Tagg Romney – Knew His Partners Were Part Of Ponzi Scheme

Tagg Romney, Mitt Romney’s son, was able to fulfill a dream of owning his own business.  Someone might say that Tagg wants to be just like his daddy.   In 2008 Tagg Romney opened a private equity firm named Solamer Capital, thanks to his dad’s $10 million dollar investment.  Although Tagg is a graduate of Harvard Business School, he has no experience in private equity.  Now, Mitt Romney goes around the country telling students to borrow money from their parents if they want to start a business.  As Julian Castro, San Antonio’s mayor, said during the Democratic National Convention, “Why didn’t I think of that.”  This advice keeps confirming the fact that Mitt Romney is out of touch with the middle class people in America. 

The firm shared its first address with the Romney campaign headquarters in Boston.  Later, the company was located in the same building as Mr. Romney’s leadership PAC, Free and Strong America.   Mitt Romney’s top fund raiser, Spencer Zwick, was a volunteer and led Solamere’s fund-raising in 2008 and 2009 while he was also raising money for the leadership PAC.  Tagg was able to raise $200 million within those two years and disputes any notion that they cashed in on their political connections.  Mitt Romney was the speaker at Solamere’s first investor conference January 2010.

“Oh what a tangled web we weave, when first we practice to deceive!” ~ Sir Walter Scott

In mid-2009 the 3 Solamer Capital founders went into a new business.  They partnered with 3 men who allegedly participated in an $8.5 billion dollar Ponzi scheme while working at Stanford Financial Group.   This North Carolina financial advisory firm “wealth management business” was named Solamere Advisors.  Tagg lauded about the “all-star lineup” of financial advisers at the new firm.  Brandon Phillips, Deems Mays, and Timothy Bambauer were at Stanford and received incentive compensation derived from selling bogus certificates of deposits.   Herman Stone, 70, a Charlotte businessman, said he put $2 million into a C.D. after Mr. Bambauer and his assistant, Mr. Phillips, vouched for it. “They said, ‘Mr. Stone, this is so safe.”  Tagg claimed his partners collected about $15,000 in the Ponzi scheme but court documents show that the men made over $1.6 million selling fraudulent CDs to investors.

The Romney name, money, and business connections have allowed Tagg to start his own business.  It appears that Tagg was willing to go into business with unscrupulous business partners.  Business ethics will be an easy problem for Mitt’s money to fix.  

Sources:

http://thinkprogress.org/economy/2011/11/01/316040/romney-solamere-ponzi/

http://www.politicolnews.com/romney-son-investigated-for-8-billion-ponzi-scheme/#ixzz25SDC2yDA