Questions remain regarding alleged missing funds at senior citizens center
A whirlwind of controversy has surrounded Central Connections, the city’s senior citizens center, the last three weeks.
Seventeen days after Diane Rodgers, executive director of the center, was terminated by the board “for cause” and escorted out of the building by Middletown police, pieces are missing regarding one of the largest and most complex investigations in city history.
After Rodgers was hired in 2021, she was the driving force behind a $1.5 million renovation of the facility that included a recreation center with full restaurant and bar, bridal suite and rooms to host weddings and a fitness room. Those improvements were needed to attract outside events to generate revenue to fund programming, Rodgers said.
Another goal was drawing younger members, she said. The center’s membership has grown from 600 to 2,790, according to Rodgers.
But what was hidden until recently was the financial picture at Central Connections, which received $7 million over 10 years from Middletown taxpayers to pay off the mortgage. Voters passed a five-year, 1 mill levy in 2012 and a renewal in 2017. The levy expired on Dec. 31, 2022.
In the last couple of weeks, Central Connections employees have claimed they were paid with payroll checks that bounced, with cash and gift cards; vendors have stopped purchase orders to the center due to lack of payment; events have been canceled and operating hours reduced; the Council on Aging of Southwestern Ohio terminated its threeyear contract that was set to expire this year; and the center stopped home-delivered meals to senior citizens.
Rick Fishbaugh, board president, said during a meeting on July 25, Central Connections may have to file for bankruptcy.
At the center of the financial fiasco is Rodgers, who hasn’t been seen publicly since she was terminated. She has closed her Facebook page and co-workers said they don’t know where she is living. She has listed addresses in Hunter and Sabina.
Before Rodgers was hired in 2021, Fishbaugh said the board completed a background check on her, but only in Ohio, though she had never lived or worked in the state. He has admitted that was “a mistake.”
Rodgers is under investigation by the Middletown Division of Police and the Ohio Bureau Criminal Investigations regarding finances at the center, according to police Chief David Birk. No criminal charges have been filed and the investigation is ongoing, he said.
A letter from Birk was sent Aug. 4 to BCI’s forensic account unit requesting the assistance of a forensic accountant “with a financial investigation resulting from an alleged theft of monies from a local organization.”
Kate Cleary, former account manager at Central Connections who was fired by Rodgers, accused Rodgers of hiding the center’s finances from her. She said Rodgers controlled the center’s checkbook and credit card and when Cleary inquired, Rodgers refused to disclose the figures.
Cleary said Rodgers always opened the bank and credit card statements.
Eventually, concerned about the future of the center due to the finances, Cleary sent an email in October to the 13 board members and Fishbaugh. She said no one addressed her concerns.
“It’s like all 13 went to sleep,” Cleary said. “It’s bizarre.”
Fishbaugh didn’t return repeated calls from the Journal-News seeking comment.
Another time, Cleary said, she showed the center’s certified public accountant that the center had $165,000 in its checking account. When the CPA asked about the missing money, Cleary told him: “It’s gone.”
“There was no system of checks and balances,” she said.
While the investigation continues, Health Director Jackie Phillips is overseeing the daily operations of Central Connections, said City Manager Paul Lolli, who added, “We can’t let this go. We have to provide the services the seniors depend on.”
The center remains open 8:30 a.m. to 9 p.m. Monday through Friday with the café open from 11 a.m. to 2 p.m., according to its Facebook page.
But Purse Bingo, a major fundraiser scheduled for Saturday, has been canceled and all weekend events have been canceled.
It’s unclear how many wedding receptions, anniversary parties and reunions were scheduled at the center and when, or if, those deposits will be refunded.
After Central Connections stopped delivering meals, First Presbyterian Church, 2910 Central Ave., started providing meals for seniors, said Paula Smith, director of communications for the Council on Aging.
She said the church will provide congregate meals from 11:30 a.m. to 12:30 p.m. Monday through Friday. The plan is for COA to find a permanent place for the meals to be served within a few weeks, Smith said.
Partners in Prime, Meals on Wheels Southwestern Ohio and Warren County Community Services have stepped in to cover all home-delivered meals to clients, according to Smith. Meals on Wheels also will provide meals for the seven congregate sites Central Connections previously served, she said.
Smith said COA is working to connect transportation clients and clients receiving supportive services with new providers.
Lolli said the city’s lawyers and representatives from the center’s board are meeting to discuss the sale price of the building and land. Lolli didn’t want to speculate on that price. Those funds, which will come out of the city’s American Rescue Plan Act money, will be used to pay off debt at the center, Lolli said.
According to the Butler County’s Auditor’s website, the land at 3907 Central Ave. is appraised at $225,000 and the building at $1.9 million for a total of $2.144 million. But those are valuations from Jan. 1, 2020, before the center had a $1.5 million remodel.
The land and property will be reappraised based off the Jan. 1, 2023, valuations.
According to 2021 tax returns from Form 990, reviewed by the Journal-News, Central Connections profited $1.04 million in 2020 and $564,681 in 2021.
The center began 2021 with $4.6 million in net assets or fund balances and ended the year with $5.188 million. The biggest difference was found under total liabilities when they dropped from $875,607 at the beginning of 2021 to $155,532 at the end of the year.
The document listed Rodgers as the executive director.
Rodgers also signed for a mortgage loan through First National Bank for $450,000 on July 29, 2022, then did a loan modification that increased the amount to $650,000, according to the Butler County Recorder’s Office. Her signature and job title are listed on the loan that matures on July 29, 2024.
At least one developer, D.E.R. Development Co. has filed a lien against Central Connections, according to documents obtained by the Journal-News. The document says the company performed work from June 20, 2022, to Feb. 27, 2023, and is owed $266,594.52, plus allowable interest.
The lien was filed on May 5, 2023, and signed by William Roe, vice president of the company.