According to a cited Forbes report, in 1989, Bain Capital purchased controlling interest in Damon Clinical Laboratories Corporation, a medical testing company located in Needham, Massachusetts.

In 1996, Damon admitted that from 1988 to 1993 it had shored up its earnings by submitting false claims to Medicare and other federal programs, and had agreed to pay , after being found guilty, a $35.3 million criminal fine — one of the largest corporate fines in U.S. history — and an additional $83.7 million to settle the lawsuits..

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In 1993, Romney claimed he was unaware of any investigation — quoted in the Boston Globe on Oct. 10, 1993. When the Globe revisited the case during Romney’s run for governor in 2002, his story was different. Romney’s story changed about his knowledge of the investigation.

The Globe, disclosing that Romney had earned $473,000 from the sale, reported on Oct. 10, 2002

Romney Was On Damon’s Board Of Directors While The Fraud Took Place – He Initially Claimed He WasUnaware Of Any Criminal Investigation.
“Mitt Romney, former Republican challenger to US Sen. Edward M.Kennedy, who was a member of Damon’s board, said he was unaware of any investigation. … Romney said that[Damon’s then-CEO Robert] Rosen told the board in about 1992 ‘that all current practices at the company werenow in conformity with government regulations and that in the past there may have been practices which wouldnot be deemed appropriate.’”
(Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,”
The Boston Globe
, 10/10/96)


“Made Large Profits … From A Criminal Scheme To Fraudulently Bill The Federal Medicare System…”
“[Romney] and his venture capital firm made large profits from the 1993 sale of a Needham medical testingcompany whose robust revenues were generated in part from a criminal scheme to fraudulently bill thefederal Medicare system for unnecessary blood tests.”
(Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,”
The Boston Globe
, 10/10/02)

“Pure And Simple … Corporate Greed Run Amok.”
“Damon Corp. pleaded guilty in 1996 to a federalconspiracy charge of defrauding the government of $25 million between 1988 and 1993. It paid a record $119million fine and penalty for a scheme that then-US Attorney Donald Stern labeled ‘a case, pure and simple, ofcorporate greed run amok.’”
(Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,”
The Boston Globe
, 10/10/02

1993: Immediately Following Acquisition By Corning, Damon Closed Plant In Needham Heights, Laid Off115 Massachusetts Workers.
“Republican businessman Mitt Romney … helped direct a Massachusetts medicaldiagnostics company toward a merger that resulted in the permanent closure of a Needham Heights plant andlayoffs of about 115 Massachusetts workers. Damon Corp. was headquartered in Massachusetts for more than30 years until it was purchased by Corning Inc. in 1993 and the Needham facility was closed. … The day after themerger with Corning was completed, the new company notified the Massachusetts Department of Employmentand Training that it was permanently closing the Needham plant and laying off about 115 people.”
(Meg Vaillancourt,“Romney-Aided Deal Closed Damon Plant,”
The Boston Globe
, 10/9/94)

Romney “Feared” The Massachusetts Layoffs Would Come, But Voted To Approve Deal Anyway