COLUMBUS, Ohio — Former Columbus Zoo and Aquarium President and CEO Tom Stalf used zoo funds to purchase a recreational vehicle for his exclusive use and took the vehicle to Put-in-Bay for a family trip, according to an investigation by a law firm hired by the zoo's board of directors.
Stalf also personally selected the vendor for a $2 million construction project at The Wilds for cabins and did not seek competitive bidding. The company billed the zoo a "substantial cost overrun," which Stalf instructed former Chief Financial Officer Greg Bell to pay, circumventing normal accounting processes. The firm is investigating if there were any personal benefits associated with the contract.
And at Stalf's direction, the zoo also paid for renovations totaling $18,000 to $28,000 to homes owned or controlled by the zoo, which Stalf and Bell allowed their relatives to live in for years, witnesses told the firm.
The findings are among the new revelations detailed in the zoo's first public update about the investigation by Porter Wright Morris & Arthur LLP, which it shared Tuesday evening in a written preliminary report.
Stalf and Bell resigned March 29 after a Dispatch investigation found that they used zoo assets personally and for the benefit of their families.
On Tuesday, the firm suggested the zoo undertake a forensic audit to determine any money that Stalf, Bell and their families should reimburse the zoo. In an emailed statement, board Chairman Keith Shumate confirmed the zoo has engaged with a forensic auditor.
Among the firm's other findings:
—The investigation confirmed what the Dispatch uncovered: For years, Stalf and Bell sought tickets paid for by the zoo's marketing department so their family members could attend various entertainment events for free. They did not specify in documentation who attended events with them or whether they reimbursed the zoo for these expenses, which included food and drinks.
—In one instance, Bell admitted he caused the zoo to obtain approximately 60 tickets from the Columbus Blue Jackets so his son, who is also a contractor at the zoo, could attend games with his friends.
—Stalf and Bell arranged for family members to live in homes owned or controlled by the zoo for years and set the rental prices, another finding from the Dispatch's investigation. Stalf's in-laws paid $900 a month to live in a three-bedroom, 1,336-square-foot home on the Northwest Side. The amount Bell's daughter paid to live in a three-bedroom, 1,344-square-foot home near the zoo wasn't disclosed, but the report said the zoo paid for utilities, taxes and maintenance. Bell's daughter moved out two weeks ago. The zoo sold the other home earlier this year.
—The zoo traded admission tickets in exchange for memberships for Stalf and former zoo Chief Financial Officer Greg Bell at the Wedgewood Country Club, an arrangement that was terminated last week.
—The recreational vehicle purchased for Stalf's exclusive use cost $45,000 and was intended for him to use to attend events at The Wilds, a 10,000-acre conservation park the zoo manages in Muskingum County. Instead, the vehicle was stored at an offsite location or Stalf's home. It went to The Wilds just one time. The zoo sold the vehicle this year for $37,000 and Stalf didn't reimburse the zoo for its use.
Over a period of two weeks, Porter Wright interviewed 20 witnesses and reviewed hundreds of pages of internal zoo documents. The firm interviewed zoo employees, former employees, and some third parties, according to its report. It also interviewed Stalf and Bell twice, who were represented by attorneys.
“Greg Bell is committed to reimbursing the zoo for funds expended on tickets and income lost as a result of favorable rental agreements," Sam Shamansky, Bell's lawyer, told The Dispatch on Tuesday night.
Mark Collins, an attorney representing Stalf, said in an email that he will provide a statement in the morning, after he reads the law firm's report.
The zoo is a taxpayer-supported nonprofit organization that receives levy support from Franklin County taxpayers. The levy money accounted for about 20% of the zoo’s overall revenue of nearly $92 million in 2019.
Porter Wright's investigation is ongoing. The firm has also suggested the zoo review its policies regarding competitive bidding of contracts, ethics and conflict of interest; consider separating the function of chief executive officer from chief operating officer, as Stalf served in both positions; and review its auditing procedures and rotate its auditors periodically.
"The board is committed to continuing its work to address the findings in this report," Shumate's statement said. "The board has engaged a forensic auditor to delve into questions that were beyond the scope of the Porter Wright investigation."
The board's chairman advisory committee is also setting up a process where, over the next several months, the board will "examine a wide range of governance, policy and protocol issues to ensure that all appropriate financial safeguards are in place," Shumate said.
Questions from the Dispatch about a month ago led to the zoo board hiring the outside firm to investigate. Zoo spokeswoman Nicolle Gomez Racey did not respond to an email Tuesday night asking how much the zoo board will be paying for Porter Wright's services.
Initially, the board wasn't going to release any information regarding the probe. But last week, it changed course, following the urging of some public officials and after Ohio Attorney General Dave Yost announced that his office's Charitable Law Section, which regulates nonprofits, would be launching its own investigation.
The Ohio Ethics Commission is also considering an investigation into Stalf and Bell, but is still trying to determine whether the zoo falls under its jurisdiction, executive director Paul Nick said last week.
The zoo board will cooperate with both investigations, Shumate's statement said.
The ethics commission investigates potential violations of state law related to the misuse and abuse of public offices, including conflicts of interest.
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