COLUMBUS, Ohio — A former public official and an investment firm are defending themselves after Ohio Gov. Mike DeWine spoke out about their conversations after our reporting exposed their close relationship.
Former retired teachers' pension fund board member Wade Steen argued that nothing was inappropriate about his behavior, claiming the governor should be the one being looked into.
In an exclusive one-on-one interview, the governor finally addressed the alleged corruption scheme plaguing the State Teachers Retirement System (STRS).
RELATED: Ohio Gov. Mike DeWine stunned by teachers' pension fund behavior with firm accused of corruption
The day after that sit-down, I spoke with Steen and Seth Metcalf, the head of QED, the investment firm at the center of the scandal.
For the past year, we have dug into — and exposed — the controversy swirling inside the State Teachers Retirement System (STRS), a roughly $100 billion pension fund for the more than 500,000 active and retired public educators in Ohio.
In summary, there has been constant fighting, two board resignations, and allegations of both a public corruption scheme and mishandling of funds. There has been a senior staff dismissal and at least two senior staff resignations.
The scandal centers around former board member Wade Steen, board chair Rudy Fichtenbaum, and their relationship with investment firm QED Technologies, run by former Ohio Deputy Treasurer Metcalf and Jonathan (JD) Tremmel.
This piece will be formatted as a Q&A, as it features moments from the 15-minute interview. It has been lightly edited only for clarity and length, as well as to get to the crux of the comment.
RELATED: Ohio Gov. Mike DeWine stunned by teachers' pension fund behavior with firm accused of corruption
How we got here
In May 2024, the governor received a 14-page anonymous whistleblower memo alleging a massive public corruption scheme brewing and moving quickly within STRS. In 2020, Metcalf and Tremmel set their eyes on STRS, according to the document.
The documents claim that they — despite having no clients and no track record — tried to convince STRS members to partner with them.
They couldn’t impress the board members, mainly because of their lack of experience and because QED was not registered as a broker-dealer or investment adviser. The men also didn't own the technology to "facilitate the strategy," the documents said.
So what exactly are Steen and Fichtenbaum trying to change, and what would QED allegedly attempt to do? Revise the investment structure. The men are seen as the leaders of the "reform movement." This fight began from a debate on how STRS should invest money — through the current system of actively managed funds versus an index fund. Active funds try to outperform the stock market, have more advisors, and typically cost more. Index funds perform with the stock market, are seen as more passive, and typically cost less.
In short, "reformers" want to switch to index funding, while "status quo" individuals want to keep actively managing the funds. Recent elections have allowed the "reform-minded" members to have a majority of the board.
The STRS memo claims QED and ORTA, the Ohio Retirement for Teachers Association, had worked together, specifically when it comes to elections, to get a more sympathetic — or willing — board.
Steen and Fichtenbaum had allegedly been bidding continuously, pitching QED's direct documents to board members and proclaiming the company's talking points to other staff.
Soon after, Attorney General Dave Yost filed a lawsuit to remove Steen and Fichtenbaum from the board, stating they were participating in a contract steering "scheme" that could directly benefit them. Yost started the investigation after the memo, now known as being prepared by STRS employees, alleged that Steen and Fichtenbaum had been doing the bidding of QED.
The AG states that the pair should be removed because they broke their fiduciary duties of care, loyalty and trust when "colluding" with QED.
In late August, Yost filed several subpoenas against QED and others allegedly involved in this scheme. The same month, QED spoke out to us for the first time, and so did the AG.
As we have continued the dozens of reports on the topic, our investigation in September revealed that STRS was, once again, moving to hire a firm that allegedly lacked experience and personal ties to the board leaders, according to senior staff.
After our report, the board chose not to move forward with the firm that has been the subject of my investigations.
Communications obtained via a records request of a court filing reveal that QED associates consistently told then-board member Steen what questions to ask, gave him documents to propose, and pushed him to follow its plan.
Texts between Steen, Metcalf and Tremmel show that the pair consistently worked together. There are hundreds of text messages.
Texts show a group chat between Steen, Metcalf and Tremmel. The pair constantly texted Steen during board meetings with advice, including numerous messages of "Vote!" and "Force the vote" when it came to policy and following QED.
"Thanks for the support today!" Steen said.
"Wade - you are a champion! We moved the ball down the field today and have time to recoup and refresh during the holiday!" Metcalf texted the group.
To read what the texts said, click here. CLICK HERE.
Our reporting stunned the governor, he said, so after more than a year of requesting an interview with him, he agreed to a date in April 2025.
Steen, QED, STRS responds to the governor
Morgan Trau: "There's still a lot of support for you from the STRS board and from the pensioners. How do you feel now that there is still this support for reform?"
