In April, the township sought an injunction and filed a lawsuit in Montgomery County, alleging that Matthews acted without trustee approval when making financial agreements — including two deals totaling $9.7 million to buy 3,000 gold coins at above-market prices.
The township also alleged Matthews arranged for the coins to be stored in Texas for an annual fee.
It asked the court to declare that Matthews acted outside the scope of his authority and sought an injunction to bar him from spending township funds and making investments with township funds without approval from the trustees.
Matthews filed a response to the injunction request by its May 13 deadline, saying the lawsuit was without merit.
On June 23, the court, in a decision by visiting Judge Stephen A. Wolaver, declared that it is “highly likely” that Miami Twp. will succeed in its case against Matthews, who “acted beyond his authority” performing actions that were in violation of Ohio law and the township’s investment policy.
The court also determined that the township would suffer “irreparable harm” if Matthews is not stopped from continuing unauthorized actions, including attempting to fire a township employee.
Stopping Matthews won’t hurt anyone else, the court ruled, as the issue is only between him and the township and “there is no evidence that Matthews actually entered into any contractual agreements with third parties.”
The court said stopping Matthews from acting outside the law is in the public’s best interest because allowing him to continue could hurt the township’s finances.
“Indeed, Matthews’ behavior both endangers the Township’s continued functioning and sets a dangerous precedent for all other government officials, who may view his conduct as license to undermine the rule of law,” the court ruled.
The injunction prevents Matthews from making deals or signing contracts for Miami Twp. without the written permission from the Board of Trustees. He also can’t make investment decisions unless the Township’s Investment Committee signs off on them. In addition, it prevents him from firing any township employees.
Miami Twp. Administrator Chris Snyder, on behalf of the township, told Dayton Daily News, “We are pleased that the trial court reviewed the facts of this matter and made a determination that supported our position on this issue.”
Trustee President Terry Posey Jr. said, “I’m happy the court agreed with the township’s position that Bob Matthews lacked the legal authority to take the actions he did and look forward to a final resolution of the matter.”
Reached for comment by this news outlet, Matthews said, “I am disappointed that the courts supported the trustees blocking my effort to generate income for the township.
“Even the township’s attorneys had provided a letter that stated that gold was a valid investment,” Matthews said. “Additionally, my attempt was to move $9.7 million from paper money to gold money. As of today, it would take $10.3 million to obtain those same 3,000 coins, (as) $3,428 times 3,000 coins equals $10.3 million. So, the township has lost a potential income of half a million dollars —$584,000 — in just three months. If gold continues to go up in the same manner, the township could have gained $2 million in one year.”
Matthews was elected as Miami Twp. trustee in 2013, but resigned in late March 2017. He was elected fiscal officer in November 2023 and took office in April 2024.
Ohio law, under R.C. 135.14 and R.C. 135.45, lists the investment options of a public subdivision. Physical assets such as gold do not appear in the statute.
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