A federal state team is being formed to investigate the disappearance of up to $12 million in missing coin investments belonging to the Ohio Bureau of Workers' Compensation, Franklin County Prosecutor Ron O'Brien confirmed yesterday.
Meanwhile, a spokesperson for Ohio Republican Governor Bob Taft said he will name a new chief executive officer for the bureau this week to fill the vacancy created by last week's resignation of James Conrad in the wake of the coin disappearance.
The coin investment probe is centering on Tom Noe, a partner in Capital Coin and heavy Republican contributor, who served as one of the bureau's investment managers.
State Democrats, noting Mr. Noe's political activities, have seized on the issue labeling it "Coingate."
According to Mr. O'Brien's office in Columbus, Ohio, the task force will involve a U.S. Attorney's Office representative from both the Northern and Southern District of Ohio, and others from the Franklin County prosecutor and Lucas County prosecutor in Toledo.
Others involved in the probe include the state auditor, attorney general, inspector general and the comp bureau's fraud unit.
Northern District U.S. Attorney Gregory White in Cleveland promised, "we're going to follow the investigation wherever it may lead," which he said may reach beyond the state and the counties where Mr. Noe has his coin business.
The Ohio Bureau of Workers' Compensation is the state's exclusive provider of comp insurance.
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