A summons was issued to Matthews on Tuesday. He must reply with an answer to the complaint within 28 days, according to court records.
The complaint stems from allegations Matthews withdrew $9.7 million in township funds without permission to try to buy gold coins.
The funds were transferred from the township’s STAR Ohio account to the township’s bank account.
The complaint stated the funds were not excess funds and were previously appropriated.
Matthews then allegedly requested two separate wires of $4,850,000 be sent to coin dealers to purchase gold coins. A bank employee contacted the township to confirm if the transfers were legitimate.
Miami Twp. Finance Director Clay McCord responded the transfers were not authorized and should not be sent, according to the complaint.
According to the Ohio Attorney General’s Office, under state law township fiscal officers are limited to clerical duties, including keeping accurate records of meetings, accounts and financial transactions.
Fiscal officers cannot distribute township funds unless they’re authorized by at least two trustees and countersigned by the fiscal officer.
The complaint stated Matthews’ attempt to purchase gold coins and incur just over $382,000 in transaction fees and more than $32,000 a year in storage fees violated Ohio law as well as the township’s investment policy.
An investigation by the Ohio Auditor’s Office alleged Matthews attempted to fire a township employee without authority, but the Ohio Attorney General’s Office could not find clear and convincing evidence supporting that claim.
Matthews was elected fiscal officer in November 2023 and took office in April 2024. He is one of three people running for township trustee.
Yost requested Matthews be suspended from office as fiscal officer pending the conclusion of the case.
Yost also is asking the court to temporarily block Matthews from from entering or managing the township fiscal office until a hearing is held, permanently remove him from the role, recover any public funds involved, make Matthews pay legal costs related to the case, and grant any other fair and appropriate relief the court finds necessary
Matthews told Dayton Daily News that “I will be responding to the summons and then look at negotiating (with the attorney general). If there is no negotiated settlement, then we’ll be going to court.”
Reached for comment by this news outlet, Trustee President Terry Posey Jr. said “sometimes the wheels of justice turn slowly.”
“The process for removing a fiscal officer under Ohio law is a thorough one, requiring agreement of both the auditor and attorney general,” Posey said. “The allegations resulting in the complaint have never been in dispute. I hope the matter concludes swiftly so that the board of trustees and the citizens of Miami Twp. can move on and stop incurring the headache and expense of addressing Bob Matthews’ illegal activity.”
Trustee Vice President Doug Barry said the situation is “really unfortunate for everybody.”
“I think at this point it would serve the township and Bob best, if he would just resign,” Barry said. “Everyone, the auditor of state, the attorney general, they’ve all said he did wrong, and at this point in time, it’s just negative press towards the township, which we don’t need.”
Trustee Don Culp declined comment.
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