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HomeMy WebLinkAbout1449 PIERCEIn Re: Keith Pierce, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Raquel K. Bergen Nicholas A. Colafella Reverend Scott Pilarz 06 -029 Order No. 1449 10/23/07 11/7/07 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was not filed and a hearing was waived. A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. Any person who violates such confidentiality commits a misdemeanor and, upon conviction, may be subject to a fine of not more than $1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. Pierce, 06 -029 Page 2 I. ALLEGATIONS: That Keith Pierce, a public official /public employee in his capacity as a Director of Communications for the Pennsylvania Department of Education, violated Sections 1103(a), 1103(g) and 1104(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § §1103(a), 1103(g) and 1104(a), when he used the authority of his public position to solicit school districts in the Commonwealth to utilize the services of a consulting and communications company he was forming and when he represented school districts before the Department of Education within one year of leaving Commonwealth service; and when as the Director of Communications of the Lancaster School District, Lancaster County he utilized his public position to make purchases of a personal nature including meals, hotels, and personal items which were paid for by the Lancaster School District; when he used school district personnel, equipment, and facilities for personal purposes; and when he failed to file Statements of Financial Interests for the 2001, 2002, and 2003 calendar years. II. FINDINGS: 1. Keith Pierce served as the Director of Communications for the Lancaster School District, Lancaster County from approximately November 23, 1998, until February 19, 2003. 2. Keith Pierce thereafter served as the Director of Communications for the Pennsylvania Department of Education from approximately February 20, 2003, until July 17, 2004. 3. Pierce has private business interests, including but [not] limited to Pierce Communications, Pierce Entertainment Company and Pierce Communications, LLC. a. All three entities are registered with the Pennsylvania Department of State, Corporation Bureau. 4. Documents filed with the Pennsylvania Department of State, Corporation Bureau include the following business interests for Pierce. a. Entity name Entity # Filing date Business filing Pierce Communications 2824010 6/26/98 fictitious name Pierce Entertainment Company 2630686 4/4/95 fictitious name Pierce Communications, LLC 3247834 9/8/04 Certificate of Organization b. The fictitious name owners for Pierce Entertainment Company are Keith Pierce and his brother, Kevin Pierce. c. Keith Pierce is the sole owner of Pierce Communications and Pierce Communications, LLC. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT AS DIRECTOR OF COMMUNCIATIONS FOR THE LANCASTER SCHOOL DISTRICT, LANCASTER COUNTY, PIERCE UTILIZED HIS PUBLIC POSITION TO MAKE PURCHASES OF A PERSONAL NATURE INCLUDING MEALS, HOTELS AND PERSONAL ITEMS WHICH WERE PAID FOR BY THE DISTRICT; WHEN HE USED SCHOOL DISTRICT PERSONNEL, EQUIPMENT AND FACILITIES FOR PERSONAL PURPOSES 5. As Director of Communications for the Lancaster School District, Pierce's duties and responsibilities included in part the following: 1. "Develop, oversee and annually update, two plans: a communications Pierce, 06 -029 Page 3 plan and a fundraising plan. 2. Oversee the development and implementation of all District communications activities: publications, special events, news releases, print and broadcast initiatives, issue campaigns, etc. 3. Oversee the implementation of external fundraising initiatives, including continually examining opportunities, deploying staff and Board members, coordinating efforts and building relationship[s] with business /community leaders, foundations, etc. 4. Work with the District's strategic partners (e.g., the Education Foundation, Panasonic Foundation, parents, communities of faith, business and civic leaders) to carry out mutually beneficial communication and fundraising strategies." 6. Pierce as Director of Communications had supervisory responsibilities [as to] district employees Rita Balogh, Kelly Herr and Eva Telesco. 7 In 2000, Pierce was assigned a Visa credit card to make purchases on behalf of the district's Communication and Development Department for office supplies, payments to vendors used to create multi -media publications, and to pay for his travel expenses related to district activities. a. Pierce maintained possession of the credit card from 2000 until leaving his position. b. Pierce would make the card available to subordinate employees on an as- needed basis. 8. During Pierce's tenure with the district, he received two cautionary letters from Eleanor Bosserman of the District's Business Office informing him that he was making inappropriate transactions, that were personal in nature, with the District's credit card. a. Cautionary letters to Pierce were dated October 21, 2002, and January 18, 2003. 9. Pierce reimbursed the district for the purchases that were addressed in the respective letters. 10. Pierce continued to use the district credit card even after receiving the warnings from Bosserman. a. Pierce attended the January 21, 2003, inauguration of Governor Edward Rendell and utilized the district card to pay for his personal expenses related to attending the inauguration. b. Pierce was being considered for a position in the Rendell administration. c. Pierce attended at the request of Vicki Phillips. d. Pierce's attendance at the inauguration was unrelated to his position with the Lancaster School District. 11. By way of correspondence dated February 25, 2003, Eleanor Bosserman requested Pierce reimburse the district in the amount of $243.50 for expenses incurred at the Date Vendor Location Amount Paid Description 8/23/2001 Rite Aid Lancaster $87.88 Film developed 9/1/2001 Staples Valley Forge $188.44 Frames, supplies 9/24/2001 Carrot's Ink Cart $29.90 Epson T001011 Photo Ink Pierce, 06 -029 Page 4 Crowne Plaza in Harrisburg on the evening of the Governor's Inauguration (2003). a. Pierce was not the only district employee who attended the inauguration. b. Other district attendees did not seek reimbursement from the district for their expenses. 12. Pierce issued personal check number 4050 dated March 5, 2003, in the amount of $243.50 to the district as reimbursement for this expense. 13. Between 2001 and 2003 Pierce used the district credit card to also purchase items for [sic] such as computer printer supplies, blank and music CD's, picture frames and photo developing, parking, gasoline and online file storage. a. Many of these items were purchased from vendors located in Wayne, Lancaster, Valley Forge and King of Prussia, PA. b. These purchases were made in close proximity to Pierce's residence, outside the geographical boundaries of the school district. c. Gasoline purchases were being made using the card even though Pierce was entitled to and received mileage reimbursements. 14. Pierce made a number of purchases of computer and /or office supplies from Staples in Narberth, Lancaster, Valley Forge, King of Prussia and Wayne, PA. a. The Lancaster purchases were the only ones within the geographical boundaries of the school district. b. All other locations were within close proximity to Pierce's residence. 15. During the time when these purchases were being made, Pierce was operating Pierce Entertainment Company from his residence. a. Pierce used blank and pre- recorded music CD's in conjunction with his entertainment company. 16. Pierce purchased merchandise including computer equipment and supplies from vendors located near his residence which were the same as those used by Pierce in his entertainment company. a. Items such as printer cartridges, blank CD's, and toner were routinely purchased from Lancaster Office Equipment and Supplies, Inc., 100 North Prince Street, Box 1297, Lancaster, PA 17603. b. Many of these items were charged to a LSD credit card. 17. Credit card receipts detail the following merchandise purchases made by Pierce which were paid for by the Lancaster School District. 9/19/2001 Staples Valley Forge $21.72 Brother PC -Fax 10/22/2001 Staples Narberth $36.37 Supplies 11/23/2001 Staples Valley Forge $17.68 No receipt - supplies 12/12/2001 Staples Lancaster $56.12 Supplies 12/4/2001 Staples Lancaster $(25.60) Returns music CDR 12/7/2001 Staples Narberth $42.36 Supplies 12/3/2001 Staples Lancaster $173.54 Supplies -Ink Cartridges and CDR 12/6/2001 CVS Wayne $78.42 Supplies -Ink Cartridge 1/30/2002 CVS Wayne $17.47 CDR &Cases 1/19/2002 Staples Wayne $36.01 CDR Music 1/24/2002 Staples Lancaster $85.03 Frames, supplies 1/24/2002 Tower Records King of Prussia $44.50 Karaoke CD's 1/26/2002 Sam Ash Music King of Prussia $31.78 Karaoke CD's 2/12/2002 CVS Wayne $12.69 Pictures 2/16/2002 Staples Valley Forge $68.98 CDR's and supplies 2/16/2002 Home Depot King of Prussia $14.72 Supplies 3/8/2002 Music Den, Inc. Lancaster $26.48 CD's 4/3/2002 CVS Wayne $80.80 Printer cartridge 5/2/2002 Staples Lancaster $41.31 Print paper and photo 5/8/2002 Staples Lancaster $39.19 Print paper 6/13/2002 One Hour Moto Photo Wayne $29.73 Pictures developed 7/6/2002 Staples Valley Forge $47.47 Supplies 7/21/2002 Staples Valley Forge $21.18 Mouse 8/3/2002 Staples Valley Forge $37.06 Supplies 8/9/2002 Karaoke, Inc. Ultimate Pop Hits $35.31 CD's 8/23/2002 Staples Valley Forge $238.39 Supplies - printer 9/26/2002 Central Park New York $32.00 Parking 10/16/2002 Staples Lancaster $85.67 Ink cartridges /paper 10/27/2002 Karaoke.com $75.78 Music 11/16/2002 Walmart $19.97 PC Speakers 12/6/2002 Staples Lancaster $146.39 CD /DVD -ink cartridges 12/9/2002 Staples Lancaster $29.64 CDR 12/10/2002 Staples Lancaster $66.60 CDR, paper, 12/11/2002 K -mart Wayne $59.76 Jewel cases, CDR 12/12/2002 Staples Lancaster $59.32 CDR, ink 1/4/2003 Staples Wayne $52.72 Business paper 1/8/2003 Exxon Mobile Wayne $11.25 Gas 1/18/2003 Xdrive Tech $4.95 Unknown online file storage 12/18/2002 Xdrive Tech $4.95 Unknown online file Pierce, 06 -029 Page 5 Date Vendor Description of purchase Amount 1/24/02 Tower Records Sybersound Party Time Karaoke No. 1 and No. 2 $44.50 1/26/02 Sam Ash Music Elton John's 34 Songs for Karaoke $31.78 3/8/02 Music Den Unknown $26.48 8/9/02 Karaoke.com Karaoke recordings titled Ultimate Pop Hits $35.31 10/27/02 Karaoke.com Karaoke recordings titled Celine Dion, Pop Hits 2001, Awesome 80's, Best Duets 111 $75.78 Total $213.85 Pierce, 06 -029 Page 6 18. Several of the purchases identified above were personal in nature. 