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Director Ohio WCB resigning over coin fraud!
ScarsdaleCoin
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Truly a shame that the director of Ohio's workers compensation bureau is resigning over the scandal of the millions of dollars missing from the rare coin investment fund...source Gov. Bob Taft
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. Democrats have alleged that Noe was awarded the state's business in return for campaign contributions to Republicans, who control most of state government.
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.
Messages seeking comment from Conrad were left Friday at the Bureau of Workers' Compensation.
Officials do not know what coins are missing or which of the holding sites in five states they're missing from, said Jeremy Jackson, spokesman for the agency.
Coin dealers say they know of no other state that has invested in rare coins. 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.
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. Democrats have alleged that Noe was awarded the state's business in return for campaign contributions to Republicans, who control most of state government.
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.
Messages seeking comment from Conrad were left Friday at the Bureau of Workers' Compensation.
Officials do not know what coins are missing or which of the holding sites in five states they're missing from, said Jeremy Jackson, spokesman for the agency.
Coin dealers say they know of no other state that has invested in rare coins. 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.
Jon Lerner - Scarsdale Coin - www.CoinHelp.com
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Oh, man - they're in trouble!
<< <i>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. >>
16 million for a 50 million investment is closer to 32% not 40% and that is over a six year period. After commissions about 3.8% per annum. With the 10 million in missing coins they made 5.6% over 6 years or 0.7% per annum. If the coins on hand are being carried on the books at inflated valuations then the return may be even less and possibly even net losses.
Good news for once for the Ohio workers - the Toledo Blade lists an Ultra High Relief at $1.7M as the highest valued [at cost I would wager] coin in the inventory. That means that the $2M puff figure tossed around for the half disme isn't their cost. Whew!