pleaded not guilty, and the trial related to his charges from Operation Board Games began on March 6, 2008.[15] He was jailed shortly before the trial began when he received a $3.5 million wire transfer from Lebanon. Rezko had told the court that he had no access to money from overseas. Ten weeks into the trial, on April 18, Judge Amy St. Eve released Rezko, after friends and relatives put up 30 properties valued at about $8.5 million to secure his bond. Prosecutors opposed the motion for release, saying that Rezko was a flight risk.[16] On May 6, both the prosecution and the defense rested their cases. Government prosecutors spent 8 weeks presenting their case. Rezko’s lawyer, Joseph J. Duffy, chose not to present any witnesses, saying that he did not believe that the prosecution had proven the charges.[17] Prosecutors contended that they had shown Rezko's "corrupt use of his power and influence" to gain benefits for himself and his friends. Duffy argued that the prosecution had exaggerated Rezko's influence in state government, and attacked Levine's credibility as a witness.[18]

The case went to the jury on May 13 and after three weeks of deliberation, the jury found Rezko guilty of six counts of wire fraud, six counts of mail fraud, two counts of corrupt solicitation, and two counts of money laundering, but found him not guilty on three counts of wire and mail fraud, one count of attempted extortion, and four counts of corrupt solicitation.[19] According to CBS News the "high-profile federal trial provided an unusually detailed glimpse of the pay-to-play politics that has made Illinois infamous."[20]

While the jury was deliberating on the Board Games trial, an arrest warrant was issued in Las Vegas for passing bad checks in two casinos and failing to pay $450,000 in gambling debts that were accrued between March and July 2006.[21] Another casino had also filed a civil complaint for a total of $331,000 in 2006 and was given a judgment of default in 2007.[21]
Charges related to private business dealings

Rezko was indicted, along with a business associate, for wire fraud related to the alleged sale of his pizza business to a straw buyer at an inflated price in order to obtain millions of dollars in loans from GE Capital.[22] Rezko initially pled not guilty to these charges.[23] In 2011, Rezko would change his plea to guilty.[24] As part of a plea deal and his agreement to drop his appeal of his previous conviction, Rezko pled guilty to wire fraud was given a 7 1/2 year sentence to run concurrently with the 10 1/2-year sentence he is presently serving for his previous conviction.[24]

Ties to Barack Obama
History

In 1990, after Barack Obama was elected president of the Harvard Law Review, Rezmar Corp. offered him a job, which Obama turned down. Obama instead took a job with the firm of Davis, Miner, Barnhill & Galland,[29] which primarily worked on civil rights cases. The firm also represented Rezmar and helped the company get more than $43 million in government funding. The firm's former senior partner, Allison S. Davis, later went into business with Rezko and, in 2003, was appointed to the Illinois State Board of Investment by Governor Blagojevich at Rezko's request.[7][30] On July 31, 1995, the first ever political contributions to Obama were $300 from a lawyer, a $5,000 loan from a car dealer, and $2,000 from two food companies owned by Rezko.[31] Starting in 2003, Rezko was one of the people on Obama's U.S. Senate campaign finance committee, which raised more than $14 million.[7] Rezko organized an early fundraiser for Obama that Chicago Tribune reporter David Mendell claims was instrumental in providing Obama with seed money for his U.S. Senate race.[2] Obama in 2007-2008 identified over $250,000 in campaign contributions to various Obama campaigns as coming from Rezko or close associates, and said that he donated almost two-thirds of that amount to nonprofit groups.[32][33]
Real estate dealings

In 2005 Obama purchased a new home in the Kenwood District of Chicago for $1.65 million (which was $300,000 below the asking price but represented the highest offer on the property) on the same day that Rezko's wife, Rita Rezko, purchased the adjoining empty lot from the same sellers for the full asking price.[34] Obama acknowledged bringing his interest in the property to Rezko's attention,[35] but denied any coordination of offers. According to Obama, while the properties had originally been a single property, the previous owners decided to sell the land as two separate lots, but made it a condition of the sales that they be closed on the same date. Obama also stated that the properties had been on the market for months, that his offer was the best of two bids, and that Ms. Rezko's bid was matched by another offer, also of $625,000, so that she could not have purchased the property for less.[36]

