“From another article on the verdict: “The case went beyond the nursing home’s extreme negligence that resulted in Townsend’s death and revealed its investors had conspired to run the nursing home chain into insolvency without any regard to residents’ care. ”
Oof. Ironically, the nursing home residents may not have been the casualties of the scandal. Bruce’s campaign may follow suit. I see him writing another million dollar checks for ads in 3, 2, 1…
This is much worse than Brady’s dog controversy. So long Mr. Rauner?
- Pot calling kettle - Wednesday, Jan 22, 14 @ 2:29 pm:
Especially interesting about the article is the author (Doug Ibendahl, a former General Counsel of the Illinois Republican Party) and how he opens by questioning the concept of running government like a business.
The other thing is, from a business viewpoint man you really have to have your ducks in a row to even get into this sort of healthcare business. Between the various regulators, the litigation, etc. it is one of those businesses you really have to be sure you are getting everything right.
I suspect there is more coming on this. Also I suspect you will not see Bruce at any more public forums.
===I think Bruce is about to take a 56 day long “business trip” ===
Nah. He’ll try to spend his way through it.
- truth hurts sometimes - Wednesday, Jan 22, 14 @ 2:54 pm:
“An expert forensic accountant testified that Rauner’s GTCR founded THI in 1998 with a plan to create the largest privately owned nursing home company in the country through a series of mergers and acquisitions. Their Boards of Directors were composed solely of investors and bankers, and did not include a single health care official.”
This is just another wave, until the Ads make it stick.
Billionaire Rauner, “Is this ‘it’ or is there more?”
Rauner Crew, if you are not asking yourselves this question, than the Crew, better start asking fast, or planning on responding to Ads with not only denied children and schools, but …Gramma… Grampa…and greed there too.
Wow, the ammo is really piling up for Quinn, assuming the GOP primary voters are dumb enough to nominate Rauner. Ler’s recap, Rauner’s firm hired Stu Levine, the CFO who perpetuated an Enron-style fraud while netting Rauner millions, and now Rauner hired bean counters to run nursing homes where substandard care was the business model.
He wants to run Illinois like a business? I sure hope he doesn’t run it like one of his businesses. Who is he going to hire to run Illinois?
Please vote for this guy. Pretty please!
- Boone's is Back - Wednesday, Jan 22, 14 @ 3:03 pm:
Question is does anyone have the money to buy the gun in which to use said ammo….
I served on a county nursing home committee for two years. I watched first hand as seniors endured the brunt of budget cuts, many of which had to be made because of falling revenues, and the restructuring of Medicare and Medicaid reimbursements. Tough decisions have to be made in those instances, and there is little that can be done at the local level.
However, when private interests come in the picture, and knowingly try to bankrupt nursing homes, with no regard for residents, there is no excuse. Shameful Mr. Rauner. Absolutely Shameful. As a conservative, and republican primary voter, I hope this is the end of of Mr. Rauner’s campaign.
Off topic, but Illinois Review is reporting that Lou Lang submitted a letter to the State Board of Elections asking it to investigate Rauner’s payroll reporting. You know, the $558,278.53 of secret payments to secret people.
- Arthur Andersen - Wednesday, Jan 22, 14 @ 3:14 pm:
Hey Cinci, how many names have you used on this post so far?
Even with this, your guy is going nowhere at warp speed. “Truth hurts sometimes” eh?
To the post, cue one new barrage of Rauner teevee ads. Ignore it and drown it out.
O.M.G.! I don’t think he can “watch” or “hammer” his way out of this. It makes Jack Ryan’s divorce papers seem very trivial–(well, they actually were)–but this is mind boggling. It confirms every stereotype Scrooge McDuck image that the Carharts tried to dispel.
Is this going to get mainstream media coverage? Because if not, none of Rauner’s GOP opponents has the cash to get the word out. Quinn will, however. If I were Rauner I would almost wish that someone would bring it up in the primary. Maybe soften the blow a little. The alternative is to wait until next summer and see Quinn and the Democrats introduce it in a big way.
I think Rich may be right about the Rauner reaction. He can afford to spend a million a day until the primary running ads to discredit this report. I have no doubt that the report is accurate. What a despicable act. It makes more sense for Rauner to be in jail than in the Governor’s mansion.
- Grandson of Man - Wednesday, Jan 22, 14 @ 3:27 pm:
“Reading this again, it is twice as sickening.”
This is the same feeling I had. This guy has the audacity to attack unions that help middle class workers get decent government pay when he slurped up millions of dollars at the government trough himself.
