HOW MITT ROMNEY MADE HIS MILLIONS

Mitten$ worked for a major private equity firm, Bain Capital, and thanks to the Dodd-Frank legislation, we now have more insight into the workings of these companies:

One scam is to fire employees of the private equity firm and rehire them immediately as “consultants.” The investors are responsible for consultants’ salaries, where private equity employees are paid out of their own pockets. Another is taking what most private equity investors believe to be part of management fees, things like legal and compliance costs, and billing their investors for them without the investors properly knowing it. A third is private equity firms lying about the valuation methods they use to tell investors about the returns they make each year.