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Ohio BWC lost $215 million in high-risk fund (another Noe Coin type deal?)

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Robbien Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 04:31 PM
Original message
Ohio BWC lost $215 million in high-risk fund (another Noe Coin type deal?)
COLUMBUS -- The Ohio Bureau of Workers Compensation admitted today that it lost $215 million in a high-risk fund that few people knew about.

The bureau had invested $355 million with a Pittsburgh investment firm, MDL Capital Management, beginning in 1998. But last year, after diverting $225 million into a fund that works like a hedge fund, the fund lost $215 million. Although the bureau has known about the loss since last year, Gov. Bob Taft was notified about it today.

There are investigations going on, including the Inspector General, bureau spokesman Jeremy Jackson told The Blade.

. . .

At the center of the MDL deal were Terry Gasper, the former chief financial officer for the bureau, and Jim McLean, the chief investment officer. In a memo to the governor, Tina Kielmeyer, acting bureau administrator, said Mr. Gasper did not notify former bureau Administrator James Conrad about the investment. Mr. McLean was put on paid administrative leave today pending a management review of the situation.

The bureau last year asked the Ohio Attorney General to appoint special counsel in the case and ordered Mr. Gasper to either resign or be fired. He resigned Oct. 6, 2004.

http://toledoblade.com/apps/pbcs.dll/article?AID=/20050...

last year the bureau loses $215 million, a special prosecuter is appointed, the chief financial officer is forced out. . . and Governor Taft is just notified today?
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htuttle Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 04:35 PM
Response to Original message
1. Why are they speculating with tax dollars?
Edited on Tue Jun-07-05 04:37 PM by htuttle
When did it become 'okay' to speculate with tax money? I don't remember a single case of this sort of thing before Bush Jr was selected.

Are they going to the dog track with tax money, too?

on edit:

Another obvious question: assuming that for once they were competent enough not to lose all the money, who would get the profits? Is there a bigger scandal afoot here? Following through with what would be the typical mob scam, are they taking their 'vig' as a broker's fee?
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AngryAmish Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 05:14 PM
Response to Reply #1
5. Typical hedge fund take
20% of profits and 2% of principle.
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elehhhhna Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 04:37 PM
Response to Original message
2. The Enronization of Ohio.
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jimshoes Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 04:41 PM
Response to Original message
3. This is what happens
when you don't have investigative journalists. Only now thanks to the Toledo Blade are these shady dealings seeing the light of day. God only knows what other underhanded crap is going down in Ohio.
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MissWaverly Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 04:44 PM
Response to Original message
4. why is it so hard to believe the Ohio 11/2/04 election was rigged?
why, oh why is it so impossible to believe?
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POAS Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 05:24 PM
Response to Original message
6. Ohio is getting to be a "third world nation"
Edited on Tue Jun-07-05 05:27 PM by POAS
I thought Republicans were supposed to be so smart about investments!

Hey Rep's, ya wanna invest my Social Security money for me? FAT CHANCE!
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Iowa Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 06:48 PM
Response to Reply #6
8. Actually no. Many times the very worst investors...
are the very wealthy. Why? Because they surely won't use the same investment vehicles as the common rabble like you and I. They're above that! They must use "exclusive" investment firms that cater to the very rich. What they don't understand is that most of these firms will fleece them with very high fees and (often) dubious investment schemes. So the wealthy usually do much worse than the average Joe. There's even an obscure financial term for this - "Country Club Syndrome". It's obscure because so few understand the investment world.

Anyone who truly wants to learn how to invest should ask someone who earned a modest salary, lives in a modest home, and retired in their 40s or 50s with a million or so in assets. NEVER seek advice from a broker, planner, or a high earner with a big house and fancy cars. And never, ever, ever, turn your money over to an "expert" like the wealthy often do (or listen to a wealthy person who has turned their money over to someone).

The Bush "plan" for SS follows the same path I describe above. Bush is just a dumb-ass parroting what some "expert" of the day told him. He wants to turn SS over to the same "experts" that fleece his wealthy buddies every day. It would be a disaster of monumental proportions. As a rule, Republicans (or more accurately - the wealthy) are worse investors than average people.
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MissWaverly Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 08:35 PM
Response to Reply #8
9. I think it's dubious that there's millions missing in the key 04 state
Edited on Tue Jun-07-05 08:36 PM by MissWaverly
they said 215 million was invested in a 'hedge' scheme, could it have been Bush Cheney '04, the same way with the 10-13 million missing from the rare coins investment account. I think approximately 227 million
would be enough to rig an election in 1 state.
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chaumont58 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-05 05:42 PM
Response to Original message
7. Money talks, and bullshit walks
Maybe the voters of Ohio will at last wake up. This has become a pocketbook issue.
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