- Arthur Andersen - Wednesday, Jan 22, 14 @ 3:27 pm:
All over it, Willy. Good day for some Tweetering while I’m “over there.”
“According to trial testimony, this group conspired to run a nursing home chain into insolvency”
that simply does not seem like a credible assertion. What would have been gained for GTCR by *setting out* to bankrupt the company?
Admittedly, from a certain perspective, an LBO will always look like a “conspiracy to run [the acquired business] into insolvency”, but that isn’t well founded in fact. Anyone playing up THAT aspect of this story is just giving Rauner an escape hatch. If you want to bring him down, *completely* ignore the “conspiracy to bankrupt”–it’s far too easy to counter.
===that simply does not seem like a credible assertion===
It does if you look at some of the links. The allegation is they took out as much money as possible for the corporations above. At one point, the nursing home in question didn’t have enough cash to buy supplies.
- Just The Way It Is One - Wednesday, Jan 22, 14 @ 3:30 pm:
Needed a break and so I read this tidbit. Unbelievable. Instead of getting coffee, I got a headache instead. What brand of “baloney” will Baron von Carhartt try to pass THIS latest debacle off as? How’s about: “Oh, what the He_ _–They’re Old and Poor and so Another One Bites the Dust while I’m Laughing All the Way to the BANK” Brand?! Pathetic. The deeper folks dig into the Rauner Closet it seems, the uglier–REAL Uglier–the Skeletons are which seem to eerily emerge!
And THIS time, he’d better not try to skirt around it and feebly attempt to gloss it over, either, by flashing up some Cutsie TV Ad with his arms around a bunch of innocent Seniors blabbering on about how he’ll be there to help them! Don’t EVen Brucie! Because with THIS latest revelation, he’s not “shaking up” ANYthing–but rather has shaken UP the sensibilities of the good People of Illinois, particularly its’ Senior Citizens and the Elderly!!
But don’t expect any real accountability once he’s asked how he could DO such a thing–no, rather, count ton just more of the same wishy-washy gobbledygook, flip-floppin minimization, or worse yet, outright, lame avoidance by lashing out loudly against the factual suggestion of any obvious improprieties committed against innocent, old victims in the twilight of their lives–and then trying to deflect the harsh truth of it all by attacking the GOVernor, of course, as if this latest Rauner Garbage Pit is all HIS fault somehow…!
- hisgirlfriday - Wednesday, Jan 22, 14 @ 3:31 pm:
Don’t know why I never bothered to look up GTCR’s litigation history for my own amusement previously. Yowza.
Would be interesting to crossreference some of the names of the filings with Rauner’s campaign donations. I certainly understand his support from within Kirkland & Ellis better. LOL.
You know, if Rauner makes it through the primary through dumping millions into adds and drowning out everybody else and this all comes to light forcimg him out of the race, the state GOP shoild keep in mind that Alan Keyes isn’t up to much these days.
This actually has the potential to create another situation where the party will have to appoint a candidate, so this is only half snark
Ok, ok we will see how this plays out. But for those of you not familiar with the nursing home industry let me explain some things to you:
1) Nursing home industry is a money loser, generally, due to the reasons Ibendahl discusses in his article (medicare changed how they reimbursed).
2)Cases exactly like what is being described by the plaintiff attorneys are occurring all over this country as we speak. I can promise you it is happening in your hometown in multiple nursing homes.
3) Nursing homes can only react to decreased reimbursement by cutting staffs to bare bones, making care frequently less than ideal.
4) This is an ongoing national tragedy which many people aren’t aware of, but it is widespread, I can promise you.
5). Plaintiff attorneys have realized this is an area ripe for litigation and they are making a bunch of money off of it, and it may be justified. But you have all seen the ads on TV asking “has your loved one been injured in a nursing home?”
Ok the point of all this is not to excuse whatever direct involvement Rauner may have had in these cases…….
The point is that many many many more cases nursing home neglect are still occurring all over the country even as we speak because of structural reimbursement problems with medicare.
Rauner, I can assure is not responsible for this structural reimbursement issue across our entire country.
It may be the he made a very unwise investment plan and business model in an industry which is a loser and which he didn’t fully understand, and it is possible that GTCR may have done things above and beyond the structural reimbursement issues described…..we will find out.
But don’t delude yourself into thinking that Rauner uniquely caused nursing home neglect. this is a terrible terrible widespread phenomena across our entire country which needs to be addressed and ameliorated.
As for Mr Rauner’s direct involvement and culpability, we will see……
Wordslinger: sorry, I got cut off. I agree with you, BUT that concept we learned about in college called ‘cognitive dissonance’ says to me that a likely Rauner supporter will still find some way to discredit that report in his/her mind in order to find their way to vote for Rauner.
