CREW, UAW Charge Romney with Ethics Violations Surrounding Windfall Profits from Auto Bailout

CREW (Citizens for Responsibility and Ethics in Washington) and the United Auto Workers have filed a formal complaint with US Office of Government Ethics in Washington stating that Gov. Mitt Romney improperly hid a profit of $15.3 million to $115.0 million in Ann Romney’s so-called “blind” trust. The Romneys’ gigantic windfall was hidden inside an

CREW (Citizens for Responsibility and Ethics in Washington) and the United Auto Workers have filed a formal complaint with US Office of Government Ethics in Washington stating that Gov. Mitt Romney improperly hid a profit of $15.3 million to $115.0 million in Ann Romney’s so-called “blind” trust.

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.

According to ethics law expert Dan Curry who drafted the ethics complaint, Ann Romney does not have a federally-approved blind trust.  An approved “blind” trust may not be used to hide a major investment which could be affected by Romney if he were to be elected President.  Other groups joining the UAW and CREW include Public Citizen, the Service Employees International Union (SEIU), Public Campaign, People for the American Way and The Social Equity Group.

President Obama’s approved trust, for example, contains only highly-diversified mutual funds on which presidential action can have little effect.  By contrast, the auto bail-out provided a windfall of over 4,000% on one single Romney investment.

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 bailout 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.

As a result, the shares Singer and Romney bought for just 67 cents are today worth over $30, a 4,000% gain.  Singer’s hedge fund made a profit of $1.27 billion and the Romney’s tens of millions.

The UAW complaint calls for Romney to reveal exactly how much he made off Delphi — and continues to make.  The Singer syndicate, once in control of Delphi, eliminated every single UAW job –25,000– and moved almost all auto parts production to Mexico and China where Delphi now employs 25,000 auto parts workers.

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  • Terri Bremer Piasecki
    November 1, 2012, 9:52 am

    oh the tangled web he weaved.

    REPLY
  • Jimmy
    November 1, 2012, 9:57 am

    Is he just an idiot? I’m a Republican… but this guy just keeps doing the stupidest shit. Every day I read about something completely idiotic the guy has done or is doing. I’m not a big Obama fan, but Romney is such an idiot, I’m thinking I’d rather have a moderate Democrat than an idiot Republican.

    REPLY
    • Nibs@Jimmy
      November 1, 2012, 10:41 am

      The amazing thing is, about 47% of registered voters could care less what a sleazeball (and likely criminal) Mittens is…

      REPLY
      • Nibs@Nibs
        November 1, 2012, 10:43 am

        Hmmm, that should read “couldn’t care less”…

        REPLY
        • Bish@Nibs
          November 1, 2012, 12:30 pm

          I am a republican, but WILL NOT vote for Romney! I know personally what he did in Mass.! Why don’t more people do their research on this guy!!

          REPLY
          • Jim@Bish
            November 1, 2012, 8:38 pm

            Fox News.

            REPLY
          • Sharon Kelley Nunner@Bish
            November 2, 2012, 6:51 am

            I have done nothing but research on him and I think he is nothing but white trash!!!!!!

            REPLY
    • Sharon Kelley Nunner@Jimmy
      November 2, 2012, 6:49 am

      GOOD CHOICE !!!!!!! HOPEFULLY AMERICA AGREES!!!!!!!! ROMNEY IS A COMPLETE IDIOT!!!!

      REPLY
  • M.R. Heeman
    November 2, 2012, 7:39 am

    It cracks me up = all these phony ‘Republicans’ who are all of a sudden “all shook up” and disgusted blah, blah, blah…

    It’s the most transparent and bogus stance liberals take online.

    This is just another desperate distraction in the long slide into “O”blivion Barack Kardashian is destined for.

    Romney by 6-8 points as most undecideds DO break for the challenger; the Senate goes 53-45-2 Republican and more Republicans in the House. Obamunism had it chance and if Barack HAD governed as he ran, he would have had the race won in August!

    REPLY
    • M.R.S. Sheera@M.R. Heeman
      November 2, 2012, 9:07 am

      Agreed. We shouldn’t expect a bunch of white males to change their minds. Let’s talk about what’s really going to change this country to blue…

      Enjoy this close election… it’s the last one we will see for decades. The demographic changes with Latino children coming of voting age will wipe out the Republican Party. By 2016, we will see both Arizona and Texas go blue. It won’t matter if a Republican wins Wisconsin, Michigan, Ohio, Florida, all the normal western and southern states they usually get, plus new Hampshire and even Iowa at that point. Say goodbye to the White House friend. Obama will win, and this was the last good chance you had.

