Ohio’s Coingate continues to take a toll

September 21st, 2005 by Julie Ferguson

It’s the scandal that keeps on giving. The Ohio Bureau of Workers Compensation’s (BWC) dubious investment strategy exacted its latest toll with the recent firing of the chief investment officer. Go figure! Who’d have thunk a little speculation in failed hedge funds and rare coins could cause such a ruckus? Coingate has already claimed the BWC director’s job; it’s also left a trail leading right up to Governor Taft’s door, and perhaps beyond. The next victim? Some think it might be the BWC itself. The ongoing investigations have already pushed any workers comp reform off the agenda this year and, unsurprisingly, some are suggesting it might be time for Ohio workers comp to privatize. Ohio is the largest of five monopolistic states. Monopolistic means the state is currently the sole provider of all workers comp insurance – and with a fund exceeding $14 billion, that’s hardly chump change. We’ll keep you posted.
From the archives: More here and here.