HomeMy WebLinkAbout1457 EvansIn Re: Edwin A. Evans,
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
06 -028
Order No. 1457
1/28/08
2/15/08
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." A Stipulation of Findings and a Consent Agreement waiving
an evidentiary hearing were 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.
Evans, 06 -028
Page 2
I. ALLEGATIONS:
That Edwin A. Evans, a public official /public employee in his capacity as Executive
Director of the Venango County Housing Authority, violated Sections 1103(a), and 1104(a)
provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § §1103(a), and 1104(a)
when he used the authority of his public position as an employee of the authority and as an
employee and /or president of the Venango Housing Corporation to obtain a private
pecuniary gain for himself by authorizing payments using authority and /or corporation
funds for country club membership and dues, insurance premiums and annuities,
payments to credit cards, the purchase and use of an automobile for personal purposes,
the use of Venango County Housing Authority and /or Venango Housing Corporation funds
for other personal purposes unrelated to his public position /public employment, and when
he authorized payments to entities with which he is associated; and when he failed to file
Statements of Financial Interests for the 2000, 2001, 2002, 2003 and 2004 calendar years.
II. FINDINGS:
1. Edwin A. Evans was employed as the Executive Director for the Housing Authority
of the County of Venango (hereafter "Authority ") from September 13, 1978, through
April 27, 2005.
a. Evans's position with the Authority was originally titled "Housing Authority
Specialist" before being changed to "Executive Director."
b. Evans was terminated from his position as Executive Director on or about
April 27, 2005.
1. Evans had previously been suspended without pay from his position
of Executive Director effective January 27, 2005.
2. Evans also served as the President of the Venango Housing Corporation (hereafter
"Corporation ") Board of Directors from July 14, 1982, through April 27, 2005.
a. Evans additionally held the position of Financial Advisor for the Corporation
from May 30, 1990, through April 27, 2005.
b. Evans's removal from the Corporation Board of Directors coincided with
Evans's termination as Authority Executive Director.
3. Evans's duties and responsibilities as the Authority Executive Director are
established in the By -Laws of the Authority.
a. The By -Laws note that the individual in the Executive Director position is to
serve as the Secretary of the Authority and is responsible for, in part, the
following:
1. Keeping records of the Authority and performing all duties incident to
the office including acting as secretary at all Authority meetings and
recording all votes cast at said proceedings in a journal to be kept for
such purposes;
2. Having the care and custody of all funds of the Authority including
depositing the same in the name of the Authority in such bank or
banks the Authority may select;
3. Signing all orders and checks for payment of money and disbursing
such money under the direction of the Authority;
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4. Keeping regular books of account showing receipts and expenditures
and rendering to the Authority, at each regular meeting (or more
frequently when requested) an account of his transactions and the
financial condition of the Authority; and
5. General supervision over the administration of the Authority's
business and affairs, including management of the housing projects of
the Authority, subject to the direction of the Authority.
4. Evans's duties and responsibilities as the President of the Corporation Board of
Directors were established in the original By -Laws of the Corporation.
a. The individual holding the position of President was noted as being the Chief
Executive Officer of the Corporation and was responsible for, in part, the
following:
1. General supervision and control of the business and affairs of the
Corporation subject to the control of the Board of Directors;
2. Presiding at all meetings of the Board of Directors;
3. Signing any deeds, mortgages, bonds, notes, contracts, or other
instruments which the Board of Directors has authorized to be
executed; and
4. General performance of all duties incident to the office of the
President and such other duties as may be prescribed by the Board of
Directors from time to time.
5. In 1965, the Department of Housing and Urban Development Act created the
Department of Housing and Urban Development (hereafter "HUD ").
a. HUD is a federal program designed to provide funding to localities for
housing and economic development activities.
6. HUD is a Cabinet -level agency which is completely funded through Congressional
Appropriations.
a. HUD subsequently allocates funding received to Housing Authorities within
its jurisdiction.
1. Pennsylvania Housing Authorities are created under Pennsylvania
Statutes, Title 35, Health and Safety, Chapter 18, Housing Authorities
(a /k/a "Housing Authorities Law ").
2. Any locality can create a Housing Authority provided that an existing
Housing Authority does not service the locality's geographic area.
b. Housing Authorities receive funding from HUD based on the programs the
Housing Authorities administer.
7 Programs developed by HUD to provide rental subsidies for eligible tenant families
including single persons include the Low Rent Public Housing Program and the
Section 8 Program.
a. The Low Rent Public Housing Program is managed by Housing Authorities
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through HUD's Office of Public Housing;
b. The Section 8 Choice Voucher Program is managed by Housing Authorities
through HUD's Office of Public Housing; and
c. The Section 8 New Construction Program can be managed by Housing
Authorities through HUD's Office of Multi - Family Housing.
1. Only select Housing Authorities provide services regarding the
Section 8 New Construction program.
