Paul Kostyu: Four more on STRS panel convicted of violating ethics

Canton Repository
Wednesday, September 20, 2006

By PAUL E. KOSTYU COPLEY COLUMBUS BUREAU CHIEF COLUMBUS Four more board members of the state’s teacher pension fund were found guilty of violating state ethics laws. That brings to seven the number of officials who have been convicted. The investigation of the board of the State Teachers Retirement System is officially over. But the investigation of current and former senior staff members continues, according to Lara N. Baker, the chief prosecutor in the sweeping ethics case. On Tuesday, Michael N. Billirakis, Eugene E. Norris, Joseph I. Endry and Deborah Scott pleaded no contest or guilty to a single count of conflict of interest for accepting a gift — a $275 ticket to the Broadway show “Hairspray” — from a contractor doing business with the pension fund. All but Scott, who is from Cincinnati, are from central Ohio. The four faced 10 total charges — four for Billirakis and two each for the others — but those were reduced in plea agreements. SENTENCING The convictions came from an investigation begun in October 2003 by the Ohio Ethics Commission after media reports, including many by Copley Ohio Newspapers, raised questions about the pension fund. All four got suspended jail sentences of 180 days, were placed on probation for one year and fined $250. Billirakis, Scott and Norris were ordered to make restitution and serve 60 hours of community service. Endry got 30 hours of community service because he made restitution before being charged. Billirakis, a member of the executive committee of the National Education Association, broke down in tears as he stood before Franklin County Municipal Court Judge Scott D. VanDerKarr. “I’m sorry I didn’t pay attention when I should have,” Billirakis said quietly. Billirakis recently resigned from the retirement system board. The other three left the board when their terms expired. REACTION Billirakis’ attorney, Terry K. Sherman, said his client’s plea was against his advice. He said he thought there were legal and factual deficiencies in the state’s case. He said Billirakis was ensnared by a trip he didn’t arrange, and he did not know that the tickets were paid by a client. Ben Espy, the attorney for Norris, blamed retirement system administrators for his client’s legal problems. He said Norris accepted the ticket based on the advice given by the pension fund’s in-house counsel and “this is the fallout.” “Hopefully, this unfortunate era has passed,” said H. Ritchey Hollenbaugh, the attorney for Endry, Scott and three other retirement system clients, including former Canton City Schools teacher Hazel Sidaway. Sidaway’s conviction in April after a two-day trial set the stage for the plea deals that followed. Hollenbaugh said board members didn’t knowingly violate the law. Not so, said David Freel, executive director of the commission. He said former retirement system board members spent thousands of dollars in questionable expenses. He said all received itineraries of the New York trip showing who hosted them at the Broadway show. Reach Copley Columbus Bureau Chief Paul E. Kostyu at (614) 222-8901 or e-mail: paul.kostyu@cantonrep.com