The trial, presided over by Franklin County Court of Common Pleas Judge Karen Held Phipps, focuses on accusations against State Teachers Retirement System (STRS) board chair Rudy Fichtenbaum and former board member Wade Steen. They stand accused of breach of fiduciary duties in a scheme to steer a majority of the pension fund’s assets—estimated at $65 billion—to QED Technologies, a startup investment firm with no proven track record or clients.
The case began after a whistleblower letter in May 2024 revealed alleged rapid moves within STRS to favor QED, raising alarms about transparency and ethical governance. Whistleblower and STRS Chief Legal Counsel Stacey Wideman testified that she began documenting concerns about irregular activities starting in 2021, fearing risks to teachers’ retirement funds.
QED founders, former Ohio Deputy Treasurer Seth Metcalf and Jonathan (JD) Tremmel, also testified, defending their firm’s involvement. Metcalf stated he was motivated by concerns over previous investment mismanagement and a desire to improve returns for teachers.
However, former STRS Chief Investment Officer Matt Worley testified critically about QED’s qualifications, dismissing the idea of investing the entire fund with one manager as “crazy.” Worley indicated that after rejecting QED’s proposal, he and others faced targeted personal attacks and a smear campaign aimed at discrediting the pension fund staff.
The state argues that Fichtenbaum and Steen secretly collaborated with QED, misled fellow board members, and sought to benefit the firm despite its lack of credentials, constituting a breach of their duty of loyalty and care. During testimony, text messages between board members and QED leaders showed extensive coordination.
Defense attorneys maintain there was no corrupt intent, arguing that the proposals aimed to help with financial challenges facing the pension, including restoring cost-of-living adjustments for retirees and reducing investment costs.
Assistant Attorney General Chad Kohler emphasized the case’s seriousness, stating it’s about protecting teachers’ retirement security from unprecedented misconduct.
The trial continues as more witnesses are expected to provide insight into the alleged corruption scheme that has shaken confidence in one of Ohio’s largest pension funds, impacting more than 500,000 current and retired educators.