19. Pierce admitted to retaining the printer purchased from Staples on August 23, 2002. a. Total invoice: $238.39 20. On five separate occasions Pierce made music purchases of CD's which he retained for his personal use, using his district credit card. The following chart details those purchases: a. These purchases did not relate to any of Pierce's duties with the Lancaster School District. b. Pierce retained possession of this music after leaving the Lancaster School District. 21. Gasoline purchases totaling $22.60 were for Pierce's personal vehicle. 22. Other personal purchases made by Pierce using the District credit card included: a. Picture developing totaling $130.30. b. Supplies for an electronic Christmas card $361.71. (See Finding No. 35). 23. The total cost of personal merchandise purchases made by Pierce using the District's credit card totaled at least $966.85. 24. Pierce also made other personal purchases on the district's credit card, including food for himself and others at establishments in the greater Lancaster area. 25. District credit card receipts for food purchases covering the period July 1, 2001, through January 22, 2003, document the following meal charges incurred by Pierce: storage 2/18/2003 Xdrive Tech $4.95 Unknown online file storage 2/6/2003 Turkey Hill Lancaster $11.35 Gas 3/18/2003 Xdrive Tech $4.95 Unknown online file storage Total $2,285.18 Pierce, 06 -029 Page 6 18. Several of the purchases identified above were personal in nature. 19. Pierce admitted to retaining the printer purchased from Staples on August 23, 2002. a. Total invoice: $238.39 20. On five separate occasions Pierce made music purchases of CD's which he retained for his personal use, using his district credit card. The following chart details those purchases: a. These purchases did not relate to any of Pierce's duties with the Lancaster School District. b. Pierce retained possession of this music after leaving the Lancaster School District. 21. Gasoline purchases totaling $22.60 were for Pierce's personal vehicle. 22. Other personal purchases made by Pierce using the District credit card included: a. Picture developing totaling $130.30. b. Supplies for an electronic Christmas card $361.71. (See Finding No. 35). 23. The total cost of personal merchandise purchases made by Pierce using the District's credit card totaled at least $966.85. 24. Pierce also made other personal purchases on the district's credit card, including food for himself and others at establishments in the greater Lancaster area. 25. District credit card receipts for food purchases covering the period July 1, 2001, through January 22, 2003, document the following meal charges incurred by Pierce: Day of week Date Vendor Amount Paid Description, Wednesday 8/22/2001 Carr's Restaurant $65.00 No receipt or documentation for this charge Monday 10/1/2001 Creative Edibles, E. Petersburg $133.00 Large fruit basket Thursday 1/10/2002 Manhattan Bagel $17.89 Meal - Bagels and OJ Saturday 2/2/2002 Cracker Barrel $35.82 No receipt or documentation for this charge Thursday 2/21/2002 Blue Pacific Sushi & Grill $80.00 Meal- Trip- Lancaster Monday 3/4/2002 Cracker Barrel $17.00 Meal- Trip- Lancaster Thursday 8/22/2002 Molly's Pub $36.95 Meal Friday 9/13/2002 Bennigans, KOP $33.33 Meal- personal to be reimbursed Friday 10/4/2002 Cracker Barrel $22.51 Breakfast for three in Lancaster on 10/4/02 Thursday 1/9/2003 Tobias S Frog $16.52 Food bill for 1/9/03 at 2:35pm Wednesday 1/22/2003 Crowne Plaza -HBG $25.09 Food bill for 1/22/03 at 9:58am for Keith Pierce Friday 6/7/2002 Carr's Restaurant $40.00 Meal Friday 12/13/2002 Kalhoun's $73.00 Meeting refreshments Total $596.11 Pierce, 06 -029 Page 7 a. Of the $596.11 total, $246.40 [is] related to Pierce's meeting attendance as follows: Fruit Basket $133.00 Bagels $17.89 Breakfast bars $22.51 Meeting Refreshments $73.00 b. $349.71 of the food purchases were unrelated to school district business. 26. Pierce resided in Wayne, PA during his employment with the District. a. Wayne is approximately 52 miles from the District's administration office. b. Travel time is approximately one hour to the school from Pierce's residence. 27. From July 6, 2001, through February 7, 2003, Pierce stayed overnight in hotels located within the area of Lancaster on at least 43 nights at district expense. a. Pierce charged his hotel expenses to the district's credit card. b. Pierce also paid for rooms in the Lancaster area utilizing his personal accounts approximately fourteen (14) other times. c. Some of the nights Pierce stayed in Lancaster included evenings when school district board of director meetings were held. 28. Credit card receipts confirm that Pierce charged room stays to the district on the following nights between July 6, 2001, and February 7, 2003: Overnight Stays in Lancaster July 1, 2001, to February 7, 2003 Da of Week Date Vendor Amount Board Ending Check Meals Paid Meetin • Time Out Friday 07/06/01 Hawthorn Inn $76.59 Y 7:55 PM 10:04 AM Wednesday 07/18/01 Hawthorn Inn $76.59 8:37 AM Wednesday 08/08/01 Hawthorn Inn $76.59 7:08 AM Friday 08/10/01 Brunswich Ramada $90.70 9:38 AM Wednesday 08/15/01 Hawthorn Inn - no receipt, 2 nights $197.58 No Receipt ? Movie Charge Wednesday 08/22/01 Brunswich Ramada, Lancaster $90.70 Y 9:15 PM 7:38 AM Tuesday 08/28/01 Brunswich Ramada, Lancaster $90.70 7:37 AM Thursday 10/04/01 Hampton Inn - no location on receipt $116.55 ? Friday 10/05/01 Hawthorn Inn $98.79 Y 9:55 PM 7:51 AM Wednesday 10/24/01 Hawthorn Inn $87.69 Y 11:05 PM 8:37 AM Wednesday 10/31/01 Hampton Inn, Lancaster $116.55 ? Saturday 11/10/01 Hawthorn Inn - 2 nights $153.18 No Receipt 7:56 AM Saturday 12/01/01 Hampton Inn, Lancaster $87.69 No Receipt ? Thursday 01/24/02 Hawthorn Inn $61.04 ? Friday 02/01/02 Hawthorn Inn & Suites $54.39 8:16 AM Wednesday 02/20/02 Hawthorn Inn & Suites $76.59 Y 8:53 PM 7:55 AM Friday 02/22/02 Hawthorn Inn & Suites $65.49 9:05 AM Blue sushi 80 Wednesday 03/06/02 Hawthorn Inn $65.49 7:28 AM Saturday 03/09/02 Hawthorn Inn $65.49 12:16 PM Wednesday 03/20/02 Hawthorn Inn $54.39 Y 9:15 PM 8:29 AM Wednesday 03/27/02 Hawthorn Inn $69.81 8:05 AM Tuesday 04/02/02 Hawthorn Inn $65.49 7:23 AM Friday 04/05/02 Hawthorn Inn $54.39 7:11 AM Wednesday 04/17/02 Hawthorn Inn $54.39 Y 9:55 PM 8:47 AM Thursday 04/25/02 Hawthorn Inn $65.49 8:01 AM Tuesday 04/30/02 Hawthorn Inn $76.59 Stacy Galiatsos Wednesday 05/01/02 Hawthorn Inn $54.39 8:41AM Wednesday 05/22/02 Hawthorn Inn $76.59 8:03 AM Friday 05/24/02 Hawthorn Inn $76.59 Y 9:35 PM 8:59 AM Friday 08/09/02 Hawthorn Inn $98.28 8:03 AM $10.39 - movie charge Friday 10/04/02 Hawthorn Inn $65.49 7:09 AM Barrel Food Friday 10/11/02 Hawthorn Inn $76.59 Y 8:35 PM 7:12 AM Pierce, 06 -029 Page 8 a. Wednesday 10/16/02 Hawthorn Inn $90.62 7:35 AM Movie Charge Friday 10/18/02 Hawthorn Inn $76.59 Y 8:45 PM 7:35 AM Friday 10/25/02 Hawthorn Inn $65.49 9:50 AM Wednesday 10/30/02 Hawthorn Inn $71.04 Y 9:25 PM 9:01 AM Tuesday 01/07/03 Hawthorn Inn $65.49 7:46 AM Saturday 02/01/03 Hawthorn Inn $55.50 7:50 AM Thursday 06/06/02 Hawthorn Inn, Lancaster $76.59 10:02 AM Friday 11/08/02 Hawthorn Inn, Lancaster $66.09 ? Friday 02/07/03 Hawthorn Inn and Suites $55.50 9:55 AM Total $3,259.78 Totals 41 separate stays in Lancaster since July 1, 2001 43 Nights stayed 11 were after board meetings only four meetings ended after 9:35 or later Pierce, 06 -029 Page 9 29. Of the forty -three (43) nights detailed in the previous finding, eleven (11) occurred the night of a board meeting. a. Board meetings ended as early as 7:55pm (7/6/01) and as late as 11:05pm (10/24/01). b. Meetings typically ended somewhere between 8:30 and 9:30pm. c. Nineteen (19) stays occurred on either a Friday or Saturday night with one Saturday night including Sunday (11/10/01- 11/11/01). 1. Board meetings were held Friday nights on four occasions. d. Total cost for lodging on nights of board meetings totaled $839.95. 30. Pierce's overnight stays in Lancaster were not questioned by Superintendent Vicki Phillips. 31. During the Christmas season of 2002 Pierce prepared a music CD to distribute in lieu of the traditional Christmas card. a. Pierce directed subordinate employees Herr and Balogh to duplicate the music CD for distribution. 1. School district equipment was used to complete the task. b. Approximately 100 Christmas CD's were created. 32. Balogh and Herr each spent approximately 2 to 3 days [of] District time duplicating /burning CD copies. a. Lancaster School District computers were used to make the CD copies. b. Pierce provided Balogh and Herr with blank CD's and jewel cases to Date Vendor Location Amount Paid Description 12/6/2002 Staples Lancaster $146.39 CD /DVD -ink cartridges 12/9/2002 Staples Lancaster $29.64 CDR 12/10/2002 Staples Lancaster $66.60 CDR, paper 12/11/2002 K -mart Wayne $59.76 Jewel cases, CDR 12/12/2002 Staples Lancaster $59.32 CDR, ink Total $361.71 Pierce, 06 -029 Page 10 duplicate the CD's. c. Balogh and Herr would put the newly created CD's into jewel cases and return them to Pierce for distribution. d. Balogh was compensated at a rate of $18.50 per hour in December 2002. e. Herr was compensated at a rate of $12.85 per hour in December 2002. 