“Matthews remains adamant that he is authorized to take these actions because of his role as the township’s fiscal officer,” the civil suit stated. “The township risks immediate injury if Matthews can unilaterally authorize million-dollar transactions, liquidate township investments, enter into agreements on the township’s behalf and fire township employees.”
The Dayton Daily News tried to reach Matthews for a response to the lawsuit. Last week, Matthews declined to comment about the allegations.
Matthews is alleged to have entered into three agreements on or before March 28 on behalf of the township without approval.
The first two agreements were to pay $4.85 million to each of two coin dealers in exchange for a total of 3,000 U.S. one-ounce gold American Eagle coins.
“Upon information and belief, Matthews agreed to pay approximately 4.1% over the spot value of the gold, meaning Matthews agreed to pay $9,700,000 in township funds in exchange for $9,317,963.50 worth of gold coins,” the suit stated.
The third agreement was with the Texas Bullion Depository, a state agency in Texas that stores gold coins, for the depository to store the township’s coins for an annual fee of 0.35% of the value of the coins. This would cost the township approximately $32,612.87 if the coins maintained their value, according to the township.
Matthews is accused of liquidating $9.7 million in township funds invested in the State Treasury Asset Reserve of Ohio, which already were approved for various township expenditures, according to the lawsuit.
He then visited a Fifth Third Bank branch and requested two wires of $4.85 million to two coin dealers. When a bank employee later questioned whether the wire transfers were legitimate, the township’s finance director, Clay McCord, responded that they were not authorized and should not be sent, according to court documents.
The following Monday, the lawsuit stated, “Matthews attempted to fire Clay McCord, the township’s finance director, in retaliation for Mr. McCord notifying Fifth Third that Matthews’ attempted transaction was not authorized.”
The trustees say that Matthews’ actions violated state law and township policy regarding investments.
Township trustees last week approved reporting the incident to the Ohio Auditor’s Office and referring the matter for criminal prosecution.
Staff Writer Eric Schwartzberg contributed to this report.
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