Coin funds used for loans and mortgages

-- Up to one-third of the $50 million the state gave Tom Noe to buy rare coins was doled out for loans, mortgages and some high-risk investments in coin-related industries, the current manager of the coin funds said Friday.

Bill Brandt, president of Development Specialists Inc., said the $16.6 million in non-coin in vestments is a "rough estimation." Noe also bought collectibles, but most are of historic value, like political banners of the original Emancipation Proclamation, Brandt said. "The state doesn't own goofy stuff," Brandt said. "Autographs and Beanie Babies are not part of the collectible items from these funds." Some items taken from Noe's Maumee coin shop belong to Noe, Brandt said.

. . .

Many of the "more esoteric" investments and loans Noe made from the funds are related to the coin industry and some are high-risk, Brandt said. Some loans were backed by real estate with no documentation on the property's value and some of the partnerships created with fund assets gave BWC all the risk and little upside.

Brandt is concerned that the constant drumbeat of negative stories about Noe could affect some of the joint-venture interests. "In the business relationships the fund has, if the business takes a beating in the press, it may affect the equity or value or the ability to pay back a note," Brandt said.

The state is blocking Noe's attempt to sell $3 million in stock that he bought from Numismatic Guaranty Corp. in Florida, a coin-grading company that graded hundreds of BWC-purchased coins. Noe and a partner borrowed the $3 million from the coin fund in 2003 to buy the stock.

http://www.cleveland.com/news/plaindealer/index.ssf?/base/news/1119692208225520.xml&coll=2&thispage=2

the poor.. and disabled..

Many in Ohio have no clue this is going on.

in jeopardy and Ohioans don't care or don't know enough to care? :crazy:

No drumbeat. The Blade is the only paper consistently going after the story.

This story is so full of intrigue and humor that one would think it is perfect for the newsspeak.

but few are focus on the fact that the monies stolen were Workers' Comp funds...which of course never made it to Disabled workers the funds were REALLY intended for.
Curiously, Arnold Schwartznegger was SPECIFICALLY brought in during the Governor "recall" to revamp Workers' Comp, and cut back most of the "cost" it presented to the State Budget. That would seem to imply that California (and Ahnaaald) also have a similar Workers' Comp money scams going on with what WAS Workers' Comp funds. Because Ahhnald was specifically brought in to re-work Workers' Comp, if the scandal breaks here...should be MUCH larger in scale than the Ohio one. Oh, WHO I wonder is the "Noe" of California?

around the country... asking this very question.

For example, remember how Jeb's pension board (of which Jeb! is a part) decided to buy (to reprivatize) money loser Edison Schools... with state pension fund monies? Ever see that story fully dissected?

What else can I say?

The republicans never met a fund that they didn't want to rob blind.

THE MISMANAGED MILLIONS

Bureau's financiers gave millions to GOP

Contributions flowed from companies managing money for Workers' Comp

Sunday, June 26, 2005

http://www.cleveland.com/search/index.ssf?/base/cuyahoga/111977847925780.xml?ncounty_cuyahoga&coll=2

Top Ohio Republican officials and political committees have received millions of dollars in campaign contributions from companies managing money for the Bureau of Workers' Compensation.

Almost two-thirds of the 212 companies hired by the bureau to invest its money gave a to tal of nearly $5 million to Re publicans and their causes while virtually ignoring Demo crats from Jan. 1, 1997, through 2004, a Plain Dealer analysis shows.

The bureau loosened its investment policies during this period, allowing more firms to seek contracts to manage the bureau's money. The number of money managers exploded from just five in early 1997 to 156 by 2005.

Gov. Bob Taft, whose relationship with at least one money manager, Toledo coin dealer Tom Noe, has come under fire, topped the list of politicians benefiting from the money managers' political largesse...

Sordid story.

detail the value of the real estate. Wouldn't it be interesting to see WHO is living in those homes - and what they are paying for the home (both in terms of sale price vs. market price - and in terms of monthly mortgage rate)?

THen this ... Noe takes $3Million of public money to "invest" in a company that "rates coins" that he frequently uses .... oh - wait.. he BORROWED the 3M from the fund - not he invested the fund money. Since when is it legit for a money manager to "Borrow" from the fund they manage?

And isn't it a bit icky that he buys interest in a company he uses and then uses state $ (fund) to "grade" the coins - win win for Noe ... increases the value of the company (lookie at how much $ we have!) while able to get the "best" appraisal/documentation possible... remember when the story first broke the comment about coins that cost huge $ *hundreds* and were valued at not much more than $1.00 ???

Oh those moral republicans. Yep, doing God's work... bilking the people in greatest need (by draining the disability fund) and enriching oneself - and paying campaign kickbacks to those who gave you the money to manage. The Party of Values.

Because we'll lose EVEN MORE MONEY from these joint-venture interests if it's exposed that they're about as solid as Birnham Wood. The pained cry of the stuck swindler.

Besides, he bought all these coins for a mere $19.95, less than half their "retail value" of $39.95! Such a deal.