coin scandal in ohio
MoneyLA
Posts: 1,825 ✭
from the associated press:
COLUMBUS, Ohio (AP) -- The director of Ohio's workers
compensation bureau is resigning amid a growing scandal over
millions of dollars missing from a rare coin investment fund, Gov.
Bob Taft said Friday.
Neither workers comp Administrator James Conrad nor any member
of his staff told the governor about the state's investment in
coins, Taft said. When questions were raised in April, agency
officials told Taft the investment was profitable and safe.
State officials had said Thursday they plan to sue coin dealer
Tom Noe and seek criminal charges after his attorney told them that
about $10 million of the state's $55 million investment in rare
coins is missing.
A consultant had originally alerted the bureau a few months ago
that coins worth an estimated $400,000 had vanished.
"I am outraged, angered, saddened, sickened by what we learned
yesterday from Mr. Noe's attorney," Taft said at a news
conference. But in response to reporters' questions, Taft declined
to say whether Conrad had been ousted, saying only that the
departure was by mutual agreement.
The bureau hired Noe in 1998, the year before Taft took office,
to invest in coins as a way to hedge its investments in stocks and
bonds. While Noe is a respected coin expert, Democrats have alleged
that he was awarded the state's business in return for campaign
contributions to Republicans, who control most of state government.
Noe has turned down requests for interviews.
In a statement, Conrad said he was stepping down because the
issue was getting in the way of the bureau's mission to serve
injured workers and employers.
"The last thing I want to do is distract from the outstanding
progress we have made together over the years," Conrad said.
Taft said he believes Conrad, who will resign next Friday,
understands the investment was a mistake and that he is responsible
as agency administrator. The governor said he also takes
responsibility for the situation.
Coin dealers say they know of no other state that has invested
in rare coins. And Pam Taylor, director of the National Association
of State Treasurers, said she was unaware of any other state making
such investments in autographs or other collectibles, either.
Among the purchases by the Ohio fund were a 1792 silver piece
worth about $2 million and gold coins minted in 1845 and 1855.
Before the new estimate on the number of missing coins was
disclosed, officials had said the state at times did better than
the stock market, clearing a profit of nearly 40 percent, less
Noe's commission.
Questions about the investment surfaced in April when The Blade
newspaper of Toledo found that the two 1800s-era gold coins had
disappeared. Noe said they were sent to a Colorado coin dealer but
got lost in the mail in 2003.
The newspaper then reported that 119 other coins were missing.
Noe said he thought the coins had been stolen by the Colorado
dealer, whom he hired to assist with the fund. Colorado authorities
are investigating.
(Copyright 2005 by The Associated Press. All Rights Reserved.)
APTV-05-27-05 1116PDT
COLUMBUS, Ohio (AP) -- The director of Ohio's workers
compensation bureau is resigning amid a growing scandal over
millions of dollars missing from a rare coin investment fund, Gov.
Bob Taft said Friday.
Neither workers comp Administrator James Conrad nor any member
of his staff told the governor about the state's investment in
coins, Taft said. When questions were raised in April, agency
officials told Taft the investment was profitable and safe.
State officials had said Thursday they plan to sue coin dealer
Tom Noe and seek criminal charges after his attorney told them that
about $10 million of the state's $55 million investment in rare
coins is missing.
A consultant had originally alerted the bureau a few months ago
that coins worth an estimated $400,000 had vanished.
"I am outraged, angered, saddened, sickened by what we learned
yesterday from Mr. Noe's attorney," Taft said at a news
conference. But in response to reporters' questions, Taft declined
to say whether Conrad had been ousted, saying only that the
departure was by mutual agreement.
The bureau hired Noe in 1998, the year before Taft took office,
to invest in coins as a way to hedge its investments in stocks and
bonds. While Noe is a respected coin expert, Democrats have alleged
that he was awarded the state's business in return for campaign
contributions to Republicans, who control most of state government.
Noe has turned down requests for interviews.
In a statement, Conrad said he was stepping down because the
issue was getting in the way of the bureau's mission to serve
injured workers and employers.
"The last thing I want to do is distract from the outstanding
progress we have made together over the years," Conrad said.
Taft said he believes Conrad, who will resign next Friday,
understands the investment was a mistake and that he is responsible
as agency administrator. The governor said he also takes
responsibility for the situation.
Coin dealers say they know of no other state that has invested
in rare coins. And Pam Taylor, director of the National Association
of State Treasurers, said she was unaware of any other state making
such investments in autographs or other collectibles, either.
Among the purchases by the Ohio fund were a 1792 silver piece
worth about $2 million and gold coins minted in 1845 and 1855.
Before the new estimate on the number of missing coins was
disclosed, officials had said the state at times did better than
the stock market, clearing a profit of nearly 40 percent, less
Noe's commission.