8. The Low Rent Public Housing Program is a project -based rental assistance
program developed to provide decent and safe rental housing to low- income,
elderly, and disabled households.
a. The Low Rent Public Housing Program is funded through tenant rent and
HUD operating subsidies.
1. HUD - provided subsidies are tied to specific housing units.
2. Eligible families can utilize the subsidy while residing in specifically
designated units.
b. The Housing Authority determines who is eligible for the program based on
family income, family status, and immigration status.
9. The Housing Authority enters into an Annual Contributions Contract ( "ACC ") with
HUD for the Low Rent Public Housing program which provides operating funds to
the Housing Authority.
a. In exchange for receiving operating funds, the Housing Authority is
responsible for the management and maintenance of the property including
upkeep, annual inspections, reporting to HUD, etc.
10. The Housing Authority determines the rent due from eligible families based on their
gross annual income, less any deductions.
a. The total amount of rent (a /k/a "total tenant payment ") due is the highest of
the following:
1. Thirty percent of the family's monthly adjusted income;
2. Ten percent of the family's monthly income;
3. The portion of payments designated to the family for welfare
assistance from a public agency specifically designated by the
agency to meet the family's housing costs (if applicable); or
4. The minimum rent established by the PHA.
11. HUD determines the amount of operating subsidy for which each Housing Authority
is eligible based on an operating fund formula.
a. The projected operating income level is subtracted from the total expense
level (allowable expenses level plus utilities expense level).
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1. The projected operating income level is the per unit per month dollar
amount of dwelling rental income plus other income.
2. The allowable expense level is the per unit per month dollar amount
of expenses (excluding utilities and other allowable expenses).
3. The utilities expense level is the per unit per month dollar amount of
utilities expense.
b. Transition funding, if applicable, and other specified costs are then added to
the total in order to determine the total amount of operating subsidy for the
requested budget year, exclusive of consideration of the cost of an
independent audit.
c. Administrative fees for the Housing Authority are included within the
operating subsidy provided by HUD to account for administrative costs.
1. The Housing Authority, through its operating budget, determines
administrative costs.
2. Administrative costs include employee salaries, employee benefits,
management improvements, etc.
12. All income received (i.e., tenant rent and the HUD - supplied operating subsidy) is
deposited into an account designated for the Public Housing Program.
a. Tenant rent may be provided directly to the Housing Authority for deposit or
may be deposited by the tenant into the Housing Authority's account.
b. HUD operating subsidies are deposited via electronic fund transfer to the
applicable account.
13. The Section 8 Choice Voucher program is a tenant based rental assistance
program developed to provide decent and safe rental housing to low- income,
elderly, and disabled households.
a. The Section 8 Choice Voucher Program is funded through HUD Housing
Assistance Payments ( "HAPs ") and administrative fees paid to the Housing
Authority.
1. Participants locate housing of their choice in their community.
2. If the participant moves, the Section 8 subsidy moves with them.
b. The Housing Authority determines who is eligible for the program based on
family income, family status, and immigration status.
14. The Housing Authority enters into an Annual Contributions Contract ( "ACC ") with
HUD for the Section 8 Choice Voucher Program which provides HAPs and
administrative fees to the Housing Authority.
a. HUD issues HAPs to the Housing Authority to be redistributed to landlords
as housing subsidies for rent due on behalf of eligible families.
b. HUD issues administrative fees to the Housing Authority for the management
of the program.
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Page 6
1 Administrative fees may only be used to cover costs incurred to
perform Housing Authority administrative responsibilities for the
program in accordance with HUD regulations and requirements.
15. The Housing Authority determines the housing subsidy due to the landlord based
upon fair market rent rates, the Housing Authority's payment standard, and the
eligible family's gross annual income.
a. HUD annually publishes fair market rents for modest rental housing based
on unit size (by number of bedrooms) and geographic location.
b. Each Housing Authority establishes a Section 8 voucher payment standard
that is approximately 90% -110% of the HUD established fair market rent.
c. The Section 8 monthly subsidy is the difference between thirty percent of the
households' monthly adjusted income (or ten percent of the gross income or
the portion of welfare assistance designated for housing) and the Section 8
Payment Standard.
d. The Housing Authority is responsible for the payment of the difference
between the unit rent and the total tenant rent to the unit owner.
16. Families qualifying to participate in the Section 8 Choice Voucher Program are
issued a voucher to obtain housing in the private - rental market.
a. The voucher describes the program, procedures for Housing Authority
approval of a unit selected by the family, and obligations of the family under
the program.
17. The unit selected by the family must meet the program's Housing Quality Standards
( "HQS "), the rent must be reasonable, and the landlord must be willing to participate
in the program.
a. If interested in participating in the program, the landlord and family enter into
a lease agreement.
1. The eligible family pays any rent for which they are responsible
directly to the landlord.
b. If interested in participating in the program, the landlord and the Housing
Authority enter into a HAP contract.
