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COLUMBUS, OHIO---Terrence Gasper, the former chief financial officer of the Ohio Bureau of Workers' Compensation has pleaded guilty in U.S. District Court in Akron to federal racketeering charges in the widespread corruption case in northern Ohio, corruption which some have labeled as systematic in the Republican ranks.
Hours later he pleaded guilty to a felony count of money laundering in Franklin County Common Pleas Court in Columbus, for taking a $25,000 donation from convicted GOP fundraiser and rare-coin dealer Thomas Noe.
Gasper, 59, also pleaded guilty to failing to disclose sources of income, girls, travel, meals, entertainment and gratuities on his annual ethics statements from 1999 to 20205.
Gasper had resigned in 2004. He played a key role in the state's $50 million rare coin investment involving indicted GOP fundraiser Tom Noe, and the loss of $216 million in an investment scheme. Noe pleaded guilty last month to making illegal campaign contributions to President Bush's 2004 re-election campaign. He still faces a 53-count indictment, charged with embezzling at least $1 million and perhaps more than $3 million from the state. The indictment is the result of Noe's handling of a $50 million investment fund created by the Ohio Bureau of Worker's Compensation by buying and selling rare coins. Noe managed the bureau's investments from 1998.
In exchange for Gasper's guilty plea, prosecutors will recommend that Gasper receive a sentence from 70 to 87 months in prison on the federal charges. Although he could be sentenced up to five years on the state charges, it's likely that prosecutors will recommend that the state sentence run concurrently with the federal sentence.
The RICO charge was filed against Gasper as part of an ongoing
criminal investigation into allegations of misconduct involving millions of dollars of OBWC investment funds. The investigation is being conducted by a task force of federal, state and local law enforcement officers from the offices of the Inspector General for the State of Ohio; the Ohio State Highway Patrol; the Ohio Ethics Commission; the OBWC Special Investigations Department; the Ohio Department of Commerce, Division of Securities; and the Cleveland and Cincinnati Divisions of the Federal Bureau of Investigation, as well as prosecutors from the Franklin and Lucas County Prosecutors' Offices; the Columbus City Prosecutor's Office; and the Offices of the U.S. Attorneys for the Northern and Southern Districts of Ohio.
Gasper of Thackeray Avenue, Worthington, Ohio, was charged with conducting the affairs of the OBWC, a legitimate enterprise, through a pattern of illegitimate racketeering activity, by accepting things of value from investment brokers, dealers and marketers seeking to obtain and retain lucrative OBWC investment contracts.
The OBWC manages one of the nation's largest workers' compensation funds, with investment assets totaling approximately $19 billion.
The RICO charge alleged that Gasper committed three specific racketeering acts of extortion under color of official right (i.e., extortion by virtue of his official position with the OBWC) as part of a pattern of racketeering activity. Specifically, it alleges that in exchange for doling out OBWC investment business, Gasper received the use and enjoyment of an oceanfront condominium located in Islamorada, Florida, as well as other things of value, from individuals identified as Brokers #1 and #2; an investment of $25,000 which was made by an individual identified as Dealer #1 on Gasper's behalf in the name of Gasper's then girlfriend; and checks, including a $9,000 check for tuition made payable to the college attended by Gasper's son, from an individual identified as Marketer #1.
The RICO count further alleges a fourth racketeering act: that Gasper defrauded the public, the OBWC, and the citizens of Ohio of their right to his honest services by using his position and influence as CFO of the OBWC to assist Brokers #1 and #2 in obtaining and retaining OBWC investment business. 6-08-06
© 2006 North
Country Gazette
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