Plain Dealer - Cordray rips officials who own stock

(The Cleveland Plain Dealer)

Democrat rips officials who own stock

Columbus - Rather than buy and sell individual stocks, candidates for statewide office who want to dabble in the market should own mutual funds, says Richard Cordray, the Democrats' candidate for state treasurer.

Cordray made the comments amid continuing questions about the personal holdings of GOP gubernatorial hopeful Ken Blackwell, a Republican.

Recent financial disclosure statements show that Blackwell owns stock in Diebold Inc., a voting machine maker that benefited from his decisions as Ohio's top elections official.

His holdings also include Barr Pharmaceuticals, maker of the morning-after pill; International Gaming Technology, the world's leading slot-machine maker; and the Walt Disney Co. Blackwell opposes abortion, efforts to allow slot machines in Ohio and the domestic partner benefits offered to Disney employees.

Blackwell sold his Diebold stock - at a loss - after learning that he owned it. His portfolio is managed by others, he said, and he does not approve investment decisions.

The flap caused him to announce plans to manage his investments through a blind trust, a system in which he cannot control - or see - his portfolio. He backtracked after learning that Ohio law does not allow blind trusts because candidates are required to list their holdings on annual ethics statements.

Under a compromise, spokesman Carlo LoParo said Blackwell will relinquish authority to direct his investments and will only see the portfolio's content when he needs to file his taxes and ethics reports.

He emphasized that Blackwell broke no ethics law because Ohio law allows officeholders to have "minimal" stock holdings in companies with business before them - and Blackwell's are minimal.

Still, Cordray said, "It's not appropriate for us to be picking individual stocks."

U.S. Rep. Ted Strickland, vying to be the Democratic nominee for governor, disagreed. As long as portfolios are open to the public, and investments are within the law, he disagrees that individual stock holdings should be avoided.

Although Strickland owns no stock or mutual funds, his running mate, Lee Fisher, has investments in SBC Communications and OfficeMax Inc., according to his financial disclosure statements. Both companies have contracts with Ohio.

The topic of investments arose during a news conference in which Montgomery County Treasurer Hugh Quill announced he is dropping out of the primary for state treasurer and clearing the field for Cordray. Quill's name still will appear on the May 2 primary ballot.

Quill acknowledged that he trailed Cordray in money and endorsements and said he pulled out to give Democrats more resources to defeat Republicans in November.

Cordray and Strickland accompanied him at the news conference, and both praised his decision to withdraw.

To reach this Plain Dealer reporter:

stheis@plaind.com, 1-800-228-8272