Judge Denies Dismissal as State Rests in STRS Trial; Defense Begins Calling Witnesses

Overview

• Franklin County Judge Karen Held Phipps rejected a defense motion to dismiss after the state finished its witnesses, clearing the way for the defense to present its case.
• STRS chief legal counsel Stacey Wideman testified she helped author the May 2024 whistleblower letter, tracing drafts back to December 2021 after early QED presentations.
• Former STRS CIO Matt Worley testified the QED proposal was “unheard of,” failed typical due diligence expectations, and ultimately did not cost the pension fund money.
• Cliffwater CEO Stephen Nesbitt told the court he advised against QED, calling its plan “98% fiction,” and noted the firm did not renew its advisory contract with STRS.
• Prosecutors highlighted messages and social media posts by board chair Rudy Fichtenbaum, including communications on Signal with QED leaders, as evidence of alleged fiduciary breaches.