Wade Steen: "I'm happy that there's support for reform. Everything I tried to do when I was on the board was restore [cost of living adjustments]. It was a benefit that was taken away... If I in any way contributed to getting that conversation started about how do we do a better job for the teachers in Ohio, I feel satisfied that I made a little bit of a difference."
Originally appointed by former Gov. John Kasich, he was reappointed by DeWine when the governor started his administration, but the governor asked him to resign in 2023. Steen refused, so DeWine removed him. DeWine originally cited Steen’s alleged poor attendance at board meetings as reasoning.
However, a court ruled that DeWine did not have the legal authority to remove Steen based on Ohio law, and thus, Steen was put back on the board in the spring 2024.
I asked the governor during our interview why he had removed Steen, to which he reiterated that his attendance was unsatisfactory. Steen disagreed. However, I pressed DeWine on his updated statement from May 2024, months after the removal, in which his team said that there were concerns about Steen's involvement with QED.
Trau: "Do you find that suspicious that he's changing his mind now or do you think that this was always something that he was worried about? What do you take from that change?"
Steen: "I don't know what I would take. When I got a call from his staff person... her comment, and it's noted in numerous disclosures, was, 'We want to go in a different direction.' Didn't say who 'we' was, and I asked what direction that was because I reiterated that I had met with the governor's chief of staff just a few months prior, and the staff were very aware of what I was doing and what I was fighting for — which was for teachers. I said, 'I don't understand what's this different direction?' Never once did I get that answered. So if anything's hung in the back of my mind, it's 'they wanted to go in a different direction.'"
On his removal, he notes that the governor and Yost argue that "they want the same things I was fighting for, which is shocking."
Steen: "They want to restore cost of living, they want to improve performance, they want to make sure that the fund is doing the best job possible for teachers. I thought, 'Wow, that's exactly what I say,' but they wanted to go in a different direction? Why the argument from attendance to something else, I don't know. When my attendance was pulled, they found out that it was actually very good, and better than many, so, maybe they had to come up with a different reason... My attendance was never a problem, when I saw that I was a little surprised."
I brought up to DeWine how Steen was removed during a critical election when the reformers took control of the board, and then he released the 14-page memo during another pivotal election when the reformers took a supermajority of the board. With this dominance, they would be able to start shifting the investment structure, something that reformers claim DeWine wants to prevent.
Throughout the past year, I've spoken to Steen about this — in which he argues that the governor wants to prevent true reform. Steen's supporters say the removal was to "silence" him.
The governor insists he has no reason to stop reform, but rather, he wants to stop possibly corrupt activity. The texts paint a picture between Steen and Metcalf that was "disconcerting," DeWine said.
Hundreds of texts show Metcalf gave Steen questions to ask during board meetings, documents to propose, and pushed him to follow QED's plan.
"I think we can win this but I need to nuisance it," Steen texted in 2020, as he was pitching QED's proposal.
"I think you've got the votes! Make the motion! Announce that you have a solution," Metcalf responded.
Metcalf continually texted talking points, themes and direct quotes for Steen to follow while he was in the board meetings.
Steen followed his lead.
Trau: "Do you think that they were appropriate?"
Steen: "Absolutely. I had conversations not just with Seth Metcalf, but with numerous people. Part of my job as a board member is to try to get information, know as much as I can. And as has been documented and you noted, I knew Seth from years prior — we go to the same church... So for me to try to better understand what's going on or ask people's opinion — whether it would be our staff, whether it be Seth Metcalf as an individual, whether it would be other people that are in the investment field that I know that never get mentioned — I didn't find that unusual."
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He doesn't know why his relationship with Metcalf was "the focus," he added.
Steen: "I ask a lot of people a lot of questions. The question I would have is, if you read the letter, the anonymous letter, from 2021 on, information had been provided by STRS staff to the attorney general. So for more than three years, they've been getting all kinds of information. Nothing in the letter is new, and yet here we sit a year after the attorney general made allegations and brought charges, and there's nothing — because there is nothing, there's no merit to it. It's almost weaponization... But clearly, if there was something, I would think in three years you would have some evidence. They clearly have none other than 'He spoke to this person.' OK, well, I spoke to a lot of people.'"
He was removed in 2023, so he missed some time, and then was not reappointed — so he has begun to "move on," he added.
Steen: "I feel like I did make a small contribution toward fighting for teacher benefits for retirees and trying to improve benefits in the future for active teachers not receiving them yet. I take some satisfaction in that, but my term's done."
He is focused on his job as chief financial officer of the Cleveland Metroparks and spending time with his grandchildren, he added.
Steen: "I really haven't thought much about it since then, other than when we have to file something in the court because these cases, as I understand, drag on for some period of time."
