Wednesday, June 15, 2005

 

New BWC revelations: $4 million lost to indicted manager

Man, when it rains, it pours. The Plain Dealer late this morning reported that:
The Ohio Bureau of Workers' Compensation allowed Alan Brian Bond to continue investing $50 million of its money for at least 18 months after Bond was indicted on charges of taking more than $6.9 million in kickbacks that were billed to his clients.

The bureau lost $3.86 million in that investment, according to spokeswoman Emily Hicks.
Now, all this happened back in the 2000-2001 period.
Bond, president and CEO of Albriond, was indicted on Dec. 16, 1999, the same day the SEC sued him, alleging that he had accepted the kickbacks.

Three weeks later, Robert Cowman, then the bureau's chief investment officer, told The Plain Dealer that the bureau had no immediate plans to stop doing business with Albriond, despite Bond's legal troubles.

But on Tuesday, Hicks said the bureau wasn't aware that Bond had been indicted until December 2001. That's when Bond was indicted on a second set of charges related to the cherry-picking scheme.

[. . .]

"Do we have to pass a bill that you have to do a Google search on each investment manager every month?" [State Senator Mark] Dann asked.

"Clearly, nobody was minding the store. There was no oversight of these investment managers," he said.
Surely you want to know a little more about Bond, don't you?
Bond, a New York money manager who made appearances regularly on "Wall Street Week With Louis Rukeyser," used the kick backs to support an opulent lifestyle that in cluded two homes in Florida, more than 75 luxury and antique auto mobiles and spending sprees that totaled as much as $470,000 a month, according to the Securities and Exchange Commission.

He paid for those things, according to the SEC, by defrauding clients, among them the pension and retirement funds of police officers and other blue-collar workers.In 1997 and 1998, campaign finance records show, Bond and two of his associates gave $5,500 to Republican Ken Blackwell, then state treasurer; $2,000 to Democrat Lee Fisher, who was running for governor of Ohio; and $1,000 to Republican Betty Montgomery, then attorney general.
BWC really knew how to pick 'em.

The "Culture of Corruption" drum beat gets louder and louder.

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