Audit: Ohio halfway house officials paid for alcohol, strip club, and trips with taxpayer money

COLUMBUS (AP) – Officials at a southern Ohio halfway house illegally spent thousands of taxpayer dollars on alcohol, hotels, travel costs for family members and a strip club, and forged receipts for personal and unauthorized purchases, according to a state audit released Tuesday.

The report from Auditor David Yost found $20,000 in illegal spending by employees at STAR Community Justice Center in Scioto County, with about half involving conferences in Las Vegas; Reno, Nevada; Orlando, Florida; and Pittsburgh.

The report said two center officials spent $170 at Columbus Solid Gold, a strip club, in December 2014.

The report cited former deputy director Josh Saunders with improperly spending $12,042 and executive director Charles Philabaun with improperly spending $5,965.

Messages seeking comment on the allegations were left for Saunders, Philabaun and attorneys representing the center.

The 150-bed facility works with felony offenders to help them reintegrate in the community and avoid going back to prison. The Ohio prisons agency is reviewing the audit, said spokeswoman JoEllen Smith. The facility is in Franklin Furnace, about 105 miles (169 kilometers) from Columbus.

In one case, the center spent $5,560 on plane tickets and registration for six employees to attend a conference in Reno, the audit said. During a stay in Columbus the night before the flight, employees spent $154 on 44 beers plus a $50 tip – both prohibited expenses – at a restaurant using a STAR credit card issued to Saunders, the report said.

The employees flew to Reno a day early and spent $797 on meals and lodging, with none of the six employees attending the entire conference but instead going only to sessions they felt were relevant, the report said.

“These employees used conferences as a cover for their self-indulgent vacations,” said Yost, a Republican.

The investigation found that over time, more than a dozen receipts were forged and submitted to the Scioto County auditor as documentation for expenses.

The center lacked a credit card policy, and employees would charge personal expenses to STAR credit cards, then reimburse the center for amounts they deemed unrelated to its operations, the audit said.

The center fired Saunders in April 2015, and he then sued Philabaun and STAR in July 2015 for unlawful termination.

In total, the special audit issued $20,090 in findings against the following individuals:

  • Deputy Director Josh Saunders – $12,042
  • Executive Director Charles Philabaun – $5,965
  • Director John Adkins – $471
  • Director Matthew McClellan – $368
  • Business Manager Sharon Hart – $627
  • Director Cary Williams – $161
  • Director Shannon Bishop – $157
  • Fiscal Director James T. Holt – $74
  • Adam McPheters – $85
  • Chris Kimbler – $85
  • Danny Reynolds – $55


“Of all places, the fact that these improper expenditures occurred at a correctional facility is particularly alarming,” Yost said. “The leaders of these facilities need to set a good example for inmates trying to get their lives back on track.”

A full copy of the special audit report is available online. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others and keep the conversation on topic and civil. If you see an inappropriate comment, please flag it for our moderators to review.

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