33. Pierce realized a private pecuniary gain of at least $501.60 when he directed Lancaster School District employees Balogh and Herr on [sic] to duplicate Christmas CD's while on school district time. a. Private pecuniary gain is based on 16 hours for Balogh at $18.50 per hour ($296.00) plus 16 hours for Herr at $12.85 per hour ($205.60). 34. Credit card purchases were made by Pierce in early December of 2002 from Staples which included blank CD's, bubble wrap, paper, and ink cartridges. a. These were the same types of items were used by Balogh and Herr when preparing the Christmas CD's at Pierce's direction. b. Pierce admitted to SEC Investigators that he charged the materials needed for the project to the district's credit card. 35. District credit card purchases made by Pierce, as outlined in Finding No. 17, confirm the following purchases used in conjunction with the project. 36. Pierce realized a private pecuniary gain of $1,818.16 as a result of personal expenses charged back to the Lancaster School District detailed in the previous findings. a. Personal expenses on district credit card not reimbursed: $966.85. b. Meals charged on district credit card not reimbursed: $349.71. c. Time spent by employees Herr and Balogh making Christmas CD's: $501.60. THE FOLLOWING FINDINGS RELATE TO THE ALLEGATION THAT KEITH PIERCE FAILED TO FILE STATEMENTS OF FINANCIAL INTERESTS WITH THE LANCASTER SCHOOL DISTRICT 37. Pierce in his official capacity as Director of Communications for the Lancaster School District was annually required to file Statement of Financial Interests (SFI) forms by May 1 of each year containing information for the prior calendar year. 38. Pierce failed to file Statements of Financial Interests forms for the 2000, 2001 and Pierce, 06 -029 Page 11 2002 calendar years in his official capacity as Director of Communications for the Lancaster School District. a. Pierce admitted to SEC Investigators that he failed to timely file SFIs for calendar years 2000 through 2002. 39. On September 6, 2006, Samuel Stretton, Esquire submitted Statement of Financial Interests forms for Keith Pierce for calendar years 2000, 2001 and 2002 containing the following information: a. Calendar year: 2002 Filed: 5/21/03 on SEC form 1/03 Position: Press Secretary /Department of Education Creditors: Mellon Bank, 6 %; Home Depot, 14% Direct /Indirect Income: Department of Education; Pierce Entertainment Office directorship or employment in any business: Pierce Entertainment All other financial interests: None b. Calendar year: 2001 Filed: 9/1/06 on SEC form 1/06 Position: Director of Communications Creditors: Mellon Bank, 6 %; Home Depot, 14% Direct /Indirect Income: Lancaster School District; Pierce Entertainment Office directorship or employment in any business: Pierce Entertainment All other financial interests: None c. Calendar year: 2000 Filed: 9/1/06 on SEC form 1/06 Position: Director of Communications Creditors: Mellon Bank, 6 %; Home Depot, 14% Direct /Indirect Income: Lancaster School District; Pierce Entertainment Office directorship or employment in any business: Pierce Entertainment All other financial interests: None 40. Pierce did not list Pierce Communications LLC or Pierce Communications in any category on the Statements of Financial Interests. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT PIERCE USED THE AUTHORITY OF HIS PUBLIC POSITION TO SOLICIT SCHOOL DISTRICTS IN THE COMMONWEALTH TO UTILIZE THE SERVICES OF A CONSULTING AND COMMUNICATIONS COMPANY HE WAS FORMING. 41. Following his departure from the School District of Lancaster in February of 2003, Pierce was hired by the Secretary of Education, PDE to serve as PDE's Press Secretary. a. Pierce reported to Vicki Phillips who served as the Secretary of Education. 1. Phillips formerly served as Lancaster School District Superintendent. b. Pierce held this position until his departure on July 16, 2004. 42. In his role as Press Secretary for PDE, Pierce was responsible for handling the public relations and communications for the Secretary of Education. a. In this capacity, Pierce would communicate with members of PDE, the public, school districts throughout the Commonwealth, and other agencies, Date Contact Person Position Entity 5/17/04 Dr. Richard Coe Executive Director Bucks County IU 22 5/17/04 Steven Keifer Superintendent Danville Area S.D. 5/17/04 Francis Barnes Superintendent Palisades S.D. 5/17/04 Dr. Nancy Allmon Executive Director Berks County IU 14 5/17/04 Dr. Lisa Andrejko Superintendent Norristown Area S.D. 5/17/04 Dr. Larry Macaluso Superintendent Red Lion Area S.D. 5/17/04 Dr. John R. Williams Superintendent Scranton S.D. 5/18/04 Dr. Marianne T. Bartley Superintendent Lebanon S.D. 5/17/04 Dr. N. Robert Laws Superintendent Central Bucks S.D 5/17/04 Dr. Gerald Kohn Superintendent Harrisburg City S.D 5/17/04 Dr. Robert S. Kish Superintendent Pennridge S.D. 5/17/04 Dr. Barbara Burke - Stevenson Superintendent New Hope - Solebury S.D. 5/17/04 Carlos Lopez Superintendent York City S.D 5/17/04 Dr. William Kiefer Superintendent Hamburg S.D 9/9/04 Dr. Stanley J. Durtan Superintendent Wissahickon S.D. 11/23/04 Dr. William Kiefer Superintendent Hamburg S.D 12/31/04 Dr. Leslye S. Abrutyn Superintendent Penn -Delco S.D. 5/17/05 Ms. Jennifer Waltz Executive Director Pennsylvania PTA Pierce, 06 -029 Page 12 including the Governor's Office. 43. Prior to leaving his position with the Department of Education, in July of 2004, Pierce began to take steps to create his own business, which would provide communication and grant writing services to school districts throughout Pennsylvania. a. Pierce's company, Pierce Communications, LLC, began contacting school districts throughout the state as early as May of 2004, while Pierce was still employed with PDE. b. Pierce initially contacted school district superintendents and intermediate unit directors he came in contact with professionally while at PDE. 44. While still employed by the Department of Education, Pierce contacted officials of various school districts /intermediate units in an attempt to generate future business for Pierce Communications. a. Pierce sent solicitation letters to the school district superintendents and executive directors of intermediate units. b. Pierce obtained the information regarding superintendents by virtue of his position as PDE Press Secretary. c. This information was not confidential. 45. Pierce's business solicitations letter had contact information of Pierce Communications, 149 Eaton Drive, Wayne, PA 19087, phone 610 - 405 -6373, fax 610 - 995 -9085, email: kiethpierce793Qhotmail.com. 46. Pierce's letters were sent to the following school district officials: 47. The correspondence sent to all (18) administrators as delineated in finding no. 58 contained the following information: Please accept my most sincere thanks for taking the time to meet with me. Pierce, 06 -029 Page 13 Needless to say, I am extremely excited about how the prospect of Pierce Communications is looking and I am confident that it presents a tremendous opportunity for success in the (blank) Area School District. Thought [sic] I have had an overwhelming response to this idea thus far, in order to have a successful opening on August 1, Pierce Communications is in need of solid commitments from the districts that have indicated an interest. Again, we will open as a full -scale public, media and community relations firm, tailored to the unique needs of educational and non - profit organizations. From strategy to implementation, concept to rollout, on -on -one [sic] team efforts along with an extraordinary team of communication professionals I am prepared to fully support you in your efforts to promotes [sic], inform, publicize, increase awareness and garner the partnerships needed to advance student achievement in the Danville Area School District. When I chose people to share this idea with, I chose people whom I knew personally and /or those I knew had a clear understanding of how important communications is to their success. I wanted to offer YOU the opportunity to sign on early, so you have the best possible chance to get in before we are forced to freeze the number of districts /clients we can support this first year. Please complete and return the enclosed statement of interest as soon as possible and I will be in touch with you very soon after. Again, I thank you for your time and consideration of this great opportunity. I look forward to talking to you again soon. 48. The statement of interest Pierce enclosed with his letter to the school district administrators included the following: a. Areas of interest *Public Relations Counsel /Image Strategy *Media Relations *Community Relations *Crisis Management *Grant Writing /Development *News Clipping Service *Publications /Writing /Designing *Ad Campaigns *Special Events *Multi -Media Production *Workshops /In- Service Training b. Fee Structure *Annual contract - $55,000.00 Date Number Amount Lebanon School District check # Payment Date Payment Amount 11/10/04 4057 $5,000.00 10030 11/23/04 $5,000.00 12/1/04 4058 $5,000.00 41601 1/7/05 $5,000.00 1/1/05 4059 $5,000.00 41601 1/20/05 $5,000.00 Pierce, 06 -029 Page 14 *Monthly contract - $7,000.00 *Daily contract - $1,600.00 49. Pierce did not use the offices of PDE as a contact. 50. The letter of solicitation did not reference Pierce's position with PDE. 51. The Lebanon School District and Palisades School District are districts which were solicited by Pierce while at PDE regarding potential contracts with Pierce Communications. a. These districts entered into a contract with Pierce Communications within one year of his departure from the Department of Education. 