Questions remain regarding alleged missing funds at Central Connections

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 finances of Central Connections that 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 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 cancelled and operating hours reduced; the Council on Aging of Southwestern Ohio terminated its three-year 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 Ohio. 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 2022 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, the center’s certified public accountant showed Rodgers that the center had $165,000 in its checking account. When the CPA asked about the missing money, Rodgers replied: “It’s gone,” according to Cleary.

“There was no system of checks and balances,” Cleary 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 Aug. 19, has been cancelled and all weekend events have been cancelled.

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.

The congregate meal at First Presbyterian Church ended on Friday, according to Anne Sells, strategic communications consultant for the Council on Aging of Southwestern Ohio. She said the COA is working “diligently” to move this meal to a permanent location, but that is still in the works.

There are several other congregate meal locations in Butler County that are open to anyone 60 and older:

If an older adult is unable to get to one of these congregate meal sites, but needs meal support, they should contact Council on Aging at 513-721-1025.

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 will also 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 (ARPA) 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.

CENTRAL CONNECTIONS TIMELINE

Nov. 6, 2012: Middletown taxpayers pass a five-year, 1-mill levy to provide or maintain senior services at the Middletown Area Senior Center.

Aug. 16, 2015: The name of the Middletown Area Senior Center is changed to Central Connections.

May 2, 2017: Middletown taxpayers renew a five-year, 1-mill levy to provide or maintain senior services at the center.

November 2021: Diane Rodgers is hired as executive director. She says she moved from Reno, Nev., where she oversaw a senior center and worked with the homeless population, to be closer to her daughter who lives in New York.

July 29, 2022: Rodgers signs for a mortgage loan through First National Bank for $450,000, then does a loan modification that increases 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.

Nov. 1, 2022: Ribbon-cutting is held to celebrate the $1.5 million in renovations of Central Connections, 3907 Central Ave.

Dec. 31, 2022: Senior citizens center levy expires after generating $7 million over 10 years.

May 5, 2023: D.E.R. Development Co. files a lien against Central Connections, saying the company is owed $266,594.52, plus allowable interest.

May 31, 2023: Rodgers files vandalism report at Central Connections. Middletown police say that leads to the investigation of center’s finances.

July 24, 2023: The Council on Aging terminates its three-year contract with Central Connections. Fifty employees are laid off.

July 25, 2023: Nearly 75 senior citizens and former and current employees of Central Connections attend a meeting in the cafe with Rick Fishbaugh, board president, and Rodgers.

July 27, 2023: Rodgers is terminated as executive director of Central Connections and escorted out of the building by Middletown police.

Aug. 3, 2023: During a special City Council meeting and after an executive session, City Manager Paul Lolli announces council has agreed to move forward with the possible purchase of the Central Connections building and land and for an unknown amount that will come out of the city’s American Rescue Plan Act (ARPA) fund.

Aug. 5, 2023: In an email to the Journal-News, attorney Tyrone Borger, who is representing Rodgers, writes that he and his client have been “informed that there is an ongoing investigation. As such, while my client would like to comment and clear up several misconceptions. She is taking my advice and refusing to comment on any allegations at this time.”

Aug. 9, 2023: Middletown Police Chief David Birk says his department is working with the Ohio attorney general’s Bureau of Criminal Investigation into the criminal investigation into the finances of Central Connections.

COMPLETE COVERAGE

Read previous coverage of the ongoing Central Connections financial issue at journal-news.com.