Wow.( I am pretty sure that is the first time I have had that response in one day on this blog. Maybe not even twice in a year. )
First I don’t know and don’t care about kids and now we find out it’s the same about seniors. A governor for all? I don’t think so.
If I were Kirk, Dan or Pat I would be going back to the political groups that have already endorsed Bruce and shame them into retracting it.
=== I agree with you, BUT that concept we learned about in college called ‘cognitive dissonance’ says to me that a likely Rauner supporter will still find some way to discredit that report in his/her mind in order to find their way to vote for Rauner. ===
I agree… just look at some of the ignorant comments to the article below. I know comments on internet articles like these can bring out the crazies sometimes, but man, this stuff is cold as ice.
- Andrew Szakmary - Wednesday, Jan 22, 14 @ 3:47 pm:
I wonder with the Christie scandal in New Jersey and now McDonnell here in Virginia if the media will start reporting on this of their own accord. It seems like corruption and abuse of power among Republican governors or wannabe governors is an emerging trend, and the mainstream media is not exactly friendly to them.
Reminds me of an old Yosemite Sam cartoon in which Sam was scheming to get his hands on an old lady’s fortune and gloated that he was going to “buy the old folks home and kick all the old folks out!! Bwaaahahaha!!!”
Except, of course, that this involves real people and isn’t at all funny.
As others have noted, one must always consider the source. The original post on Jere Beasley appears to largely be a press release distributed by the firm of Wilkes & McHugh, P.A.
Even so, one part in particular really cries out for attention:
=== When Medicare money for residents’ rent flowed into the THI account, GECC and Ventas took their share before monies were available to cover payroll, supplies, utilities, etc. for the hundreds of nursing homes, according to evidence presented at trial. Insider operators and former employees began suing GTCR/THI over poor management, as did nursing home residents and their families because of what was described as abysmal care. ===
Commenters have highlighted a number of excerpts, but none have focused on this. It’s the clearest and most powerful part.
“Tell that to those families too. Very insensitive.”
Is this topic off limits to sarcasm?
In spite of their suffering, perhaps the family members would — considering Rauner’s campaign ads — recognize and appreciate it.
- Chicago Cynic - Wednesday, Jan 22, 14 @ 4:06 pm:
O U C H! Yes Rich, you nailed it. This one’s gonna hurt, especially if someone can put any real $$$ behind it. Too bad his opponents are all running such Godawful campaigns. Someone has to emerge to be the “not-Bruce”, but Rutherford continues to fail to grab for the mantle that should be his.
“He has a responsibility to know what is going on in that nursing home.”
Not that I disagree with the thought behind this BUT:
What is the chain of responsibility that made Bruce (who was likely not involved in the direct management of THI) responsible to know what was going on with an individual resident? Not ‘morally responsible’, but ‘business responsible’.
And, to be clear, not trying to defend the company or GTCR or Rauner.
“Zero people are arguing that here. He has a responsibility to know what is going on in that nursing home. He didn’t know? Sure, let’s give him the benefit of the doubt.
But those people are dead because of the choices of his firm. That cannot be excused.”
Sorry Lurker, it is a terrible thing which happened to the residents of the nursing homes with GTCRs alleged involvement. But just so you know there are many more terrible things happening in nursing homes all across this country that GTCR has nothing to do with whatsoever.
That is something that you guys need to know and is a fact.
We will find out soon enough if GTCR did something uniquely neglectful, or just happened to be involved in an industry where neglect is all to pervasive and which has not end in sight unless reimbursement reform occurs.
Any incident of neglect in an skilled nursing facility is terrible, regardless of who owns it. But I can promise you it is not a problem unique the homes owned by GTCR.
- LincolnLounger - Wednesday, Jan 22, 14 @ 4:19 pm:
I hope that empty chair for Rauner at debates/forums travels. I’m guessing it will be needed a lot in the next weeks.
== == But don’t delude yourself into thinking that Rauner uniquely caused nursing home neglect. ===
But I think that they had the idea that a business with a single major payer that is cash strapped was a huge business opportunity without even putting anyone in healthcare on the board seems daft on it’s face.
I suppose you can make the point there might have been a real estate play here at best. But this is/was one of those businesses you have to get right or you have a huge problem…
Medium Rare, it would be easier to take your comment as being reasonable had you not posted this the other day…
“Might as well call it the way it is…Bruce Rauner’s enemies aren’t trying to defeat him on philosophies of governance. Nope, they’re just throwing every resource they have to try to manufacture some scandal.”
