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
Police responded to a report of a ‘domestic dispute’ at Ohio governor candidate’s home in 2019
COLUMBUS, Ohio — In August 2019, police in Bexley, Ohio, responded to a report of a “domestic dispute” at the home of Dr. Amy Acton.
Acton — then the director of the state’s Department of Health, now a Democratic candidate for governor — pulled a mirror off the wall, “shattering the glass” when she “became upset” because she felt her husband “was antagonizing her,” according to a police report. She told officers she had been drinking, had taken an unknown amount of prescription drugs and was about to drive away in her car before her husband, who also told police he had been drinking, talked her out of it, the report stated.
A medic dispatched to check on Acton recommended that she go to the hospital, but Acton “refused,” according to the police report. Police determined that there was no evidence of physical violence between Acton and her husband, only a “verbal argument over her extended work hours.”
Months later, Acton would become one of Ohio’s most visible leaders as the state battled Covid, advising and appearing almost daily alongside Gov. Mike DeWine as they issued stay-at-home orders and shared the latest case numbers. Acton’s time in the spotlight brought her doting admirers, as well as vicious critics. And as the lone Democrat serving in a Republican governor’s Cabinet, she quickly became a prospect for elected office herself after resigning her post in June 2020.
Acton, 60, is likely to face Republican Vivek Ramaswamy, a biotech entrepreneur who has been endorsed by DeWine and President Donald Trump, in the general election.
Her campaign on Friday disputed and sought to clarify several elements of the police report. Acton and her husband had returned home from dinner, where she had one drink, according to the campaign’s written response for this article. During a “verbal disagreement regarding her long work hours,” Acton “bumped into a wall hanging which fell,” the campaign said. She then went to bed and was asleep when police arrived, according to the campaign.
Officers were dispatched to the home at 9:45 p.m., according to the police report, which does not indicate how they were alerted to the incident.
Acton’s campaign said that she was not “intoxicated” at any point during the evening and that the prescription medications referenced in the police report were ones that she had taken regularly for years.
The campaign also disputed that there was any reason for Acton to go to a hospital, asserting that any “harm, injury, or impairment” would have been noted in the police report.
Police officials in Bexley, a Columbus suburb, did not respond to a request for comment for this article.
“Amy Acton worked around the clock on behalf of Ohioans while serving as Health Director,” Acton spokesperson Addie Bullock said in an emailed statement that also criticized Ramaswamy and his policy proposals “as Ohioans continue to reject him and his cost-raising scams.”
The 2019 incident at Acton’s home has, until now, not been reported publicly. It also was not something widely known, if it was known at all, inside the DeWine administration. The governor, according to his spokesperson, was not happy to learn of the matter for the first time from NBC News.
“Prior to your inquiry, Governor DeWine was unaware of both the 2019 incident and associated police report involving Dr. Acton,” the spokesperson, Dan Tierney, wrote in an emailed response to questions. “The Governor holds his staff to the highest standards of conduct. Given that the allegations in the report are deeply troubling, Governor DeWine would have expected Dr. Acton to have at that time promptly disclosed this to him, and he is very disappointed that it did not occur.”
DeWine has in the past been largely praiseful of Acton. His backing of Ramaswamy, 40, came relatively late and reluctantly, after the governor unsuccessfully tried to draft Lt. Gov. Jim Tressel, a former Ohio State football coach, into the primary.
Ohio has trended more decisively Republican, having elected only one Democratic governor in the last 36 years. Reliable, independent polling has been scarce, but several surveys have shown a close race, raising Democrats’ hopes for an upset.
Acton’s performance as health director has stood out as a major storyline in the race. Fox News recently retracted an article by its OutKick sports affiliate that accused Acton of hectoring social media users for ignoring social distancing guidelines. The tweets had come not from Acton, but from an account spoofing her.
The episode was an example of how Acton’s candidacy has reignited debate over the pandemic shutdowns that she advised DeWine to implement. She became a target for right-wing activists and protesters, some of whom reportedly wielded guns and signs scrawled with antisemitic messages outside the Statehouse in Columbus and outside her home. Acton, who is Jewish, downplayed that scrutiny as a factor in her resignation in June 2020, saying at the time that her decision would afford her more time to spend with her family.
DeWine, riffing on the “not all heroes wear capes” cliché, described Acton as a “hero” who wears a “white coat” when announcing her departure. Acton stayed with the administration for several more weeks, serving as a health adviser before officially leaving in August 2020.
Later in 2020, after Acton gave an interview to The New Yorker, the magazine reported that she had begun to “worry that she might be forced to sign health orders that violated her Hippocratic oath to do no harm.”
