Hedge Fund Manager Set To Stand Trial In Ohio Scandal

Oct 15 2007 | 8:01am ET

A hedge fund manager linked to a scandal that rocked Ohio politics will go on trial for fraud this week in Akron.

Mark Lay of Pittsburgh-based MDL Capital Management stands accused of defrauding the Ohio Bureau of Workers’ Compensation by putting its money in a volatile hedge fund without its approval. The agency lost $216 million in the investment, only overshadowed by a $50 million loss in a rare-coins fund run by a top Republican fundraiser, who was convicted of stealing from said fund.

The scandal, in which Ohio’s then-governor, Bob Taft, was convicted of misdemeanor ethics charges, help lead to a Republican wipe-out in last year’s elections.

The daughter of the BWC oversight board member George Forbes also worked at MDL Capital.

Lay’s attorneys call the charges sour grapes, accusing Ohio authorities of simply looking for a scapegoat.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of