There’s no law against being a shill. But you’ve got a very clear agenda here, so it’s best not to pretend otherwise.
- Grandson of Man - Wednesday, Jan 22, 14 @ 4:23 pm:
“He didn’t know?”
How could he? He’s just a regular guy who wears Carhartts, sleeps in budget motels, eats Raisin Bran and wears an inexpensive watch.
“there are many more terrible things happening in nursing homes all across this country that GTCR has nothing to do with whatsoever.”
And there were numerous terrible murders all across the country that John Wayne Gacy had nothing to do with, so it was unfair for the people of Illinois to hold Gacy responsible for his actions without waiting until “reform occurs”!
Not ‘morally responsible’, but ‘business responsible’.
I mean, isn’t this a question you could ask about George Ryan and the SOS under Ryan’s watch? Same here for Rauner (I assume). if your name’s on the sign — metaphorically or literally — you have to at some point take responsibility — or at least accept the blame.
The idea that Rauner can deny with a “well, I wasn’t responsible for these individuals” or “I can’t possibly know what’s going on with a specific nursing home” seems absurd — especially when his name really is on the sign.
===- Rich Miller - Wednesday, Jan 22, 14 @ 4:21 pm: |Edit
Medium Rare, it would be easier to take your comment as being reasonable had you not posted this the other day…
“Might as well call it the way it is…Bruce Rauner’s enemies aren’t trying to defeat him on philosophies of governance. Nope, they’re just throwing every resource they have to try to manufacture some scandal.”
There’s no law against being a shill. But you’ve got a very clear agenda here, so it’s best not to pretend otherwise.===
Funny thing about being… a shill. You are then part and parcel of everything your guy has to wear the jacket for too.
If you aren’t embarrassed by your comments, the you have to own them.
“so a huge profit could be stuffed in their pockets.”
Do you know that? If this was one of the half of GTCR’s deals that lost 100% of the investment, that gives a basis for deflection, too.
Don’t focus on the basically irrelevant–focus on the “GTCR ran a health care company in a negligent (as evidenced by the multiple jury verdicts) fashion that lead to the deaths of multiple patients”.
It’s not the same thing as the Columbia/HCA medicare fraud that didn’t stop Rick Scott from winning in Florida, which was all about money. This one is (almost) all about the patients–focus on the money, you give Bruce something he can use to deflect.
Rich, I can assure you I am no shill. If there is something legitimate to these charges, Rauner should answer for them. But I’m not sure people on here realize the generally atrocious conditions of a very high percentage of our nursing homes across the country.
I think it is pretty clear that many people invested in nursing homes across the country with a purely speculative financial play, and they themselves did not fully understand the human tragedies which would be continuing to unfold. Healthcare entities like skilled nursing facilities and rural and inner city hospitals cannot solely be run on “business principles,” like other segments of the economy. I think many people are learning this lesson the hard way, but some may never learn.
It stops being alleged when a company has to pay out over a billion dollars in multiple lawsuits. Just because a lawsuit ends with someone paying money instead of going to jail doesn’t mean that they’re not guilty.
- Arthur Andersen - Wednesday, Jan 22, 14 @ 4:31 pm:
AA is taking a poll- anyone here feel even sicker about this if it came out that State retirees’ pension funds were used by GTCR to help fund this deal?
@ mediumrare==We will find out soon enough if GTCR did something uniquely neglectful, or just happened to be involved in an industry where neglect is all to pervasive and which has not end in sight unless reimbursement reform occurs.==
Yes, the industry is full of opportunistic investors who put patient care way below profits. Of course, GTCR just happened to be involved.
- Small Town Liberal - Wednesday, Jan 22, 14 @ 4:36 pm:
- many people invested in nursing homes across the country with a purely speculative financial play -
I only know of one running for Governor of Illinois telling everyone what a slick businessman he is. You’re a joke.
- Grandson of Man - Wednesday, Jan 22, 14 @ 4:36 pm:
“philosophies of governance”
Such as threatening to smash greedy union leaders after making millions or billions of dollars off of the government?
Also, in how many massive lawsuit settlements as a result of death and suffering were Karen Lewis and Henry Bayer directly or indirectly implicated?
Says the guy who comments almost solely on Rauner posts - back through two previous screen names including “skeptical spectacle” who wrote: “i’m sure all of the minimum wage workers are watching this video on captiol fax now. i’m sure the minimum wage workers will be dramatically affected by the negative ads the unions run in the newspapers they never read or radios they never hear.”
