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