Ohio Bureau of Workers' Compensation
Encyclopedia
The Ohio Bureau of Workers' Compensation (OBWC or BWC) provides workers' compensation insurance coverage for employers and employees in the State of Ohio through a $22 billion fund
. Based on assets under management
, OBWC is the largest exclusive state-operated and second largest overall provider of workers’ compensation insurance in the United States
.
The OBWC reported providing coverage to more than 288,000 employers and supports more than 1.5 million open cases of worker disability. OBWC paid out more than $1.9 billion in benefits against premiums from employers of $2.1 billion.
Since its founding in 1912, BWC has provided medical and compensation benefits for work-related injuries, diseases and deaths. BWC provides insurance to about two-thirds of Ohio's work force.
leadership of the state government in Ohio
. It was revealed in early 2005, in part by a Toledo, Ohio
, newspaper The Blade
that the OBWC had invested hundreds of millions of dollars in high risk or unconventional investment vehicles run by people closely connected to the Ohio Republican Party who had made large campaign contributions to many senior Republican party officials.
Most notably, a rare coin
investment fund has attracted particular scrutiny after it was reported that two coins worth more than $300,000 had been lost. Further investigation then revealed that coins worth $10-$12 million were missing and that only $13 million of the original $50 million invested could be accounted for. Thomas Noe
, a Republican Party fundraiser and activist was charged with running a criminal enterprise, the theft of $13 million from the fund, and of keeping a second set of books to cover for it.
and venture capital
investment funds. A sale of the portfolio was reported in 2007.
However, as part of that sale process, OBWC engaged Ennis Knupp to conduct a thorough valuation of its alternative investment holdings. The Columbus Dispatch
subsequently made a request under the Freedom of Information Act to receive the Ennis Knupp valuation report, which included confidential materials that the various private equity firms objected to OBWC disclosing. The various private equity firms settled a lawsuit with the Columbus Dispatch allowing a partial disclosure, however the generally secretive private equity
industry followed the outcome closely.
On June 26, 2007, however, the OBWC was again in the news as a result of the theft of a laptop containing personal information for 439 injured workers.
On January 13, 2009, Ohio inspector general's office investigation reported that a high-paid employee had been spending most of his work hours, since 2005, downloading and viewing audio and video files from sexually explicit websites during working hours. The case was referred to prosecutors for possible charges involving theft of state time and the inspector general urged the BWC to monitor more closely its employees' computer use.
Fund
Fund may refer to:* To fund is the process of Funding, or providing capital or other resources for a transaction, a project, a person, a business or other private or public institutions...
. Based on assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
, OBWC is the largest exclusive state-operated and second largest overall provider of workers’ compensation insurance in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
The OBWC reported providing coverage to more than 288,000 employers and supports more than 1.5 million open cases of worker disability. OBWC paid out more than $1.9 billion in benefits against premiums from employers of $2.1 billion.
Since its founding in 1912, BWC has provided medical and compensation benefits for work-related injuries, diseases and deaths. BWC provides insurance to about two-thirds of Ohio's work force.
Coingate
In 2005, the OBWC became involved in a massive investment scandal that ultimately contributed to the defeat of the Republican PartyRepublican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
leadership of the state government in Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
. It was revealed in early 2005, in part by a Toledo, Ohio
Toledo, Ohio
Toledo is the fourth most populous city in the U.S. state of Ohio and is the county seat of Lucas County. Toledo is in northwest Ohio, on the western end of Lake Erie, and borders the State of Michigan...
, newspaper The Blade
The Blade (newspaper)
The Blade is a daily newspaper in Toledo, Ohio, first published on December 19, 1835.- Overview :David Ross Locke gained national fame for the paper during the Civil War era by writing under the pen name Petroleum V. Nasby. Writing under the pen name, Locke wrote satires ranging on topics from...
that the OBWC had invested hundreds of millions of dollars in high risk or unconventional investment vehicles run by people closely connected to the Ohio Republican Party who had made large campaign contributions to many senior Republican party officials.
Most notably, a rare coin
Coin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
investment fund has attracted particular scrutiny after it was reported that two coins worth more than $300,000 had been lost. Further investigation then revealed that coins worth $10-$12 million were missing and that only $13 million of the original $50 million invested could be accounted for. Thomas Noe
Thomas Noe
Thomas W. Noe is an Ohio Republican party fundraiser and activist, guilty of money laundering for the 2004 Bush-Cheney campaign and of theft and corruption in the "Coingate scandal"...
, a Republican Party fundraiser and activist was charged with running a criminal enterprise, the theft of $13 million from the fund, and of keeping a second set of books to cover for it.
Private equity investments
In the aftermath of the Coingate scandal, the OBWC determined to reduce its exposure to investments perceived as "alternative" or "high risk" which included an $400 million portfolio of over 60 private equityPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
investment funds. A sale of the portfolio was reported in 2007.
However, as part of that sale process, OBWC engaged Ennis Knupp to conduct a thorough valuation of its alternative investment holdings. The Columbus Dispatch
The Columbus Dispatch
The Columbus Dispatch is a daily newspaper based in Columbus, Ohio. Its first issue was published on July 1, 1871, and has been the only mainstream daily newspaper in the city since The Columbus Citizen-Journal stopped printing in 1985....
subsequently made a request under the Freedom of Information Act to receive the Ennis Knupp valuation report, which included confidential materials that the various private equity firms objected to OBWC disclosing. The various private equity firms settled a lawsuit with the Columbus Dispatch allowing a partial disclosure, however the generally secretive private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
industry followed the outcome closely.
Subsequent events
In the years following the Coingate scandal, OBWC has replaced its senior management and investment teams and has been scrutinized heavily by the new Democratic administration in Ohio.On June 26, 2007, however, the OBWC was again in the news as a result of the theft of a laptop containing personal information for 439 injured workers.
On January 13, 2009, Ohio inspector general's office investigation reported that a high-paid employee had been spending most of his work hours, since 2005, downloading and viewing audio and video files from sexually explicit websites during working hours. The case was referred to prosecutors for possible charges involving theft of state time and the inspector general urged the BWC to monitor more closely its employees' computer use.