Coingate is the nickname for Tom Noe's investment scandal in Ohio revealed in early 2005 in part by the Toledo, Ohio Blade newspaper. Workers' Compensation The Ohio Bureau (BWC) invests hundreds of millions of dollars in high-risk or unconventional investment vehicles run by people closely associated with the Republic of Ohio who have contributed greatly to major Republican party officials.
Rare coin investment funds attracted special attention after it was reported that two coins worth more than $ 300,000 had been lost. Further investigations later revealed that $ 10 - $ 12 million worth of coins were lost and only $ 13 million out of the $ 50 million of genuine investment that could be accounted for. Tom Noe was convicted of running a criminal company, stealing $ 13 million from the fund, and storing second books to cover it up.
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In 1996, the Republican-controlled Ohio General Assembly passed a law that ran into the requirement that the Ohio state government invest only in bonds. Fund managers and other brokers then rush to offer their services.
The Coingate scandal centered on Tom Noe, a Ohio government figure, a GOP fundraiser and a coin dealer. In a separate fundraising scandal, Noe was indicted by a federal grand jury at the end of October 2005, accused of violating the campaign's contribution legislation by using straw, or proxies, for contributions. On May 31, 2006, Noe pleaded guilty.
Maps Coingate scandal
Coins
In March 1998, Thomas Noe Inc. was awarded a $ 50 million investment contract for the Ohio Workers Compensation fund. The company received $ 25 million to invest in 1998, and the same again in 2001. Before this, Mr. Noe and his managers have increased their contribution to Republican candidates almost 10 times. In April, according to the February 2006 indictment, Noe had started his illegal activities, stealing money from investment. "His illegal action continued until it was closed last May," the indictment said. To manage the investment, Thomas Noe Inc. using a new subsidiary created by Noe's Vintage Coins & amp; Collectibles, called Capital Coins (specifically, Capital Coins Ltd. I and Capital Coins Ltd. II). Capital Coin then created a subsidiary of Visionary Rare Coins, Numismatic Professionals, Rare Coin Alliance, and one named Karl D. Hirtzinger.
In 1998, Noe hired Mark Chrans to manage the Visionary Rare Coins. Chrans had previously been convicted of fraud and perjury involving money laundering in coin transactions. Noe said he was unaware of Chrans's previous convictions. Jeremy Jackson's spokesman for the agency said the bureau was also unaware of his sentence. In the end, Capital Coin wrote a $ 850,000 loss from Visionary Rare Coins, including bad investments, unpaid loans, and down payment on coin transactions.
In 2003, Numismatic Professionals bought two coins for $ 185,000, $ 185 gold coins and $ 1845 gold coins $ 10, which are considered $ 300,000 worth of market value. After sending the coins for certification, they were stolen from the post on the way home. The police were notified, but they could not determine how the coins disappeared and closed the case.
Capital Coin also lends the Delaware Valley Rare Coins dealership in Broomall, Pennsylvania, which is not owned or controlled by Noe, $ 300,000 of the funds, which dealers then use for their own business. Dealers use properties in New Jersey as collateral. The Ohio newspaper Toledo Blade made a request for public records to the government to view mortgage documents. Capital Coin has overhauled records, blackened property and owner addresses. The Ohio Attorney General ordered Noe to release the documents, stating that "anyone who promises property as collateral to support publicly funded investments should make their name and address public." Lawyers for Capital Coin refused. The case was finally settled.
Only $ 13 million out of the $ 50 million invested has been recovered to date.
In March 2006, a closed-bidding auction process began to liquidate all high-risk coins and banknotes.
Investigation
The first concern focused on the issue after the April 3, 2005 publication of a story by Toledo Blade .
On May 24, 2005, Thomas Noe Inc. sued by the state of Ohio on behalf of the BWC. The judge granted the request of Ohio Attorney General to immediately freeze the asset and BWC was given full control of the coin fund.
Ohio state investigators immediately began checking inventories of companies, reviewing notes and documents at Numismatic Professionals and other subsidiaries in Sarasota, Florida. [1] However, researchers were denied access to one of the subsidiaries of Capital Coin at Monclova Township [2] and to Delaware Valley Rare Coins. Noe said access was denied to the Ohio location because his lawyers were busy in Colorado and Florida and he said he initially told the Ohio company it should be searched later. Noe said he did not own or control the Delaware Valley Rare Coins, the reason that this was the reason the investigator was denied access. [3]
Ohio inspector general was involved and asked to see the coins. Coins worth $ 10-12 million apparently have not been found.
On July 13, the Ohio Supreme Court ruled 5-2 that the coin notes are public records and should be released, rejecting state arguments that the information is a "trade secret" and released from the Ohio Public Records Act. The case was heard by five judges of the Ohio appeals court, as five Supreme Court justices resigned after receiving a donation campaign from Noe. However, after two weeks, Ohio Attorney General Jim Petro only issued 3 out of 120 document boxes. Toledo Blade, on July 28, filed a motion to find the country in contempt.
On July 29, former chief of staff for Governor Bob Taft, Columbus lobbyist Brian Hicks, and his assistant, Cherie Carroll, were convicted of ethical violations in the widespread Coingate scandal. Hicks was punished for failing to reveal a cut-rate vacation at Tom Noe's residence in Florida Keys, and Carroll to receive free food from Noe in downtown Columbus steakhouse.
On August 18, 2005, Governor Bob Taft claimed there was no contest for four violations of state ethics law. Taft admitted that for seven years he failed to report 45 golf events given to him, including a number of events and gifts from Noe, and was judged a $ 4000 fine. This was the first time an Ohio governor was charged with a crime while in office.
Indictment, trial and conviction
On February 13, 2006, the Lucas County Court of Common Pleas was indicted by Noe, along with his business partner, Timothy LaPointe.
According to the indictment, among other measures, Noe and LaPointe borrowed coins from businesses and other individuals and fraudulently listed them as state property during annual audits in 2002, 2003 and 2004.
Prosecutors presented their case within three weeks that Noe stole $ 2 million for personal use; The defense argues that Noe's government contract allows him the freedom to use the state money he wants, but does not name witnesses. The jury deliberated for three days before sending a verdict.
On November 13, 2006, Noe was found guilty of theft, money laundering, forgery, and corrupt activity, and a central levy that had a mandatory 10-year minimum penalty: that he was involved in a pattern of corruption in his management of a $ 50 million Ohio investment fund rare coins with bureau.
On November 20, 2006, Noe was sentenced to 18 years in state prison and ordered to pay fines and restitution. He was fined $ 213,000, ordered to pay about $ 3 million for the cost of prosecution, and was ordered to pay compensation to the Ohio Workers Bureau's Compensation for money lost from a rare coin fund, estimated at $ 13.7 million.
Note
- ^ From the information available, it is not clear which subsidiary is located.
- ^ From the available information, it is unclear why the investigator should be denied access to this company.
References
External links
- Noe started early in a rare coin business by Mike Wilkinson, Toledo Blade , April 3, 2005.
- Special Report: Ohio Coin Funds, CoinLink
- Coingate: GOP Corruption Culture
- "Natural Coins", Alternate , June 29, 2005.
- "What's the Problem With Ohio?", by Paul Krugman, New York Times , June 17, 2005.
- Grand Jury Charge Noe with 53 Felony Counts by Mike Wilkinson and James Drew, Toledo Blade , February 13, 2006.
- Noe Engagement Chronology (in Coingate), Toledo Blade , February 13, 2006.
- The text of the 53-digit Noe indictment, February 13, 2006.
Source of the article : Wikipedia
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