1. The Housing Authority pays the housing subsidy (i.e., the balance of
the monthly rent) directly to the participating landlord via check or
direct deposit on behalf of the eligible family.
2. The contract establishes the maximum amount of monthly rent the
landlord may receive for each dwelling unit.
3. The HAP contract is not valid until the property passes HUD's
Housing Quality Standards and all paperwork is completed.
18. HUD determines the amount of administrative fees for which each Housing
Authority is eligible based on Section 8(q)(1) of the 1937 Act (42 U.S.C.
1437f(q)(1)).
Evans, 06 -028
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a. HUD annually establishes the amount of the fee for each geographic area
that applies to the Housing Authority administering the program.
1. The established amount is based on changes in wage data or other
objectively measurable data that reflects the costs of administering
the program.
b. The ongoing administrative fee is paid for each program unit under HAP
contract on the first day of each month.
19. All program receipts, including administrative fees received, must be deposited with
a financial institution selected as a depository by the Housing Authority.
a. HAPs and administrative fees are deposited electronically into a specified
Housing Authority account.
b. The Housing Authority may only withdraw deposited program receipts for
use in connection with the program in accordance with HUD requirements.
20. The Housing Authority must maintain an administrative fee reserve (formerly
operating reserve) for the program.
a. The Housing Authority must credit to the administrative fee reserve the total
of:
1. The amount by which program administrative fees paid by HUD for a
Housing Authority fiscal year exceed the Housing Authority program
expenses for the fiscal year; plus
2. Interest earned on the administrative fee reserve.
b. The Housing Authority must use the funds in the administrative fee reserve
to pay program administrative expenses in excess of administrative fees paid
by HUD for a Housing Authority fiscal year.
1. If funds in the administrative fee reserve are not needed to cover
Housing Authority administrative expenses, the Housing Authority
may use the funds for other housing purposes permitted by State and
local law.
21. The Section 8 New Construction Program is a project based rental assistance
program developed to provide decent and safe rental housing to low- income,
disabled, and elderly households in connection with the development of newly
constructed or substantially rehabilitated privately owned rental housing financed
with FHA Multifamily Mortgage Insurance.
a. The Section 8 New Construction Program is funded through HUD Housing
Assistance Payments ( "HAPs ") to the project owner.
1. HUD - provided subsidies are committed to specific units in the project.
2. Eligible families can utilize the subsidy while residing in specifically
designated units.
b. The owner of the property determines who is eligible for the program based
on family income, family status, and immigration status in accordance with
HUD requirements.
Evans, 06 -028
Page 8
22. The Housing Authority enters into an Annual Contributions Contract ( "ACC ") with
HUD regarding the Section 8 New Construction Program which provides for
issuance of a HAP Contract to the project owner.
a. The HAP Contract sets forth rights and duties of the owner and the contract
administrator with respect to the project and tenant assistance.
1. HUD's Multi - Family Housing Division typically serves as the contract
administrator for HAP Contracts.
aa. If serving as the contract administrator, HUD issues HAPs
directly to the project owner.
2. Housing Authorities can serve as the contract administrator for the
contract.
aa. If serving as the contract administrator, HUD enters into an
ACC with the Housing Authority, which triggers the contract
administrator to execute a HAP Contract with the project
owner.
bb. If a Housing Authority serves as the contract administrator, the
Housing Authority receives administrative fees from HUD to
offset costs for the administration of the contract.
b. The HAP Contract also specifies the number of units in a particular project
for which Section 8 assistance will be provided.
23. The owner of the project determines the rental subsidy due on behalf of eligible
families based upon the HUD approved rent as set forth in the HAP Contract and
the HUD required rental contribution from eligible tenant families.
a. The HUD approved rent (a /k/a "contract rent ") set forth in the HAP is based
on market rents determined by HUD regarding unit size (by number of
bedrooms) and geographic location, and are increased by HUD approved
adjustment factors.
b. The requisite tenant rental contribution is established as an amount equal to
the greatest of thirty percent of the tenant's family monthly adjusted income
after deductions minus utility allowances in place (if applicable) for that
bedroom size.
c. The Section 8 rental subsidy provided to the project owner is the difference
between the HUD approved rent and the HUD required rental contribution
from eligible tenant families.
24. Families determined to be eligible for the Section 8 New Construction Program
enter into leases with the project owner regarding dwelling units occupied.
a. The term of the lease cannot be for a period of less than one year for the
first year.
1. At the conclusion of the first year, the term of the lease becomes
month -to- month.
2. The requisite HUD form of lease currently provides for an automatic
Evans, 06 -028
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renewal of the stated lease term unless and until the lease is
terminated as a result of a default by the tenant family.
b. The eligible family pays any rent for which they are responsible directly to
the owner.
c. The contract administrator pays the housing subsidy /voucher (i.e., the
subsidy portion of the monthly rent) directly to the owner via check or direct
deposit on behalf of the eligible family upon submission of a voucher /invoice
from the project owner.
