Official to quit over missing coin investment
COLUMBUS, Ohio (Reuters) - The director of an Ohio fund for disabled workers will resign after reports up to $12 million is missing from a rare coin investment, the governor said on Friday.
The $55 million investment, considered by some experts to be unheard of for a publicly held fund, made up only a tiny percentage of the Bureau of Worker's Compensation portfolio, but its political ramifications could be magnified.
"I'm outraged, saddened and sickened," Gov. Robert Taft said of apparent loss to the fund as he announced to reporters the impending resignation of administrator James Conrad.
The manager of the rare coin investment undertaken since 1999 has been Toledo coin dealer Thomas Noe, a big contributor to state Republicans and the campaign of President (George W.) Bush.
The Toledo Blade newspaper revealed this year that a few rare gold coins were missing from the portfolio, but an inventory has since shown the loss is between $10 million and $12 million.
Various law enforcement agencies are investigating and state Democrats, long the minority party in state government, have demanded an accounting. They questioned what other investments have been made amid reports that autographs, artwork, antique campaign buttons and other items were purchased.
"I've never heard of a state-sponsored fund investing in coins," said Keith Brainard, research director for the National Association of State Retirement Administrators.
"There are instances of funds looking for 'alternative investments' such as coins or artwork. But it's a difficult investment ... it's not the most liquid," said Ryan Randolph of Greenwich Associates.
The state's Republican Party chairman has said the scandal led him to consider requiring ethics training for prospective Republican candidates.
The $55 million investment, considered by some experts to be unheard of for a publicly held fund, made up only a tiny percentage of the Bureau of Worker's Compensation portfolio, but its political ramifications could be magnified.
"I'm outraged, saddened and sickened," Gov. Robert Taft said of apparent loss to the fund as he announced to reporters the impending resignation of administrator James Conrad.
The manager of the rare coin investment undertaken since 1999 has been Toledo coin dealer Thomas Noe, a big contributor to state Republicans and the campaign of President (George W.) Bush.
The Toledo Blade newspaper revealed this year that a few rare gold coins were missing from the portfolio, but an inventory has since shown the loss is between $10 million and $12 million.
Various law enforcement agencies are investigating and state Democrats, long the minority party in state government, have demanded an accounting. They questioned what other investments have been made amid reports that autographs, artwork, antique campaign buttons and other items were purchased.
"I've never heard of a state-sponsored fund investing in coins," said Keith Brainard, research director for the National Association of State Retirement Administrators.
"There are instances of funds looking for 'alternative investments' such as coins or artwork. But it's a difficult investment ... it's not the most liquid," said Ryan Randolph of Greenwich Associates.
The state's Republican Party chairman has said the scandal led him to consider requiring ethics training for prospective Republican candidates.
posted by Eklipz at 6:06 a.m.
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