“It was a difference of opinion,” Matthews told the Dayton Daily News regarding the ruling, adding that he does not plan to appeal. “I’ve not broken any Ohio law. Only thing I did was violate the (township investment) policy.”
The ruling follows a one-day trial March 9 on a civil lawsuit filed by the Ohio Attorney General’s Office against Matthews seeking his removal based on a Fiscal Integrity Act complaint filed by four township residents who also have roles within the township’s government — Miami Twp. Trustees Drew Barry, Don Culp and Terry Posey Jr., and township Administrator Chris Snyder.
Hein ruled that Matthews’ removal is justified because he “purposely and knowingly committed acts expressly prohibited by law and prohibited by the township investment policy,” which Matthews had voted to enact in a prior role as a township trustee.
Credit: Bryant Billing
Credit: Bryant Billing
“We’re happy Mr. Matthews had his day in court, we just wish it hadn’t taken as long as it did,” said Posey, the township trustee president who testified against Matthews. “The facts of what happened have been undisputed for over a year, and I’m happy to see that the judge recognized what the township trustees, state auditor and the attorney general’s office all recognized: that this was illegal and worthy of removal from office.”
On March 26, 2025, Matthews withdrew $9.7 million from the township’s State Treasury Asset Reserve of Ohio account and directed it be deposited into the township’s account at Fifth Third Bank. His email dated March 28 stated it was to “transfer some of our excess funds from paper money to gold money.”
The gold money — 1,500 one-ounce $50 Gold Eagle coins — was to have been purchased for $9.1 million and would have a transaction fee of just over $380,000 plus an annual storage fee that would cost an estimated $32,600.
However, the transaction to purchase the gold was blocked by the township’s finance director.
“The transfer from STAR Ohio was an unauthorized transfer of township funds since the transaction was not approved by the Board of Trustees,” the ruling stated.
Ohio law limits township fiscal officers to clerical duties, such as keeping a record of accounts, transactions and board meetings. The law also prohibits spending of township funds without the signatures of at least two trustees, countersigned by the fiscal officer.
Hein’s ruling says the attempt to invest in gold coins was a “unilateral action,” which violated the investment policy. Also, the attempted investment would have been to an asset category not authorized by the investment policy and state law. Had the investment occurred, the $9.7 million fund would not have generated any income as required by the investment policy.
“At best, there would have been increase in the principal value based on higher commodity prices for the weight of the gold; at worst, there would have been a decrease in the principal value based on lower commodity prices for the weight of the gold,” Hein wrote.
Credit: Bryant Billing
Credit: Bryant Billing
Matthews raised several objections to the allegations and the process leading to the case.
First, he said the four residents behind the FIA complaint are township officials who are not eligible to be complainants. The judge noted that state law does not indicate the four cannot hold dual roles.
“The four complainants are residents of Miami Township, and therefore, meet the requirement for making a complaint against respondent. Therefore, respondent’s argument is a meritless fiction,” Hein wrote.
Matthews questioned whether the township officials misused township resources, include legal counsel, employees’ time and administrative supplies. The judge determined that may be the subject of an audit inquiry by the Ohio Auditor’s Office but is not material to this case.
Matthews also claimed the $50 American Eagle one-ounce gold coin is in the category of “U.S. Treasury Obligations” and is an appropriate investment, according to the investment policy and state law.
“However, the court disagrees. The value of the coin is not based on its face value and backed by the full faith and credit of the U.S. government.” Hein wrote. Instead, “its value is based on the market value of the material. How else could you explain paying $3,000 for a $50 face value coin?”
Credit: Bryant Billing
Credit: Bryant Billing
Further objections raised by Matthews indicated that the township’s legal counsel gave approval for investing in gold. The judge said the opinion was speculative and that the investment was not allowed by law. Matthews also said that the fiscal officer has the same financial authority as a government treasurer.
“Unfortunately, this is not a legal reality,” Hein wrote. “Instead, though important, the statutory duties of the fiscal officer are mostly clerical in nature.”
By finding that Matthews violated state law and township policy, Hein said the court has no discretion and must “issue an order removing the township fiscal officer from office.”
“I did my best presenting why the law stated specifically that I could, as treasurer, make investments and I had clear proof that our legal counsel said that gold was an OK investment, so that’s why I moved ahead,” Matthews told the Dayton Daily News.
The township has lost $3 million to $4 million over the course of a year on gains it could have realized in the price of gold, he said, “so I hope they’re satisfied with the judgment they’ve pursued.”
In addition to not planning to appeal, Matthews said it is not likely he’ll run for public office again because the removal order also bars him from holding public office for four years.
“He overstepped his authority by a mile, playing King Midas with money that didn’t belong to him,” Ohio Attorney General Dave Yost said in a statement. “Miami Township deserves dependable elected officials who operate within the bounds of the law.”
In his previous role as Ohio Auditor of State, Yost spearheaded the Fiscal Integrity Act, a law that established the removal process for fiscal officers accused of reckless conduct.
Township trustees will appoint a new fiscal officer, who must run in November to fill the remainder of the term that expires March 31, 2028. Posey said the township will solicit interest from community members to fill the post. The township has 30 days to fill the vacancy, according to the township.
Meanwhile, former Miami Twp. fiscal officer Greg Clingerman has been serving as fiscal officer.
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