1. If HUD is the contract administrator, HUD issues the subsidy directly
to the project owner.
2. If a Housing Authority is the contract administrator, the Housing
Authority receives subsidies from HUD which the Housing Authority
then issues directly to the project owner.
aa. Funds issued to Housing Authorities from HUD are deposited
via electronic transfer into an account designated for the
Section 8 New Construction Program.
25. Housing Authorities serving as contract administrators for Section 8 New
Construction projects are entitled to an administrative fee to offset the costs of
administering the program.
a. The amount of the administrative fee is determined by HUD.
b. The amount of administrative fees received is based on the number of
occupied units in the project.
c. Administrative fees provided by HUD are included in monthly subsidy
payments which are transferred electronically into a specified Housing
Authority account.
26. Annual audits of housing authorities are mandated by HUD.
a. The audit must be completed by a Certified Public Accountant.
b. Proper bidding requirements (i.e., public advertisement, requests for
proposals, etc.) must be followed in the selection of the CPA.
c. The cost of the audit must be reasonable.
d. The results of the audit must be provided to HUD.
27. The Venango County Commissioners created the Authority via Resolution
presented at the May 31, 1977, regular Commissioner's meeting.
a. The County Commissioners created the Authority pursuant to the authority
granted them in the Pennsylvania "Housing Authorities Law."
b. The Authority was incorporated with the Pennsylvania Department of State,
Corporation Bureau, as a miscellaneous corporation under Entity Number
659852 on December 20, 1977.
1. The Authority has a registered filing address of "Courthouse, Franklin,
Evans, 06 -028
Page 10
Pa."
2. The Authority's most recent physical address is 19 Rockwood
Avenue, Oil City, PA.
3. The Authority's mailing address has been PO Box 988, Oil City, PA
16301 since at least June 26, 1990.
28. The objective of the Authority is to provide decent, safe, and affordable housing for
low to moderate income families in Venango County with the exception of the Oil
City and Franklin areas.
a. The authority accomplishes this objective through the operation of HUD's
Public Housing Program, the Section 8 Choice Voucher Program, and the
Section 8 New Construction Program.
1. The Public Housing Program operated by the Authority consists of a
twenty unit complex located at 19 Rockwood Ave, Oil City, PA, known
as Cherry Hill Apartments.
2. From April 2001 through January 2005, the Authority was approved
by HUD for the issuance of vouchers for approximately 394 units in
Venango County in association with the Section 8 Choice Voucher
Program.
3. The Section 8 New Construction Program operated by the Authority
consists of a one hundred unit, privately owned complex located at 10
Arbor Circle, Franklin, PA known as Evergreen Arbors Estates.
b. The Oil City and Franklin areas operate independent housing authorities.
29. A five - member Board of Directors governs the Authority.
a. Authority board members are appointed to five -year terms by the Venango
County Commissioners.
30. Section 1546 of the Housing Authorities Law mandates that board members may
not be compensated for their service.
a. Authority board members are entitled to receive necessary expenses,
including traveling expenses incurred, in the discharge of their duties.
31. Section 1548 of the Housing Authorities Law states, in part, that, No member or
employee of an Authority shall acquire any interest, direct or indirect, in any
housing project or in any property included or planned to be included in any project,
nor shall he have any interest, direct or indirect, in any contract or proposed
contract for materials or services to be furnished or used in connection with any
housing project."
a. Any member or employee of an Authority that has any such interest in any
contract for material or services to be furnished or used in connection with
any housing project must immediately disclose the same in writing to the
Authority.
b. The required disclosure must be entered in writing in the Authority minute
books.
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Page 11
1. Failure to disclose the interest and document the disclosure in the
Authority minutes constitutes misconduct in office.
32. Under the Pennsylvania Sunshine Act, Housing Authorities are considered public
agencies and are required to take all official actions and conduct all deliberations
leading up to official actions at public meetings.
a. Official actions include making recommendations, establishment of policy,
decisions on agency business, and votes taken on any motion, resolution,
ordinance, rule, regulation, proposal, report or order.
1. Approval of funds transferred or expensed by a public agency is an
official action which must occur at a public meeting.
b. Public agencies are prohibited from taking official action in Executive
Session.
33. The Sunshine Act requires that written minutes be kept of all public meetings.
a. Minutes must include the following:
1. The date, time, and place of the meeting;
2. The names of members present;
3. The substance of all official actions and a record of roll call votes; and
4. The names of all citizens who appeared officially at the meeting and
the subject of their testimony.
34. The Authority board currently holds one legislative meeting per month on the fourth
Tuesday of each month.
a. From approximately March 1988 through December 2004, the Authority
Board was scheduled to meet quarterly on the third Wednesday during the
months of March, June, September, and December.
1. The June quarterly meeting was often cancelled.
2. Special meetings were called as necessary during this time frame.
b. Authority meetings have been held in the conference room of the Authority
office located at 19 Rockwood Ave, Oil City, PA 16301 since at least mid -
1991.
c. Special meetings are currently held as necessary.