=== I think it is pretty clear that many people invested in nursing homes across the country with a purely speculative financial play, and they themselves did not fully understand the human tragedies which would be continuing to unfold. ==
Then they are, without a doubt, idiots…
The first rule when making a major investment in any industry is to understand that industry. To understand the risks as best you can and ask yourself a very simple question…
“What am I seeing here that others are not and what are others seeing that I am not”
That is why isn’t everyone making the same play I am? It really plays into his ‘I turn things around narrative’
Secondly, regardless of how many corporate entities you put between you and the problem the calculus is different when running for office or office than when in business.
Of course nobody is going to claim that Rauner should have known about the specific case of Arlene Townsend or Joseph Webb. Similarly, Rauner did not create the systemic flaws in the Medicare reimbursement system.
What he and GTCR did was to recognize those flaws and profit off of them. In the process, elderly sick people like Arlene and Joseph suffered. Mitt Romney was attacked for “vulture capitalism”, but at least Bain Capital was never accused of causing suffering and possibly death to people in nursing homes.
The ads have already written themselves. Here is what the Wall Street Journal had to say about companies like Bruce Rauner’s in 2000:
“The vultures are circling the carnage in the nursing-home industry. With some of the largest nursing-home operators under bankruptcy protection and others heading in that direction, a number of deep-pocketed investors are preparing to swoop in on the choice morsels.”
==I think it is pretty clear that many people invested in nursing homes across the country with a purely speculative financial play, and they themselves did not fully understand the human tragedies which would be continuing to unfold.==
Rauner’s “business genius” is his whole argument for the Governor’s job. You mean to tell me that he and GTCR made billions of dollars by merely speculating on companies? I am quite sure that they didn’t get rich by investing in industries/companies they didn’t understand.
I realize this is a political blog, but the sheer inhumanity of this is shocking. When did “Captains of Industry” in America become low, cheesy dirtbags? You make money doing stuff like this, you deserve nothing but contempt. And if I had my way, a prison cell for a very long time.
A commenter noted Mr. Rauner will look like Mr. Potter from “It’s a Wonderful Life.” Rauner’s firm GTCR, like Mitt Romney’s Bain, is coming across as evil and tough to explain.
Can Mr. Rauner channel an inner Jimmy Stewart? The Savings and Loan invested in so many others. Investing public pension dollars into various businesses - getting a beyond the usual market return on investment for the benefit of public pension holders.
Otherwise, Bruce Rauner, just a $curvy little $pider….$$$$$
- Arthur Andersen - Wednesday, Jan 22, 14 @ 5:01 pm:
What also bothered me when digging into the links was that the GTCR/THI Defendants essentially stopped participating in the lawsuits and default judgments were entered.
The ad nauseum amount of Rauner ads are starting to affect me like seeing Obama’s lies day after day … Instead of focusing on the sad choices for governor, we need to change the Senate and House, get rid of Madigan and the RINOs - that’s where changes can be made.
So…. Maybe Bruce can support DRuff now? Maybe Bruce can get out of the race for the betterment of the party…. I know I said nobody need leave… But maybe the farmer should… I really dislike the direction of our state… But PQ should buy lottery tickets… I am still buying popcorn! The Golden Horseshoe in the rear end is… PAT QUINN…Lucky man!
Von Carhartt is now Gordon Gekko; this is going to activate a whole ‘nother base of voters. If Dillard/Rutherford can’t make a dent with this, even thru proxies.. they don’t deserve a win.
For Liberal dems and the unions, this is just that much more raw meat for energizing the GOTV efforts. I can hear the door-walkers greet the elderly voters at their doors now: “Hi, did you hear what Rauner did to those poor old people?”
Not everybody is sympathetic to the union issue. But EVERYBODY has a grandma or grandpa, or elderly parent.
The otherwise pro-industry Tribune editorial board sided heavily with seniors and advocated forcefully for nursing home reform.
i would not expect them to shill for Rauner on this one.
But hey, who knows, maybe he will have yet another apologetic oped in the paper in the near future.
As for the Republican primary, Rich is correct that the older the voter, the more reliable they are, and middle age voters whose parents are either in nursing homes or are
headed that way are particularly concerned with the issue. They are already emotional, a potent cocktail of guilt and dread, and emotional voters are moveable.
Candidates lie, flipflop, and dabble in finances that border on if not stray into the unethical, so those types of accusations fall on voters like acid rain, requiring time and lots of repetition to erode support.
But it isnt every day a court declares a candidate was legally responsible for the death of an elderly person.
Accusations like that tend to break through the clutter.