52. On May 18, 2004, Dr. Marianne T. Bartley, Superintendent of the Lebanon School District, Lebanon, PA, was sent a business solicitation letter from Pierce Communications. a. Pierce was employed by PDE as the Director of Communications at the time. b. Superintendent Bartley was familiar with Pierce through her prior employment with the Lancaster School District and other professional interactions. 53. Dr. Bartley sought the services of Pierce Communications to provide the district public relations, press and communication services. a. Pierce Communications was hired by the Lebanon School District on November 8, 2004. 54. On November 15, 2004, the Lebanon School District entered into a three (3) month agreement with Pierce Communications at a rate of $5,000.00 per month. a. The initial term of the contract was from December 1, 2004, through February 28, 2005. 55. On January 31, 2005, an addendum to the November 15, 2004, agreement was entered into extending the contract for an additional three (3) months. a. The additional three (3) months covered the period March 1, 2005, through May 31, 2005. b. Monthly fees remained at $5,000.00. 56. Financial records of the Lebanon School District reflect the following payments were made to Pierce Communications pursuant to the November 15, 2004, and January 31, 2005, contracts: a. 2/18/05 4066 $5,000.00 37130 2/18/05 $10,000.00 3/1/05 4068 $5,000.00 37130 3/1/05 Included 4/1/05 4069 $5,000.00 37326 4/18/05 $5,000.00 6/2/05 4047 $352.86 37780 6/20/05 $409.98 6/2/05 4048 $57.12 37780 6/20/05 Included Total $30,409.98 Pierce, 06 -029 Page 15 57. Monthly invoices from Pierce Communications to the Lebanon School District make general reference to public relations services being provided. a. No invoices make reference to any services being provided relating to grants, grant acquisition or contact with the Department of Education. 58. Funding used to pay for this contract was acquired through the Pennsylvania Department of Education 2004/2005 School District Entity Demonstration Grant. a. This grant was awarded to the district on or about November 22, 2004. b. The district received a grant in the amount of $200,000.00 which had to be completed by August 31, 2005. c. Superintendent Bartley signed for the grant on behalf of the district on August 20, 2004. d. State approval was given by PDE on September 23, 2004. 59. The budget narrative for this grant included $42,000.00 designated for contracted services. a. b. c. Pierce Communications was not specifically identified as a budget line item. Pierce Communications was paid $30,409.98 of the $42,000.00 budget for contracted services. Pierce Communications was used at Superintendent Bartley's discretion. d. Bartley had latitude to select vendors for the grant. 60. Pierce was not employed by PDE at the time the school district applied for the grant. 61. Pierce had professional contacts with Francis Barnes, Ed. D through the Lancaster School District and later from the Palisades School District and PDE. a. Barnes served on an empowerment committee for the Lancaster School District. b. Barnes was Superintendent of the Palisades School District from 1998 until September 2004 and September 2005 through the present. c. Barnes was the Secretary of Education from September 2004 to September 2005. 62. From approximately February of 2004 to June of 2004 Barnes served as a Superintendent on loan to PDE. Pierce, 06 -029 Page 16 a. Barnes simultaneously served as Superintendent for the Palisades School District. b. Barnes typically spent one day in the district and the other four at PDE. 63. While at PDE Barnes learned from Pierce that Pierce was contemplating starting a public relations business. a. Pierce was contemplating leaving PDE around the same time then Secretary of Education, Vicki Phillips decided to move to the Portland School District. b. Pierce discussed starting Pierce Communications with Barnes while both were at PDE. c. Pierce had access to Barnes as a result of PDE's superintendent on loan initiative. d. Barnes provided Pierce with the names of other Bucks County School Superintendents for Pierce to contact. 64. By way of correspondence dated May 14, 2004, Pierce thanked Barnes for taking the time to meet with him. a. In the correspondence, Pierce indicates that he will "open on August 1, 2004 as a full scale public, media and community relations firm, tailored to the unique needs of educational and non - profit organizations. In addition to my own expertise and experience at both the state and local level, my network of contacts will offer the Palisades School District access to the experts that no other communications consultant or agency in Pennsylvania can provide — a direct pipeline to state and federal education departments and education associates." 65. As a result of the spring 2004 discussions between Barnes and Pierce, the Palisades School District entered into a one (1) year contract with Pierce Communications effective August 1, 2004, for $55,000.00. a. The agreement was dated May 10, 2004. b. The agreement was signed by Keith Pierce on June 21, 2004. c. The agreement had a typed date of June 16, 2004, for Francis Barnes. d. Pierce was still employed by PDE as of the date of the agreement. 66. The Palisades School District officially approved the contract during their June 16, 2004, meeting. 67. Services provided the Palisades School District by Pierce Communications related to public relations, development of communications plan, training the district, press releases and a year end report. a. Pierce did not provide any services relating to the acquisition of grant funding through PDE. b. Pierce did not represent the Palisades School District back [sic] before PDE as part of the contract. Date Number Amount Check # Payment Date Payment Amount 7/7/04 4001 $13,750.00 85654 7/6/04 $13,750.00 8/10/04 4003 $4,125.00 86161 9/1/04 $4,125.00 9/1/04 4054 $4,125.00 1027 10/1/04 $4,125.00 10/1/04 4006 $4,125.00 1148 10/1/04 $4,125.00 Total $26,125.00 Pierce, 06 -029 Page 17 c. District funds were used to compensate Pierce Communications. 68. Pierce negotiated the Palisades School District contract with Barnes while both were working for PDE. a. The negotiated value of the contract was $55,000.00. b. $26,125.00 was paid to Pierce Communications pursuant to the contract. 69. Financial records of the Palisades School District include the following payments made to Pierce Communications pursuant to the June 16, 2004, agreement. a. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT PIERCE REPRESENTED SCHOOL DISTRICTS FOR ACTUAL OR PROMISED COMPENSATION BEFORE THE DEPARTMENT OF EDUCATION WITHIN ONE YEAR OF LEAVING COMMONWEALTH SERVICE. 70. Keith Pierce terminated Commonwealth service on July 16, 2004. 71. Around August 2004, after he left PDE, Pierce sent business solicitation letters to all school districts and intermediate units in the Commonwealth. a. This letter announced the opening of Pierce Communications and was similar in content to the May 17, 2004, letters sent. (See Finding No. 47). 72. Pierce d /b /a Pierce Communications entered into contracts with the following public entities within one year of leaving the Department of Education: a. Penn - Trafford School District b. Palisades School District c. Lebanon School District d. Radnor Township School District e. Coatesville School District f. Tuscarora IU #11 g. Portland School District, Portland, OR. 73. Pierce Communications entered into a contract with Penn - Trafford School District to provide grant writing services in September 2004. 74. Around August 2004, Dr. Deborah J. Kolonay, Superintendent, Penn - Trafford School District, Harrison City, PA received a brochure from Pierce Communications advertising services offered by the company. a. Kolonay had been the district's Superintendent since December 2003 and an Assistant Superintendent since approximately 2001. b. Kolonay was interested in starting a grant program for the district. Date Contact Time spent 11/18/04 Reviewed presentation for PDE 1 hour 11/24/04 Phone conference re: meeting with PDE 2 hours 11/30/04 Phone conference re: PDE meeting 1 hour 12/1/04 Conference w /Ron Stainbrook, PDE meeting 1 hour 12/7/04 Conference w /Ron Stainbrook, PDE meeting 1 hour 12/9/04 Phone re: PDE meeting 1 hour 12/10/04 Meeting re: funding Zahorchak Stainbrook 7 hours Pierce, 06 -029 Page 18 75. Dr. Kolonay presented her idea of a grants program to the Penn - Trafford School Board along with the idea of purchasing services from Pierce Communications. a. The Penn - Trafford School Board took action at their September 13, 2004, meeting to enter into a contract with Pierce Communications. 76. Minutes from the Penn - Trafford School District's September 13, 2004, meeting include the following official action taken authorizing a one (1) year contract with Pierce Communications: a. "A motion was made by Mrs. Bradley and seconded by Mr. Petrucci to name Pierce Communications as a grant writing /communications /public relations firm for the Penn - Trafford School District for a period of one year at an annual rate of $55,000.00 and to authorize the appropriate board officers and administrators to execute the necessary documents relating to contract stipulations, limitations, and parameters as outlined in the Pierce Communications proposal." Roll call vote: motion passed 8 -0 with 1 member absent. 77. On September 21, 2004, Superintendent Kolonay entered into a contract on behalf of the Penn - Trafford School District with Pierce Communications. a. This was the same contract ratified by the Penn - Trafford School Board during [its] September 13, 2004, meeting detailed above. b. The contract term was September 21, 2004, through September 20, 2005. 