It looks like Duke Cunningham was not the only public official with a documented list used to apportion public dollars. The former CFO of Ohio’s workers comp Fund (known as the Bureau of Workers Comp) Terence Gasper, allegedly used a handwritten list to determine how much of the Bureau’s investment business was going to specific investment firms. The 25 to 30 firms that made the list received upwards of $100,000 each, with the most fortunate enriched by three-quarters of a million dollars.
The question now is, if this list existed (and it appears it did), why was it set up and did anyone at the BWC receive any kickbacks or payments for business steered to specific firms?
According to one colorful witness (probably a big Sopranos fan), interviewed after his/her testimony before the grand jury investigating the matter, “Somebody was getting greased‘Somebody’s gonna fry. Actually, a few somebodies are gonna fry
It looks like our old acquaintance Tommy Noe may be one of the “somebodies”; one witness identified Noe as someone who would not have received $50 million to invest on BWC’s behalf unless he was “pushed from above”.
Gasper’s alleged conduct was not limited to Cunningham-esque lists; he also authorized investments into a hedge fund (“MDL”) without informing his bosses. Hedge funds can deliver great results, as well as huge losses, and this is the only instance I am aware of where such a volatile vehicle has been used to invest workers compensation reserves. Unfortunately for policyholders in Ohio, MDL proved to be much more adept at losing money than making it, to the tune of some $215 million.
MDL was fortunate in that an employee was the daughter of a BWC Oversight Commission member, George Forbes. Forbes resigned his post when this information became public knowledge.
What does this mean for you?
If you are an employer in Ohio, higher WC premiums.
Mar
7