Questions about the investment surfaced in April when The Blade
newspaper of Toledo found that the two 1800s-era gold coins had
disappeared. Noe said they were sent to a Colorado coin dealer but
got lost in the mail in 2003.
The newspaper then reported that 119 other coins were missing.
Noe said he thought the coins had been stolen by the Colorado
dealer, whom he hired to assist with the fund. Colorado authorities
are investigating.
(Copyright 2005 by The Associated Press. All Rights Reserved.)
APTV-05-27-05 1116PDT
0
Comments
Oh, really?
Let's see...send super expensive coins in the mail with no insurance or receipts...but I guess there is an excuse for that as well.
When will Americans take responsibility for themselves?????
I amazed at all the fraud going on in America..but then again if these excuses work, why not give it a try if you're of the criminal sort.
Ike Specialist
Finest Toned Ike I've Ever Seen, been looking since 1986
<< <i>Let's see...send super expensive coins in the mail with no insurance or receipts >>
The coins were insured.
Isn't Tom Noe a member on these message boards ?
Stewart
<< <i>Isn't Tom Noe a member on these message boards ? >>
Stewart, I don't think so - I don't recall ever having seen him post.
Get the insurance money and pay the fund back. no harm no foul. Seems like that would have come out in the article if the coins were stolen in the mail.
Not sure the Post Office likes registered coins stolen...certain they will do a thorough investigation....lord knows they took 6 months to figure out my $700 indian cent was stolen.
Just a thought!
Ike Specialist
Finest Toned Ike I've Ever Seen, been looking since 1986
My guess is that this isn't going to turn out so well.
<< <i>If the coins were insured properly, then what's the issue??? >>
There is apparently a question as to whether the coins were stolen before they arrived at their destination, or afterwards.
<< <i>Get the insurance money and pay the fund back. no harm no foul. Seems like that would have come out in the article if the coins were stolen in the mail. >>
The sender of the coins was reported as having been reimbursed by his insurance carrier - there was no reason to "pay the fund back".
<< <i>If the coins were insured properly, then what's the issue???
Get the insurance money and pay the fund back. no harm no foul. Seems like that would have come out in the article if the coins were stolen in the mail.
Not sure the Post Office likes registered coins stolen...certain they will do a thorough investigation....lord knows they took 6 months to figure out my $700 indian cent was stolen.
Just a thought! >>
The maximum amount the USPS will pay in a claim is $25,000.00 regardless of the insurance premium paid above that amount.
You can also buy 3rd party insurance.
I'm still a little lost. The article says the state may sue this dealer over missing coins, then I hear the sender was reimbursed but didn;t need to pay the fund back. Did the dealer own the fund or the state.
I'd like to manage a fund that let me collect the insurance when something was stolen or missing. Seems like a great way to incent things staying in the collection. Let me see....coins go missing, I file the claim and collect for the money for myself...hmmmmm????
I'm a little slow, but this story (with all the add ons) makes no sense what so ever.
Ike Specialist
Finest Toned Ike I've Ever Seen, been looking since 1986
<< <i>I'm a little slow, but this story (with all the add ons) makes no sense what so ever. >>
One earlier story concerned (a reported figure of) $400,000 in missing coins that had been shipped to a representative of the fund. That was the incident I was addressing.
Very recently, additional information has come out that an estimated $10+ million in (other) coins are unaccounted for.
<< <i>I'd like to manage a fund that let me collect the insurance when something was stolen or missing. Seems like a great way to incent things staying in the collection. Let me see....coins go missing, I file the claim and collect for the money for myself...hmmmmm???? >>
To my knowledge, no insurance has been collected by the fund for any of these missing coins.
You have made more than one statement which has been off base, based upon the news as reported. Better to have your information straight before making accusations, etc.
Had to bring this up as I see very little about registery in this post so far.
<< <i>Wonder how many of the TOP PCGS registery sets are owned by this fund?
Had to bring this up as I see very little about registery in this post so far.
That's were I was getting all my coins, guess the cat is out of the bag.
<< <i>Wonder how many of the TOP PCGS registery sets are owned by this fund? >>
While the fund likely owns many individual coins which would fit nicely into top registry sets, I doubt that it actually owns any complete registered sets, per se.
It seems like you know a lot about the situation. Can you fill us in with the whole story?
Greg
The newspaper's story has so many coin related errors, I don't believe anyone knows what's going on. Someone at a minimum has taken their eye off the ball--how are their stocks doing this year? Down 2 Billion, up 2 Billion??
monsterman`s rule #88
never fight a man who buys his ink by the gallon
that being said we all know the article is poorly written and is loaded with errors as the writter seeks sensationalizm
ie...if 12 million is missing and the writter points at noe...why does noe owe a bank 207,000 on a 400,000 loan that he took out several years ago...dont ya think he would of at least payed of the note and save the interest!!!
monsterman
out of rockets ...out of bullets...switching to harsh language
roadrunner
Unless the loan is just a diversion to give the "appearance" of being less than affluent.