I brought up how the governor pointed out that QED was specifically trying to get a job.
Trau: "QED was specifically trying to get money for their startup to be able to work with you and work with STRS on investing. That's where he says it crosses a line."
Steen: "I don't know how to respond to that. I guess that the issue that I kept raising — I think everybody keeps missing — is that we have non-disclosure agreements with numerous groups that we make investments with, and I have been outspoken that there needs to be transparency, and yet no one, governor, AG, staff seem to be concerned about the fact that... investment staff make investments and the board does not know the details of those investments and are not provided when asked, they are denied access to that information.
He continued.
Steen: "And so, Morgan, I'd ask you as a reporter — does that concern you? That was really the crux of what started so much of this was, 'What are our fees with the hedge funds? What is in the agreements?' and at every turn I was denied, denied, denied. That's all I wanted — I wanted transparency. I want to know what are we investing in, who's benefiting from this?"
He was roadblocked on numerous occasions from trying to get information on investments from staff and information on how bonuses are given to staff members. Other information he wanted falls under different types of trade information and, thus, isn't disclosed.
Steen: "I don't want to say something is there because I don't know — I don't know what's there because we were never provided. I was never provided that information."
When it comes to Metcalf, he denied knowing whether they fully wanted a job.
Steen: "Whether or not QED was trying to get work, I guess people could say they were. I was intrigued by the idea."
Going on to say that in the 14-page memo, staff acknowledged they do something similar to QED's idea, so this wasn't out of the realm of the norm. I could not substantiate that through my multiple readings of the memo. The closest thing I found to that is the staff noting that it "was familiar with the use of similar strategies on a much smaller scale but was not aware they could achieve anywhere near the results suggested."
The former board member said that the investing didn't have to be with QED; he was just wondering if the "idea has merit," he said.
Steen: "I was pushing for more performance... I wanted our expenses done and I wanted our results better. That's what I think every oversight body should do — how do we do better? What ideas can we take from others and implement here. But, if that's the assertion — that I was trying to secure work for one person, that's not accurate. I wanted to know more about this idea. Was there merit? But the bigger idea was 'How do we restore cola for our retirees?' How do we restore benefits that were taken away from them? How do we do better time and again?"
He was removed for questioning the staff, he said.
Steen: "If someone tries to remove me, if someone tries to attack me because I'm asking how we do better, I guess I'll wear that because If I were on the board today, I would continue to say, 'How do we do better for teachers.' You've watched the meetings and you've been around, Morgan, long enough to know and see the questions I asked. I was pretty direct on my question about how do we do better? I think sometimes that made staff uncomfortable that they were being held into account, whether it be staff or consultants about how do we do better — they didn't really have a good answer."
I referenced how Steen said he would speak to multiple people for advice. In reference to Metcalf, he asked for edits on documents; he was given "themes" to bring up during meetings.
Trau: "How would you categorize or characterize that relationship?"
Steen: "Probably nothing more than input, like I would get through reading information, calling people that I know that do institutional investments in town for private sector pension funds and others — just personal friends. 'Hey, what do you guys think about this? What do you think about that idea? What do you think about the way we pay our bonus structure,' that kind of thing... So those are the kind of things that people would tell me that just raised questions for me."
He continued.
Steen: "But to your question, how would I categorize? Just someone I bounce an idea off of like anyone else. People would send me their thoughts, talk to me, go have coffee... I spent a lot of time trying to really understand what we were doing, what we were tasked with. I was really trying to do my job as a board member. But back to my relationship — it would be one where I was just seeking input or advice. That was all."
Trau: "Were you talking with other people during board meetings that were giving you direct quotes to say or they were giving you ideas on motions?"
Steen: "No, I wasn't — I didn't — no, no."
Then we got on the topic of DeWine's history with text messages.
Now-indicted FirstEnergy executives allegedly worked with DeWine and his team to pass legislation that was the result of the largest corruption scheme in state history, according to newly released text messages. DeWine denies knowing House Bill 6 was a bribe.
RELATED: New texts show FirstEnergy allegedly working with Gov. DeWine to pass House Bill 6
A public records request reveals that DeWine communicated frequently during his first run for governor with former FirstEnergy CEO Chuck Jones and VP Michael Dowling.
The pair held lavish fundraisers before he was elected, with Jones giving speeches about how DeWine would be great for "his company and shareholders," a speech I received said. Plus, Jones provided the now-governor money when he asked.
“Chuck. Can you call me?” DeWine wrote on Oct. 13, 2018 — less than a month before he faced off against Democrat Rich Cordray in the governor's race. “OEA put in million yesterday for Cordray.”
"OK," Jones responded. "I’ll call at 2:30.”
