Friday, July 20, 2012

Mitt Romney's ties to IRS Commissioner

How can anyone have $100 million in an IRA account? Wouldn't that raise a red flag? Was Mitt Romney ever audited by the IRS?

Doug Shulman has been the Commissioner of the Internal Revenue Service from 2008 under George W. Bush until the present. He was named as one of 100 of the most influential people by Accounting Today.

Like Mitt Romney, Commissioner Shulman is also very much a "private equity" guy. Shulman began his career at the global investment consulting firm of A.T. Kearney from 1996 to 1997 in their New York City office. A.T. Kearney was a direct competitor of Mitt Romney's Bain Capital.

(It's also worth noting that Doug Shulman and Mitt Romney are also both Harvard alumni)

Doug Shulman was the vice president of Darby Overseas Investments Ltd. (a limited liability corporation) from 1998-2000 where he managed financial and legal aspects of the company’s transactions for the holding company and general partner of several private investment funds.

In 2000, Shulman founded his own private equity consulting firm, FoundryOne Inc., which specialized in new business ventures in technology.

Shulman was the executive vice president of the National Association of Securities Dealers from 2001-2007. The NASD, a "self-regulatory" organization of the securities industry, is responsible for the operation and regulation of the Nasdaq stock market and over-the-counter markets. It also administrated exams for investment professionals, such as the Series 7 Exam. All individuals seeking to become a stockbroker must take the General Securities Representative Exam, commonly referred to as the Series 7 or Stockbroker Exam.

Shulman was also the vice chairman of the Financial Industry Regulatory Authority (FINRA, successor to NASD), the parent organization of NASD Regulation, The American Stock Exchange, NASD Dispute Resolution and The Nasdaq Stock Market (overseeing Bernie Madoff)

Shulman also sat on the board at the Depository Trust & Clearing Corporation (DTCC). He is a very well-connected man. DTCC was established in 1999 as a holding company to combine The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). It was set up to provide an "efficient and safe" way for buyers and sellers of securities to make their exchange, and thus "clear and settle" transactions.

The DTCC was formed just after The Gramm-Leach-Bliley Act was signed into law by President Bill Clinton in 1999. It repealed part of the Glass–Steagall Act of 1933, opening up the market among banking companies (i.e. Goldman Sachs), securities companies (i.e Enron) and insurance companies (i.e. AIG). The Glass–Steagall Act had prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company.

The full Senate confirmed Doug Shulman to lead the IRS in March 2008. He said he doesn’t intend to stay in the job after his five-year term expires in November

Mitt Romney (also a "private equity" guy) has $100 million in an IRA account. Was Doug Shulman ever audited by the IRS before becoming its commissioner? Did Shulman also have Swiss bank accounts? He would certainly have a lot of knowledge on the subject.

Was there ever a time when Doug Shulman and Mitt Romney ever crossed paths? After all, don't they know their competitors?

The shadowy underworld of the private equity market has been grossly under-regulated and wrought with fraud and Ponzi schemes for a long time. Big accounting firms staffed with the best tax attorneys that money can buy, governed by nobody but a tax commissioner who has also made a career in private equity.

I'm not accusing anybody of anything, I'm just asking. (Google "Bud Meyers Tax Evasion")

>>> The 99% Cheer as 50% of the 1% to be Tried for Tax Evasion

Other "private equity" guys:

