(Ohio) Workers' comp bureau concealed $215M loss; Taft, Petro knew...

[johnfunk]

...about fund's woes many months ago

By MIKE WILKINSON and JAMES DREW
BLADE STAFF WRITERS

COLUMBUS — Democrats were screaming ''cover-up'' yesterday after state officials admitted that a high-risk hedge fund that the embattled Ohio Bureau of Workers’ Compensation had invested in had lost $215 million in just a few months last year.

The bureau acknowledged that the fund, managed by a Pittsburgh-based investment firm, lost the money between February and September, 2004. MDL Capital Management relinquished control of the fund in November.

...

A spokeman for Gov. Bob Taft said last night that Mr. Taft had been told in September that there was an investment loss at the bureau — a loss of $10 million to $20 million.

...

''...The $225 million investment had no value at the end of September,'' the memo stated.

Democrats at the national level should get off their fat butts and start screaming about this felonious, scandalous example of party cronyism -- one that cost pensioners millions.Kids, this is proto-Enron government at work -- the strategic electoral neutron bomb that will sweep Taft, Ken ''Brackswill'' Blackwell and the other Grand Old Ponzi-ites from Ohio office -- and should provide sufficient collateral damage to Republicans -- but only IF you call your local paper and the cabal... er, cable news organizations and tell them they should be covering it!

ON EDIT: Fixed link

[whistle]

1. This would be an excellent case example of how Bush's privatized....

...social security would be managed by overseers, as the same investment model is what is envisioned by shrub!

[madrchsod]

2. wait a fucking minute........taft knew in sept 2004......

two months before the election? he sat on this so the republicans wouldn`t be blamed before the election and ruin their chances of having the state go solid republican? president kerry would be in office now instead of bush?

[EFerrari]

6. Taft would never so compromise his integrity.

:eyes:

[LiberalFighter]

34. Bet Kenneth Blackwell was involved in it!!!!!!!

[Blue Diadem]

3. So between Feb and Sept, they lost all that money?

I don't know anything about investments so I wondered how long it took to lose that kind of money. I hadn't heard the time frame in any of of the local reports yesterday.

My state stinks of rotten corrupt evil repukes.

[Roland99]

4. A big question is where the hell did that money go???

[htuttle]

5. They stole it, obviously

Seriously, people.

If this was a union pension fund we were talking about, and if the mob had been handling the accounting on that money, would it really be such a mystery what had happened to it?

The State government of Ohio needs a visit from Mr. RICO, if you ask me. This is nothing less than outright racketeering.

[Roland99]

12. And now we see why they're trying to load up the courts.

This country is going to collapse within a generation or two.

[mtnester]

21. If everyone on the courts has to RECUSE themselves...

like 7 of the 9 Ohio Supreme Court Justices had to for the Noe coin case, shit like this will never even get HEARD.

Ohio is a shining example of why the RICO laws were created. We Ohioans have known for a LONG time our state is dirty, and God BLESS the Toledo Blade...ALL of these allegations would never be public if they had not picked the scab the Ohio Republicans have become over and over until SOMEONE screamed. Now, the entire world knows about it.

I am thinking there are literally dozens upon dozens of Repubs, justices included, that have taken "donations" from stolen Ohio money...that is why 7 of the 9 had to recuse themselves from hearing ANYTHING to do with Tom Noe in Ohio. Hell, if you add the missing coin money and now the $215 million, it comes out to $227 million dollars...money I believe somehow got distributed out to the upper echelon of the Repub party, or maybe even greased some squeaky BOE officials to defy recount laws, hold back voting machines, etc.

Arnold, give our money back - ALL of it
George, give our money back - ALL of it
Ohio Supreme Court Justices, give our money back - ALL of it
Blackwell/Petro/Montgomery - any you have ALREADY received, GIVE IT BACK

All you other Repubs that took Ohioans money, GIVE IT BACK

[Roland99]

22. Who's going to prosecute?

Is it time for something like MoveOn to branch out and become citizen advocates in the courts??

[Blue Diadem]

8. That's my question too

and they'd better follow the money on this as well as the Noe case.

All during the Noe investigation, Ohio has attempted to reassure us that there is plenty of money in the WC fund. Now to hear this, makes me wonder just how much is left for the injured worker and what other funds in this state need to be investigated.

I just get so darn angry! A co-worker's hubby had to go through hell and back to even collect worker's comp..and these idiots use it like it's water.