After it had been reported in 2006 that Rezko was under federal investigation for influence-peddling, Obama purchased a 10 foot (3.0 m) wide strip of Ms. Rezko's property for $104,500, $60,000 above the assessed value.[7][34] According to Chicago Sun-Times columnist, Mark Brown, "Rezko definitely did Obama a favor by selling him the 10-foot strip of land, making his own parcel less attractive for development."[37] Obama acknowledges that the exchange may have created the appearance of impropriety, and stated "I consider this a mistake on my part and I regret it."[36]

On December 28, 2006, Ms. Rezko sold the property to a company owned by her husband's former business attorney. That sale of $575,000, combined with the earlier $104,500 sale to the Obamas, amounted to a net profit of $54,500 over her original purchase, less $14,000 for a fence along the property line and other expenses.[38][39] In October 2007, the new owners put the still vacant land up for sale again, this time for $1.5 million.[40]
Obama's letters

In June 2007, the Sun-Times published a story about letters Obama had written in 1997 to city and state officials in support of a low-income senior citizen development project headed by Rezko and Davis. The project received more than $14 million in taxpayer funds, including $885,000 in development fees for Rezko and Davis. Of Obama's letters in support of the Cottage View Terrace apartments development, Obama spokesman Bill Burton said, "This wasn't done as a favor for anyone, it was done in the interests of the people in the community who have benefited from the project. I don't know that anyone specifically asked him to write this letter nine years ago. There was a consensus in the community about the positive impact the project would make and Obama supported it because it was going to help people in his district." Rezko's attorney responded that "Mr. Rezko never spoke with, nor sought a letter from, Senator Obama in connection with that project.[41]

In the South Carolina Democratic Party presidential debate on January 21, 2008, Senator Hillary Clinton said that Obama had been associated with Rezko, whom she referred to as a slum landlord.[42] The L.A. Times indicated that its own review showed Rezko played a deeper role in Obama's political and financial biography than Obama has acknowledged.[43] Within days of the debate, a photo of Rezko posing with Bill and Hillary Clinton surfaced. When asked about the photo, Hillary Clinton commented "I probably have taken hundreds of thousands of pictures. I wouldn't know him if he walked in the door."[44]

Romney's Medicare fraud

In 1989, Romney led Bain Capital's purchase of Damon Corp., a medical testing company, and took a seat on the Board of Directors to better manage it. During Romney's four years, Bain tripled its investment, and Romney personally made $473,000 -- while Damon plumped its profits with Medicare fraud (running thousands of medical tests doctors didn't want, and billing Medicare for them). The company pled guilty to crimes committed during his tenure and paid a record fine of $119 million. Company President Joseph Isola pleaded no contest to fraud, and a vice president was also convicted.

Romney claims he "uncovered" the fraudulent claims and "took corrective action," but court records show that he did not notify prosecutors or stop the fraudulent billing. He just asked company lawyers what changes they could make to avoid prosecution, after the feds' LABSCAM prosecution targeted a different medical testing firm. The cheating continued, prosecutors say, until the day Bain sold the company to Corning. Furthermore, Damon Corp. was required to list in various SEC filings any significant legal risks it faced. Romney made no mention of the fraud he "uncovered," even though it led to a $119 million fine, the largest in history. Damon Corp. is another Bain acquisition that later went bankrupt, killing over a thousand jobs -- but not before Bain made $7.4 million in profit.

Mitt Romney's Skeleton Closet -- political scandals, quotes and character

 

[bripat9643]

Eric Schneiderman is the only one with the balls to go after Wall Street.

Neither the Republicans nor the Democrats would do it.

He is a Democrat, you witless git.

 

[Conservadude]

"You need $1Billion? Guess how much I stole from my customers at MF Global?"