  • Bernie Madoff holds the world-record for biggest Ponzi scheme in history. Madoff stole billions while chairing the Nasdaq and maintaining cushy relationships at the SEC. He received the maximum sentence of 150 years in prison.
  • Joseph P. Nacchio - The CEO of Qwest Communications International. He was convicted of 19 counts of insider trading in Qwest stock and was sentenced to six years in federal prison
  • Kenneth Lay and Jeffery Skilling -- Enron -- Total Scammed: $74 Billion.
  • Thomas Joseph Petters - The former CEO and chairman of Petters Group Worldwide and convicted for turning his company into a $3.65 billion Ponzi scheme. He received a 50 year federal prison sentence.
  • Raffaello Follieri was accused of misappropriating a $50 million investment from billionaire Ronald Burkle meant to buy up Roman Catholic churches. Bishop Joseph Anthony Galante was implicated in the scandal.
  • Dr. Gerald Barnbaum - Medicaid fraud, mail fraud, identity theft, sexual battery, medical malpractice and second-degree murder.
  • Eugene Plotkin and David Pajcin, both formerly of Goldman Sachs, were the masterminds behind a complex Wall Street con and a scam using strippers to solicit information from Wall Street bankers.
  • Richard Scrushy - He was once the superstar CEO of HealthSouth, a huge provider of outpatient rehab services until federal prosecutors accused him of masterminding a $2.7 billion fraud.
  • Samuel Israel III turns his wall street hedge fund, "Bayou Investments", into a Ponzi scheme after poor management, then attempts a fake suicide to flee prosecution.
  • Dennis Kozlowski - He was once described as "The Most Aggressive CEO in America," now sits behind bars. A poster boy of excess, the former CEO of Tyco stole millions from his company, using the money for a lavish party, a gilded shower curtain and expensive art.
  • Anthony Elgindy - "The Mad Max of Wall Street" - The founder of Pacific Equity Investigations was a short seller who made millions in a trading scam using government secrets.
  • Lou Pearlman - The manager of bands like *NSYNC and The Backstreet Boys and masterminded scams of $500 million from investors in the longest running Ponzi scheme.
  • Al Parish - An economics professor and a trusted financial advisor was sentenced to federal prison after pleading guilty to financial fraud. Nearly 600 people lost up to $90 million invested in Parish Economic's private investment "pools."
  • Sholam Weiss - He helps fix the National Heritage Life Insurance's gaping $35 million accounting hole, and ends up partnering up with them - and bilking customers out of $500 million. He was sentenced to 845 years in prison.
  • Robert W. McLean - An investment manager and arts patron who traveled by limousine and ran a Ponzi scheme that had siphoned tens of millions of dollars from close friends and business associates. He eventually killed himself.
  • Stephen Trantel was once a Wall Street insider, a broker making hundreds of thousands of dollars in the Manhattan trading pits. After becoming unemployed, he started robbing banks.
  • Nancy Kissel murders her husband Robert Kissel, who had been a vice president in Goldman Sachs' Asian special situations group. His brother, Andrew Kissel, who had been accused of defrauding a New York co-op board of millions of dollars, was found murdered at his rented Greenwich, Connecticut estate.
  • Troy Titus - A disbarred and disgraced attorney who was sentenced to 30 years in federal prison for defrauding clients and friends out of more than $8 million in Ponzi scheme.
  • Alberto Vilar - An investor who was known as "a patron of opera". He was tried and convicted in November 2008 on charges of money laundering, investment advisor fraud, securities fraud, wire fraud and mail fraud, and was sentenced in February 2010 to nine years in prison.
  • Danny Pang - He was the CEO of Private Equity Management Group who ran a Ponzi scheme and made millions betting on when people will die. His wife, ex-stripper Janie Louise Pang, was murdered in the Villa Park house, possibly by a contract killer, after she took steps toward a divorce. He has also since died. Wall Street Journal
  • Marc Harris promised financial freedom to people with off-shore bank accounts as a way to keep assets out of the reach of government. But the "guru" was running a Ponzi scheme and bilking clients out of millions of dollars.
  • Greater Ministries International - A story of religious fraud and a $500 million dollar pyramid scheme.
  • Robert Allen Stanford - He was the chairman of the now defunct Stanford Financial Group and was a sponsor of professional sports - - now accused of a massive Ponzi scheme.
  • Larry Salander - One of the biggest names in New York’s art world (Salander-O’Reilly Galleries), but collectors see red when he swipes more than $100 million from their pockets.
  • Sholom Mordechai Rubashkin - The former CEO of Agriprocessors, now-bankrupt slaughterhouse and meat packing plant. He was convicted of 86 counts of financial fraud, including bank fraud, mail and wire fraud and money laundering. In June 2010, he was sentenced to 27 years in prison.
  • William “Boots” Del Biaggio III - A venture capitalist and former co-owner of the hockey team San Jose Sharks. He was sentenced to eight years in prison and more than $67.4 million in restitution for misappropriating funds from individual investors he advised.
  • Scott W. Rothstein - A disbarred lawyer and the former managing shareholder, chairman, and chief executive officer of the now-defunct Rothstein Rosenfeldt Adler law firm. He was accused of funding a massive 1.2 billion dollar Ponzi scheme.
  • John Bennett - His Foundation for New Era Philanthropy operated a notorious Ponzi scheme. After having raised over $500 million from 1100 donors, he embezzled $135 million.
  • Martin Frankel - A financier and con-man who vanished with $200 million dollars. A story of money laundering, prostitution, bizarre sex and drug abuse.
  • Eric Stein - Masterminded one of the largest Ponzi schemes in Nevada history, cost his victims nearly $34 million.
  • Reverend Abraham Kennard - As many as 1600 churches nationwide are swindled out of $10 million.
  • Reed Eliot Slatkin - An ordained Scientology minister and co-founder of EarthLink was the perpetrator of one of the largest Ponzi schemes in the United States since Charles Ponzi himself.
  • Robert Ray Courtney - A former pharmacist who owned and operated Research Medical Tower Pharmacy. He was convicted of pharmaceutical fraud and sentenced to federal prison.
  • Bernard Ebbers - The CEO of WorldCom becomes the poster child for everything that went wrong on Wall Street in the 1990s. WorldCom's eventual downfall shakes the financial community and the lives of thousands of investors.
  • Stefan Wilson - Operated a fraudulent investment fund. His Ponzi scheme took almost $13 million from over 50 investors and landed him 20 years in prison.
  • Marc Dreier is a high-powered lawyer with celebrity clients. But Dreier is a conman and steals more than $700 million from hedge funds.
  • Arthur Nadel - Manages the hedge fund Scoop Management Co, a $350 million fund. In the blink of an eye, he disappears and leaves clients without their life savings.
  • Joseph Medawar - A television producer runs a scam to rob investors out of millions of dollars.
  • Barton Harry Watson - One the chairman of Cybernet, a wildly successful global technology company, he stood accused of stealing millions in an elaborate fraud.
  • Dana Giacchetto - Advised Hollywood's hottest stars (from Leonardo diCaprio to Ben Affleck) But his star-power faded when nearly $10 million goes missing, for which he spent 5 years in prison.
  • Alfred Taubman - A wealthy art collector and the former chairman of Sotheby's who is now a convicted felon for the price-fixing scandal at Christie's and Sotheby's.
  • Nevin Shapiro - A University of Miami football booster who is currently imprisoned for orchestrating a $930 million Ponzi scheme. He even purchased a yacht on which sex parties with prostitutes were held.
  • Kenneth Starr - An accountant to stars like Sylvester Stallone, Diane Sawyer, and Wesley Snipes, but mismanages his clients’ money, pockets millions, and then he marries an exotic dancer. But then later he gets more than seven years behind bars for a multimillion-dollar investment scheme.

