Case Against Former GOP Fundraiser Tom Noe Goes to Jury

TOLEDO, Nov. 8 -- Jurors on Wednesday weighed the fate of a former GOP fundraiser accused of pilfering a state investment in rare coins, a day after the scandal helped toss many Republicans out of statewide office.

Jurors in the trial of Tom Noe did not reach a decision after five hours of deliberations Wednesday and were set to continue Thursday. Deliberations followed three weeks of testimony from more than 50 witnesses.

Noe, 52, faces charges of theft, money laundering, forgery and corrupt activity. Defense attorneys have portrayed him as a victim of bad bookkeeping.

On Tuesday, voters fed up with government corruption scandals and Ohio's lagging economy picked Democrat Ted Strickland as governor, an office under GOP control since 1991. The Republicans also lost all but one of the statewide, nonjudicial offices up for election.

Prosecutor John Weglian said in closing arguments Tuesday that Noe started dipping into the money as soon as he received it from the Ohio Bureau of Workers' Compensation to invest in rare coins. The insurance fund for injured workers gave Noe $25 million in 1998, followed by another $25 million in 2001.

Prosecutors said Noe lent the money to friends. Former employees said he borrowed some of the state's money to pay off business loans and boost his coin business when sales were slow.

Noe attorney John Mitchell said that his client had permission from the bureau to invest the money, and that the coin fund produced $7.9 million in profits over seven years. Defense attorney Bill Wilkinson said the bureau was so pleased, it gave Noe the second $25 million to invest.

Weglian said Noe violated the bureau contract by failing to keep accurate records of the financial transactions. Weglian said $3.3 million was missing from the coin fund between September 2003 and May 2005, when Noe was relieved of his duties as the fund manager.

Wilkinson said Noe had no reason to steal the money, adding that he became a millionaire at age 25.

Prosecutors called more than 50 witnesses in the three-week trial. Noe's defense team rested Monday without calling any witnesses.

Democrats say Noe was entrusted with the investments because of his political connections. Mitchell said Noe was active in working for the reelection of GOP candidates, but said no evidence links those connections and the coin-fund contract.

Prosecutors have not said whether Noe is suspected of using the money to make campaign contributions to Republicans, including President Bush and outgoing Gov. Bob Taft.

The probe into Noe's coin investments led to separate ethics charges against Taft, who pleaded no contest last year to failing to report golf outings and other gifts. About a dozen others, including some Taft aides, also were charged.

In a separate case, Noe pleaded guilty earlier this year to federal charges funneling $45,000 to Bush's reelection campaign and was sentenced last month to two years and three months in prison. He won't begin that sentence until the state charges are resolved.