Once again, Mittens and Co. are being investigated for doing something shady involving money. We just reported on how ‘Legal Red Flags’ have been raised regarding Canadian donations to a Romney PAC, and how Mitt Romney himself could possibly face criminal investigation for possible misrepresentation in his Federal Financial Disclosure Filings in 2011. Now, Politicol News is reporting that Mitt and his son Tagg are possibly tied to an $8 billion Ponzi scheme.
The Securities and Exchange Commission (SEC) tried to sue the Securities and Investor Protection Corporation to secure compensation for investors who lost their money in a $7.2 billion Ponzi scheme orchestrated by R. Allen Stanford, who used the money he collected to live a disgustingly lavish lifestyle, in which he owned yachts and a fleet of private jets. He received a 110 year jail sentence, but the money was never recovered, and thousands of investors from around the world lost their money. Now, Mitt Romney and his son Tagg Romney have been implicated in a $8.5 billion Ponzi scheme with none other than R. Allen Stanford.
U.S District Court Judge Robert Wilkins ruled that, while the court was sympathetic, the investors were not necessarily “victims” under the legal definition, so the lawsuit was never realized in the effort to recover funds for investors.
The father/son duo have not been cleared, and there is a court-document verified, ongoing legal proceeding regarding the possible sale of fraudulent CD’s to potential investors.
Mittens and his son/sidekick invested in R. Allen Stanford’s Ponzi scheme with the hefty sum of $10 million, initially in Solamere Capital, which was a seed investment, and received a return of $1 million. Now, did Mittens and Tagg know this was part of a Ponzi scheme when they sunk the cash in? Who knows? My gut answer says yes, but we can’t convict on gut feelings.
The seed money reportedly comes from Ann Romney’s Blind Trust. After the Ponzi scheme was discovered, Tagg Romney joined in to help Solamere Capital with three other prominent brokers located in Charlotte, NC.
Despite the dubious nature of the situation, Tagg Romney is quoted as saying he is proud of helping Solamere, which was originally owned by the man now serving a 110 year jail sentence:
“They’re friends of ours, they used the Solamere name, we own a piece of them. We helped them get started.”
Hmmm…proud of investing in a company that was originally run by someone who was sentenced to prison for 110 years for fraud, and that likely was still defrauding people when you initially hooked up with them? That’s a risky statement, Tag.
Despite claims from Mittens and Son that the investigation is closed, it is indeed ongoing, including their three partners. Further, Tagg never reported profits from Sanford and Solamere.
All in all, we have a total of roughly $8.5 billion that has apparently disappeared into thin air in the middle of this mess (though if the investors want to know where to start looking, the suggestion is an offshore account in the Caribbean), one man in jail in for the rest of his life, Mittens and his baby boy claiming no involvement (surprise, surprise), investors who are out of a whole hell of a lot of money, and nobody knows anything. Typical of the Romneys.