78. Penn - Trafford School District Superintendent Deborah Kolonay utilized Pierce Communications for grant writing /development as well as public relations services. a. Pierce Communications' grant development services for the district included both public and private sector grant initiatives. 79. While under contract with and being compensated by the Penn - Trafford School District, Pierce made contact with Representatives of the Department of Education in pursuit of obtaining grant funding from PDE for school district initiatives. a. Contracts with PDE officials included in- person meetings as well as phone conversations. 80. For billing purposes, Pierce kept track of contact he made with representatives of PDE on behalf of the Penn - Trafford School District. 81. Pierce's billing records for work performed for the Penn - Trafford School District confirm his contact with PDE on the following days all within one year of Pierce leaving PDE employment: Date From At To Harrisburg # Time Person Called 11/24/2004 610- 975 -4514 9:24 717 - 346 -4216 1.1 Office of Info & Ed Tech, Michael Golden 11/29/2004 610- 975 -4514 11:59 717 - 346 -4216 0.9 Office of Info & Ed Tech, Michael Golden 10/22/2004 610- 975 -4514 13:16 717 - 783 -3755 0.5 Bureau of Community & Student Svcs, Mary Ramirez 10/25/2004 610- 975 -4514 16:20 717 - 783 -3755 0.5 Bureau of Community & Student Svcs, Mary Ramirez 10/22/2004 610- 975 -4514 13:20 717 - 783 -6902 0.5 Education Division of Federal Programs 10/25/2004 610- 975 -4514 12:04 717 - 783 -6902 1.6 Education Division of Federal Programs 10/25/2004 610- 975 -4514 16:06 717 - 783 -6902 0.5 Education Division of Federal Programs 4/5/2005 610 - 975 -4514 11:14 717 - 783 -9002 4.7 11/29/2004 610- 975 -4514 12:08 717- 783 -9780 5.3 Francis Barnes 12/16/2004 610- 975 -4514 14:05 717 - 783 -9780 0.5 Francis Barnes 10/15/2004 610- 975 -4514 13:45 717 - 783 -9800 0.6 Press Office 10/22/2004 610- 975 -4514 9:08 717 - 783 -9800 0.7 Press Office 10/22/2004 610- 975 -4514 10:02 717 - 783 -9800 0.5 Press Office 10/22/2004 610- 975 -4514 13:08 717 - 783 -9800 2.9 Press Office 11/2/2004 610- 975 -4514 11:32 717- 783 -9800 0.5 Press Office 11/2/2004 610- 975 -4514 12:00 717- 783 -9800 1.5 Press Office 2/14/2005 610 - 975 -0563 14:58 717 - 783 -9800 1.3 Press Office 12/28/04 Email follow -up re: meeting at PDE 1 hour 1/3/05 Phone re: meeting at PDE 1 hour 1/12/05 Met w/ Sec. of Education, PDE Director of Fiscal Mgmt Allen Kukovich and Ian Rosenbaum 5 hours 1/27/05 Email contact with PDE John G. 1 hour Pierce, 06 -029 Page 19 82. In addition to personal contact with representatives of PDE, Pierce also used his cell phone and landline connection of Pierce Communications to contact the department on behalf of Penn - Trafford and other school districts. a. Pierce admitted to SEC Investigators having telephone contact with PDE officials relating to Penn - Trafford School District funding issues. b. Phone numbers 610 - 975 -4514 and 610- 957 -0563 were assigned to Pierce Communications' physical location. c. Pierce personally had control over Cingular Wireless account numbers 610- 547 -0919 and 610- 405 -6373 and associated account number 610- 329 -6625 (Jessi Pierce) 610 - 322 -9261 (Samdai) and 610 - 306 -0587 (Nikki). 83. Landline phone records for Pierce Communications detail the following calls placed to the Department of Education within one year of Pierce leaving state service and during the period when Pierce was representing the Penn - Trafford School District. a. Date Number called Time Minutes Person Called 12/8/2004 717 - 772 -4508 10:38am 1 Central Svcs. Harrisburg 12/8/2004 717 - 772 -4508 10:42am 1 Central Svcs. Harrisburg 12/8/2004 717 - 772 -4508 10:43am 1 Central Svcs. Harrisburg 12/8/2004 717 - 772 -4508 10:45am 1 Central Svcs. Harrisburg 12/8/2004 717 - 772 -4508 10:47am 1 Central Svcs. Harrisburg 12/8/2004 717 - 772 -4508 3:55pm 2 Central Svcs. Harrisburg 12/8/2004 717 - 772 -4508 3:56pm 1 Central Svcs. Harrisburg 12/15/2004 717 - 772 -9067 4:19pm 3 Central Services 3/23/2005 717 - 772 -9101 11:24am 4 Commonwealth of PA 12/15/2004 717 - 783 -9780 4:16pm 2 Francis Barnes 8/31/2004 717- 783 -9780 1:10pm 10 Francis Barnes 11/16/2004 717- 783 -9780 9:33am 1 Francis Barnes 1/12/2005 717- 783 -9800 8:56am 1 Press Office 12/15/2004 717 - 783 -9800 9:34am 1 Press Office 9/10/2004 717 - 783 -9800 1:28pm 2 Press Office 9/10/2004 717- 783 -9800 3:21 pm 24 Press Office 9/8/2004 717- 783 -9801 6:31 pm 1 Press Office 9/9/2004 717 - 783 -9801 2:18pm 1 Press Office 7/22/2004 717 - 783 -9801 4:35pm 5 Press Office 8/6/2004 717 - 783 -9801 2:28pm 1 Press Office 12/8/2004 717 - 783 -9802 10:23am 1 Press Office 12/8/2004 717 - 783 -9802 10:47am 3 Press Office 12/15/2004 717 - 783 -9802 9:49am 2 Press Office 12/15/2004 717 - 783 -9802 10:03am 2 Press Office 8/31/2004 717- 783 -9802 12:41 pm 14 Press Office 2/25/2005 610 - 975 -4514 16:48 717 - 783 -9800 0.1 Press Office 12/15/2004 610- 975 -4514 9:04 717 - 783 -9800 0.1 Press Office 12/16/2004 610- 975 -4514 9:54 717 - 783 -9800 0.1 Press Office 4/5/2005 610 - 975 -4514 11:13 717 - 783 -9800 1.5 Press Office 9/9/2004 610- 975 -0563 11:40 717 - 783 -9802 2.5 Press Office 10/15/2004 610- 975 -4514 11:21 717 - 783 -9802 1.3 Press Office 11/1/2004 610- 975 -4514 14:13 717- 783 -9802 0.9 Press Office 11/2/2004 610- 975 -4514 12:01 717- 783 -9802 1.9 Press Office 11/5/2004 610- 975 -0563 16:41 717- 783 -9802 0.5 Press Office 11/17/2004 610- 975 -4514 15:13 717- 783 -9802 1 Press Office 11/29/2004 610- 975 -4514 12:01 717- 783 -9802 0.5 Press Office 12/16/2004 610- 975 -4514 9:55 717 - 783 -9802 1.8 Press Office 11/29/2004 610- 975 -4514 12:15 717- 787 -2127 1.9 Gerald Zahorchak 11/30/2004 610- 975 -4514 10:50 717- 787 -2127 2.9 Gerald Zahorchak 4/19/2005 610 - 975 -4514 11:48 717 - 787 -4860 0.52 Linda Crenshaw, Education 11/1/2004 610- 975 -4514 16:58 717- 787 -5389 0.9 Central Services 12/3/2004 610- 975 -4514 11:42 717 - 787 -5389 1.6 Central Services Pierce, 06 -029 Page 20 84. Cell phone records for Pierce Communications detail the following calls placed to the Department of Education within one year of Pierce leaving state service. a. Date Number Amount Check Number Payment Date Payment Amount 9/15/04 4021 $13,750.00 27800 10/6/04 $17,875.00 9/15/04 4035 $4,125.00 Inc 10/6/04 Inc 10/15/04 4036 $4,125.00 28088 10/15/04 $4,125.00 11/15/04 4037 $4,125.00 28354 11/15/04 $4,125.00 12/15/04 4038 $4,125.00 28709 1/25/05 $4,125.00 1/14/05 4039 $4,125.00 28875 2/9/05 $4,125.00 2/15/05 4040 $4,125.00 29092 3/9/05 $4,125.00 3/15/05 4041 $4,125.00 303 5/4/05 $4,125.00 4/15/05 4042 $4,125.00 370 4/15/05 $4,125.00 5/10/05 4043 $4,125.00 834 6/8/05 $4,125.00 7/22/05 4044 $4,125.00 1404 8/26/05 $4,125.00 Total $55 000.00 8/6/2004 717 - 783 -9802 2:29pm 4 Press Office 11/16/2004 717- 783 -9802 9:29am 1 Press Office 11/16/2004 717- 783 -9802 9:30am 1 Press Office 11/16/2004 717- 783 -9802 9:34am 1 Press Office 8/25/2004 717 - 787 -2127 5:37pm 2 Gerald Zahorchak 8/26/2004 717 - 787 -2127 9:42pm 1 Gerald Zahorchak 11/16/2004 717 - 787 -5389 9:44am 2 Ron Stainbrook 11/16/2004 717 - 903 -8610 9:45am 1 Ron Stainbrook Pierce, 06 -029 Page 21 85. Pierce made contact with Francis Barnes, Gerald Zahorchak, and Ron Stainbrook of PDE between November 2004 and January 2005 in furtherance of the Penn - Trafford School District's attempt to secure additional funding from PDE. a. Ron Stainbrook handled financial issues involving financially distressed school districts. b. Francis Barnes was the Secretary of Education. c. Gerald Zahorchak was a Deputy Secretary under Francis Barnes. d. This interaction occurred within one year of Pierce leaving the Department of Education. e. Pierce was compensated by the Penn - Trafford School District for his efforts. f. Pierce was compensated pursuant to contract terms, not per individual services provided. 86. Financial records of the Penn - Trafford School District include the following payments issued to Pierce Communications pursuant to [its] contract with the District. a. 87. Pierce Communications received compensation totaling $12,375.00 from Penn - Trafford School District between November 2004 and January 2005. a. This was the same period of time Pierce was participating in meetings and representing Penn - Trafford's interests before PDE officials. Pierce, 06 -029 Page 22 b. This was the only work performed by Pierce for the school district during this time period. 88. The Penn - Trafford School District did not renew its contract with Pierce Communications since the district did not receive additional funding sufficient to cover the cost of the contract. 89. Pierce did not contact PDE as to any other client during the one -year period following his termination of service with the Commonwealth of Pennsylvania. 90. Pierce realized a private pecuniary gain of $1,818.16 as a result of personal expenses charged back to the Lancaster School District detailed in the previous findings. a. Personal expenses on district credit card not reimbursed: $966.85 (see Findings Nos. 23 and 36). b. Meals charged on district credit card not reimbursed: $349.71 (see Findings Nos. 25 and 36). c. Time spent by employees Herr and Balogh making Christmas CD's: $501.60. (see Findings Nos. 33 and 36). 91. Pierce failed to file Statement of Financial Interests forms by May 1 St of the following year with the Lancaster School District for calendar years 2000, 2001 and 2002. a. These forms were filed with SEC on September 6, 2006. b. The forms did not include Pierce Communications or Pierce Communications LLC. 92. Pierce had contact with representatives of the Berks County Intermediate Unit and Palisades School District during his hours as a PDE employee attempting to solicit business for Pierce Communications. a. Pierce Communications received contract payments totaling $26,125.00 from the Palisades School District as a result of contracts which were initiated while Pierce was still employed by PDE. 93. Pierce Communications received payments totaling $12,375.00 from the Penn - Trafford School District between November 2004 and January 2005 while meeting with representatives of PDE on behalf of the district. 