Doug Shulman's Education:
Georgetown University Law Center, JD
John F. Kennedy School of Government
Harvard University, MPA (Mitt Romney also went to Harvard)
Williams College, BA.

Sources:
http://www.finra.org/Newsroom/NewsReleases/2001/P011431
http://www.baincapital.com/Team/ManagingDirectors.aspx?viewType=ManagingDirectors
http://www.darbyoverseas.com/darby/index.jsp http://en.wikipedia.org/wiki/General_Securities_Representative_Exam
http://en.wikipedia.org/wiki/Bain_%26_Company#Competitors
http://uicaccounting.org/Readings/Career/Top-100-Accounting.pdf
http://en.wikipedia.org/wiki/Douglas_Shulman http://www.investopedia.com/terms/n/nasd.asp#axzz21B3Dmup7
http://www.allgov.com/Official/Shulman__Douglas http://goingconcern.com/post/doug-shulman-five-years-irs-commissioner-plenty-me-thanks
http://en.wikipedia.org/wiki/A.T._Kearney

1 comment:

  1. The Latest on Mitt Romney...

    Mitt Romney REALLY IS the "outsourcer-and chief".

    http://www.motherjones.com/politics/2012/07/mitt-romney-bain-outsourcing-flextronics-jabil-circuit

    6 VERY GOOD REASONS not to vote Mitt Romney:

    http://www.motherjones.com/politics/2012/07/what-is-mitt-romney-hiding

    ReplyDelete