[BR_Parkway]

38. You mean it was lost during the heat of the elcction? How ironic.

[formercia]

7. and the HUBRIS...

http://www.post-gazette.com/pg/05002/434555.stm

MDL hopes to double assets by year's end

Sunday, January 02, 2005
By Elwin Green, Pittsburgh Post-Gazette

"I started at day one with no assets," said Mark D. Lay, recalling how he opened the doors of MDL Capital Management Inc. in 1992. Now the Downtown company, which has been ranked by Black Enterprise magazine as one of the top 10 black-owned asset management firms in the country for four years running, is managing $3.5 billion in assets.


Lay hopes to double that by year's end and to have the firm break the $10 billion barrier in 2006.

Lay, 41, an Aliquippa native with an economics degree from Columbia University, says his strategy for growth has three elements, with a fourth at hand to sweeten the mix.

The first element is the conservative management that has been the firm's style since its inception. "Not trying to make a lot of money for clients, but not to lose any," Lay said.

MDL specializes in managing fixed-income portfolios for institutional investors such as pension funds and endowments. Lay expects interest rates to rise this year, enhancing the value of the bonds that make up nearly all of the company's assets.

The second ingredient in Lay's mix is aggressive marketing, especially in the region. "There are tons of (local) municipalities and foundations and endowments that have never heard of us," he said. To correct that, Lay said he plans to expand the company's marketing department this year.

The third element is consolidation. The firm closed an Atlanta office in 2002, and this year Lay intends to shrink offices in New York and Philadelphia and move employes to Pittsburgh.

The fourth ingredient is the possibility of an acquisition. Last year, MDL purchased assets of Garrison Institutional Asset Management, an institutional money manager. The move added $150 million to MDL's books and clients in both Western Pennsylvania and West Virginia to their roster.

Pleased with those results, Lay said, "We are definitely open to the possibility" of another acquisition in 2005. "We think there's some opportunities out there."

[formercia]

11. And there is Ohio State University...

I wonder how much Ohio State University lost:


http://trustees.osu.edu/Minutes/2001June%2029.html


--snip--

BE IT RESOLVED, That upon the recommendation of the Investments Committee of the Board of Trustees the following named external Investment Managers and the Office of the Treasurer shall be approved to manage Endowment Funds as follows:
Equity Managers


Market Value/ Commitment
As of 5/31/01

Changes

Revised
Allocation
ABN AMRO
$ 64,369,061

$ --0--

$ 64,369,061
Barclays S&P 500
$262,024,751

$ --0--

$262,024,751
Nicholas Applegate Mid Cap
$146,032,366

$ --0--

$146,032,366
University Students
$ 20,166,548

$ --0--

$ 20,166,548
Barclays Extended
$155,904,626

$ --0--

$155,904,626
R. Meeder
$ 76,283,119

$ --0--

$ 76,283,119
Nicholas Applegate Small Cap
$ 27,986,393

$ --0--

$ 27,986,393
Barclays International
$ 27,771,325

$ --0--

$ 27,771,325
INVESCO
$ 21,670,726

$ --0--

$ 21,670,726
Sit/Kim
$ 17,271,643

$ --0--

$ 17,271,643
Alternative Managers
Battelle Technology Fund
$ --0--

$ 2,625,000

$ 2,625,000
CID Seed Fund
$ 1,000,000

$ --0--

$ 1,000,000
Commonfund New Leaders
$ 10,000,000

$ --0--

$ 10,000,000
Commonfund Capital Partners
$ 7,067,000

$ --0--

$ 7,067,000
EDF Ventures
$ 1,000,000

$ --0--

$ 1,000,000
Mesirow Partnership Fund I
$ 10,000,000

$ --0--

$ 10,000,000
Fixed Income Managers
Banc One
$ 25,701,462

$ --0--

$ 25,701,462
Commonfund
$ 34,593,371

$ --0--

$ 34,593,371
Cypress Asset Management
$ 24,209,545

$ --0--

$ 24,209,545
Hughes Capital Management
$ 15,295,290

$ --0--

$ 15,295,290
Huntington Trust
$ 25,697,311

$ --0--

$ 25,697,311
MDL Capital Management
$ 77,173,574

$ --0--

$ 77,173,574

Upon motion of Ms. Hendricks, seconded by Judge Duncan, the Board of Trustees adopted the foregoing resolution with four affirmative votes cast by Messr. Brennan, Judge Duncan, Ms. Hendricks, and Ms. Davidson, and one abstention cast by Mr. Patterson.

[donkeyotay]

19. So, if MDL is managing $3.6 Billion in assets...

"There are tons of (local) municipalities and foundations and endowments...

WHO ELSE IS MISSING MONEY???? Is there $3.6 BILLION down another REPUBLICAN RATHOLE?

[kittenpants]

9. GGRRRRR! I grew up in Ohio & Taft infuriates me.

He is letting GOP criminals take the state over. He is such a pathetic whore for Bush & is ruining the state. It's amazing how much damage one man can do/allow.

[Jeff In Milwaukee]

25. He is letting GOP criminals take the state over...

Taft IS a GOP criminal.

[OzarkDem]

10. Culture of Corruption

Yet Ohio Repubs are still planning to throw tens of thousands of low income people off Medicaid, eliminate a medical assistance program for the long term disabled, are refusing to provide temporary Medicaid coverage for uninsured cancer patients and will force more seniors into nursing homes instead of providing assistance to live at home. They also plan to roll back some tax increases.

Oh, and they're also projecting a budget surplus. I guess they'll have to get to work and find some way to siphon the surplus into one of their money laundering machines.

http://toledoblade.com/apps/pbcs.dll/article?AID=/20050608/NEWS24/506080357

Democrats - still emboldened by the disclosure late last month by Tom Noe's attorneys that $10 million to $12 million in assets from the bureau's $50 million rare-coin fund were missing - told their Republican counterparts that they believed all along that the "culture of corruption" in Columbus extended beyond the failed rare-coin venture.

They were quick to point their fingers at Republican statewide officeholders, calling the news more proof of reckless leadership in Columbus.

"I just wonder how much taxpayers of Ohio will take before they say, 'Let's throw these crooks out,'�œ" said Denny White, the chairman of the Ohio Democratic Party. "As I said from day one, I think 'Coingate' is just the tip of the iceberg."

[Supersedeas]

36. OH - center of Democratic Enlightenment

[gratuitous]

13. How tough is it to lose it ALL?

I mean, I'm not a financial mogul or an investment genius, but I'll bet a shiny nickel that I could manage $225 million in my spare time and have more than $10 million to show for all my wheeling and dealing at the end of the year. How do you lose ALL of a fund?

Maybe it will occur to some plucky Ohioan to ask a few questions and ferret out a few answers. It would be doubly good if that plucky Ohioan had access to the media -- you know, like a reporter or something.

[OzarkDem]

14. Very Interesting, very strange hedge fund

It was a hedge fund betting that interest rates would rise. Very unusual investment, considering the tight control Bushco and Greenspan have over interest rates.

Wonder how many more government dollars have been invested in these "hedge funds".

[nothingshocksmeanymore]

15. Yeah..they're going to have to claim alot of work comp fraud to make up

what they lost. I feel sorry for Ohio's njured workers. THEY will take the brunt of this as the legislature begins screaming there's a crisis.

[maxrandb]

18. My God You Are Soooooooo Right!

"they're going to have to claim alot of work comp fraud to make up what they lost" :toast:

and don't forget the "trial lawyers". They'll blame a shitload of it on "frivolous" lawsuits, and "regulation".

Oh, and don't forget the "wacko environmentalist". If only they would stop hounding the benevolent corporations and business leaders, why...We'd all be water skiing behind our yachts on the Ohio River, and enjoying our summer homes on Lake Erie. :eyes:

This has got to get national attention. Ohio needs to be made an example of what happens when Republicans are in charge.

[Zorra]

16. No surprise. REPUBLICANS are all CORRUPT.

The function of the republican party is to do the bidding of big business, and that's all.

Republicans suck.

[newscott]

17. THEY HAD BETTER ALL GO DOWN FOR THIS!!!

I can't wait to see Blackwell in cuffs!

[Sadie5]

20. Lay family strikes again

http://www.guardian.co.uk/enron/story/0,11337,645004,00.html


Might not be the same Mark Lay, but Ken's son is 33 yo Mark Lay. The link is a reference item to show Ken does have a son named Mark that works for this company.

[Blue Diadem]

32. I wondered if they were the same Mark Lay, but they aren't,

Mark D. Lay
• Age: 41.

• Position: Chairman and chief executive of
MDL Capital Management, founded in 1992 in Pittsburgh.

• Business: Investment management for pension
funds, profit-sharing plan, and state and municipal government.

• Funds under management: $2.8 billion.

• Education: Economics degree, Columbia
University.

• Notables: Ranked by Black Enterprise magazine
as one of top 10 black-owned asset management fi rms in nation. Named Pennsylvania-area Entrepreneur of Year by Ernst & Young in 2003.

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050608/NEWS24/50608003/-1/NEWS

[brooklynite]

23. Who do the Dems have running against Blackwell et al...

and are they doing a serious job pinning this on the current Republican leadership?

[OzarkDem]

30. Two serious contenders for governor

Rep. Ted Strickland from Appalachian part of Ohio and Columbus Mayor Mike Coleman (AA candidate - the anti-Blackwell).

Both are well qualified, raising money. Coleman is the less experienced of the two, and has had a few campaign stumbles, but nothing serious.

ODP and the Ohio House & Senate Dem caucuses are working overtime to get the story into the news media, a difficult job at best.

[Jeff In Milwaukee]

24. Let's Not Forget...

Former Treasurer Joe Deters, a guy so crooked he'd try to steal a hot stove if it weren't bolted to the floor, was responsible for managing Ohio's investments. Two of his henchmen have already been convicted of influence peddling involvement an investment manager who has himself been convicted of fraud.

The fruits of two decades of one-party rule. If the Ohio Democratic Party can't use this series of scandals to recapture at least the Governor's Mansion, then they should just give up.

[OzarkDem]

31. The Deters Scandal

was managed very well by the R's and the Ohio news media, with little, if any backlash on Repubs. They got the story out early and buried it by the time people started paying attention to the election.

They'll probably use the same strategy in this case.

[Jeff In Milwaukee]

35. It's hard to buy $200+ million

I think we may have hit "critical mass" with regard to Republican scandals. Granted, none of them involve anything as monumental as a blow job, but I think a massive betrayal of the public's trust ought to merit a paragraph or two -- even in the Cincinnati Enquirer.

[lateo]

26. Just another day at the office folks...

Ain't no thing but a chicken wing...

When are the Democrats going to start sticking up for us?

[donkeyotay]

27. Seems to be a little bit of history with managing public funds

http://www.bizjournals.com/pittsburgh/stories/2004/05/10/story5.html?page=1
From the May 7, 2004 print edition
MDL Capital acquiring Garrison

MDL is the fourth-largest minority-owned asset management firm in the country, managing more than $3.5 billion in fixed assets. Garrison is an institutional money manager with assets of $200 million, down from $750 million in summer 2002.
…
Talks between Garrison and MDL began late last year, said Chuck Gomulka, who along with Charles Zappala, is an owner and director of Garrison. They also have held a minority stake in MDL since it was launched 12 years ago.
…
Garrison, originally known as RRZ Investment Management Inc., has lost several high-profile clients, starting in summer 2002 when it was fired by Allegheny County for pension fund losses of $33 million. Within a month, the Commonwealth of Pennsylvania also dropped the firm….
…
Mr. Lay, who earlier this year invested in Greenwood Advisers LLC in Lancaster, said he would consider future acquisitions for MDL, though none currently are on the table

<<<end>>>
That last bit about Greenwood Advisers in Lancaster, I'm trying to remember some scandal discusses here in connection with the election. Something about a foreclosure in PA and a black box company, maybe?

[Pirate Smile]

28. Workers' comp bureau concealed $215M loss; Taft, Petro knew ...

Workers' comp bureau concealed $215M loss; Taft, Petro knew about fund's woes many months ago

COLUMBUS — Democrats were screaming “cover-up” yesterday after state officials admitted that a high-risk hedge fund that the embattled Ohio Bureau of Workers’ Compensation had invested in had lost $215 million in just a few months last year.

The bureau acknowledged that the fund, managed by a Pittsburgh-based investment firm, lost the money between February and September, 2004. MDL Capital Management relinquished control of the fund in November.

Although the bureau has known about the losses since September, it wasn’t revealed until yesterday, a day after The Blade began making calls upon learning that state investigators had uncovered huge losses at the bureau.

A spokeman for Gov. Bob Taft said last night that Mr. Taft had been told in September that there was an investment loss at the bureau — a loss of $10 million to $20 million.

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050608/NEWS24/50608003

[mod mom]

29. HE KNEW BEFORE THE ELECTION BUT CHOSE TO NOT REPORT IT!

Petro should be fired! He is the OHIO attorney general, which means he should be working for the Ohio people, not corporate neocon fat cats!

[cthrumatrix]

33. where are some good civil lawsuit lawyers?

[newscott]

37. Fired? How imprisoned for collusion?

[mod mom]

39. I agree, your idea is better-IMPRISONED!