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View Full Version : ROMNEY/BAIN NEWLY LEAKED DOCUMENTS



Gayle in MD
08-23-2012, 07:10 PM
http://www.huffingtonpost.com/2012/08/23/mitt-romney-bain-capital-leaked-documents_n_1825466.html


Mitt Romney After Bain Capital: Leaked Documents Connect Candidate To Adelson, Casinos, Cigarettes


A treasure trove of leaked documents about Mitt Romney's finances may not contain earth-shattering revelations, but could at least make life awkward for the presumptive Republican nominee for president.

The documents were obtained and posted online by Gawker at a time of unusually high interest in Romney's finances. Though they are not nearly as revealing as the years of tax returns he refuses to release might be, they still have enough information and detail to make Romney uncomfortable. They show he has money indirectly invested in companies on which the Mormon church might frown and also highlight the lengths to which his complicated investments are shielded from taxes.

For example, Romney is invested in Sankaty High Yield Partners II LP, a debt fund affiliated with the private-equity firm Bain Capital, which Romney co-founded. Sankaty has loaned money to a variety of questionable companies, including the now-embattled Las Vegas Sands Corp., according to documents obtained by Gawker.

Las Vegas Sands, which is owned by famed Republican donor Sheldon Adelson, is currently facing multiple Justice Department inquiries. The first focuses on possible violations of the Foreign Corrupt Practices Act, a U.S. anti-bribery law, related to the company’s casinos in Macau, China. The second is probing allegations that Las Vegas Sands failed to report millions of dollars of possibly laundered money transferred to its casinos by two big-time gamblers.

(Read the full Gawker report here)





INSIDE MITT ROMNEY'S TAX DODGINGCALMANN SCHEMES



http://gawker.com/5936394/





Bain isn't a company so much as an intricate suite of steadily proliferating inter-related holding companies and limited partnerships, some based in Delaware and others in the Cayman Islands, Luxembourg, and elsewhere, designed to collectively house roughly $66 billion in wealth in its many crevices and chambers. When Romney left in 1999, he and his wife retained significant investments in many of those Bain vehicles—he claims they are "passive investments" and that they are managed in a blind trust (though the trustee isn't blind enough to meet federal standards of independence). But aside from disparate snippets of information contained in his federal and Massachusetts financial disclosure forms, his 2010 tax returns, and SEC filings, the nature of those investments has been obfuscated by design.

When he disclosed his finances to the U.S. Office of Government Ethics in 2007, Romney took care to publish the underlying holdings of many funds he invested with—after disclosing his $1 million-plus stake in "GS 2002 Exchange Place Fund LP," for instance, he listed six pages of individual equities the fund held, from Panera Bread Co. to Tribune Co. But when it came to the Bain investments, he simply listed the value of his investments in odd-sounding entities like "Sankaty High Yield Partners II LP" with no indication of what was inside. In an accompanying note, he claimed that he had tried and failed to get the information: "The filer has requested information about the underlying holdings of these funds and values and income amounts for these underlying holdings. However, the fund managers have informed the filer in writing that this information is confidential and proprietary, and has declined to provide such information."

That information—for Sankaty and 20 other funds—is now available here, in the form of 48 documents totaling more than 950 pages. They consist predominantly of confidential internal audited financial statements from 2008, 2009, and 2010, as well as investor letters from the same period, for Bain entities that Romney has previously disclosed owning an interest it. Owing to the timeframe—during and after the catastrophic economic meltdown of 2008—some of the investments show substantial losses. One limited partnership had even entered into liquidation as of October 2008 after failing to meet certain payments owed to partners. Others show astronomical gains.

The documents are exceedingly complicated. We don't pretend to be qualified to decode them in full, which is why we are posting them here for readers to help evaluate—please leave your thoughts in the discussion below. We asked an attorney who specializes in complex offshore corporate transactions, including ones involving Cayman Island entities, to review them and help us understand them. (We also asked the Romney campaign. It hasn't responded yet.) The full set can be read here.

Here's what we've found so far:

http://gawker.com/5936394/