State Wraps Witness List in STRS Misconduct Allegations Civil Trial

Top state officials received an anonymous letter in 2024 alleging misconduct by two STRS board members.

Published on Feb. 21, 2026

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A civil trial investigating allegations of misconduct on the state's teacher pension board continued Wednesday, with the state wrapping up its witness list. The case centers around an anonymous letter received by top state officials in May 2024 that alleged two State Teachers Retirement System (STRS) board members, Wade Steen and Rudy Fichtenbaum, improperly conspired to take over the state's $90 million pension funds by proposing to transfer control to outside investment firm QED. The state argues the pair breached their fiduciary duty, while the defense claims they were acting in the best interests of teachers.

Why it matters

This case highlights concerns about potential misconduct and conflicts of interest on state pension boards, which oversee billions in retirement funds for public employees. The allegations, if proven true, could undermine public trust in the management of these critical retirement systems.

The details

The state's central argument is that Steen and Fichtenbaum breached their fiduciary duty to protect STRS' best interests. The pair had proposed transferring control of the state pension board to outside investment firm QED. STRS chief legal counsel Stacey Wideman, who was identified as part of the group that composed the anonymous letter, testified that she and others were concerned by the persistence of QED, a firm with minimal prior experience. Former STRS board member Richard Stein also testified that he resigned because he felt other board members were not acting appropriately.

  • In May 2024, top state officials received an anonymous letter alleging misconduct by two STRS board members.
  • In December 2021, Fichtenbaum and Steen presented to the STRS board about a possible collaboration with QED.

The players

Wade Steen

A former STRS board member who, along with Rudy Fichtenbaum, was alleged to have improperly conspired to take over the state's $90 million pension funds.

Rudy Fichtenbaum

The current STRS Chairman who, along with Wade Steen, was alleged to have improperly conspired to take over the state's $90 million pension funds.

Stacey Wideman

The STRS chief legal counsel who was identified as part of the group that composed the anonymous letter alleging misconduct by Steen and Fichtenbaum.

Richard Stein

A former STRS board member who resigned because he felt other board members were not acting appropriately.

QED

A private investment firm that Steen and Fichtenbaum proposed transferring control of the STRS pension board to.

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What they’re saying

“All of these things were just completely unprecedented and out of the norm. We had never had board members pitching an investment strategy before for an outside firm.”

— Stacey Wideman, STRS chief legal counsel (wowktv.com)

“We had never had board members pitching an investment strategy before for an outside firm.”

— Stacey Wideman, STRS chief legal counsel (wowktv.com)

What’s next

The judge in the case will decide whether to allow the case to proceed or dismiss it.

The takeaway

This case highlights the importance of transparency and accountability on state pension boards, which oversee billions in retirement funds for public employees. The allegations, if proven true, could undermine public trust in the management of these critical retirement systems.