By Jon Swaine
Mitt Romney may have breached state ethics laws as Governor of Massachusetts by holding a stake in a company that did lucrative work for his administration and was linked to the family of Paul Ryan, a Daily Telegraph investigation has found.
The Republican presidential candidate appears to have profited from a marketing company that was contracted by the state of Massachusetts after receiving $5 million (£3.2 million) in financial backing from Bain Capital, Mr Romney’s investment firm.
One of his vice-presidential candidate’s brothers, who is a former Bain consultant, was at the time of the investment a senior executive at the marketing company, Imagitas, which was co-founded by another former Bain executive.
Both Mr Romney and Tobin Ryan, who omits his work at Imagitas from his corporate biography, also apparently stood to benefit from the $230 million (£146 million) sale of the company in 2005, while Mr Romney remained in office.
Massachusetts law requires that all state employees divest themselves of financial interests in private sector contracts with state agencies. At the time, failure to do so could have resulted in a $2,000 (£1,273) fine or a 2.5-year prison sentence. The potential punishments are now stronger.
Asked repeatedly by The Daily Telegraph throughout this week whether Mr Romney had indeed profited from the company, had been aware of the potential conflict of interest, or had taken any action to avoid one, his campaign and Bain Capital declined to comment.
- The Mitt Romney-Paul Ryan’s Brother Money Connection (economicpolicyjournal.com)
- Paul Ryan: Randian poseur – Salon.com (jeenyuscorner.com)
- Paul Ryan Changed Financial Disclosure Forms While Being Vetted By Romney (alan.com)
- 10 Reasons Why Mitt Romney Had Picked Paul Ryan As His Vice-Presidential Running Mate (listofx.wordpress.com)
- Paul Ryan’s major private equity connection (finance.fortune.cnn.com)