Police raid, missed flight all in a days work for auction house
Michigan
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Police raid, missed flight all in day's work for auction house
- The auction house hired to account for rare coins at the heart of Ohio's corruption scandal got more than it bargained for in six months of sleuthing that comes off as part "Untouchables," part Keystone Cops.
Sotheby's auction house recounted an unexpected police raid, standoffs with stubborn coin shops and a hectic all-night counting session as it inventoried items coin dealer Tom Noe controlled as part of a $50 million state investment.
"Like a traveler encountering a succession of mountain ranges we found the scope of our project seeming to expand with every step we took," Sotheby's vice chairman David Redden told state Auditor Betty Montgomery.
Sotheby's was paid $190,000 to account for collections of rare coins scattered from suburban Toledo to Colorado to Florida.
Montgomery hired the auction house as part of the state's investigation into Noe's handling of the investment for the state insurance fund for injured workers.
Montgomery's audit concluded that the state is owed $13.5 million allegedly spent illegally as part of the investment.
Sotheby's found that the total value of the coins and collectibles managed by Noe ranged from a low estimate of $21 million to a high of $27 million.
Montgomery and Attorney General Jim Petro predict once the total assets of the coin funds are accounted for, including the coins, investments and loans, the state will recoup its original $50 million investment.
One of the most eventful days for a two-person Sotheby's team in Ohio came on May 26 as they tried without much luck to count coins at Noe's coin shop in Maumee in suburban Toledo.
The process was "extremely slow and unfruitful" until about 4 p.m., when the state highway patrol and Ohio Bureau of Workers' Compensation investigators showed up with a warrant.
With backing from the patrol, the Sotheby's team then stayed up all night counting.
"The presence of at least one gun in the shop made that adventure slightly nerve wracking!" Redden said in a letter to Montgomery.
Later, Sotheby's employees were barred entry at coin shops in Broomall, Pa., and Sarasota, Fla.
"The unhelpfulness of some of Mr. Noe's former partners was deeply frustrating," Redden said, adding that, "Inventories were often chaotic or nonexistent."
A message seeking comment was left for Noe's attorney, William Wilkinson.
Montgomery praised Sotheby's work, saying the company exceeded their assignment and provided at least one month's work free.
"There were frustrations involved, absolutely," said Montgomery spokesman Jen Detwiler. "But they were entirely professional in how they handled the matter."
In a related development, two former aides to Gov. Bob Taft were expected in court Friday following charges filed earlier this month alleging they failed to report loans they received from Noe.
Doug Moormann is charged with violating ethics law by failing to report a $5,000 loan from Noe in 2004. Douglas Talbott is charged with violating ethics law by failing to report a $39,000 loan from Noe in 2002 and his participation in a supper club at a downtown Columbus steakhouse hosted by Noe in 2003 and 2004.
When Taft and two other former aides faced similar charges last year, they pleaded no contest and were sentenced to fines at their initial court hearings.
But prosecutors and attorneys weren't saying much Thursday about Friday's hearing in Franklin County Municipal Court.
"We are actively involved in discussions with representatives of the State of Ohio," said Moormann's attorney John Zervas. Roger Synenberg, Talbott's attorney, would not comment.
Lara Baker, an assistant Columbus city prosecutor
- The auction house hired to account for rare coins at the heart of Ohio's corruption scandal got more than it bargained for in six months of sleuthing that comes off as part "Untouchables," part Keystone Cops.
Sotheby's auction house recounted an unexpected police raid, standoffs with stubborn coin shops and a hectic all-night counting session as it inventoried items coin dealer Tom Noe controlled as part of a $50 million state investment.
"Like a traveler encountering a succession of mountain ranges we found the scope of our project seeming to expand with every step we took," Sotheby's vice chairman David Redden told state Auditor Betty Montgomery.
Sotheby's was paid $190,000 to account for collections of rare coins scattered from suburban Toledo to Colorado to Florida.
Montgomery hired the auction house as part of the state's investigation into Noe's handling of the investment for the state insurance fund for injured workers.
Montgomery's audit concluded that the state is owed $13.5 million allegedly spent illegally as part of the investment.
Sotheby's found that the total value of the coins and collectibles managed by Noe ranged from a low estimate of $21 million to a high of $27 million.
Montgomery and Attorney General Jim Petro predict once the total assets of the coin funds are accounted for, including the coins, investments and loans, the state will recoup its original $50 million investment.
One of the most eventful days for a two-person Sotheby's team in Ohio came on May 26 as they tried without much luck to count coins at Noe's coin shop in Maumee in suburban Toledo.
The process was "extremely slow and unfruitful" until about 4 p.m., when the state highway patrol and Ohio Bureau of Workers' Compensation investigators showed up with a warrant.
With backing from the patrol, the Sotheby's team then stayed up all night counting.
"The presence of at least one gun in the shop made that adventure slightly nerve wracking!" Redden said in a letter to Montgomery.
Later, Sotheby's employees were barred entry at coin shops in Broomall, Pa., and Sarasota, Fla.
"The unhelpfulness of some of Mr. Noe's former partners was deeply frustrating," Redden said, adding that, "Inventories were often chaotic or nonexistent."
A message seeking comment was left for Noe's attorney, William Wilkinson.
Montgomery praised Sotheby's work, saying the company exceeded their assignment and provided at least one month's work free.
"There were frustrations involved, absolutely," said Montgomery spokesman Jen Detwiler. "But they were entirely professional in how they handled the matter."
In a related development, two former aides to Gov. Bob Taft were expected in court Friday following charges filed earlier this month alleging they failed to report loans they received from Noe.
Doug Moormann is charged with violating ethics law by failing to report a $5,000 loan from Noe in 2004. Douglas Talbott is charged with violating ethics law by failing to report a $39,000 loan from Noe in 2002 and his participation in a supper club at a downtown Columbus steakhouse hosted by Noe in 2003 and 2004.
When Taft and two other former aides faced similar charges last year, they pleaded no contest and were sentenced to fines at their initial court hearings.
But prosecutors and attorneys weren't saying much Thursday about Friday's hearing in Franklin County Municipal Court.
"We are actively involved in discussions with representatives of the State of Ohio," said Moormann's attorney John Zervas. Roger Synenberg, Talbott's attorney, would not comment.
Lara Baker, an assistant Columbus city prosecutor
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BTW, that article read that after this entire debacle, the people of Ohio are going to recoup their entire investment (some say they will make money)? Wonder what other investments they can say the same about over the past five years. And if they wouldn't have spent so much time, energy, and money on this brouhaha, it would have performed even better. Now if they could just find those missing coins.
Later, Sotheby's employees were barred entry at coin shops in Broomall, Pa., and Sarasota, Fla.
"The unhelpfulness of some of Mr. Noe's former partners was deeply frustrating," Redden said, adding that, "Inventories were often chaotic or nonexistent."
I WONDER WHOM THOSE TWO SHOPS ARE IN BROOMMALL PA AND SARASOTA FL