Yost: 'The Bank hired the robbers to do security' on ex-zoo executives indicted Monday

Three former Columbus Zoo and Aquarium executives were charged Monday in connection with a 90-count indictment, including multiple felony counts of theft, bribery and engaging in a pattern of corrupt activity extending over a decade.

Ohio Attorney General Dave Yost said that Thomas E. Stalf, former zoo CEO; Peter A. Fingerhut, former marketing director and Gregory A. Bell, former chief financial officer, "extorted, conspired, bribed and stole," while colluding with each other before an investigation by The Dispatch uncovered wrongdoing by the executives in 2021.

Yost said the trio is responsible for more than $2.2 million in lost funds. That figure would represent about 16,000 annual zoo memberships.

More: Read the full indictment against former Columbus Zoo and Aquarium executives

The zoo had emailed the facility's supporters over the weekend to announce the pending charges and to reassure the public that the indictments likely end a dark chapter in the zoo's history.

"While we do not have information about the indictments, we are committed to being transparent and to ensure you are informed," the email said.

Yost said if any of the trio of indicted executives had done the right thing, the scheme to violate the public trust would never have happened.

"This required three people who should have been trustworthy to all work together," Yost said. "If any one of them said "I'm not going to have any part in this, this is wrong,' it would have ended right there."

Yost pledged on Monday that county taxpayers would be made whole.

However, Franklin County said that no county money was ever misspent, according to a forensic audit conducted by Plante Moran. "There is no better authority," said Tyler Lowery, county spokesman.

Yost's office is looking into the apparent discrepancy, said Yost spokesman Steve Irwin.

The zoo lost its accreditation in 2021 after The Dispatch investigation found the zoo lost hundreds of thousands of dollars because of misspending by former officials. It was reinstated to the Association of Zoos And Aquariums in March.

Zoo assets were used improperly for the benefit of the executives, including concert tickets, golf memberships, Amazon purchases, satellite radio subscriptions and vehicles, according to a forensic audit report compiled for the zoo by Plante Moran accounting firm.

That forensic audit confirmed what The Dispatch uncovered: For years, former CEO Stalf and CFO Bell sought tickets paid for by the zoo's marketing department so their family members could attend various entertainment events for free, and both men arranged for family members to live in homes owned or controlled by the zoo and set the rental rates.

The review also found Stalf used zoo funds to purchase a recreational vehicle for his exclusive use and took it aboard a ferry to Put-in-Bay on South Bass Island in Lake Erie for a family trip. Stalf also personally selected the vendor and did not seek competitive bidding for a $2 million construction project for cabins at The Wilds, a private, nonprofit safari park and conservation center operated by the zoo near Cumberland, Muskingum County, among other audit findings.

In May 2022, the zoo reached a settlement agreement under which Stalf agreed to pay back $400,000, although his attorney said he was being made a scapegoat.

When asked to respond to the scapegoat remarks, which imply that the zoo board allowed the spending by its executives in order to advance the zoo's interests and attract donors, Yost laughed.

Ohio's attorney general invoked the Jewish definition of scapegoat, one cast-off innocently to atone for the sins of others, as nonsense. He advised any attorneys representing the indicted trio who believe that they are scapegoats: "You better take this to trial. Don't you dare plead."

The indictment alleges that "Upper management treated zoo cash, zoo alcohol, zoo beer and zoo assets as if he or they owned it."

"Stalf stole bottles of alcohol and beer from the zoo warehouse for parties at his personal residence several times a year over a five-to-six year period of time," according to the indictment from a special session of a Delaware County grand jury. The zoo is located in Delaware County.

The indictment states that former CFO Bell knew that the expenditures or the reasons for the expenditures were wrong, yet he approved them.

At one point, when Bell changed his mind and "attempted to follow the law and provide Stalf and Fingerhut with an income document, Bell's job was threatened by Stalf," according to the indictment.

Bell's attorney, Sam Shamansky, said his client has "accepted responsibility for his role in these offenses from Day 1. He understands the nature of the indictment and, for all intents and purposes, has already made complete restitution."

Bell resigned and agreed under a settlement agreement in spring 2022 to repay the zoo $132,000.

Yost agreed that that has been some cooperation. But he said that the investigation will continue, declining to say whether other indictments are pending.

"These three did not act without the knowledge of others," Yost said.

The list of tickets obtained fraudulently using zoo credit cards included a theater production of Hamilton, Cleveland Cavaliers games, Ohio State University basketball games, the Arnold (Classic) MMA Festival, a Kanye West concert, Game 6 of a World Series, Rock on the Range, a Jay-Z concert and Columbus Blue Jackets and Cincinnati Reds games. Other expenses included a condo in Naples, Florida, two hybrid bikes, at least 4 watches, limousine services, scooters and golf outings.

The most serious charge, engaging in a pattern of corrupt activity, also known as a RICO charge, is punishable by a mandatory 11-year sentence.

In a message to all nonprofit entities, Yost warned: "These are not your dollars. This is not your playground. This is not your company.

"Keep your hands off other people's money," he said.

Delaware County Prosecutor Melissa Schiffel, whose office is assisting in the investigation, called the Powell-area zoo a "jewel" in the community whose best days are ahead. "I hope this prosecution will continue to lift them up," she said.

In its email to supporters, the zoo said it has restructured its board, severed relationships with previous vendors and hired a new auditing firm. Neither the zoo nor board members had returned calls from The Dispatch seeking comment as of early Tuesday afternoon.

In a statement sent Monday afternoon, the zoo said the indictment "closes a chapter" in the zoo's challenges from two years ago. "With these changes in place and a new strategy focused on the Zoo’s mission of empowering people and saving wildlife, the Board of Directors and staff are focused on the future," the statement said.

In April, The Dispatch reported that the city of Columbus and Franklin County had quietly reached an agreement on the make-up of the zoo board and which required more financial accountability for zoo spending.

The memorandum of understanding: eliminates one of two boards which had separate oversight responsibilities over the Columbus Zoo and Aquarium, changes the make-up of the remaining board, and ensures better financial accountability of zoo spending by requiring county approval of funds that comes from countywide levy money. Both the city and the county appoint four members each to the new board, which could have up to 19 members.

The county's website indicates there are currently 12 members on the zoo board, four of whom are county-appointed with one appointed by the city of Columus.

Columbus Mayor Andrew Ginther and City Council President Shannon Hardin issued a joint statement in the wake of the indictments:

“We are disappointed to learn of the alleged criminal conspiracy orchestrated by former zoo employees, but we are confident those involved will be held accountable. New leadership, a new governance model, and a restructured board is in place to improve transparency and oversight, to restore public trust, and to recommit to the Zoo’s mission of conservation and education.”

Dispatch reporters Bethany Bruner and Bill Bush contributed to this story.

dnarciso@dispatch.com

@DeanNarciso

This article originally appeared on The Columbus Dispatch: Former Columbus Zoo executives face 90-count felony indictment