Rauner will likely wait to respond until the MSM picks up on it, if they do. If they don’t, shame on them, and shame on the rest of the GOP field and especially those financing Rauner’s campaign if they sit quietly.
If I was one of the folks writing Rauner five and six figure checks, I’d be sick to my stomach right now.
@medicare: your comments on the difficulties and financial pitfalls of the whole nursing home industry are valid, but miss the key political points.
The keys that struck me were the judicial finding of “massive accounting fraud” by investors including GCTR affiliates, the use of Medicaid funding for campaign donation reimbursements, and the finding that the investors “improperly” took funds for their own enrichment instead of using them to support the companies.
That’s bad news in any industry.
When venture capitalists make more money by driving their acquired companies into failure and bankruptcy, harming customers, creditors, and other investors alike, then they operate counter to their touted “free market” ideals.
This is a nuclear bomb that’s been launched. When and where it lands is yet to be determined, but it will land, and it will destroy.
The electorate, whether primary or general, is pretty old and they sure as heck don’t like people making money off their healthcare with negligent death the end result.
Start running away Rauner folks. He isn’t going to make it.
- hisgirlfriday - Wednesday, Jan 22, 14 @ 5:55 pm:
You dismissed that other poster’s Rick Scott comparison as a driveby comment, but I admit the Rick Scott comparison to Rauner has popped in my head a couple of times recently where a part of me sees these revelations and remembers “well if a Medicare fraudster like Rick Scott could get elected…” The difference though is that there is no strong Democratic Party base/machine in Florida and Alex Sink had no money to fight him. Bit different to have this kind of record while playing on enemy territory to begin with.
- hisgirlfriday - Wednesday, Jan 22, 14 @ 5:58 pm:
“One of GTCR’s attorneys at Kirkland & Ellis LLP also has this interesting tidbit posted on the firm’s website: “Aegis v. TransHealtcare, Inc., et al. Represented TransHealthcare and GTCR private equity fund in litigation initiated by nursing home landlords in state and federal courts, alleging RICO violations, fraudulent transfer, and other torts. Resolved through settlement.”
AA: “What also bothered me when digging into the links was that the GTCR/THI Defendants essentially stopped participating in the lawsuits and default judgments were entered.”
GTCR/THI sold their interests in the opcos to Fundamental Long Term Care, Inc. in early 2006 (subject to the financing, no doubt) for nominal consideration. As the whole thing was set up with a stack limited liability entities, that’s what you do with a negative value business, especially one subject to a lot of litigation. Then the buyer was forced into involuntary chapter 7 in late 2011/early 2012.
Also would like to note that the GTCR entity that made the investment in THI was Fund VI. Fund VI, initially raised in 1998, still has a negative aggregate return on funds invested–that is, no one has made “millions” off of Fund VI. I don’t see how it is possible for the plaintiffs in these case to get behind Fund VI to parent GTCR, barring the sort of smoking gun that would likely lead to criminal prosecutions, too.
@ walker: ” the judicial finding of “massive accounting fraud” by investors”
Where is that? Rich’s link discusses a bunch of *testimony* more or less to that effect, but I do not see any reference to a ‘judicial finding’.
It’s the difference between testimony about criminal acts allegedly committed, and a finding of ‘guilty’, so the difference matters. Again, hang on that, you give him room to response that “the allegations are false” and explain it all.
Also, note that the testimony of the forensic accountant is quoted from a paraphrase used on a page on the *plaintiff’s* lawyers’ site–I’d bet you a dollar that the accountant was a paid expert for the plaintiff in the damages phase.
=== However, I fear this will more of an impact in the general. ===
Is that a bug, or a feature?
- In a warm Texas exile - Wednesday, Jan 22, 14 @ 6:14 pm:
I am an avid reader of this blog and I don’t believe I have ever posted a comment but this story disgusted me so much. I am a Democrat and felt that some of some of the Bain attack ads last year were over the top. Now I can’t think of an ad that would be worse then the truth! If any of the others in the race have any money, please run wild. I think now I can safely say that if Rauner is the nominee, Quinn will crush him down to dust!
- Arthur Andersen - Wednesday, Jan 22, 14 @ 6:14 pm:
That Kirkland & Ellis talent doesn’t come cheap.
Wonder how all this affected the “tremendous returns” that Team Rauner touts?
AA: “Wonder how all this affected the “tremendous returns” that Team Rauner touts?”
Sure, just ignore me.
Fund VI was/is a net loser, but not by too much. Can find info bc of pension funds who invested and have public disclosure requirements.