      REPLY
      • M.R. Heeman@M.R.S. Sheera
        November 2, 2012, 12:09 pm

        Liberals have multiple delusions about electoral dominance. It’s quite entertaining to glimpse into the dark side of ‘your’ next defeat.

        IF liberals, who comprise many times the abortions that conservatives do, would not have been so strident about abortion, your party would have had a dominant position decades ago.

        Latinos are not one-issue (flop-over on immigration) voters, like libs found out after the bogus ‘war on women’ effort died this fall. Latinos are overwhelmingly Catholic, which is very problematic for liberals. Latinos, as they see liberalism making them poorer and poorer with less and less freedoms, will escape the ‘barrio’ of Democrat dependance. Latinos want a better life for their children too and Obamunism stifles that, as we all see today.

        Obamunism has been an intentional failure which won Republicans the 2010 cycle, wins this cycle coming up and the 2014 cycle; it will take time for the liberal lies to take hold once again.

        As blacks are breaking free from ‘the plantation’ after Obama abused them and took them for granted; the independent and the undecided now break for Romney / Ryan and solidify as life gets better post-Obamunism – democratics up and down ‘the ticket’ will sukk wind for a few cycles in the equivalent of ‘throwing rocks in the street’.

        REPLY
    • James Strong@M.R. Heeman
      November 3, 2012, 5:31 am

      Wait… Romney earned millions of dollars due to billions of your taxpayer dollars being donated to the auto industry… And you’re talking about Obamunism? We have a serious problem with redistribution of wealth, but the problem is government handouts to corporations, not communism. Romney being “pro-business” will only make this problem worse, just like the exploding deficit under 8 years of Bush.

      REPLY
  • Bobbie Hollis
    November 3, 2012, 7:25 am

    I’m of the same church as Romney and I voted for Obama for a few of the following reasons:
    * Romney is world diplomacy challenged.
    * He gave some odd talk where he compared Sandy disaster cleanup to cleanup after “his” high-school football game. What kind of school did he attend, a demolition derby or is he just totally clueless?
    * Quoted so many wrong facts during the debates.
    * Wouldn’t release 10 years of his tax returns siting tithing to The Church as a reason. Well, we know why now, don’t we.
    * His show of help for NJ victims was basically a sham.

    There were more, but you get the idea.

    That is why this conservative Independent Mormon voted for Obama in this election. I love The Church of Jesus Christ of Latter-day Saints, but I was not going to vote for someone that I could NOT see as fit to be this Nation’s President.

    REPLY
    • CMB@Bobbie Hollis
      November 4, 2012, 10:48 am

      Thank you. My many Mormon relatives don’t seem to understand math or law.

      REPLY
  • Tommy Kestler
    November 3, 2012, 11:39 am

    POOR UNION WORKERS YOU NEED TO GO TO SOME WHERE PEOPLE LIKE U HAVE HURT THIS COUNTRY MORE HARM THAN EVAN oBAMA

    REPLY
    • Chel Knight@Tommy Kestler
      November 4, 2012, 8:33 am

      Don’t you understand that without the worker’s unions, YOU, as an employed American Citizen (I’m suspecting that you are employed…although I see that you are NOT EDUCATED by your lack of proper grammar and understanding), you would not have worker’s compensation, vacation time, sick leave and any other benefits that you utilize?

      Without worker unions, children would be working in sweatshops here in the US, there would be no minimum wage set and there would not be set hours of work time.

      How ignorant you must be to make a comment that unions are hurting this country. It’s people like YOU…uneducated and ignorant…that is ruining this country! LEARN YOUR US HISTORY BEFORE YOU OPEN YOUR MOUTH!

      REPLY
      • Maria Gomez@Chel Knight
        November 4, 2012, 6:50 pm

        Politics aside, it is very sad when citizens do not know about the history of unions in this country. Union members have fought and died to better working conditions for all of us since 1842. They: gave us the weekend, assistance ending child labor, fair wages, spearheaded the family & medical leave act,& won widespread employer-based health care and retirement benefits. Union members and their families were tortured, to death sometimes, because of fighting for all of us to have safe working conditions. Here’s a link about what unions have done for us on CNN (mainstream corporate media endorsing the republican party.) Yes I agree with the previous writer. It is ignorance that is ruining this country.

        REPLY

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