Tom Noe indicted in fund scheme

Sen. Marc Dann of Liberty said the scandal is far deeper than the indictment indicates.
STAFF/WIRE REPORTS
TOLEDO -- A coin dealer and major GOP donor at the center of a scandal in Ohio state government was charged Thursday with illegally funneling $45,400 in contributions to President Bush's re-election bid.
Tom Noe was accused in a federal indictment of giving money directly or indirectly to 24 friends and associates, who then made the campaign contributions in their own names. In that way, he skirted the $2,000 limit on individual contributions, prosecutors said.
"It's one of the most blatant and excessive finance schemes we have encountered," said Noel Hillman, chief of the U.S. Department of Justice's public integrity section.
Noe also is under investigation over an ill-fated $50 million investment in rare coins he managed for the state workers' compensation fund. Noe has acknowledged that up to $13 million is missing, and Ohio's attorney general has accused him of stealing as much as $6 million. No charges have been filed in that case, though state officials say they plan to do so.
Indictment
Noe arranged the contribution scheme to fulfill his pledge to raise $50,000 for a Bush fund-raiser at a downtown Columbus hotel Oct. 30, 2003, according to the indictment. The fund-raiser was just over a year before Ohio gave Bush the White House.
Noe wrote several checks just under the maximum allowable amount of $2,000 to avoid suspicion, the indictment said. All of the checks were written in the eight days leading up to the fund-raiser -- the largest a $14,300 payment.
Federal investigators also allege Noe made his friends and associates fill out contribution cards and forms falsely certifying they were making the contributions themselves.
The result was that Bush's campaign committee unknowingly submitted a false campaign report to the Federal Election Commission, the indictment said. Prosecutors say the Bush campaign cooperated with their investigation.
"Even after the conviction of our governor, his former chief of staff, Brian Hicks, and now the indictment of Tom Noe, Ohio is far from seeing how deep this scandal runs," said state Sen. Marc Dann of Liberty, D-32nd, one of the most vocal Democrats about Noe and his relationship with Ohio Republicans.
"Over a decade of one-party Republican rule has allowed Ohio Republicans to perfect pay-to-play and now pay-to-steal politics," he said.
U.S. Attorney Gregory White said prosecutors were negotiating Noe's surrender with his lawyer, and they have not discussed a possible plea agreement. A message seeking comment was left for Noe's attorney.
If convicted, Noe faces up to 15 years in prison and fines up to $950,000. Those penalties could increase if it's found that Noe used money from the state coin fund to make the campaign donations.
The case is the largest of its kind prosecuted under the 2002 campaign finance reform law, Hillman said.
Noe personally contributed more than $105,000 to Republicans including Bush and Gov. Bob Taft during the last campaign.
The Bush-Cheney campaign donated $6,000 it received from Noe and his wife, Bernadette, to charity, said Aaron McLear, a spokesman for the Republican National Committee.
The committee said it is cooperating with federal authorities but will not return $100,000 that Noe raised for Bush for now.