To recap, the Ohio Worker’s Compensation fund invested $50 million through Tom Noe, a well-connected Republican operative, and his coin funds. It has recently been discovered that $10-$12 million is missing. Indictments are being handed down. the Worker’s Comp chief has been fired. 5 of the 7 Ohio Supreme Court Justices have recused themselves from any proceedings dealing with Mr. Noe because of his substantial campaign contributions (he was the campaign manager for at least one of the justices). With respect to the coin fund, The Toledo Blade explains Mr. Noe’s angle this way:
Rare coins are graded on a 1-70 scale – a subjective score based on the amount of their wear and tear and quality. A grade 60 and above is considered top notch. Dealers “arbitrage” by trying to find coins they believe have been undergraded and then resubmit them to different grading firms in hopes of winning a higher grade and higher profits.
But Mr. Noe may have had a leg up on other coin dealers.
The Blade has learned that he owns a stake in Numismatic Guaranty Corp., one of the three major coin-grading firms in the United States that most coin dealers use. Records show that numerous coins owned by the state were sent to be graded by that firm.”
And he still managed to lose a ton of money. Charming.
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