35. During Evans's tenure, voting at Authority meetings occurred via individual roll call
vote after a motion had been properly made and seconded.
a. Any abstentions cast during voting were specifically noted in the minutes.
36. Although the Authority Chairman was to preside over Authority meetings, Evans
normally carried out these actions.
a. Authority members did not normally question or challenge Evans's actions,
explanations, or suggestions at Authority meetings.
Account
Number
Financial
Institution
Account
Name
Account
Address
xxxx677
National City Bank
Venango County Housing
Authority
PO Box 988
Oil City, PA 16301
xxx>000c5l -6
Citizens Bank
Housing Authority of Venango
County
PO Box 988
19 Rockwood Ave.
Oil City, PA 16301
xxx>ooc039
Northwest Savings Bank
Housing Authority of Venango
County
PO Box 988
Oil City, PA 16301
xxxx092
First National Bank
Housing Authority of the County
of Venango
PO Box 988
Oil City, PA 16301
Evans, 06 -028
Page 12
b. Authority members did not question Evans as a result of Evans's tenure with
the Authority and Evans reporting that annual audits conducted of the
Authority revealed no discrepancies.
37. Tamala Ross, Deputy Executive Director, or Robbi Terrill, Section 8 Program
Coordinator, took minutes of the Authority meetings.
a. Drafts of meeting minutes were provided to Evans for content review prior to
presentation of the minutes at the upcoming Authority meeting.
b. Evans routinely altered the content of the minutes and returned them to Ross
or Terrill for correction.
c. The minutes were routinely approved for accuracy at the subsequent
Authority meeting.
38. From at least January 2001 to January 2005, Authority board members were not
provided with meeting packets for review prior to the actual meeting.
a. Authority members received a meeting agenda, the previous meeting
minutes, and various reports immediately prior to or during the actual
meeting for review.
b. Authority members were not supplied with bill lists or listings of checks
issued from Authority accounts for review nor were checks issued presented
to the Authority members physically or verbally.
39. From at least January 2001 to January 2005, no official motion or vote was taken by
the Authority members to formally approve checks issued from Authority accounts.
a. The Authority board routinely approved the Secretary /Treasurer's report
which included various financial information such as audits, five year plans,
etc.
b. The Authority board routinely approved Year End Financial Reports which
noted, among other things, the amounts of assistance payments issued and
administrative fees received during the fiscal year.
c. The Authority board routinely approved Program Budget reports on an
annual basis noting subsidies requested from HUD.
40. From at least January 2001 through January 2005 the Authority maintained various
accounts at the following financial institutions shown below:
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a. Account No. xxxx677 was the account utilized for the Public Housing
Program (Cherry Hill Apartments).
1. Funds received by the Authority from HUD for operation of the public
housing program were deposited electronically into the account.
2. Tenant rent received, if any, was also deposited into the account.
b. Account No. xxx>000c5l -6 was the account utilized for the Section 8 Choice
Voucher Program and the Section 8 New Construction Program (Evergreen
Arbors).
1. Funds received by the Authority from HUD for operation of both
programs were deposited electronically into the account.
aa. Funds received for each Program were deposited separately
into the account.
c. Account No. xxx>ooc039 was the account utilized to segregate HAPS and
Administrative Fees issued to the Authority for the Section 8 New
Construction Program from HAPS and Administrative Fees received for the
Section 8 Choice Voucher Program.
1. Checks from the account representing funds received for the Section
Eight New Construction Program were subsequently issued to
Evergreen Arbors Associates representative of HAPs due and to the
Venango Housing Corporation representative of Administrative Fees
received /due.
d. Account No. xxxx092 was initially utilized as an interest generating account
for the Authority.
1. After June 28, 2002, the account was utilized as a general checking
account.
41. From at least January 2001 through approximately January 2005, Evans and Gary
Kearney, Authority Chairman, maintained sole signature authority over Authority
accounts.
a. Checks issued from Authority accounts required two signatures.
b. Facsimile signature stamps were utilized to authorize Authority checks.
42. At least three sets of facsimile stamps existed in the name of Evans and Kearney
for the authorizing of Authority checks.
a. Evans maintained one set of stamps in his office at the Authority.
b. Tamala Ross, Authority Deputy Executive Director, maintained a set in her
office until approximately November 2004.
1. Ross returned the stamps to Evans at or about that time.
c. Kearney maintained a set of stamps at his home.
43. In addition to the Authority accounts maintained at National City Bank, Citizen's
Bank, Northwest Savings Bank, and First National Bank, the Authority maintained at
Account Number
Account Description
Statement Addressed To
001
Corporate Gold Card
Edwin A. Evans /Housing Authority Venango
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Page 14
least one account with American Express as shown below:
a. Credit card /line of credit accounts are viewed as cash accounts for auditing
purposes.