Interesting that THI turned into such a dog, so quickly (ie, in 2006, while Fund VI still had assets at least in 2013; ie, it wasn’t dumped to facilitate winding up the fund), that they didn’t even want to run it thru a chapter 11.
At what point does the deafening silence by the Rauner Crew become a liability, and not just a strategy.
Watching ABC 7 Chicago news; the “Upside Down” Rauner Ad is now in rotation. The selection of what is running is also going to be interesting these 2 weeks leading to the “Big Game” a week from Sunday.
*** === However, I fear this will more of an impact in the general. ===
Is that a bug, or a feature? ***
Sorry Bill. Trying to type too fast and left out the “have,” i.e. However, I fear this (story) will (have) more of an impact in the general. The reason is that I believe the issue will resonate more with general voters than GOP primary voters. Also, we have yet to see anyone in the GOP race who has the financial capability to get the message out. Quinn will not have that disadvantage.
- Arthur Andersen - Wednesday, Jan 22, 14 @ 6:29 pm:
That’s interesting, Willy. Here in the ‘Patch we’re getting “Brooks Brothers Plaid Term Limits” and “Pendleton Plaid Not You, The Union Bosses”
I’m late to the party but aside from the shill issue with medium rare. It’s also a little difficult to take the argument that all nursing homes just lose money when they frequently are at the top of the top campaign donor lists.
Hope this doesn’t harm FarmerBrucey s big term limit buy out scam….and that was going so well
Is Brucey still running the results of those numeral funds on the web site to tote the groovey returns?
I am not excusing the behavior…But I can’t help but wonder how many posts are done by a device “Designed in Cupertino, Made in China”?
Your Iphone is made by employing at slave wages. Your Nike shoes… Walmart?
Our State is a wreck. I may not have voted for the farmer, but it sure is fun to see folks answer for some of their transgressions too. Did we not read here just a few weeks ago about Madigan clouting jobs? He is in the lead, so target time. Well deserved. I suppose I am a bit depressed in the idea that no matter who it will be, same ole same ole….I just think the evil rich guy is an easy narrative, in this case, well deserved. But that doesn’t excuse the bums we we have either….
Let’s hope Gidwitz & Company act on their buyers’ remorse very soon and get Bruce out of this race so the GOP can move on and nominate a good candidate.
- Chicago Cynic - Wednesday, Jan 22, 14 @ 8:57 pm:
And fan, who would that “good candidate” be? If you watched that Chicago Tonight forum with the other three you’d realize there are no “good candidates” in the race. None. Four more years…whether we like it or not.
Is the Peoria Public Radio Debate still on for 7 pm tomorrow night? All 4 attending?
- Arthur Andersen - Wednesday, Jan 22, 14 @ 9:41 pm:
I answered my own question posed at 6:14. By and large, GTCR has delivered above-average and some outstanding returns to its investors. However, Fund VI which held the stinkers we’re all learning about-not so much. That one lost money and performed 13 percentage points below an average of similar funds. Even the best firms, and GTCR is a good one, make some bad calls and deals go bad.
What I would like to know is what the “face man” of GTCR, Bruce Rauner, disclosed to his Illinois public pension investors whose “union boss” trustees he so often criticizes, about his imploding fund at the same time he had his hand out for more dough? My guess? About as much as he told them about Stu Levine.
If this is in any way true it is fatal to his campaign. The “I had no knowledge” defense just won’t work when he has trumpeted his business success and acumen as a pillar of his campaign. He might just limp through to a win the Primary based on an avalache of attack ads to draw his opponents down to his level, but no chance in the General. Think of union production houses running, not walking back to their storyboards, and you’ll get an idea of what’s coming. I’m just waiting to see which of Dillard and Brady call for Rauner to withdraw from the race (I bet Brady - he’s better at moral indignation.) That would be the smart move to get the average Republican voter’s attention to the story, to become the “anti-Rauner” and to make the media cover the story in full.
Holy skeleton in the closet, Batman!
This is the problem with having a lot of money… having made A LOT of investments… having been involved with A LOT of different companies. Especially when you’re trying to turn a quick profit. Hard to keep track of what you’re investing in and make sound decisions.
Amazing that this hasn’t been uncovered. And PQ, if your Oppo guy didn’t have this already… fire him and find someone better.
- Small Town Liberal - Thursday, Jan 23, 14 @ 6:45 am:
AA - To me at least, purposely profiting off of failing nursing homes goes beyond a bad call. Not to mention, Rauner seems to be extremely comfortable taking lots of money from the government he loves to criticize.