94. Pierce realized a private pecuniary gain of $44,055.38* as a result of the items detailed above. Total financial gain based on: a. Lancaster School District personal expenses $ 1,818.16 Payments from Penn - Trafford for PDE services$12,375.00 Total $14,193.16 *[sic]. [The amount indicated appears to be a typographical error, based upon the calculation above and other Stipulated Fact Findings.] III. DISCUSSION: As the Director of Communications for the Lancaster School District from approximately November 23, 1998, until February 19, 2003, and as the Director of Pierce, 06 -029 Page 23 Communications for the Pennsylvania Department of Education from approximately February 20, 2003, until July 17, 2004, Respondent Keith Pierce, hereinafter also referred to as "Respondent," "Respondent Pierce," and "Pierce," was a public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Respondent Pierce violated Sections 1103(a), 1103(g), and 1104(a) of the Ethics Act when he used the authority of his public position as Director of Communications for the Pennsylvania Department of Education to solicit school districts in the Commonwealth to utilize the services of a consulting and communications company he was forming and when he represented school districts before the Department of Education within one year of leaving Commonwealth service; and when, as the Director of Communications of the Lancaster School District, he utilized his public position to make purchases of a personal nature including meals, hotel stays, and personal items which were paid for by the Lancaster School District; when he used school district personnel, equipment, and facilities for personal purposes; and when he failed to file Statements of Financial Interests for the 2001, 2002, and 2003 calendar years. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted Activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Pierce, 06 -029 Page 24 Section 1103(g) of the Ethics Act prohibits a former public official /public employee from representing a person for compensation before the governmental body with which he has been associated for a period of one year after he leaves that body: § 1103. Restricted activities (g) Former official or employee. —No former public official or public employee shall represent a person, with promised or actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. 65 Pa.C.S. § 1103(g) (Emphasis added). The terms "represent, "person," "governmental body," and "governmental body with which a public official or public employee is or has been associated" are specifically defined in the Ethics Act as follows: § 1102. Definitions "Represent." To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Governmental body." Any department, authority, commission, committee, council, board, bureau, division, service, office, officer, administration, legislative body or other establishment in the executive, legislative or judicial branch of a state, a nation or a political subdivision thereof or any agency performing a governmental function. "Governmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is or has been employed or to which the public official or employee is or has been appointed or elected and subdivisions and offices within that governmental body. 65 Pa.C.S. § 1102. Section 1104(a) of the Ethics Act provides that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent Pierce served as the Director of Communications for the Lancaster School District from approximately November 23, 1998, until February 19, 2003. Subsequently, Pierce served as the Director of Communications for the Pennsylvania Department of Education from approximately February 20, 2003, until July 17, 2004. Pierce, 06 -029 Page 25 Pierce has private business interests including but not limited to Pierce Communications, Pierce Entertainment Company, and Pierce Communications, LLC. All three entities are registered with the Pennsylvania Department of State, Corporation Bureau. The fictitious name owners for Pierce Entertainment Company are Keith Pierce and his brother, Kevin Pierce. Keith Pierce is the sole owner of Pierce Communications and Pierce Communications, LLC. As Director of Communications for the Lancaster School District, Pierce's duties and responsibilities included developing, overseeing and annually updating a communications plan and a fundraising plan; overseeing the development and implementation of all district communications activities; overseeing the implementation of external fundraising initiatives; and working with the district's strategic partners to carry out mutually beneficial communication and fundraising strategies. As Director of Communications, Pierce supervised three district employees. In 2000, Pierce was assigned a district credit card to make purchases on behalf of the district's Communication and Development Department for office supplies, payments to vendors used to create multi -media publications, and payments for his travel expenses related to district activities. Pierce maintained possession of the district credit card from 2000 until February 2003, when Pierce left employment with the Lancaster School District. During Pierce's tenure with the Lancaster School District, he used the district credit card to make personal purchases. When Pierce was contacted by the district's Business Office regarding particular inappropriate transactions of a personal nature for which he had used the district credit card, Pierce reimbursed the district for those particular expenses but continued to use the district credit card for personal expenses. Pierce used the district credit card to purchase personal merchandise totaling at least $966.85. Such merchandise included music CD's and a printer, which Pierce retained after leaving the district. During the period from July 1, 2001, through January 22, 2003, Pierce used the district credit card for $349.71 of food purchases unrelated to district business. Pierce also used the district credit card to purchase gasoline for his personal vehicle. From July 6, 2001, through February 7, 2003, Pierce used the district credit card to charge overnight stays in hotels located within the Lancaster area on at least 43 nights at district expense. The total cost for these overnight stays was $3,259.78. Eleven of these overnight stays were on evenings when district Board of Director meetings were held. Total cost for lodging on nights of Board meetings totaled $839.95. During the Christmas season of 2002, Pierce prepared a music CD to distribute in lieu of a Christmas card. Pierce charged materials for the project to the district's credit card, at a total cost of $361.71. Pierce directed subordinate district employees to duplicate the Christmas CD's while on district time. School district staff time and equipment was used to complete the task. Pierce realized a private pecuniary gain of at least $501.60 of district staff time used to duplicate the CD's. The parties have stipulated that Pierce realized a private pecuniary gain of $1,818.16 as a result of personal expenses charged to the Lancaster School District, which Pierce did not reimburse, including expenses for: personal merchandise ($966.85); personal meals ($349.71); and district staff time spent making Pierce's Christmas CD's ($501.60). As Director of Communications for the Lancaster School District, Pierce was required to file Statement of Financial Interests by May 1 of each year disclosing information for the prior calendar year. Pierce failed to file Statements of Financial Interests with the district for the 2000, 2001 and 2002 calendar years. On September 6, 2006, Samuel Stretton, Esquire submitted Statements of Financial Interests for Pierce for Pierce, 06 -029 Page 26 calendar years 2000, 2001 and 2002. Pierce did not list Pierce Communications LLC or Pierce Communications in any category on the Statements of Financial Interests. In February 2003, Pierce left employment with the Lancaster School District. Pierce was hired by then Secretary of Education Vicki Phillips to serve as Press Secretary for the Commonwealth of Pennsylvania, Department of Education ( "PDE "). Pierce reported to Vicki Phillips, who had previously served as the Lancaster School District Superintendent. Pierce left the position of PDE Press Secretary on July 16, 2004. As Press Secretary for PDE, Pierce was responsible for handling the public relations and communications for the Secretary of Education. In this capacity, Pierce would communicate with members of PDE, the public, school districts throughout the Commonwealth, and other agencies, including the Governor's Office. Prior to leaving his position with PDE in July of 2004, Pierce began to take steps to create his own business to provide communication and grant writing services to school districts throughout Pennsylvania. While still employed by PDE, Pierce contacted officials of various school districts /intermediate units in an attempt to generate future business for Pierce Communications. Pierce sent solicitation letters to school district superintendents and executive directors of intermediate units. Pierce did not use the offices of PDE as a contact. Pierce's solicitation letters did not refer to his position with PDE. Pierce left Commonwealth service on July 16, 2004. Pierce d /b /a Pierce Communications entered into contracts with the following public entities within one year of leaving PDE: (1) Penn - Trafford School District; (2) Palisades School District; (3) Lebanon School District; (4) Radnor Township School District; (5) Coatesville School District; (6) Tuscarora IU #11; and (7) Portland School