Ohio Bureau of Workers Comp scandal widens
Ohio's workers compensation scandal continues to grow, heading off in ever-more-interesting and bizarre directions every day. The fallout is both political and financial, and has reached the governor's office.
Here's the latest information from our friends at "Workers Comp Insider" and other sources. It appears the Bureau of Workers Comp, the entity that oversees the state's monopolistic workers comp insurer, has lost somewhere around $215 million in funds. These losses were due to investments in rare coins (!); with shady investment manager Alan Brian Bond; and in a hedge fund that was amazingly adept at losing large sums and charging high fees for that ability.
In one of the more entertaining chapters of this growing story, one of the key players suffered an alleged burglary at the home of Michael Storeim that resulted in the loss of significant ‘personal assets'.
Here's the brief from the Toledo Blade.
"The suburban Denver home of a former employee of Tom Noe (one of the principals in the scandal) was burglarized over the weekend, with thieves making off with artwork, guns, jewelry, cars, and $300,000 in wine — possibly purchased with money from the state of Ohio.
Michael Storeim, a suspect in a Colorado criminal probe into Ohio's missing coins, reported Monday night the valuables had been taken from his Evergreen, Colo., home while he was vacationing with his wife.
Investigators from the Jefferson County, Colo., Sheriff's Office on June 3 took custody of 3,500 bottles of wine valued at $500,000, and seized hundreds of rare coins, 265 Cuban cigars, computers, and documents from Mr. Storeim's home and office as part of a criminal investigation.
The wine was left in a locked cellar in the home, but police had changed the locks."
Despite the losses from these "investments" , up until last week, BWC was claiming it was going to continue to rebate dividends to policyholders while raising premiums ‘only slightly' by 4.4%. However, the firestorm over the financial debacle appears to have killed the BWC's dividend and rate increase plan, at least for now.
What does this mean for you?
For those not in Ohio, a great way to start Monday with a smile. For those in Ohio, more bad news about incredibly arrogant, self-serving, and possibly criminal politicians and their friends.