As a first-time candidate for elected office, Acton has leaned less on the high-profile role she had as DeWine’s top health adviser and more on her personal narrative. She emphasizes how she grew up poor in Youngstown, a difficult childhood marked at times by hunger and homelessness.
After receiving her medical license in 1994, Acton practiced as a pediatrician and later earned a master’s degree in public health at Ohio State University. She was the final Cabinet director DeWine named in 2019. Those close to DeWine at the time emphasized how he had been deliberate in identifying a qualified health care professional for the job rather than rewarding a career bureaucrat or political loyalist.
It was a move that initially seemed to pay off in the early days of Covid. DeWine’s daily televised briefings, often with Acton at his side, became appointment viewing in Ohio. Acton herself became a household name, so beloved that one company printed T-shirts in her honor.
While the Republican base vilified DeWine and Acton for their initially aggressive pandemic management, both remained popular in broader circles. Democrats tried to recruit Acton to run for an open Senate seat in 2022 — an option she strongly considered but decided against. That same year, DeWine cruised to re-election, helped by Democrats and independents who appreciated his handling of Covid.
Republicans fighting to hold onto the governor’s mansion after the term-limited DeWine leaves office have branded Acton as a quitter.
“What did Amy Acton do when the legislature began pushing back? Amy Acton quit,” state Senate President Rob McColley told an audience in January after being introduced as Ramaswamy’s running mate for lieutenant governor. “Ohio needs a businessman, not a bureaucrat. Ohio needs a creator, not a quitter. Ohio needs a visionary, not a victim. Ohio needs somebody who’s going to focus on affordability, not somebody who’s going to put in lockdown policies that are going to raise our prices.”
Though DeWine has endorsed Ramaswamy, he also has attempted to inoculate Acton from pandemic-related criticism.
“The decisions that were made during COVID, they were my decisions, so no one should blame someone else if they don’t like it,” DeWine told Columbus’ NBC affiliate in December. “The buck stops with me.”
Ohio
Ohio Valley hospitals mark Donate Life Month with flag raisings, awareness events
BARNESVILLE, Ohio — Blue and green Donate Life flags are flying at several Ohio Valley hospitals this month as health care workers and supporters work to raise awareness about organ, eye and tissue donation.
WVU Medicine Barnesville Hospital hosted a flag-raising ceremony Thursday in honor of National Donate Life Month. The event aimed to raise awareness of organ, eye and tissue donation.
In addition to the ceremony, an educational table and a pinwheel garden will be on display at Barnesville Hospital throughout the month. The displays are intended to give visitors a chance to learn more about organ donation and to honor donor heroes.
Ohio
Ohio moves to undo Cincinnati’s conversion therapy ban | Opinion
A proposed Ohio law and U.S. Supreme Court decision could overturn Cincinnati’s ban on conversion therapy, raising concerns about the return of a discredited and harmful practice.
Just over 10 years ago, Cincinnati City Council voted to ban conversion therapy in the city. For those who are unfamiliar, conversion therapy is a discredited practice aiming to “cure” patients of their homosexuality. This is at best useless pseudoscience and at worst a dangerous abuse of children.
It proved especially dangerous in 2014 when a transgender teenager in Cincinnati named Leelah Alcorn died by suicide, which she said was in part caused by the conversion therapy she was forced to endure. Conversion therapy is completely ineffective and has already killed at least one Cincinnatian. Unfortunately, many conservatives are arguing that the practice should be protected.
State Representatives Gary Click and Josh Williams have introduced a bill in the Ohio Statehouse that would ban cities from regulating conversion therapy, which would overturn Cincinnati’s ban and bring back this harmful practice. Even more broadly, the U.S. Supreme Court’s ruling in Chiles v. Salazar seems likely to ban states and cities from regulating conversion therapy.
Turning back the clock
To be clear, these bans leave religious expression untouched. People can still speak out against homosexuality or say whatever they want about LGBTQ rights. These bans target therapy, not religious practices. I believe there can be sensible regulations on therapy to ensure that providers are not doing anything harmful to their patients, in the same way that there are regulations on what medical services a doctor can provide.
The actions by the Ohio GOP and the Supreme Court show that some want to turn the clock back and take away any rights that LGBTQ people have fought for over the past few decades. Gay rights opponents will try to soften their language and say they are just focused on transgender surgeries for minors or fairness in sports, but promoting this practice shows their problem is with gay people in general.
No matter how much you repeat it, you can not “pray the gay away.” Trying to force gay people back into the closet only results in tragedy.
Ben Kelly lives in Over-the-Rhine. A graduate of Northern Kentucky University, he works in government and is active in Democratic politics. Kelly worked with the National Suicide Prevention Hotline from 2019-2022.
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