Breaking from Ohio: $10 - 12 million missing....AG seeking civil and criminal action against Noe

Below is a press release issued this afternoon by the Ohio AG's office. The Attorney General is Jim Petro, who is a Republican (and also running for Governor next year.)

Toledo Blade posted a story too....they have done kick ass work on this scandal.

Wow. This thing is really out of control:

State Of Ohio Pursuing Additional Civil And Criminal Action Against Tom Noe

Noe's Legal Counsel Informs State Assets Are Missing

COLUMBUS- The state of Ohio has announced it is immediately pursuing additional civil and criminal measures against Tom Noe after his legal counsel informed the state that a substantial amount of assets from the Capital Coin Funds are missing.

Mr. Noe's legal counsel advised that $10 to $12 million of Capital Coin's assets are unaccounted for.

"Today's news makes it clear that Tom Noe has irresponsibly mismanaged the monies of the state of Ohio," Governor Bob Taft said. "Such criminal action is outrageous and will not be tolerated. We will pursue all legal avenues possible to recover these funds for injured workers and employers. It is imperative that we do all we can to keep the Bureau of Workers' Compensation (BWC) solvent and strong."

Noe has tendered his resignation as manager effective immediately. The Honorable William Bodoh will serve as the interim manager until he appoints a new manager.

The Attorney General's office has announced they will immediately seek:

* Transfer of all assets of Capital Coin Funds I and II to the state of Ohio and relocating the assets in secure, financial institution;
* Transfer of all records of the Capital Coin Funds to the state; and ,
* Additional remedies against Noe, his wife, and additional companies he owns to freeze all personal and business assets.


The Office of Inspector General and the State Highway Patrol are investigating. The Franklin County Prosecutor's office, the Lucas County Prosecutor's office, and the U.S. Attorneys are coordinating efforts regarding potential criminal charges.

BWC fraud investigators are currently conducting reviews at three out-of-state inventory locations. The reviews have been completed in Sarasota, Florida and Evergreen, Colorado and are almost complete in Broomall, Pennsylvania. The assets from Delaware are in transit to Columbus in a secured vehicle.

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FOR IMMEDIATE RELEASE: Thursday, May 26, 2005
CONTACT: Kim Norris, Attorney General's Office, at (614) 466-3840, www.ag.state.oh.us ; Jeremy Jackson, BWC, at (614) 752-7558; Mark Rickel, Governor's Office, at (614) 644-0957