- Logic not emotion - Thursday, Jan 23, 14 @ 7:16 am:
As bad as it sounds, it doesn’t sound that much different than behavior of some other large nursing home chains operating right now. Some are really bad.
As to impact on his election, I’ve concluded that most voters are very low information voters. It’ll have an impact; but…
I guess being a Raunerbot, caring for people means using the “everybody is doing it” excuse, with no shame, and without feeling. I don’t know how…logical… that is, but it is quite clear you have no emotion.
OW, If someone bought Apple at $20 a share back in the day and made millions. Do they have no emotions? They profited off of suffering of slave wages. None of it makes it right. It’s not a defense to not know… I agree, I am saying this guy buys companies like regular guys buy penny stocks… I would be shocked if this is the only “bad deal” It’s business…some good moves some bad.. I just feel the strong indignation card can be shared by any person in public office or seeking it…. And all of us too! I appreciate all of the comments always here, I guess I wish both sides of the aisles could one day focus on solutions and not attacks… It’s clear what is lost is we are a mess with not alot of hope out there…
===OW, If someone bought Apple at $20 a share back in the day and made millions. Do they have no emotions? They profited off of suffering of slave wages.===
Did anyone die…of negligence? Apples and oranges.
===None of it makes it right. It’s not a defense to not know… I agree, I am saying this guy buys companies like regular guys buy penny stocks…===
If that was your aunt, uncle, mother, father, sibling…does the impression of how someone sees money in relation to their wealth make you or anyone else feel “warm and fuzzy”? Not me.
===I would be shocked if this is the only “bad deal” It’s business…some good moves some bad…===
Deaths are a “bad deal”? Wow.
===I just feel the strong indignation card can be shared by any person in public office or seeking it…. ===
Were there deaths? Pretty weak sauce adding “any” for an excuse.
===And all of us too! ===
Did you just lump me with Rauner? Is that how this is going to go? “Only by the grace..,” Not. Even. Close.
===I appreciate all of the comments always here, I guess I wish both sides of the aisles could one day focus on solutions and not attacks…===
Bruce Rauner is running as someone who is going to “shake up Springfield, running it like a business. This is how he wants to be judged. Please, understand that telling me NOT to focus on what millions of dollars in Ads ask me to, because it puts Rauner in a bad light, is a bit self-serving by Bruce Rauner.
===It’s clear what is lost is we are a mess with not alot of hope out there…===
Deflection to make us not focus on the elderly, this horrible chapter, reminds me how awful Bruce Rauner will be as a governor.
Your issue shouldn’t be aimed at - AA -, you need to figure out your IP address issues, if that is what it …is.
Also, the twitters; please no more “RIN…”. Your fake twitters are losing the argument with that term. The visuals too, seeing that term reminds me why My Party can’t convince people in the general elections We are tolerant.
Comedy writers, too, think about that. I was excited to see the #twill finally. But, if all you have rolling is fake twitters, you may have to rethink.
OW, it’s hard to make anyone believe, I REALLY never use the term. Search back on CapFax and see it’s not a term I ever use.
You are absolutely right when you advocate for a big tent with members from all across the political spectrum represented, even someone like the Baron. The fact that I am a Republican proves that there is room for disparate opinions in the Party.
Re: IP addresses/Computers/Whatever.
I control exactly ONE computer, the one at my fingertips right this second. I wish I had the power that Rich and others must think I have to control all the content passing over the internet. I’ll leave that to the NSA…
Nobody in the Apple plants have committed suicide as reported a few year’s back? Apples. So he was successful at managing state pension funds… It’s touted how Illinois TRS grew in tough financial times.. Did the funds invest and grow on this or other businesses…? How about the fund growing from the gun stocks booming? All I am saying is there are plenty of wrongs that don’t make rights…. Don’t go looking at what your mutual funds are invested in… You won’t like what you see… But our profits are OK. I respect both sides of arguments… If I had my preference. I would vote for you Willy still!
- Arthur Andersen - Thursday, Jan 23, 14 @ 9:06 am:
-How many names have you used on this post?
Twice, including this one.-
You can’t make this stuff up, folks.
To the Post, I just want to be clear that I find this entire manner from the finances to the inhumane treatment if the elderly to be abhorrent and repulsive. My use of the words “bad call” were only in the context of investment performance and was not intended to minimize this tragic turn of events.
Sorry, AA, I thought you meant posts, not names. Contrary to Rich’s inference that I am using multiple alias, I am not. I’ve been Cincinnatus on this blog for years, even before I met Dillard, and I will be Cincinnatus on this blog long after this primary is over.