Ohio Coin Dealers Feeling Scandal's Sting
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+ + w SECTION A, PAGE 4 THE INDICTMENT OF TOM NOE THE BLADE: TOLEDO, OHIO t TUESDAY, FEBRUARY 14, 2006 Ohio coin dealers feeling scandal’s sting By CHRISTOPHER D. are problems. You have prob- KIRKPATRICK lems in the stock market, real BLADE STAFF WRITER Experts say industry thrives but ‘Coingate’ is cautionary tale estate, oil,” he said. “I think that Beth Deisher tells people she if there was ever any reaction, it is editor of Coin World magazine very, very strong in this state.” Mr. Noe for the exemption back “I’ve known Noe for 30 years. I demand has been so strong and lasted for 37.8 seconds. The mar- in Ohio and some raise an eye- The legislature’s reaction to in the late 1980s, had plans this knew his father. I’m fl abbergast- because Mr. Albanese has expe- ket roared forward in 2005. Ma- brow or pause disapprovingly, the Noe scandal also has hurt year to expand his business, ed,” Mr. Fritz said of the indict- rience unloading large amounts jor numismatic auctions in 2005 she said. the dealers and collectors in Centerville Coins and Jewelry ment. “I’ve never known Tom to of coins. were $500 million, compared to It wasn’t always that way in Ohio by raising prices, she said. Connection. But since the sales do anything illegal.” “When you deal with repu- $320 million in 2004.” her Buckeye State. But a $50 mil- State lawmakers in the GOP- tax exemption was lifted, he has Ms. Deisher said the number table dealers, people who deal David Harper, the editor of the lion rare-coin scandal this year controlled legislature removed lost 80 percent of his of counts in the with upholding high standards rare coin weekly Numismatic involving one-time GOP fund- the sales tax exemption on gold in-store business, he indictment was par- [you don’t have problems.] There News, agrees. “The hobby,” as raiser and coin-dealer Tom Noe bullion and collectible coins, said. He has gained ticularly shocking to are a lots of bad apples, fl y-by- he refers to it, has survived, even has stigmatized the industry, she forcing some coin dealers out of back 30 percent by her and others, who night organizations, and boiler- fl ourished, despite the pall and said. business, Ms. Deisher said. The “redoubling our thought it might in- room operations,” Mr. Travers taint of “Coingate,” he said. And a 53-count indictment exemption approved in 1989 efforts on the Inter- volve a few counts said. “[Mr. Noe] was a dealer The market has been buoyed announced yesterday against and once unoffi cially known as net.” and was more of a who had a spotless reputation, by the rising price of gold and the former Monclova Township the Noe Amendment became That’s lost money political than crimi- and that’s why it’s so shocking. silver and pushed higher by businessman, who sought audi- a political liability for the GOP, for the state, he said. nal issue. It’s fascinating that it has had no the intense interest in U.S. rare ences with the President and she said. “People who used Scott Travers, a impact on the marketplace.” coins, he said. Though the Noe golfed with the governor, might “They have put upward of 100 to come in and buy consumer advocate Donn Pearlman, who owns affair provides cautionary tales only make it worse. coin dealers out of business or bullion, they just and author who this a public-relations fi rm and is for dealers and investors, the “They give you this funny look have severely affected their busi- stopped coming week released the a spokesman for Professional story is more about corruption that by implication, anything or nesses. These are honest, law- in,” he said. “I’ve talked to a lot fi fth edition of his Coin Collec- Numismatists Guild, agreed that in government and how not to anyone having to do with coins abiding people that got crushed of legislators and had a meet- tor’s Survival Guide, said that the the scandal has not affected the invest public dollars, he said. is a crook. In this state it cer- in all the hysteria over the situa- ing with [Speaker of the House liquidation of Mr. Noe’s holdings larger coin-trading industry. But “Very lax bookkeeping,” he tainly has become a handicap tion,” she said. “At least 25 states Jon] Husted. They’ve all said, for the state has been quietly he stressed the indictment and said. “It looks like the govern- if you’re involved with coin col- exempt bullion coins for sales ‘We’ll look at this thing, but you and skillfully executed by hired the scandal have been a shock ment of the state of Ohio was run lecting, rare coins, and bullion,” tax. The knee-jerk reaction of the have to get rid of [Gov. Bob] Taft consultant, John Albanese. Mr. because Mr. Noe was well-re- out of the back end of a Buick.” legislature has really put a chill because he’s going to be ducking Travers said coin prices have not spected in the industry. she said. Contact Christopher D. Kirkpatrick “I don’t think that same stigma on the coin business.” this thing because it’s connected been affectd by a potential fl ood “It’s not just rare coins; wher- Ed Fritz, who lobbied with to Noe.’ ” on the market, in part because ever money can be made there at: [email protected] is there anywhere else, but it is or 419-724-6077. part of that process.” Last year, Democrats criti- Reaction cized Ms. Montgomery — who has returned $8,150 in contribu- Continued from Page 1 tions from Mr. Noe and his wife, Jim Petro’s campaign man- — of waiting too long to order a ager, Bob Paduchik, said the special audit of the coin funds statement from the Blackwell that Mr. Noe controlled. campaign was “a blatant effort “While Republicans may want to politicize a very tragic situa- this to be the end of the inves- tion.” Mr. Paduchik added, “Ken tigation, this is just the begin- Blackwell knows better.” ning,” said state Sen. Marc Dann, “No state elected offi cial has a Youngstown area Democrat done more to expose Tom Noe who emerged last year as a early and protect Ohio taxpayers than critic of the rare-coin investment Jim Petro,” Mr. Paduchik said. and who is now running for state “We are used to foolish state- attorney general. “The task force ments from Ken Blackwell, but investigating this issue contin- this is ridiculous.” ues to have an opportunity and Mr. Petro — who has been ac- an obligation to learn everything cused of favoring political con- they can about the corrupt sys- tributors in assigning the state’s tem that costs Ohioans millions legal business — told The Blade of dollars every year. last summer that Mr. Noe’s wife, “The benefactors of Noe’s Bernadette, “may have” lobbied campaign contributions over his offi ce for special counsel the past two decades need to work for her fi rm. come clean,” Mr. Dann said. “It’s Since 1990, Mr. Noe and his time they tell Ohioans what they wife have contributed more than know about the pay-to-play sys- $200,000 to political candidates tem in Ohio.” and causes, including $6,100 Paul Tipps, a former chair- to Mr. Petro and $3,650 to Mr. man of the Ohio Democratic Blackwell. Party and a former lobbyist, Most of those contributions questioned whether GOP state were made after 1998 when Mr. legislators would be “smarter” Noe received his fi rst installment than congressional Republicans of $25 million from the Workers’ in the wake of the Jack Abramoff Compensation Bureau. ASSOCIATED PRESS scandal by adopting reforms in Bill Binning, a political sci- Thomas Charles, right, discuss the indictments as Howard Hudson, far left, Arnie Schropp, and Prosecutor Ron O’Brien listen. the months after Mr. Noe’s in- ence professor at Youngstown dictment. State University, said the biggest “If they do the reforms and do Democrats call Bob Bennett, chairman of the cratic candidate for governor, “thirst for change” in Ohio. it in a timely fashion, they could danger to Republicans in the Ohio Republican Party, called said yesterday that he hopes “People know Jim Petro, and statewide election is a “stinky, behavior ‘corrupt’ take corruption off the table in Mr. Noe a “disgrace to himself others who were involved in Ken Blackwell, and Bob Taft be- the governor’s race. If they do noisy trial. Will [Mr. Noe] name and to his party.” the alleged scheme to defraud cause they’ve been in charge for other fi gures and drag in other As the GOP candidates for the cute stuff and fool around, it governor crossed swords over “When he’s found guilty, he Ohioans will be brought to jus- a long time,” Mr. Strickland said. won’t wash,” Mr. Tipps said. people?” should face the strongest pos- tice. Mr. Strickland said the al- “There is a feeling of unrest and The other question is if the the Noe scandal for the fi rst time Catherine Turcer, legislative since it broke 10 months ago, sible punishment,” Mr. Bennett legations against Mr. Noe are a dissatisfaction and the fact that director for Ohio Citizen Action, Noe case goes to trial, will it be said in a statement. “I am abso- product of the state’s one-party these indictments have come close enough to the November Ohio Democratic Party Chair- a statewide advocacy group, said man Chris Redfern said the al- lutely disgusted by his arrogance rule that has reigned for more down will just further cause proposals that Governor Taft general election to damage the and abuse of trust, and this party than a decade.