District, Portland, Oregon. While at PDE, Pierce negotiated a contract with the Palisades School District with Francis Barnes, Ed. D, who, from approximately February of 2004 to June of 2004, served as a Superintendent on loan to PDE while simultaneously serving as Superintendent for the Palisades School District. The Palisades School District entered into a one (1) year contract with Pierce Communications effective August 1, 2004. The agreement was executed while Pierce was still employed by PDE. Pierce did not provide any services to the Palisades School District relating to the acquisition of grant funding through PDE. Pierce did not represent the Palisades School District before PDE as part of the contract. District funds were used to compensate Pierce Communications. Pierce Communications was paid $26,125.00 pursuant to the contract. Pierce Communications was hired by the Lebanon School District on November 8, 2004. From November 10, 2004, to June 2, 2005, the Lebanon School District made payments totaling $30,409.98 to Pierce Communications. Funding used to pay for the Lebanon School District's contract with Pierce Communications was acquired through a PDE grant awarded to the Lebanon School District on or about November 22, 2004. Pierce was not employed by PDE at the time the Lebanon School District applied for the grant. The budget narrative for this grant included $42,000.00 designated for contracted services. Pierce Communications was not specifically identified as a budget line item. Pierce Communications was used at the discretion of the district Superintendent, who had latitude to select vendors for the grant. In September 2004, Pierce Communications entered into a one -year contract with Penn - Trafford School District to provide grant writing services. The Penn - Trafford School District Superintendent utilized Pierce Communications for grant writing /development as well as public relations services. While under contract with and being compensated by the Penn - Trafford School District, Pierce made contact with Representatives of PDE in pursuit of obtaining grant funding from PDE for school district initiatives. Contacts with PDE officials included in- person meetings as well as phone conversations. See, Fact Findings Pierce, 06 -029 Page 27 79 -85. Between November 2004 and January 2005, Pierce made contact with then Secretary of Education Francis Barnes, PDE Deputy Secretary Gerald Zahorchak, and Ron Stainbrook of PDE in furtherance of the Penn - Trafford School District's attempt to secure additional funding from PDE. This interaction occurred within one year of Pierce leaving PDE. Pierce was compensated by the Penn - Trafford School District for his efforts pursuant to the terms of the aforesaid contract. As detailed in Fact Findings 86 -86a, between September 15, 2004, and July 22, 2005, Penn - Trafford School District issued payments totaling $55,000 to Pierce Communications pursuant to its contract with the District. Of that amount, Pierce Communications received compensation totaling $12,375.00 from Penn - Trafford School District between November 2004 and January 2005. This was the same period of time Pierce was participating in meetings and representing Penn - Trafford's interests before PDE officials. This was the only work performed by Pierce for the school district during this time period. Pierce did not contact PDE as to any other client during the one -year period following his termination of service with the Commonwealth of Pennsylvania. (Fact Finding 89). Pierce realized a financial gain in the amount of $14,193.16 as a result of the items detailed above. (Fact Finding 94a). The financial gain received by Pierce included $1,818.16 for personal expenses paid by the Lancaster School District and $12,375.00 of payments from Penn - Trafford for the aforesaid PDE services. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Keith Pierce, in his position as Director of Communications for the Lancaster School District, utilized his public position to make purchases of a personal nature including meals and other personal items utilizing a school district credit card and when he utilized school district personnel, equipment and facilities for personal purposes. b. That a [sic] no violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Pierce's solicitation of Pennsylvania School Districts while still employed by the Pennsylvania Department of Education to utilize services of a consulting and communications company that he was forming as there is no evidence that Pierce utilized the authority of his public position in relation to such solicitations or the contracts entered into as a result thereof. c. That a violation of Section 1103(g) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(g) occurred when Keith Pierce represented a school district before the Department of Education, his former governmental body, for Pierce, 06 -029 Page 28 compensation in that District's effort to obtain grant funding, during the one year period following his termination of Commonwealth service. d. That a violation of Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1104(a) occurred when Keith Pierce, in his public position as the Director of Communications for the Lancaster School District, failed to file Statements of Financial Interests for calendar years 2000 through 2002 inclusive. 4. Pierce agrees to make payment in the amount of $14,200 in settlement of this matter, of which $1,818 is to be made payable to the Lancaster School District and $12,382 [is] to be made payable to the Commonwealth of Pennsylvania. Both payments are to be forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. Pierce agrees to file amended Statements of Financial Interests listing Pierce Communications, and /or Pierce Communications LLC as businesses in which Pierce has either an office, directorship, employment or a financial interest[(s)]. Said forms to be filed with the State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 6. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 2 -3. In considering the Consent Agreement, a clear violation of Section 1103(a) of the Ethics Act occurred when Pierce, as Director of Communications for the Lancaster School District, utilized his public position to make purchases of a personal nature including meals and other personal items utilizing a school district credit card (see, Krisher, Order 1425; Gorr, Order 1423; Cobb, Order 1354) and when he utilized school district personnel, equipment and facilities for personal purposes (see, Cagno, Order 1204; cf., Rembold, Order 1417; Cobb, supra; Koser, Order 1351; Farley, Order 1096). Pierce's use of the district credit card was a use of the authority of his public position. But for holding his public position with the district, Pierce would not have had access to a district credit card. The district credit card was provided to Pierce to use for purchases and payments for the school district. Pierce used the district credit card for personal expenditures, even after being informed by the district's Business Office that such use of the district credit card for personal transactions was inappropriate. Pierce used the district credit card for personal merchandise that he retained when he left the district, food purchases unrelated to the district, and other personal expenses. Pierce further used the authority of his public position when he used his subordinate district staff employees, district equipment, and materials purchased at the district's expense on the district credit card to duplicate a Christmas music CD to distribute in lieu of a Christmas card. Pierce, 06 -029 Page 29 The parties have stipulated that Pierce received a private pecuniary gain in the amount of $1,818.16 for personal expenses paid by the Lancaster School District With each element of a conflict of interest established, we hold that a violation of Section 1103(a) of the Ethics Act occurred when Pierce, in his position as Director of Communications for the Lancaster School District, utilized his public position to make purchases of a personal nature including meals and other personal items utilizing a school district credit card and when he utilized school district personnel, equipment and facilities for personal purposes. Per the Consent Agreement of the parties, we hold that no violation of Section 1103(a) of the Ethics Act occurred in relation to Pierce's actions, while he was still employed by PDE, to solicit Pennsylvania school districts to utilize services of a consulting and communications company that he was forming. Although such solicitations did occur, there is no evidence that Pierce used the authority of his public position in relation to such solicitations or the resulting contracts. We shall now consider the parties' recommendation that we find that a violation of Section 1103(g) of the Ethics Act occurred when Pierce represented a school district before PDE, his former governmental body, for compensation in that District's effort to obtain grant funding, during the one year period following Pierce's termination of Commonwealth service. Section 1103(g) of the Ethics Act prohibits a former public official /public employee from representing a person for compensation before the governmental body with which he has been associated for a period of one year after he leaves that body. The term "person" is defined to include, inter alia, governmental bodies as well as other organizations or groups of persons. When Pierce terminated employment with PDE on July 16, 2004, he became a former public employee subject to the restrictions of Section 1103(g) of the Ethics Act. Pursuant to Section 1103(g) of the Ethics Act, Pierce was prohibited from representing "persons" before PDE for promised or actual compensation during the first year following termination of employment with PDE. In