Testimony begins in Ohio teachers' pension trial

COLUMBUS, Ohio (WCMH) – Testimony got underway Monday in a case that calls into question the ethics of two leaders of the state teachers’ pension fund.

The chairman of the State Teachers Retirement System board, Rudy Fichtenbaum, and former board member Wade Steen are accused of teaming up to improperly move control of most of the fund to a private investment firm known as QED.

As was clear from the opening statements, the state is accusing Fichtenbaum and Steen of failing to act in the best interest of Ohio’s 500,000 active and retired teachers, but the defense’s case relies on questioning whether the STRS staff itself is properly handling the $90 billion pension fund.

Testimony got underway in Franklin Common Pleas Court in a case that could bring to light investment strategies for the embattled state teachers’ pension fund. In opening statements, Fichtenbaum and Steen were accused by the prosecution of backing a risky investment scheme in what is alleged to be a “backroom deal.”

Both men claimed to be looking out for Ohio’s teachers.

Steen was the first witness called to the stand by the state.

Attorneys are asking the court for an injunction that would remove Fichtenbaum from the board and prevent both men from ever serving again on the STRS board.