Over the last week, plenty of ink has been spilled over when precisely Mitt Romney left his position as CEO of Bain Capital. I wasn’t sure why this mattered. I recognize, per this story from the Boston Globe, that Romney’s statement about the timing of his departure matters because of his responsibility for certain companies under Bain’s purview that laid off workers and went bankrupt:
Romney has said he left Bain in 1999 to lead the winter Olympics in Salt Lake City, ending his role in the company. But public Securities and Exchange Commission documents filed later by Bain Capital state he remained the firm’s “sole stockholder, chairman of the board, chief executive officer, and president.”
Also, a Massachusetts financial disclosure form Romney filed in 2003 states that he still owned 100 percent of Bain Capital in 2002. And Romney’s state financial disclosure forms indicate he earned at least $100,000 as a Bain “executive” in 2001 and 2002, separate from investment earnings.
The timing of Romney’s departure from Bain is a key point of contention because he has said his resignation in February 1999 meant he was not responsible for Bain Capital companies that went bankrupt or laid off workers after that date.
But that just seemed like a little white lie, good for campaign fodder but mostly meaningless beyond that.
However, in this case, Romney is lying about an SEC filing. The statements filed with the SEC list him as the chief executive of Bain after when he stated publicly since way back in 2002 that he left (and that continues – statements from both Romney and Bain today say that he retired in 1999). There are legal implications to this:
Karmel, the former SEC commissioner, said the contradictory statements could have legal implications in some instances.
“If someone invested with Bain Capital because they believed Mitt Romney was a great fund manager, and it turns out he wasn’t really doing anything, that could be considered a misrepresentation to the investor,’’ she said. “It’s a theory that could be used in a lawsuit against him.”
What’s more, Romney has stated on official federal disclosure forms that he left Bain in 1999. If the SEC documents contradict that – and they appear to – Romney committed a felony.
Here’s what Romney has said:
Mitt Romney Public Financial Disclosure Report, Aug. 11, 2011: Mr. Romney retired from Bain Capital on February 11, 1999 to head the Salt Lake Organizing Committee. Since February 11, 1999, Mr. Romney has not had any active role with any Bain Capital entity and has not been involved in the operations of any Bain Capital entity in any way.
Romney’s signature appears on the line that states: “I certify that statements I have made on this form and all attached schedules are true, complete and correct to the best of my knowledge.”
Making false statements to the federal government is a serious crime (under 18 USC 1001) carrying possible fines and up to five years in federal prison.
Politico reports the same thing.
It would appear that Romney either lied to the SEC on disclosure forms there, or lied on separate federal disclosure forms. The Romney campaign has so far rebutted this by saying that SEC forms are idiosyncratic, and that he could have both left Bain in 1999 and still had to sign forms saying he remained the CEO for three years thereafter. Adding to the confusion is that Romney testified before the Massachusetts Ballot Law Commission in 2002, during his race for governor, that he took a “leave of absence” from Bain in 1999, not a full departure.
It’s not totally clear yet whether this constitutes semantic games or a real legal problem for Romney. Either way it doesn’t look great.
UPDATE: I should add that Mother Jones and Talking Points Memo got to the story about Romney not leaving Bain first. But the more important story, to me, are the legal implications, and there I think AmericaBlog nailed it by looking back at that Factcheck information.




17 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
Since CEO are basically above the law and the SEC loves settlements where the miscreants “admitted no wrong doing,” this will just be another blip in Romney’s comic campaign.
Who, exactly, is going to haul his sorry ass into court?
Prosecution here is as likely as Jamie of the Presidential Cufflinks
being indicted for Sarbanes-Oxley violations.
America is a poor child with its nose pressed against a christmas season store window, displaying things that the child will never have.
Nifty story, I guess, but agree with the comments. The likelihood of Willard having to “suffer” a consequence, even a tap on the wrist, for his felonious actions are: slim to NONE. I’m betting on the latter, myself.
This dog won’t hunt.
I can’t much care whether or not Mitt gets away with this, legally or politically, even if true.
But I do care a whole lot that it gets revealed and highlighted what kind of human scum that the 1% is made of.
Felony Scmelmony, we want our biggest liars to run this country, preferably from offshore, of course. That tax breaks exist to destroy our labor base and thus our entire middle class economy to increase stockholder value and profit and that is somehow patriotic, says it all. We have a bunch of corporate poseurs, American in name only because the MIC is such a big hammer, selling this country out and, by extension, forcing a further criminal austerity on its’ middle class. It is increasingly evident that ” Wall Street Gone Wild ” should be the must see video of 2012. And I’m sure Mitt and Barack can find some young campaign volunteers to disrobe and take one for their respective corporate teams. Distraction is the real theme of this election anyway, isn’t it?
Agreed. BUt this is a story the DNC should r un with…..covertly, of course.
THis guys ia a tax evader, corporatist raider and pillager, and pathological liar. IMO the worst I have ever seen in American politics at this level.
Not like his daddy who was an honest and honorable man.
I like your attitude.
Looks like Mitt thinks he’s above the law. First it’s the felony for impersonating a police officer in Michigan, now this. I guess money can buy freedom.
What’s next? Does he go out on the weekends and run bumfights?
Our laws do not apply to the rich. The President has made that clear.
Even if this were a silver-platter issue for any real progressive–even if it had WIN written all over it–his campaign wouldn’t touch it. It would hurt him too much in his post-election dealings with Wall Street, the people he’ll be depending on to make him many millions come ’16.
The first rule of the plutocracy, do no harm to fellow plutocrats. That’s the O/Holder standard MO so Romney skates.
I’m not so sure that’s a universal law. (“More of a guideline”, as they said in Pirates of the Carribean.) Isn’t John Kerry a plutocrat? Didn’t he get Swift Boated?
All it needs is a super-PAC (“independent” of Obama) to repeat this message loudly. It could happen, without implicating Obama.
I agree nothing at all will happen with the SEC or courts.
That’s just another reason to do away with those crazy regulations especially on job creators. ( in china anyway.)
In other words, he’s the perfect face of the GOP.
There is a huge number of very dumb people in this country, sadly. But there are many who take a few facts and, correctly, see the bigger picture even if they don’t understand the ins and outs. The picture they get from rMoney is a serial liar and outsourcer, using and abusing the system that was made by the one percent for the one percent. Sure there are too many people who want to coddle the plutocrats because they think they could be one too, someday. But there are others, maybe just enough, who get it.
My I’m feeling unduly optimistic today.
The puzzler is why Kerry didn’t rebut or challenge the Swift Boat allegations. Usually fear of worse revelations suffice to shut down the victim. During the primary time, Wesley Clark had mentioned ‘an intern problem’ for Kerry. And you know the rest.
The same group of justice loving Americans that hauled in the banksters that STOLE from America. The same group that hauled in the Wall Street Mafia that ROBED from America. The same bunch of LIFE, LIBERTY and the PURSUIT OF HAPPINESS patriots that prosecutes American Corporations that flim flam their replaceable, low paid wage slaves.
Oh wait that group left the building with FDR. I guess we’re screwed. Unless the first black president rises to the occasion. Right!