State wraps witness list in STRS misconduct allegations civil trial

State wraps witness list in STRS misconduct allegations civil trial

by: Katie Millard

NBC 4 Columbus
October 29, 2025

COLUMBUS, Ohio (WCMH) — A civil trial investigating allegations of misconduct on the state’s teacher pension board continued Wednesday, diving into the anonymous letter that sparked the case.

Top state officials received a seemingly anonymous letter in May 2024 that alleged two State Teachers Retirement System (STRS) board members improperly conspired to take over the state’s $90 million pension funds. The letter formed the basis for a civil trial, underway this week, former STRS board member Wade Steen and current STRS Chairman Rudy Fichtenbaum made backroom deals with private investment firm QED.

On Wednesday, the state wrapped up its witness list, after which the defense attempted to get the case dismissed. The request was denied, and defense attorneys called their first witnesses Wednesday afternoon.

The state’s central argument is that Steen and Fichtenbaum breached their fiduciary duty, or their legal and ethical duties, to protect STRS’ best interests. The pair had proposed transferring control of the state pension board to outside investment firm QED. The pension board serves around 500,000 current and former Ohio teachers. See previous coverage of the STRS trial in the video player above.

Fichtenbaum and Steen said they felt it would better the fund’s performance and help teachers, particularly after annual cost of living increases were discontinued. The state alleges it was done improperly, and wants to remove Fichtenbaum from his current role and bar both men from serving on state pension boards again.

STRS chief legal counsel Stacey Wideman had been identified as part of the group who composed the letter, a fact Wideman confirmed on the stand late Wednesday afternoon. Wideman was the final witness to take the stand Wednesday, called by the defense.

Wideman testified that the first draft of the letter could be traced back to December 2021, the month after Fichtenbaum and Steen presented to the board about a possible QED collaboration. She said there were several drafts between December 2021 and May 2024, when she and others finally decided to send their whistleblower memo.

“All of these things were just completely unprecedented and out of the norm,” Wideman said. “We had never had board members pitching an investment strategy before for an outside firm.”

Wideman said she was one of several STRS associates concerned by the persistence of QED, a firm with minimal prior experience. Wideman said she finally sent the letter to the state after concerns about QED’s involvement continued, and she began to worry about possible election interference related to QED. She testified she had not seen evidence that either man was paid by QED.

In part, Wideman pointed to the sudden resignation of former board member Richard Stein. Stein took the stand before Wideman, and testified that he resigned because he felt other board members — those who did not propose collaboration with QED — were not acting appropriately, and he felt he could no longer do his duty.

Before the defense called either witness, Steen’s attorney, Norman Abood, moved for the case to be dismissed. He argued the state did not prove any breach of fiduciary duty or a backroom deal. Abood also argued the state’s attempt to bar Steen from serving on the STRS board was moot, as Steen is no longer on the board.

Fichtenbaum’s attorney, Richard Kerger, seconded Abood’s motion, and said the pair’s duty was to serve teachers, not STRS board members or staff, and he felt they had fulfilled that duty.

On behalf of the state, assistant attorney general Chad Kholer said tossing the case because Steen has left the board would set a dangerous precedent allowing board members to resign to avoid legal action. Kholer said there was proof of harm, from morale issues to relationships with other external organizations.

Judge Karen Phipps sided with the state, and the trial continued.

The state also appeared to begin positioning itself as the more efficient party, particularly as Phipps voiced support for streamlining testimony where possible.

The first witness of the day was Matt Worley, the state’s final witness in the trial. Worley is the former STRS chief investment officer, and he testified that the QED investment would have been “unheard of.” Worley said the QED investment did not live up to the typical due diligence expectations. When asked if the QED proposal cost STRS any money, Worley said “thankfully” it did not.

Read the original article here.