The Following letters were revealed at today's BWC Oversight committee meeting indicating that the Bureau and Attorney General Jim Petro were warned by the United States Securities and Exchange Commisson that BWC was being ripped off by Stock Brokers. More on Stock Broker Contributions and Terry Gasper's "Approved List" of Brokers to come:
From Minority Leader CJ Prentiss:
Two letters were revealed for the first time to Ohio Bureau of Workers’ Compensation Commission members today that could show proof of a rampant kickback scheme in Ohio’s government. The portions of the letters were inadvertently revealed during today’s BWC Commission meeting by a consultant hired for the BWC investigation.
One letter was sent in November 2002 from the Securities Exchange Commission to the BWC; another was sent from the SEC to Republican Attorney General Jim Petro in March 2004. Both cited abuse of excessively inflated brokerage fees at the BWC and warned Petro of the impending problems, but to no avail. During the Commission’s meeting today in Columbus, the current interim BWC director stated that the letters were not recently made public because of a criminal investigation surrounding them.
Ohio Senate Democratic Leader C.J. Prentiss of Cleveland released the following statement in response:
"Today’s revelation of excessive brokerage fees is startling. Over two years ago, the SEC contacted the Taft administration about excessive fees and apparently nothing changed. And last year, Attorney General Petro was contacted by the SEC and still nothing was done.
This begs the question --- why no action? As we peel away each layer of the onion, are we going to find a kick-back scheme that was institutionalized by this administration to reward their campaign contributors? Why didn’t Governor Taft act? Why didn’t Attorney General Petro act? Who are these firms being paid excessive fees and who did they shower with campaign contributions? All the statewide elected leaders? This is just another reason why we need Watergate-style legislative hearings. Taxpayers need to know.
There is a culture of corruption in this state and it must end.”


