Nov 1, 2012
UAW, SEIU PFAW and Other Org’s File Charges Against Romney for Violating Federal Ethics in Government law
From Nation of Change, by Greg Palast
United Auto Worker’s President, Bob King announced today that his Union and a consortium of other organizations that include the Citizens for Responsibility and Ethics in Washington (CREW), People for the American Way, SEIU, Public Campaign and the Social Equity Group has initiated and brought formal charges against Mitt Romney for “hiding” between $15.3 million and $115.0 million in Ann Romney’s so-called “blind” trust.
The formal charge filed with the US Office of Government Ethics focuses attention upon an aspect of the Romney “family” that has been previously overlooked – the financial manipulations by Mitt and Ann Romney serving to hide their huge wealth. It also demonstrates that the relationship between Mitt Romney and one of his main contributors, Paul Singer is more than just that of a candidate and supporter. This scheme began three years ago and partnered Ann Romney with hedge fund manager Singer, who would later become Presidential candidate Mitt Romney’s key donor.
This disgusting tale exemplifies precisely why what Romney and his Bain Company does has been defined as “vulture capitalism”. When the economy collapsed in 2009 the Romney’s and Singer saw an opportunity to capitalize off of the dire straits the U.S. automakers found themselves facing. Under their partnership Singer and Romney secretly bought controlling interest in Delphi Auto (the former GM auto parts division) through Singer’s Hedge Fund, Elliot Management.
With the government stepping up to bail out GM and Chrysler, Ann Romney and Singer “stepped up” to reap a windfall of money out of the TARP funds by extorting $12.9 Billion in taxpayer funding from GM and the government. By threatening to cut off the supply of key steering columns to GM unless they received funds from the bailout, this extortion was successful. The “profits earned” by the Romneys from this extortion scheme were then hidden in a trust after allegedly being laundered through an offshore corporation and a limited partnership agreement…
The union chief says, “The American people have a right to know about Gov. Romney’s potential conflicts of interest, such as the profits his family made from the auto rescue,” “It’s time for Gov. Romney to disclose or divest.”
“In 2009, Ann Romney partnered with her husband’s key donor, billionaire Paul Singer, who secretly bought a controlling interest in Delphi Auto, the former GM auto parts division. Singer’s hedge fund, Elliott Management, threatened to cut off GM’s supply of steering columns unless GM and the government’s TARP auto bail-out fund provided Delphi with huge payments. While the US treasury complained this was “extortion,” the hedge funds received, ultimately, $12.9 billion in taxpayer subsidies.“While Romney was opposing the rescue of one of the nation’s most important manufacturing sectors, he was building his fortunes with his Delphi investor group, making his fortunes off the misfortunes of others,” King added.”The Romneys’ gigantic windfall was hidden inside an offshore corporation inside a Limited Partnership inside a trust which both concealed the gain and reduces taxes on it.”
This is but one of possibly many such manipulations and transactions involving the Romneys and other corporate owners during the period 2008 to today that were used to increase personal wealth at the expense of taxpayer bailouts used to save our nation’s economy. One can almost hear the loud sucking vacuum as more and more tax dollars are being swept upward to the top 1% of the wealthiest families and owners of multi-national corporations…we can also imagine the mocking laughter emanating from behind closed boardroom doors of America’s Hedge Fund companies as they count and exchange the status of money from tax dollars to “earned” investor profits. This truly is a form of vulturous activity which is being used to further break the backs of America’s working middle class.
Read the full Nation of Change Palast article here…