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From left, defense lawyer Bill Wilkinson listens as Tom Noe speaks with defense team member Zubin Mistry.
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Attorney for Noe hints he'll fault BWC; $50M coin deal is labeled 'dumb'

Attorney for Noe hints he'll fault BWC; $50M coin deal is labeled 'dumb'

One of Tom Noe s attorneys appeared to signal yesterday that he will put the Ohio Bureau of Workers Compensation on trial for giving Noe $50 million to invest in rare coins in the first place.

During jury selection yesterday for Noe s embezzlement trial, John Mitchell questioned the bureau for signing a very dumb contract that allowed Noe to buy and sell coins from himself with state money.

The agreements, Mr. Mitchell said, allowed him to basically do anything he wanted to.

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After objections from prosecutors, Lucas County Common Pleas Judge Thomas Osowik admonished Mr. Mitchell to stick with specific questions for the prospective jurors.

We re not trying to argue the case, we re trying to get a jury, Judge Osowik said.

Noe faces 45 counts relating to accusations that he stole more than $2.2 million from the $50 million the Bureau of Workers Compensation gave him, beginning in 1998, to invest in rare coins and collectibles. He has pleaded not guilty.

Ten women and six men were selected yesterday afternoon to sit on the jury that will decide whether Noe is guilty of the charges.

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Opening statements are set to begin Monday morning before Judge Osowik. There is no court session today.

Following more than three hours of questions, prosecutors and defense attorneys settled on the jury, which ranges from a student taking high school courses online who is saving for a video game to an auto company retiree.

Four of the jurors are minorities, three African-Americans and one Hispanic.

A number of the jurors know little about the case, and few had feelings about Noe s guilt or innocence.

One who did was an older man who said he was leaning toward conviction and said his father had once sold coins to Noe s father. But the man also said he would wait to hear all the evidence before I make a decision.

The police officer who had been in the juror pool was excused, as was a former corporate auditor and a woman who said she lost her life savings with the former Westhaven Group. That company s fall from grace was uncovered as authorities investigated Noe.

In the contracts he signed with the Bureau of Workers Compensation, Noe was granted broad powers over the money that was wired to his bank account. He was allowed to buy coins from himself with state money, and sell his own coins to the state. He was also allowed to invest in a host of things besides rare coins; he ultimately invested in real estate and Beenie Babies, among other items.

When asked about problems with the fund last year, a former top bureau official said the bureau s money managers, including Noe, were given wide latitude to make their own decisions.

We pretty well let our managers use their discretion, Robert Cowman, the former chief investment officer for the bureau, told The Blade in March, 2005.

After Mr. Mitchell s comments, assistant prosecutor Jeffrey Lingo made his own. He asked a juror about contracts as well. He asked if the prospective juror would sign a bad contract.

You wouldn t let anyone steal from you. That wouldn t be very bright, Mr. Lingo said.

Mr. Mitchell also asked jurors a number of questions about taking oaths. He asked whether they would question the motives of potential witnesses who have agreed to testify to avoid trouble.

Tim Lapointe, one of Noe s employees, is scheduled to testify for the prosecution. He has been charged with numerous felonies as well and has reached a preliminary deal with prosecutors.

Also, the bureau s former chief financial officer, who has pleaded guilty to extortion for his role in doling out bureau investment business, may testify.

Mr. Mitchell told jurors they may hear from witnesses who got a substantial deal. He later called such deals a powerful reason to have people come into court, take an oath, and lie.

During the group interview session with prospective jurors, Mr. Mitchell asked them if they would invest in something they didn t know much about. None said they would.

Workers compensation officials have said they did not know much, if anything, about the coin industry prior to giving Noe the money. They have said they trusted him and his representations about the business.

However, in his initial proposal to the state, Noe wrote that the coin fund could lose money for the state.

These securities are speculative and involve a high degree of risk, read the title page of his confidential memorandum to the state, sent in December, 1997.

Columbus bureau chief James Drew contributed to this report.

Contact Mike Wilkinson at: mwilkinson@theblade.com or 419-724-6104.

First Published October 13, 2006, 9:50 a.m.

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From left, defense lawyer Bill Wilkinson listens as Tom Noe speaks with defense team member Zubin Mistry.
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