Report: Firm was advised to inflate fees

Source: Associated Press (OH), Nov 21, 2005

COLUMBUS – A consulting firm analyzing the state Bureau of Workers’ Compensation was advised by a bureau lawyer to inflate its hourly fees to get around a law that requires consultants to be reimbursed for expenses at the same rate as state employees, a newspaper reported Sunday. The agency has been overhauling its financial strategy since revelations last spring that it lost more than $300 million in investments, including $13 million in rare coins and $215 million in a hedge fund. Ennis Knupp & Associates has billed the state $1.2 million for its work analyzing and stabilizing the bureau’s investments. The bill included $1,695 for three hours traveling, $470 for two hours copying documents and almost $1,300 for a couple of hours spent reading and writing e-mail messages, according to records analyzed by the Columbus Dispatch.