Ohio
‘Shocking’: Dave Yost details secret texts and private emails exchanged at STRS Ohio
A former State Teachers Retirement System board member relentlessly advocated for a firm looking to do business with the pension fund, even after the pension staff rejected the firm, according to new records filed by Ohio Attorney General Dave Yost.
Ten months ago, Yost sued to remove two members of the State Teachers’ Retirement System board, based largely on a memo from an anonymous whistleblower.
In a court filing this week, Yost and his team put more details into the public record and said they found a “shocking” level of covert coordination and communication with a firm looking to do business with the pension fund.
Wade Steen, a now former board member who is one of the targets of Yost’s lawsuit, sought to get at least part of the lawsuit dismissed.
Yost responded with a 16-page memo that accuses Steen of prioritizing secrets over transparency, failing to preserve records, failing to disclose his ties with QED, which sought to do business with STRS, and relentlessly advocating for QED’s proposal.
Steen served on the STRS board as an appointee of Gov. Mike DeWine. In May 2023, DeWine removed Steen and appointed a replacement.
Steen sued to get his seat back and a non-profit organization, Ohio Retirement for Teachers Association, paid the legal bills for Steen and STRS Board Chairman Rudy Fichtenbaum. That arrangement may conflict with state ethics laws.
Ohio Ethics Commission Director Paul Nick said he could not comment on ongoing investigations.
Steen won reinstatement but his term expired in September 2024.
The lawsuit against Steen and Fichtenbaum alleges that they violated their fiduciary duty to the pension system by working behind the scenes for QED, a relatively new investment firm.
Steen and Fichtenbaum have said they were searching for ways to cut pension fund costs and boost investment returns, to benefit retirees and teachers.
In early 2020, QED, formed by former state treasurer officials Seth Metcalf and J.D. Tremmel, pitched STRS board members and staff to partner on an investment opportunity. The strategy called for earmarking up to $65 billion, which could generate a $4 billion return.
In May 2020, STRS managers rejected the deal, in part because QED lacked a track record. In February 2021, the pension fund’s outside consultant, Cliffwater, also rejected the proposal.
The next month, QED told STRS that it no longer wanted to do business with the pension fund. But Steen and Fichtenbaum kept working with QED to advance the proposal, according to Yost. In November 2021, the duo made a presentation to fellow board members on QED’s proposal.
QED aligned with the Ohio Retirement for Teachers Association to help elect new board members who might be more open to the new strategy.
Steen has said in court filings that since he’s already off the STRS board, the lawsuit to remove him is moot. He has said he wants STRS to cut expenses and find investment opportunities that would yield higher returns. STRS staff stymied his efforts to get information to help improve the system.
Last year, Fichtenbaum declined to comment on the lawsuit but said in an online statement: “I have done nothing wrong and will continue to fight for the interests of STRS members.”
What evidence did Yost uncover?
Once STRS Chief Investment Officer Matt Worley rejected the QED pitch, Steen began challenging STRS’s returns, calculations and other data, according to the lawsuit.
At the same time, Steen communicated regularly with Metcalf and Tremmel via texts, personal email accounts and Signal, a private chat system that automatically erases messages. After STRS staff told QED no, these messages were exchanged:
- Sept. 3, 2020: Metcalf tells Steen it’s best to use personal email addresses, not the STRS email accounts.
- Sept. 20, 2020: Metcalf sends the QED business plan to Steen’s personal email.
- Oct. 14 and Nov. 23, 2020: Metcalf ghostwrites emails for Steen.
- Oct. 15, 2020: Metcalf sends Steen instructions during a pension board meeting.
- Nov.13, 2020: Steen asks Metcalf for a list of questions or issues he could raise in the following week.
- Nov. 19, 2020: Metcalf noted he’d email motions for a board member to read at the meeting.
- Dec. 16, 2020: Metcalf sends a memo to Steen’s personal email.
- Jan. 8, 2021: Steen asks Metcalf for input on changing STRS board policies.
- Aug. 16, 2021: Tremmel provides info to Steen and Fichtenbaum for an STRS staff meeting.
- Aug. 15, 2022: Metcalf tells Steen he sent him time-sensitive message via Signal.
- Sept. 6, 2022: Steen seeks to coordinate a consistent message with Metcalf and Tremmel.
- Oct. 19, 2022: Metcalf and Steen talk about exchanging messages and documents via Signal.
