Fraud Case Cost Ohio Millions

05/18/2008 09:36:07


COLUMBUS, Ohio - A newspaper reports that Ohio spent about $2 million in legal fees in a lawsuit against an investment adviser
convicted in one of Ohio's biggest fraud cases.
   
Mark Lay was chief executive and founder of MDL Capital Management of Pittsburgh. The lawsuit ended in April when he agreed
to pay $5 million in a settlement with the office of former Attorney General Marc Dann.
   
Records reviewed by The Columbus Dispatch show that nearly all legal fees charged to taxpayers went to a Columbus law firm hired
as special counsel.

Lay was convicted in October of fraud charges related to the loss of $216 million at the Ohio Bureau of Workers' Compensation.
   
The civil case against Lay sought to recover the $216 million. Republicans criticized Dann, a Democrat, for agreeing to the
settlement, saying it let Lay off the hook.

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