Beacon-Journal, AP: Hazel Sidaway convicted

Former teachers pension fund member convicted on 2 of 6 counts

Akron Beacon-Journal, April 15, 2006
Associated Press

Columbus, Ohio - A jury convicted a former member of the state teachers' pension board of two misdemeanor ethics violations on Friday but acquitted her on four other counts.

Hazel Sidaway, who represented active teachers on the board from 1986 to 2003, had been accused of accepting free meals, hotel stays and tickets to entertainment events.

Sidaway, 62, was found guilty in Franklin County Municipal Court of conflicts of interest for accepting two tickets to the Broadway show "Hairspray" and four Cleveland Indians tickets.

The theater tickets were from Tacoma, Wash.-based Russell Investment Group while Russell advised the agency on investments, and the baseball tickets from Smith Barney, now a subsidiary of CitiGroup.

The jury acquitted the Canton resident of one conflict charge accusing her of accepting meals at Columbus restaurants and three counts of failing to report the gifts on annual ethics reports from 2001 to 2003. She was not sentenced but likely faces a fine and probation.

Sidaway had testified that she learned long after the events that the consultants had paid for the tickets, and then reported them. She also said she relied on advice from staff at the State Teachers Retirement System on dealing with investment consultants and filling out ethics reports.

Ohio law prohibits public employees from accepting items of value from contractors. Assistant City Prosecutor Lara Baker said gifts could influence board members when they decide which companies to hire.

The former executive director of the system was found guilty Sept. 1 of accepting golf outings and other gifts from Russell. Herb Dyer pleaded no contest to one charge of failing to report gifts to the Ohio Ethics Commission and was fined $1,000.

Dyer was forced to resign in August 2003 after criticism that the retirement fund spent millions of dollars on bonuses, artwork and travel while assets plunged. He also apologized for saying that retirees needed to eat out less if they couldn't afford the fund's higher health insurance costs.

Both cases were referred to prosecutors by the Ohio Ethics Commission.