Three days later, Dowling texted Jones and said, "Chuck — go ahead and call Mike DeWine on the $500k. It’s going to RGA’s C(4) called state solutions. All set."
Jones responds, "OK. I’ll call him around 5."
I explained to Steen how DeWine said the conversations were very different because FirstEnergy was just helping DeWine in an "individual" sense, whereas QED wants a job. Click here to read more of the governor's stance.
Steen didn't want to fully comment without knowing the entire quotation but did critique the governor — as many reformers do regarding the H.B. 6 scandal.
Steen: "I think they're even more different in that his relationship with Chuck Jones is much different. He was getting something from Chuck Jones. Chuck Jones gave him a campaign contribution. I got nothing. Again, three years of investigation. The assertion was 'Wade had a relationship.' The assertion was 'Wade got something.' The assertion was something was offered. Morgan, unless I've missed it, none of that's true. There's no evidence to that. The governor got a campaign contribution from First Energy, correct?"
Trau: "Got a few."
Steen: "Yeah, so if there is a difference — he got something... They are quite different. He's the governor. I'm a volunteer board member — just who we are in our positions is a lot different, too. I mean, the amount of authority and power one has, he's the governor, he got campaign contributions. I'm just a volunteer board member trying to work hard for teachers. It's interesting how, somehow, one's volunteer service somehow becomes this negative — that they have to wear this attack upon them. I guess the better question is why the attack upon me? Because I talked to one person? If you think about it and step back and and view it through that lens — why were they after this person so much?"
Trau: "Why do you think?"
Steen: "I'm not at liberty to say because our cases are still pending, but things are still moving forward."
What Steen didn't acknowledge was the fact that he has received thousands of dollars to fight his legal battle against not just his original removal from the board, but also the AG's lawsuit.
Robin Rayfield, who runs ORTA, put together a fund in 2023 to pay Steen's fees.
"I communicated with Wade," Rayfield said in an interview with me in May 2024. "I said, 'Well, do you wanna fight this?' And he goes, 'Let me think about it because fighting the governor is a tough thing to do...' But nonetheless, we stood with Wade and I said, 'Well, ORTA could potentially help you fight this."
Case Western Reserve University business law professor Eric Chaffee explained that this raises red flags.
"If you have certain benefits being paid to an individual, who's supposed to represent a complete group of people, from a segment of that group of people, it creates concerns that there are going to be policies that favor them," Chaffee said.
Last year, I obtained thank you cards that Steen wrote to pensioners for donating to his legal fund, adding that the “generous financial contribution” will allow him to “deliver” for teachers.
ORTA leader Robin Rayfield told me they ended up raising more than $80,000 for Steen — but they recently started fundraising for Fichtenbaum due to the AG's lawsuit involving him as well as Steen.
In September, ORTA finally filled out the lobbying expenditures requirement. It showed that, in total, they spent about $115,000 to support the two men. About $87,000 went to Steen, and $27,000 went to Fichtenbaum.
"In 23 years of reviewing lobbying expenditures, this is a complete outlier — we've seen nothing comparable," Legislative Inspector General Tony Bledsoe told me during our report exposing the money.
RELATED: Deja vu? Ohio teachers' pension fund moves to hire firm that staff say has no qualifications
This means both Steen and Fichtenbaum, the chair, are using donations from a section of members to pay their legal fees.
After telling me he had to get onto another call, abruptly ending the interview, Steen added that the H.B. 6 scandal should be the story to focus on.
I was able to squeeze in one final question.
Trau: "Are you interested in going back on the board or being executive director or CIO?"
Steen: "No, I'm very happy in what I'm doing here at the Metroparks."
Metcalf declined an interview but did provide a statement.
"I’m grateful this matter is now in a court of law, where the evidence will show that QED’s interactions with the STRS board were lawful, ethical and appropriate," Metcalf emailed. "Whistleblowers Steen and Fichtenbaum collaborated with QED to unravel a web of misinformation and expose a system enriching STRS employees at the expense of Ohio educators."
I also reached out to the STRS team to ask them how they viewed the conversations between Steen and QED.
Their spokesperson told me they don't comment on pending litigation, but provided a copy of their ethics policy, which includes provisions stating that no one on the board can "Vote, authorize, recommend, or in any other way use his or her position to secure approval of a Board or System contract (including employment or personal services) in which the Board Member or employee, a family member, or anyone with whom the Board Member or employee has a business or employment relationship, has an interest; Solicit or accept any compensation, except as allowed by law, to perform his or her official duties or any act or service in his or her official capacity; Solicit or accept anything of value from anyone doing business with the Board or System."
There is no evidence of any kickbacks, Steen and QED argue, so this wouldn't apply.
Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook.