^ This is all.

 

[WillowTree]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.

Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.

Source: NY attorney general investigating private equity firms, including Romney-founded Bain - The Washington Post

this always disturbs me.

 

[American Horse]

Just another democrat attorney on the political make like Elliot Spitzer, Patrick Fitzgerald, and with unremarkable timing too. So now Obama's enforcers are going straight at the big dog where before they went after Republican doners like Frank Vandersloot

Frank Vandersloot on Cavuto 5/11/12 - YouTube

 

[Rat in the Hat]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.

Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.

Source: NY attorney general investigating private equity firms, including Romney-founded Bain - The Washington Post

The race is on.

Who will reach the finish line first?? This clown, or the Wisconsin prosecutors??

Only Chrissy knows for sure.

 

[Toro]

Gee, I'm sure this isn't political.



lol

 

[Mr. Shaman]

Obama on a witch hunt.

So blatant.

Try, again, Skippy.
​

"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."

Investigation For Tax Evasion​

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[Mr. Shaman]

Here is part of the article the OP didn't bother to cut and paste for us.

Though Romney collects benefits as a Bain retired partner, the inquiry isn’t focused on the time he ran Bain.

"......the Times reports that Romney is still making money on funds that are using the method in question."

Yeah.....I guess his accountant forgot to tell him. Sure.



​

 

[blackhawk]

Here is part of the article the OP didn't bother to cut and paste for us.

Though Romney collects benefits as a Bain retired partner, the inquiry isn’t focused on the time he ran Bain.

"......the Times reports that Romney is still making money on funds that are using the method in question."

Yeah.....I guess his accountant forgot to tell him. Sure.



​

I guess little things like facts don't matter to some you know the little fact that Romney is not the focus of the investigation.

 

[Mr. Shaman]

Just another democrat attorney on the political make like Elliot Spitzer......

....aka.....

"Crusader of the Year" / "Sheriff of Wall Street"

 

[Mr. Shaman]

Here is part of the article the OP didn't bother to cut and paste for us.

Though Romney collects benefits as a Bain retired partner, the inquiry isn’t focused on the time he ran Bain.

"......the Times reports that Romney is still making money on funds that are using the method in question."

Yeah.....I guess his accountant forgot to tell him. Sure.



​

I guess little things like facts don't matter to some you know the little fact that Romney is not the focus of the investigation.

Really stays on-top-o'-things, doesn't he?

 

[Harry Dresden]

hey Shithead.....Franco says he has an awesome box of crayons.....he even has Magenta....maybe you should go over to his place and leave something like posting to the bigger kids......dont worry i told him you can have an Ice Cream Pop....

 

[Dick Tuck]

Obama on a witch hunt.

So blatant.

Except that it's not the Justice Department.

And Romney has been involved in fraud before.

Yep, it's a Democrat Party hack from New York state.

What "fraud" has Romney been involved in?

We already know Obama was involved in fraud with his pal Rony Rezko.

The "Son of Boss" scheme at Marriott.

 

[bripat9643]

Except that it's not the Justice Department.

And Romney has been involved in fraud before.

Yep, it's a Democrat Party hack from New York state.

What "fraud" has Romney been involved in?

We already know Obama was involved in fraud with his pal Rony Rezko.

The "Son of Boss" scheme at Marriott.

Romney had nothing to do with that.

 

[AmericanFirst]

Romney's KB Toys fraud

Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002.

January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores.

Three years later the rest of the 156 stores were closed down.

KB Toys - Wikipedia, the free encyclopedia

And idiots like you don't see the obamaturd witch hunt right before the election? Obamaturd must be desperate. IDIOT!

 

[AmericanFirst]

Except that it's not the Justice Department.

And Romney has been involved in fraud before.

Yep, it's a Democrat Party hack from New York state.

What "fraud" has Romney been involved in?

We already know Obama was involved in fraud with his pal Rony Rezko.

The "Son of Boss" scheme at Marriott.

Just another libtard lie, libtard liar.