Tuesday, September 19, 2006

Akron Beacon Journal: Former board members plead no contest to ethics violations

Posted on Tue, Sep. 19, 2006
Akron Beacon Journal

Associated Press

Four former members of the state teachers' retirement board were sentenced Tuesday on a conflict of interest charge stemming from accepting tickets to a Broadway show from a company doing business with the agency.

The four had been charged with accepting $275 tickets for themselves and in some cases their spouses to "Hairspray," a musical in New York, during a May 2003 trip sponsored by the State Teachers Retirement System.

Board members Michael Billirakis, Eugene Norris, Joseph Endry and Deborah Scott entered no contest pleas in Franklin County Municipal Court.

Judge Scott VanDerKarr sentenced each to one year probation. He ordered Billirakis, Norris and Scott to perform 60 hours community service and to repay the cost of the tickets to the retirement fund.

VanDerKarr ordered Endry, who had already repaid the cost of the tickets for himself and his wife, to perform 30 hours of community service.

Investigators dropped a second charge of failing to report those gifts as required under state law.

The tickets were from the Frank Russell Corporation/Russell Real Estate Advisors, now the Russell Investment Group, according to the Ohio Ethics Commission, which brought the ethics charge.

Endry and Scott do not believe they did anything wrong but wanted to put the case behind them, said their Columbus attorney, Ritchey Hollenbaugh. He said the trip to New York was organized by staff members of the retirement system.

His clients "have no way of knowing who the ticket is from nor how much it costs, only that it is part of the evening that was put together with an itinerary from the staff in the board office," Hollenbaugh said.

Billirakis thought the show was part of the entire board-sponsored trip, said his attorney, Terry Sherman. He said his client pleaded no contest against his advice because he wanted to avoid a trial.

Messages seeking comment were left for Norris' attorney, Ben Espy.

A message was also left with the Russell Investment Group seeking comment. The company has said previously that it regularly hosts educational seminars and other activities for clients and Russell employees attend those functions with clients. The company says it's up to clients whether they attend those functions.

Investigators continue to look at the conduct of senior retirement fund officials, Ethics Commission investigator Paul Nick said.

In June, former board member Jack Chapman was convicted of accepting Cleveland Indians baseball tickets and other gifts from investment clients. Another former board member, elementary school teacher Hazel Sidaway, was convicted in May of similar ethics violations, and Herb Dyer, the retirement system's former executive director, was found guilty last fall of improperly accepting gifts.

The teachers' retirement system serves more than 439,000 active and retired educators with assets of about $59.6 billion.

Larry KehresMount Union Collge
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