While Steen is no longer on the board, Yost wants to permanently block him from returning.
What’s happening at STRS?
The Ohio Retirement for Teachers Association and its allies on the board are pushing for several changes. They want to reinstate regular cost of living adjustments for retirees, cut down on administrative expenses and staff bonuses, dial back on higher-risk investments such as private equity funds, and increase transparency.
The board is made up of five teachers and two retired teachers elected by system members, three investment experts appointed by the governor, state treasurer, Ohio General Assembly and the director of the Department of Education and Workforce.
The board oversees about $95 billion invested on behalf of 500,000 teachers and retirees.
Board members aren’t compensated, and they have a fiduciary duty to act in the best interest of the system. State law allows the attorney general to bring a civil case to remove public pension board members if they violate that duty.
The attorney general is the legal counsel for the pension systems.
Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.
Ohio
Ohio’s secretary of state shows “cognitive dissonance” on election integrity – again
Ohio Secretary of State Frank LaRose is once again demonstrating that he operates not based on principles but on his loyalty to President Donald Trump and the MAGA movement, say the hosts of the Today in Ohio podcast.
Tuesday’s episode took aim at LaRose’s recent announcement that Ohio is joining the EleXa Network, a system where states share voter data to combat fraud—nearly identical to the ERIC (Electronic Registration Information Center) system LaRose abandoned after MAGA criticism.
“This was the case that — for anybody that wanted to see it — showed just how lily-livered LaRose is, that he doesn’t stand for anything,” said Chris Quinn. He noted how LaRose was full-throated in supporting ERIC “until all of a sudden ‚the MAGA folks said it’s bad. And then like you said, hot potatoes.”
Lisa Garvin explained that LaRose had previously championed ERIC as an essential tool for maintaining accurate voter rolls and preventing fraud. However, when conservative media outlets began claiming the system favored Democrats and undermined election integrity, LaRose abandoned it—only to now join a nearly identical system with a different name.
Quinn didn’t hesitate to predict LaRose’s future behavior: “And watch, if MAGA comes out and says, ‘Oh, we hate this system,’ he’ll immediately turn tail again. And it shows you everything. He doesn’t stand for anything except supporting MAGA and the Republicans.”
Garvin said LaRose’s decisions are part of his pattern on election integrity.
“He’s always trumpeted the integrity of Ohio’s election system. And then he turns around and said, ‘well, there’s fraud everywhere.’” She said. “This is like cognitive dissonance?”
Both Eric and EleXa allow states to share information on people who may be registered in multiple states or who have died, helping to keep voter rolls accurate and prevent people from voting twice. Ohio is joining with nine neighboring states, including Indiana, Kentucky, West Virginia, and Pennsylvania.
Of course, as podcast hosts noted, voter fraud is extremely rare.
Listen to the episode here.
Listen to full “Today in Ohio” episodes where Chris Quinn hosts our daily half-hour news podcast, with Editorial Board member Lisa Garvin, Impact Editor Leila Atassi and Content Director Laura Johnston.
Ohio
Leaders from dozens of states in Ohio to fight federal overreach
COLUMBUS, Ohio (WCMH) — The Ohio Statehouse hosted a historic gathering of legislative leaders from across the country Monday, discussing concerns about the increasing power of the federal government.
Senate presidents and House speakers from about 40 states met in the chambers of the Ohio House of Representatives, unanimously adopting a nonbinding declaration for the restoration of federalism and state empowerment.
“The states are not instrumentalities of the federal government; the states created the federal government, the states created the constitution,” said Bryan Thomas, spokesperson for the National Conference of State Legislatures (NSCL), which organized the assembly.
In addition to the federalism declaration, the inaugural Assembly of State Legislative Leaders unanimously adopted rules and frameworks for future assemblies. These rules were submitted by a bipartisan steering committee made up of five Democrats and five Republicans. Likewise, the Assembly’s proposal process requires bipartisan support in order to get a vote.
“Coming from a blue state and minority [party] in the current federal government, it’s really important for us to find partners to work with,” Hawaii Senate President Ron Kouchi (D) said. “What better partners than our fellow legislators?”
Ohio Speaker of the House Matt Huffman (R-Lima) has been working to organize an assembly of legislative leaders to reassert the tenets of federalism for years.
“What we’ve done in the last 50 years or so, I don’t think that George Washington and Thomas Jefferson and John Adams would recognize,” Huffman said. “There are some things that the states do better and some things that constitutionally the states are required to do.”
