BWC tried to keep $215M loss under wraps prior to '04 vote
Documents reflect director's concern about possible 'leak'By JAMES DREW
and STEVE EDER
BLADE STAFF WRITERS
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The allegation that high-ranking bureau officials covered up the MDL hedge-fund loss has emerged in the state's civil lawsuit seeking to recover the $215 million investment loss. That lawsuit is pending in federal court in Columbus.
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Mum on MDL
Under the pressure of the scandal surrounding the bureau's failed $50 million rare-coin fund with GOP fund-raiser Tom Noe, bureau officials on June 7, 2005, revealed the losses in the MDL investment - after concealing them for more than eight months. Three days later, the bureau sued MDL and several of its principals, alleging fraud and breach of contract.
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Political environment
As the extent of the MDL losses were becoming clear in the fall of 2004, e-mails show that the upcoming elections were on the minds of high-ranking bureau officials, including Mr. Conrad, a longtime aide to Republican U.S. Sen. George Voinovich, who was on the Nov. 2, 2004, ballot.
In an Aug. 27, 2004, e-mail to Mark Nedved, then the bureau's legislative lobbyist, and another high-ranking aide, Mr. Conrad wrote: "How to start each day with a positive outlook … 1. Open a new file in your PC. 2. Name it 'John Kerry.' 3. Send it to the trash. 4. Empty the trash. 5. Your PC will ask you, 'Do you really want to get rid of John Kerry?' 6. Answer calmly, 'yes,' and press the mouse button firmly. 7. Feel better already."
On Oct. 28, 2004, Mr. Conrad arranged to have lunch with Mr. Samuel on the day after the election.
"GREAT point … We can discuss the recount," Mr. Samuel wrote.
It also was on Oct. 28, 2004, in which Mr. Conrad, in an e-mail to two aides about his decision to not include information about the MDL hedge-fund loss in a weekly report to Mr. Taft, wrote, "There are 13 copies of it made
and we don't need it getting unnecessarily passed around."
On Election Night, about an hour before polls closed, Mr. Conrad wrote to Mr. Annarino: "Too bad the election outcome isn't sounding too good!" Exit polls showed Mr. Bush trailing Mr. Kerry in Ohio.
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