44. Evans maintained sole control of the credit card /line of credit account in the
Authority's name with American Express.
a. No activity occurred on the card between the dates of October 2001 through
January 2005 with the exception of annual membership fees incurred.
45. From January 2001 through January 2005, Ross or Terrill received and processed
invoices /bills (including HAPs) requiring payment by the Authority.
a. Once processed, checks were generated for payment via Authority
computers or typewriter.
1. Checks issued from the Citizen's Bank account, including typical
monthly bills, Section 8 voucher payments, and transfers of funds
associated with the Section 8 New Construction Program into the
Authority account at Northwest Savings Bank were generated via
computer.
2. Checks issued from the National City account, including checks
issued in association with the Public Housing Program (expenses,
wages paid, etc.), were generated via typewriter.
46. Ross and Terrill generated Authority checks at Evans's direction.
a. Evans had ultimate supervisory responsibility over Ross and Terrill.
47. Ross and /or Terrill affixed Evans's and Kearney's names via the facsimile stamps to
the checks generated per Evans's direction.
a. Ross and /or Terrill generated checks only from the Citizens Bank Account
(No. x)x>000(5l -6) and the National City Bank Account (No. x)xx677).
1. Ross and /or Terrill stamped the checks only until Ross turned in her
set of facsimile stamps to Evans in November 2004.
b. Evans maintained sole custody over Northwest Savings Bank Account (No.
)xx>oo(039) and First National Bank Account (No. )xxx092).
48. Ross and /or Terrill did not affix the facsimile stamps to checks representing
transfers of funds for the Section 8 New Construction Program from the Citizens
Bank account into the Northwest Savings Bank account.
a. Evans routinely took possession of checks representing transfers of funds
for the Section 8 New Construction Program immediately after production,
affixed the facsimile signatures, and deposited the funds.
49. In addition to Ross and Terrill, the Authority employed Jane White, Rick Myers, and
Kearney, the Authority Chairman, at various times during the time frame of January
2001 into January 2005.
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Page 15
a. White was employed in a Civil Service position as a Management Aide early
in the above - referenced time frame.
b. Myers and Kearney were employed as Independent Contractors during the
majority of the above - listed time frame.
1. Myers performed general maintenance -type work for the Authority.
2. Kearney performed general maintenance -type work and Housing
Quality Inspections for the Section 8 Choice Voucher properties for
the Authority.
c. As Executive Director, Evans was responsible for the ultimate supervision of
all Authority employees.
50. Pennsylvania Department of State, Corporation Bureau records note the formation
of the Venango Housing Corporation (hereafter "Corporation ") under entity number
759497 on July 9, 1982.
a. The purpose of the Corporation per Corporation Bureau filings notes,
"housing project."
b. The registered filing address of the Corporation is "Highway 322, Franklin,
Pa."
1. The most recent physical address of the Corporation is 19 Rockwood
Avenue, Oil City, PA.
2. The Authority's mailing address has been PO Box 988, Oil City, PA
16301 since at least June 26, 1990.
c. The Corporation was formed as a non - profit (non- stock) entity.
51. Mandates of the Corporation Articles of Incorporation include, among others, the
following:
a. Section 7: If the Corporation is ever dissolved, title to or other interest in any
real or personal property owned by the Corporation shall vest in the
Authority for use by the Authority as approved by HUD or its successors and
assigns (HUD) or be transferred to or vested in another entity approved by
HUD.
b. Section 10(f): The Corporation shall not be entitled to receive any
compensation in connection with the financing of any project, except for its
expenses and any such expenses shall be subject to the approval of HUD.
52. A three - member Board of Directors governs the Corporation.
a. Directors are appointed to the Corporation board by the Authority board.
1. Directors' terms are to remain in effect until resignation, removal, or
death.
b. Directors are not compensated for their service on the Corporation board.
1. Corporation By -Laws in effect during Evans's tenure did not prohibit
Evans, 06 -028
Page 16
directors from serving the Corporation in any other capacity and
receiving compensation.
53. During Evans's tenure, the Corporation did not hold regularly scheduled meetings.
a. Per Corporation By -Laws in effect during Evans's tenure, meetings of the
board were to be called by the Secretary at the request of the President or
any two directors.
b. Per Corporation By -Laws in effect during Evans's tenure, meetings of the
Corporation board could be held within or outside the State of Pennsylvania.
1. All documented meetings of the Corporation board have occurred at
the Venango Human Services Center, Route 322, Franklin, PA.
2. Only two documented Corporation meetings occurred from the
Corporation's inception through January 2005.
54. Section 3.8 of the Corporation By -Laws in effect during Evans's tenure allow that
any action that may be taken by the board of directors at a meeting may be taken
without a meeting provided that written consent setting forth the action to be taken
is signed by each director and filed with the Secretary.
a. No such written consents exist to substantiate that any official action was
taken by the Corporation outside a meeting setting.