According to Thomas, there are several specific issues where many states feel their power has been usurped by the federal government—particularly with regard to Medicaid policy.
“With changes to Medicaid coming down the pipe from Congress, what is the state role?” Thomas said. “What flexibility can states have in administering this program?”
“Medicaid is the Pac-Man of the state budget. It is costing the state more and more money each year, it’s completely unsustainable,” Ohio Senate President Rob McColley (R-Napoleon) said. “It’s necessary for us to have these conversations about Medicaid because every state’s dealing with the same challenges.”
The Assembly did not end up voting on a proposed declaration regarding Medicaid, which would have urged Congress to “avoid unfunded mandates” and assert that states should “retain the authority to customize eligibility, benefits, and delivery systems.”
Although Thomas said planning for the Assembly has stretched between presidential administrations, President Donald Trump has made several moves during the first year of his second term to assert federal authority over the states — most recently by signing an executive order limiting states’ ability to regulate AI, and attempting to pressure the Indiana state legislature into redrawing congressional maps.
“There’s no specific action here of the current administration or the past administration that spurred this,” Thomas said. “This is more about a real grounding in principles.”
“Anybody has the ability to voice their opinion or their concerns on a variety of these issues,” McColley said of Trump’s campaign to influence the Indiana legislature. “I think the administration is free to talk about it and be involved in the process.”
It is not clear when or where the Assembly will meet next, but Kouchi suggested a meeting could be held at July’s NCSL conference in Chicago. With a framework in place, Kouchi said he hopes the next assembly will get into the “meaty issues” concerning state legislative leaders.
Ohio
Why Ohio State is built to ‘wake up and move on’ from a loss before the College Football Playoff
COLUMBUS, Ohio — Breathe in. Breathe out.
The dust has settled on Ohio State football’s last contest: a 13-10 loss to Indiana in the Big Ten Championship Game. Nearly 10 days have passed since the offensive line struggled to hold up, since the offense struggled to convert in the red zone and since the Buckeyes failed to accomplish one of their three major goals.
As is often the case at OSU, a loss is accompanied by anger, questions, concerns and aches.
“Sick to my stomach that we lost,” quarterback Julian Sayin said last week.
Now, after a week centered around College Football Playoff bracket debates and Heisman Trophy celebrations, Ohio State is looking to move on from the defeat in Indianapolis.
It should have little issue doing so.
The Buckeyes were in a similar, albeit more emotional and pressure-packed, situation last year. They entered the CFP off a loss, falling in shocking fashion to rival Michigan.
The final score of that contest: 13-10.
Ohio State went through some rigorous soul-searching, with coach Ryan Day and players having an emotional team meeting in which many on the roster expressed their frustrations with how the regular season ended.
The loss to Indiana isn’t as complicated. It’s simply a loss. However, the Buckeyes have experience flushing defeats before a postseason run.
“You’ve got to wake up and move on,” Day said.
As was the case last season, losing doesn’t diminish something apparent: Ohio State is a good team loaded with talent on its roster.
The Buckeyes are still betting favorites to go back-to-back this season, and statistics show why. They lead the nation in scoring defense and total defense while ranking in the top 25 of both categories on offense.
Ohio State has a slow and methodical approach on offense, but Day has expressed belief in his team’s ability to step on the pedal when appropriate. With Carnell Tate and Jeremiah Smith at receiver and Sayin under center, that belief shouldn’t falter.
“There’s still a bunch of guys in this room that know we can play with anybody in the country and beat anybody in the country when we’re on our game,” Day said.
The most pressing question left for Ohio State to answer before the CFP relates to offensive coordinator Brian Hartline. The Buckeyes’ play-caller was hired ahead of the Big Ten title game as South Florida’s next head coach.
Hartline called plays against Indiana, according to Day, and the plan is for him to do the same in the CFP. If there are concerns about his ability to balance two jobs, Day has a solution: time
USF announced Hartline’s hiring three days before Ohio State took the field at Lucas Oil Stadium. While also balancing the opening of the early signing period, Day had little opportunity to sit back and determine what was best for his offense.
The Cotton Bowl won’t present those challenges. Two-seeded Ohio State returns to action on Dec. 31 where it’ll meet the winner of No. 7 Texas A&M and No. 10 Miami in Dallas.
By then, Day will have had time to take a breath, assess the situation and determine who will run his offense.
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