September 2004, Pierce Communications entered into a one -year contract with Penn - Trafford School District to provide grant writing services. The Penn - Trafford School District Superintendent utilized Pierce Communications for grant writing /development as well as public relations services. While under contract with and being compensated by the Penn - Trafford School District, Pierce made personal and telephone contacts with representatives of PDE in pursuit of obtaining grant funding from PDE for school district initiatives. Between November 2004 and January 2005, Pierce made contact with then Secretary of Education Francis Barnes, PDE Deputy Secretary Gerald Zahorchak, and Ron Stainbrook of PDE in furtherance of Penn - Trafford School District's attempt to secure additional funding from PDE. Pierce was compensated by the Penn - Trafford School District for his efforts pursuant to the terms of the aforesaid contract. Pierce Communications received compensation totaling $12,375.00 from Penn - Trafford School District between November 2004 and January 2005 while Pierce was participating in meetings and representing Penn - Trafford's interests before PDE officials. This was the only work performed by Pierce for the school district during this time period. Pierce did not contact PDE as to any other client during the one -year period following his termination of service with the Commonwealth of Pennsylvania. With each element of a violation of Section 1103(g) established, we hold that a violation of Section 1103(g) of the Ethics Act occurred when Pierce represented a school Pierce, 06 -029 Page 30 district before PDE, his former governmental body, for compensation in that district's effort to obtain grant funding, during the one year period following Pierce's termination of Commonwealth service. Cf., Gagliardo, Order 1369; Nixon, Order 1280. We shall now consider the parties recommendation as to a violation of Section 1104(a) of the Ethics Act with respect to Pierce's Statements of Financial Interests. Per the stipulated Findings, Pierce failed to file Statements of Financial Interests with the Lancaster School District for calendar years 2000, 2001, and 2002. On September 6, 2006, Samuel Stretton, Esquire submitted Statements of Financial Interests for Pierce for calendar years 2000, 2001 and 2002. However, Pierce did not list Pierce Communications LLC or Pierce Communications in any category on the Statements of Financial Interests. The parties have recommended that we hold that a violation of Section 1104(a) of the Ethics Act occurred when Pierce, in his public position as the Director of Communications for the Lancaster School District, failed to file Statements of Financial Interests for calendar years 2000 through 2002 inclusive. Consent Agreement at 2, paragraph 3d. However, the allegations encompass Pierce's Statements of Financial Interests for the 2001, 2002, and 2003 calendar years. We shall exclude the 2000 calendar year form from our finding of a violation of Section 1104(a), in that such form was not encompassed within the allegations. See, Pennsy v. Department of State, 594 A.2d 845 (Pa. Cmwlth. 1991). While the exclusion of the calendar year 2000 form from this particular violation does not follow the Consent Agreement, such exclusion is to the benefit of Respondent and is not actionable. As for the 2003 calendar year form, which was included in the allegations but was not included in the parties' recommendation for a violation, it would appear from the Consent Agreement that the Investigative Division has exercised its prosecutorial discretion to not further pursue that particular allegation. Therefore, we shall treat it as a non pros. We hold that a violation of Section 1104(a) of the Ethics Act occurred when Pierce, in his public position as the Director of Communications for the Lancaster School District, failed to file Statements of Financial Interests for calendar years 2001 and 2002. As part of the Consent Agreement, Pierce has agreed to make payment in the amount of $14,200 in settlement of this matter, of which $1,818 is to be made payable to the Lancaster School District and $12,382 is to be made payable to the Commonwealth of Pennsylvania. Both payments are to be forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Pierce has also agreed to file amended Statements of Financial Interests listing Pierce Communications and /or Pierce Communications LLC as businesses in which Pierce has an office, directorship, employment or financial interest. Said forms are to be filed with this Commission within thirty (30) days of the issuance of the final adjudication in this matter. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, Pierce is directed to make payment in the total amount of $14,200, with $1,818 made payable to the Lancaster School District and $12,382 made payable to the Commonwealth of Pennsylvania, and with both payments forwarded to this Commission within thirty (30) days of the issuance of this Order. Pierce is further directed to file amended Statements of Financial Interests for Pierce, 06 -029 Page 31 calendar years 2001 and 2002 with this Commission within thirty (30) days of the issuance of this Order, providing full financial disclosure as required by the Ethics Act, including listing Pierce Communications and /or Pierce Communications LLC as businesses in which Pierce has an office, directorship, employment or financial interest. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Keith Pierce ( "Pierce "), as the Director of Communications for the Lancaster School District from approximately November 23, 1998, until February 19, 2003, and as the Director of Communications for the Pennsylvania Department of Education ( "PDE ") from approximately February 20, 2003, until July 17, 2004, was a public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Pierce violated Section 1103(a) of the Ethics Act when, in his position as Director of Communications for the Lancaster School District, he utilized his public position to make purchases of a personal nature including meals and other personal items utilizing a school district credit card and when he utilized school district personnel, equipment and facilities for personal purposes. 3. No violation of Section 1103(a) of the Ethics Act occurred in relation to Pierce's actions, while he was still employed by PDE, to solicit Pennsylvania school districts to utilize services of a consulting and communications company that he was forming as there is no evidence that Pierce utilized the authority of his public position in relation to such solicitations or the contracts entered into as a result thereof. 4. Pierce violated Section 1103(g) of the Ethics Act when he represented a school district before PDE, his former governmental body, for compensation in that district's effort to obtain grant funding, during the one year period following his termination of Commonwealth service. 5. Pierce violated Section 1104(a) of the Ethics Act when, in his public position as the Director of Communications for the Lancaster School District, he failed to file Statements of Financial Interests for calendar years 2001 and 2002. In Re: Keith Pierce, Respondent File Docket: 06 -029 Date Decided: 10/23/07 Date Mailed: 11/7/07 ORDER NO. 1449 1 Keith Pierce ( "Pierce "), a public employee in his capacities as the Director of Communications for the Lancaster School District from approximately November 23, 1998, until February 19, 2003, and as the Director of Communications for the Pennsylvania Department of Education ( "PDE ") from approximately February 20, 2003, until July 17, 2004, violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), when, in his position as Director of Communications for the Lancaster School District, he utilized his public position to make purchases of a personal nature including meals and other personal items utilizing a school district credit card and when he utilized school district personnel, equipment and facilities for personal purposes. 2. No violation of Section 1103(a) of the Ethics Act occurred in relation to Pierce's actions, while he was still employed by PDE, to solicit Pennsylvania school districts to utilize services of a consulting and communications company that he was forming as there is no evidence that Pierce utilized the authority of his public position in relation to such solicitations or the contracts entered into as a result thereof. 3. Pierce violated Section 1103(g) of the Ethics Act when he represented a school district before PDE, his former governmental body, for compensation in that district's effort to obtain grant funding, during the one year period following his termination of Commonwealth service. 4. Pierce violated Section 1104(a) of the Ethics Act when, in his public position as the Director of Communications for the Lancaster School District, he failed to file Statements of Financial Interests for calendar years 2001 and 2002. 5. Pierce is directed to make payment in the total amount of $14,200, with $1,818 made payable to the Lancaster School District and $12,382 made payable to the Commonwealth of Pennsylvania, and with both payments forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of this Order. 6. Pierce is directed to file amended Statements of Financial Interests for calendar years 2001 and 2002 with this Commission within thirty (30) days of the issuance of this Order, providing full financial disclosure as required by the Ethics Act, including listing Pierce Communications and /or Pierce Communications LLC as businesses in which Pierce has an office, directorship, employment or financial interest. 7 Compliance with paragraphs 5 and 6 of this Order will result in the closing of this case with no further action by this Commission. a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair