Toledo Blade: More on Ohio GOP Coingate

Although this story of corrupt Ohio GOP's connection to losing a lot of employee money in rare and bad coin purchases goes to the very depth of how legitimate the 2004 presidential elections results from Ohio, the deciding state, this story has only once to my knowledge made it to the airwaves.

From the Toledo Blade, a paper doing steady work on this case:

Tom Noe often transferred tens of thousands of dollars from the Ohio rare-coin funds he managed to his personal business before bankrolling Republican candidates and causes with contributions and loans.

A Blade examination of the accounting records from Mr. Noe’s $50 million rare-coin venture shows a pattern of large sums of money moving from the coin funds to his personal business, Vintage Coins and Collectibles, in the days and weeks before the coin dealer and his wife, Bernadette, made contributions to Republican candidates ranging from President Bush to U.S. Sen. George Voinovich and Gov. Bob Taft down to Lucas County Auditor Larry Kaczala.Mr. Noe typically listed the payments from the coin funds to Vintage Coins as "profit distributions" or "coin purchases."But both of those explanations have been assailed as fraudulent by Ohio Attorney General Jim Petro, who has branded Mr. Noe a thief and accused the former Toledo-area coin dealer of running a Ponzi scheme and making questionable coin trades with the state fund.

Last month, Mr. Petro accused Mr. Noe of diverting coin-fund money to his personal business and then to his personal checking account to pay for his former Catawba Island home, landscape his home in the Florida Keys, and pay off a business loan. Mr. Petro said the accusations largely came from "tracking the flow of dollars" out of the coin funds to Mr. Noe’s personal accounts and measuring the "proximity of the transfers" before large purchases or payments.

According to the computerized accounting records of Capital Coin I, II, and their subsidiaries, Mr. Noe since 1998 transferred more than $19 million from the state coin venture into his business accounts at Vintage Coins, including more than $13 million for "coin purchases" and more than $1.7 million in "profit distributions." In that same time period, Vintage Coins transferred about $5 million back to the coin funds, the records show.

As Mr. Petro lodged accusations about how Mr. Noe bought houses and paid-off loans with state coin fund money, he stopped short of making claims about how the coin dealer paid for political contributions and loans he and his wife doled out, totaling more than $300,000 since 1998 — the year he received his first installment of $25 million from the Ohio Bureau of Workers’ Compensation to invest in rare coins.

Mr. Petro, who has returned $6,100 in campaign contributions from the Noes because of concerns that the money could have come from state funds, said during a news conference that coin-fund money could have been used for political purposes, but his office is focusing on "personal resources" in building its civil case against the coin dealer.