Insider dealings at OH. Bureau of Workers' Comp probed("kickback list")

[Algorem]

http://www.columbusdispatch.com/news-story.php?story=dispatch/2006/03/05/20060305-A1-00.html

Prosecutors search for evidence bureau officials got kickbacks

Sunday, March 05, 2006

Mark Niquette and Darrel Rowland
THE COLUMBUS DISPATCH

A handwritten list directing that state money go to select brokers is a key element of a probe into whether top officials at the Ohio Bureau of Workers’ Compensation got favors for steering agency investment business.

The list, which came from Terrence W. Gasper when he was chief financial officer for the bureau, specified how much each firm was to receive in commissions for stock trades, sources familiar with the federal grand jury investigation in Cleveland told The Dispatch.

A former bureau investment official who testified before the grand jury also suggested that Thomas W. Noe wouldn’t have received $50 million from the bureau to invest in rare coins if it weren’t "pushed from above."

The commissions on Gasper’s directive totaled roughly $15 million for the 25 to 30 firms that made the list; each broker was allocated a six-figure total ranging up to about $750,000, said a source with a copy of the list, which was replaced with newer versions every so often by Gasper...



Article published Friday, March 3, 2006

COIN-FUND FALLOUT

Probe of Bureau of Workers’ Compensation goes far beyond activities of Noe

Ex-chief financial officer facing range of allegations

http://toledoblade.com/apps/pbcs.dll/article?AID=/20060303/NEWS24/603030378/-1/NEWS

COLUMBUS — The law-enforcement task force investigating Tom Noe is conducting a far broader probe of the Ohio Bureau of Workers’ Compensation, having interviewed hundreds of witnesses in what could result in a series of public corruption cases.

Investigators have uncovered other, previously undisclosed questionable deals with a variety of companies and people who invested money for the state agency.

Yesterday, Lucas County Prosecutor Julia Bates — a member of the task force — said she would not confirm any specifics of the group’s work.

“There is a wide web of possible criminal involvement that needs to be scrupulously and meticulously investigated, analyzed, and explored,” Ms. Bates said...



Noe’s Influence Still Not Explained

By The Intelligencer

http://www.theintelligencer.net/editorials/articles.asp?articleID=2770

It has become obvious during the past year that those in charge of investments for the Ohio Bureau of Workers’ Compensation simply weren’t exercising adequate control over individuals and companies given contracts to manage investments. Loss of $300 million from the investment fund made that obvious...


The more investigators probe into Noe’s affairs, the more they find evidence that he had powerful supporters — and continues to receive help. Investigators have listed several incidents during which it appears that attempts have been made to block their probe.

That shouldn’t be tolerated. The next time someone attempts to block the investigation, he should be charged with obstruction of justice.

Investigators need to get to the bottom of comments by some in state government that Noe seemed to enjoy some sort of immunity from oversight concerning investments. As one retired investments officer noted, “nobody ever asked him any hard questions ...” Ohioans should insist that hard questions be asked now.



Noe wants his friends back

http://www.cleveland.com/weblogs/openers/

While Republicans try to distance themselves from Tom Noe, the GOP fund-raiser and coin dealer at the center of Ohio’s government-corruption scandal, Noe refuses to let them get too far away.

In recent court papers, he tells the Ohio Supreme Court that he deserves credit for helping elect Republicans, most notably Betty Montgomery, the state’s former attorney general and current state auditor...




Noe filing, Part deux

Besides bragging about his success in electing Republicans, Noe also boasts of his prowess in intimidating Democrats in a recent filing with the Ohio Supreme Court.

“Perhaps the most effective way I found to obtain earned media was to vigorously pursue enforcement of Ohio’s election and campaign finance laws by filing, encouraging to be filed, or threatening to file legitimate complaints against Democrats.” ...

[Joanne98]

1. Oh goodie!

[movonne]

2. That Ohio is one screwed up place...

[cookiebird]

3. Yeppers

I'm living in NE OH--you got it right. We're just waiting to hear what's next. Jeeez!!

[thatgemguy]

4. Ohio BWC

means "Bureaucrats Without Conscience".

I am an injured worker currently involved with Workers Comp. The system changed radically when Voinovich was governor in the late 90's.

Workers Comp "reform" brought in more private companies to manage medical care. The reforms favored refunds of premiums paid by employers in the state. The result was that injured workers and their care became an even lower priority.

I have been hurt twice while working in Ohio. The first time I found out that my employer was not paying into the system. While I received treatment from the state, that employer was allowed to walk away from his responsibility without penalty, even though he had violated the law. While you will hear of fraud committed by workers, you will rarely hear of charges of fraud committed by employers

I was hurt again in 2003. I've been fighting for medical care and treatment since my doctor put me on disability. My employer's Managed Care Organization (MCO) told my doctor that "He can sit at work, just like he's sitting at home". The BWC, the MCO, and my employer have resisted approving my treatment at every opportunity.

I've had to file a case in Common Pleas Court, at my expense, against the BWC and my employer to get authorization for treatment.

While some people like Noe and others are getting rich off the system, there are many injured workers getting the royal shaft.

In my opinion, the BWC and the MCO's work under what I call the 3-D method. DELAY any decisions as long as possible, DENY any and all treatment until they're are forced to provide something, and attempt to DESTROY the injured worker physically, psychologically, and financially, so they will just go away.

I hope you're never injured on the job in Ohio and have to depend on Workers Comp. The Republicans, the Chamber of Commerce and special interests have seriously damaged the system here.

[salin]

5. months ago I caught another name

I think it was Cowman (Robert Cowman?) a high up financial/investment director who facilitated Noe in answering troubling audit problems and enabling the second 25 million to be invested with Noe. Cowman is now high up (head? director?) of investments with the even larger pool of public money invested in the ohio teacher retirement fund (or was it not just teachers, but also the entire public employy retirement fund?)

This summer there were murmers that even bigger $ scandals lay beneath the surface with the fund I referred to as well as with way $ was spent by the ohio transportation (roads) funds.

[salin]

6. Robert Cowman

Eye on former officials


The report also focuses on two former bureau officials: Robert Cowman, who was chief investment officer and is now director of investment for the Ohio Schools Employees Retirement System, and Terrence Gasper, the former chief financial officer who was forced to resign in 2004 after the bureau lost $215 million in a risky hedge fund.



From this article: http://toledoblade.com/apps/pbcs.dll/article?AID=/20060223/NEWS24/60223003

Back in the fall/summer his name showed up as one directly aiding and abetting Noe in securing at least the second loan. I would be very nervous, were I part of the pay to play machine - given where he has now wound up - with access to a whole lot more money to be doled out to "favorites."