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"A comprehensive, collaborative elections resource."
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Romney on Board
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| Parent(s) |
Candidate
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| Contributor | RP |
| Last Edited | RP Jan 19, 2012 02:35pm |
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| Category | Scandal |
| Author | Lucy Komisar |
| News Date | Thursday, January 19, 2012 01:00:00 PM UTC0:0 |
| Description | Mitt Romney, who makes his hands-on business experience a talking point in his campaign for the Republican presidential nomination, was a member of the board of directors and audit committee of a global company when it paid millions of dollars to settle charges of extracting kickbacks that cheated clients.
As a board member, Romney held oversight responsibilities at a time when Marriott was repeatedly accused of obtaining secret rebates that enriched Marriott at the expense of hotel owners who had hired Marriott to run the hotels on their behalf. A series of owners also accused Marriott of falsifying financial statements to conceal the arrangements—charges that Marriott had denied, and yet still paid $24 million to settle.
The allegations concerning kickbacks were contained in a series of lawsuits and complaints that extended from 1998, when Romney served on the Marriott board, to past 2002, when he left. They were still occurring when Romney returned to the board for another term from 2009 to 2011. The $24 million settlement that took place during Romney’s tenure came in response to complaints that Marriott obtained secret rebates from suppliers while billing property owners full price for goods and services. These incidents led to six lawsuits, in a series of episodes that tarnished Marriott’s name within the industry. |
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