+ + w SECTION A, PAGE 4 THE INDICTMENT OF TOM NOE THE BLADE: TOLEDO, 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, ’s campaign man- — of waiting too long to order a ager, , 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. , “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 , 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. 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 , 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 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 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. people to believe that Ohio is in Republicans, Mr. Binning said. legation that Mr. Noe engaged released last week to reform lob- in “corrupt” behavior carries has no tolerance for anyone “It is an arrogance that comes need of a change.” bying and contracting rules are “If this is a theatrical drama, who considers himself above from one party rule that is de- when will it come to stage? God special signifi cance. full of holes. “You can’t engage in a pattern the law.” void of appropriate checks and Will scandal lead For example, she said legisla- forbid in the fall. I think that Mr. Bennett said Mr. Noe is balances,” Mr. Strickland said. Blackwell is more separated of corrupt behavior without to reforms? tors and lobbyists should be willing participants,” said Mr. “irrelevant” to Republicans — “It appears that Mr. Noe and from it, but I don’t know if the State Auditor Betty Mont- required to fi le their ethics state- Redfern, who is a state represen- and Democrats shouldn’t bank many of those in leadership in public is that discriminating. gomery, who dropped out of ments at the same time and state tative from Ottawa County. on him bolstering their political the Republican Party in Ohio If it gets to be a big stink and the governor’s race last month law needs to be changed to “de- “He needed operatives, he fortunes. … there was just an arrogance you’re a Republican, you get that to run for attorney general, said frock” lobbyists who are found to needed offi cials, he needed “The Democrats have nothing and attitude that we can do big stink on you and you have a in a written statement that since violate ethics laws. help in violating state law. And to offer but protest and pessi- just about any damn thing we problem. April, 2005, “our offi ce has been Blade Columbus Bureau Chief the day I am looking forward to mism, and if they think Tom Noe choose to do and no one is going “The Republicans are big on working closely with the investi- James Drew contributed to this is when some elected offi cials is their ticket to statewide offi ce, to hold us accountable.” prayer. They should be praying gative team relating to the BWC’s report. who allowed this pattern of cor- they’ll be sadly disappointed on Mr. Strickland said he expects for a deal, for a plea,” said Mr. coin investments, and we are ruption to occur — when they Election Day,” Mr. Bennett said. his campaign could get a boost Contact Steve Eder at: Binning, a former chairman of pleased that our work has been are held accountable too,” Mr. U.S. Rep. (D., from Mr. Noe’s indictments [email protected] or the Mahoning County Republi- Lucasville), the leading Demo- because they could add to the and continues to be an integral 419-724-6272. can Party. Redfern said.

THE NOE FILES The following is a chronology of Tom Noe’s involvement with state officials prior to today’s announcement of his indictment.

1991: Then-Gov. 1993: In divorce proceedings, 1995: 1997: Governor Voinovich signs law that revamps March 31, 1998: 2000: Auditor for the Ohio July, 2001: Mr. Noe says that his political Governor how state can invest; opens the door to alterna- Mr. Noe’s coin fund gets its first $25 Bureau raises multiple Bureau invests appoints Tom Noe work helps him meet people who Voinovich tive investments like the coin funds that follow. million. questions about the coin another $25 to the Bowling became clients of his coin busi- appoints Mr. December: Mr. Noe submits proposal to man- April 7: Mr. Noe and his wife con- fund in a strongly worded million with Mr. Green State ness, including the late Paul Noe to the age a rare coin fund for the bureau. tribute $4,500 to then-Secretary of report to his superiors. He Noe in a new University Board Mifsud, Mr. Voinovich’s chief of Ohio Board State Bob Taft’s bid for governor. At suggests it could be a coin fund. of Trustees. staff, and Republican Party lead- of Regents. the time, they were their largest con- problem for bureau offi- ers in northeast Ohio who ‘con- tributions. cials if there are any future Voinovich trol a lot of money.’ ‘fraudulent acts.’

April, 2003: Mr. Hicks 2004: April 3, 2005: The Blade publishes again vacations in Mr. Douglas Moormann, who first story revealing the state’s $50 Noe’s Florida home. served as Mr. Taft’s execu- million coin deal with Mr. Noe. ■ June: Gov. Bob Taft tive assistant for business April 7: In interview with The appoints Mr. Noe to the and industry, receives a Blade, Governor Taft strongly Commission. $5,000 loan from Mr. Noe. defends Noe, declaring: ‘He’s mak- Workers’ Comp bureau ■ Mr. Noe attends ing money for the state. What’s the Oct. 30: loses $215 million in a Bush fund-raiser in problem?’ Ohio Inspector General questionable hedge fund; Columbus, where he Moormann Thomas Charles announces that he Taft White news of the loss isn’t helped to raise $1.4 mil- will investigate the coin funds. revealed until investigators looking into Mr. lion. His role is focus of U.S. Attorney announces federal investigation Noe’s former Florida home. Noe discover it the following June. April 27: Gregory White April, 2002: Taft chief of staff Brian Hicks vacations in later federal investigation. into Mr. Noe regarding contributions to the Bush-Cheney campaign. Mr. Noe Mr. Noe’s Florida home. had been chairman of the campaign in northwest Ohio. Mr. Noe gives H. Douglas Talbott, a former aide to both May 9: The bureau pulls plug on coin funds and asks Ohio Attorney governors Voinovich and Taft, a $39,000 loan to help buy General Jim Petro to appoint a liquidator. a home in Lakeside, Ohio. (CONTINUED ON PAGE 5)

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