The Ohio Ethics Commission came down firmly against public officials having their legal expenses paid by outsiders who do business with those officials.
The Ohio Retired Teachers Association has paid more than $228,000 in legal fees for Wade Steen, a former State Teachers Retirement System board member, and STRS Board Chairman Rudy Fichtenbaum, according to ethics filings.
ORTA has lobbied the STRS board to dial back on staff bonuses and restore the cost-of-living allowance for retirees. ORTA-endorsed candidates for STRS board seats have won a string of victories in recent years, resulting in “reformers” taking control of the board.
In an opinion issued Jan. 22, the commission said public officials aren’t allowed to solicit or accept money for their legal defense in civil cases from sources that they are trying to do business with, are regulated by or have interests in officials’ agencies.
The opinion, though, applies beyond STRS. Anyone elected, appointed or employed by a public agency, whether paid or unpaid, in Ohio would be governed by the opinion.
Steen and Fichtenbaum have been embroiled in multiple legal disputes related to their service on the STRS board. Franklin County Common Pleas Court Judge Karen Held Phipps is expected to rule soon on a lawsuit Ohio Attorney General Dave Yost brought against the two men that seeks to remove and bar them from the board.
Gov. Mike DeWine, who reappointed Steen, had him removed from the board in May 2023. Steen sued and got back on the board in May 2024, though his term ended in September 2024.
Steen is chief financial officer for Cleveland Metroparks and former Franklin County treasurer. Fichtenbaum is a retired Wright State University economics professor.
STRS Ohio, which is one of five statewide public pension funds, oversees more than $90 billion invested on behalf of 500,000 teachers and retirees. It has seen historic turbulence in recent years, marked by a departure of top staff, a series of legal disputes and the loss of key consultants.
The controversies led state lawmakers to move to change control of the board. That change is now the subject of another lawsuit.
The Ohio Ethics Commission asked Columbus City Attorney Zach Klein to determine if Steen and Fichtenbaum violated misdemeanor laws when accepting the money for their legal fees.
Klein declined to bring charges, saying there was insufficient evidence and noting that the men relied on advice from their lawyers who said they could accept the financial help.
State government reporter Laura Bischoff can be reached at lbischoff@usatodayco.com and @lbischoff on X.
This article originally appeared on The Columbus Dispatch: Ohio ethics agency prohibits legal defense funds for public officials
Reporting by Laura A. Bischoff, Columbus Dispatch / The Columbus Dispatch
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