55. Section 4.1 of the Corporation By -Laws effective during Evans's tenure addresses
the choosing of officers for the Corporation.
a. Officers are elected from the board of directors from their own number.
b. Two or more offices may be held by the same person provided that the
duties of the President and Secretary may not be performed by the same
person.
56. Section 4.4 of the Corporation By -Laws effective during Evans's tenure set forth the
duties and responsibilities of the Corporation Secretary as shown below:
a. The Secretary is responsible for, among other duties, attending all meetings
of the board of directors and recording all votes and minutes of the
proceedings in a book to be kept for that purpose.
57. Section 4.7 of the By -Laws effective during Evans's tenure mandate that officers are
not to receive any stated salaries for their services to the Corporation.
a. Corporation By -Laws in effect during Evans's tenure do not prohibit directors
from serving the Corporation in any other capacity and receiving
compensation.
58. Section 5.4 of the Corporation's By -Laws in existence during Evans's tenure states
the following in association to the Corporation's relationship to the Authority:
a. The Corporation must receive the approval of the Authority of each low -
income housing project to be assisted by the Corporation and of the
projected program and projected expenditures of the Corporation;
Account
Number
Account
Name
Account
Address
xxxx901
Venango Housing Corporation
PO Box 988
Oil City, PA 16301
xxx>000c411
Venango Housing Corporation
PO Box 988
Oil City, PA 16301
Evans, 06 -028
Page 17
b. The Corporation must receive the approval of the Authority of each issue of
obligations of the Corporation not more than sixty days prior to the date of
the issue and approval of any amendments to the terms thereof prior to the
issuance thereof;
c. The Authority shall have the right of access at any time to all books and
records of the Corporation; and
d. The Corporation shall have an annual financial audit by an independent
certified accountant, which audit and the Corporation's activities shall be
subject to review by the Authority, at such times as required by HUD.
59 The Corporation is an actual de facto committee of the Authority and is required to
hold open and public meetings under the Sunshine Act, 65 Pa.C.S. § 701 et seq.
a. All members of the Corporation board of directors are appointed by the
Authority.
b. The Corporation had the authority to engage in or assist in carrying out the
development or operation of low- income housing projects (including, without
limitation, assistance by borrowing and lending funds, and refunding of prior
loans) which had been approved by the Authority.
c. The Corporation is to act in the best interests of the Authority in executing
the duties of the Corporation.
60. Per the Sunshine Act, any expense or transfer of Corporation funds is required to
be approved at an open and public meeting.
61. During Evans's tenure, voting at Corporation meetings occurred via a combination
of group "aye /nay" vote and individual roll call vote.
a. Examples of both voting methods are present in Corporation minutes.
b. Minutes reflecting roll call votes note the specific vote of each individual
director.
62. The Corporation had no overhead or operational expenses associated with its
existence.
a. The Corporation had no employees.
b. The Corporation operated from the same physical address as did the
Authority.
c. The Corporation was a paper company organized solely for the issuance of
tax -free bonds.
63. From at least January 2001 through January 2005 the Corporation maintained
accounts at National City Bank as shown below:
Account Number
Account Description
Statement Addressed To
000
Corporate Platinum Card
Edwin A. Evans/Venango Housing
005
Corporate Optima Account
Edwin A. Evans/Venango Housing
008
Business Capital Line
Edwin A. Evans/Venango Housing
Evans, 06 -028
Page 18
a. Account No. xxxx901 was initially established by Evans to serve as a
checking account to be utilized in association with the refinancing of
Evergreen Arbors.
1. Account No. xxxx901 was the Corporation's primary account.
b. Account No. xxx>000c411 was a secondary account with minimal activity.
1. During the above - referenced time frame only three deposits totaling
$590.57 were entered into the account.
2. All debits from the account during the above - referenced time frame
were attributed to monthly service charges and inactive account fees.
64. From at least January 2001 through approximately January 2005, Evans and
Kearney maintained sole signature authority over Corporation accounts.
a. Checks issued from Corporation account (account no. xxxx901) required two
signatures.
b. Facsimile signature stamps of Evans's and Kearney's signatures were
utilized to authorize Corporation checks.
65. No official motion or vote was taken by the Corporation directors to formally
approve checks issued from Corporation accounts.
a. No bill lists, invoices received, or checks issued were presented for review or
approval at any Corporation meetings or Authority meetings at which the
Corporation was discussed.
b. Evans, as the Corporation President, authorized, approved, and issued
Corporation checks of his own volition.
66. Evans had sole control of the checks and check registers for the Corporation
accounts.
a. Evans prohibited Ross and Terrill access to Corporation checks and
financial records.
b. All Corporation checks issued from January 2001 through January 2005 with
the exception of check numbers 2185, 2283, 2824, and 2825 bear
handwritten information in the "Date," "Pay To The Order Of," "Amount," etc.,
sections of the checks.
1. The handwriting on checks issued is Evans's.
67. In addition to the Corporation accounts maintained at National City Bank, the
Corporation maintained three separate accounts with American Express as shown
below:
a. Credit card /line of credit accounts are viewed as cash accounts for auditing
Evans, 06 -028
Page 19
purposes.
68. Evans maintained sole control of the credit card /line of credit accounts in the
Corporation's name with American Express.
a. No activity occurred on the card ending in Account No. xx000 between the
dates of October 2001 through November 2004 with the exception of annual
membership fees charged.
69. At the June 16, 1982, regular Authority meeting, Matthew Domber, a private citizen,
presented a proposal to the Authority board regarding the construction of a low -to-
moderate income family housing complex (eventually known as Evergreen Arbors).
a. The nine building, one hundred living unit complex was to be constructed on
a thirty -acre tract of land on what was known as Gurney Hill.
b. The project was to be financed through HUD Section 11(b) funding.
1. Section 11(b) funding consists of tax - exempt revenue bonds backed
by the Federal Housing Administration.
aa. The bonds for the complex were to be secured by a HUD -
insured mortgage loan as well as the pledge of HAPs.
2. In order to receive tax - exempt status, a certified housing authority had
to agree to act as the financing agency.
c. The Authority was to have no financial responsibility for the bonds or the
project in the event of financial difficulty.
1. The Authority was to be responsible for acting as the financing
agency in the issuance of the tax - exempt bonds.
2. The Authority was to be responsible for administrating the ACC,
enforcing the terms of the contract, making monthly Section 8
payments to the owner, reviewing the owner's determination of tenant
income and eligibility, and making annual physical inspection of the
project.
70. At the July 14, 1982, Authority regular meeting, the development of the Corporation
as an instrumentality of the Authority to issue the Section 11(b) bonds was
discussed and approved by the board.
a. Via Resolution approved at the July 14, 1982, meeting, the board
unanimously authorized the development of the Corporation to act as an
instrumentality of the Authority for the purpose of assisting and financing
housing facilities for eligible tenants in the project and to cooperate with
HUD pursuant to its program under Section 8 of the Act.
71. The Corporation Articles of Incorporation and By -Laws were approved by the
Authority board at the July 14, 1982, [meeting] via the same Resolution.
a. The Articles of Incorporation for the Corporation document the appointment
of Evans, Edward Albert, and Beverly Snyder as the initial directors of the
Corporation.
1. Albert and Snyder were Authority board members at that time.
Evans, 06 -028
Page 20
2. Evans signed the Articles of Incorporation as the incorporator of the
Corporation.
b. Evans, Albert, and Snyder signed the Corporation By -Laws on July 14, 1982.
72. Immediately following the adjournment of the July 14, 1982, Authority meeting, the
first meeting of the Corporation Board of Directors was held.
a. The Corporation directors approved and adopted the Corporation By -Laws
as approved and submitted by the Authority.
b. The Corporation directors unanimously approved a motion that the
Corporation's bond counsel make all filings with HUD which were or might
become necessary to obtain HUD's designation of the Corporation as an
instrumentality public housing agency.
c. Evans was elected as President of the Corporation at the July 14, 1982,
meeting.
73. On October 7, 1982, the Authority entered into an Annual Contributions Contract
( "ACC ") with HUD regarding the Evergreen Arbors project.
a. The ACC between the Authority and HUD established the Authority's role as
the Contract Administrator for the Evergreen Arbors project.
1 Under the ACC, HUD agreed to provide financial assistance to the
Authority for the purpose of making HAPs.
b. The ACC was signed by Albert as the Authority Chairman.
74. At the October 20, 1982, Authority regular meeting, Evans reported on the ACC and
the closing regarding the Evergreen Arbors Project.
a. The ACC entered into between the Authority and HUD was for a term of
twenty years.
b. The closing on the project occurred on October 6 th and 7 t ", 1982, in
Pittsburgh, PA.
1. Construction notes totaled $4,974,500.00.
2. Mortgage Insurance Bonds totaled $5,295,000.00.
c. Evans and Authority Solicitor Terry Whitling were present at the closing to
represent the Authority.
75. Construction of the Evergreen Arbors complex began during or about the fall of
1982.
a. The project was completed during or about the fall of 1983.
76. The establishment of the ACC between the Authority and HUD required the
Authority to enter into a HAP Contract with Evergreen Arbors Associates.
a. The effective dates of the contract for Stages 1 and 2 of the project were
December 22, 1983, and February 8, 1984, respectively.
Evans, 06 -028
Page 21
b. The HAP Contract was signed by Robert McAnallen on behalf of Evergreen
Arbors Associates and by Albert on behalf of the Authority on February 17,
1984, and February 21, 1984, respectively.
1. By entering into the HAP Contract with Evergreen Arbors Associates,
the Authority pledged to make payment of HAPs pursuant to the
contract the portion of annual contributions payable under the ACC
for the HAPs.
2. Evergreen Arbors Associates is a limited partnership currently owned
by Domber, George McAnallen, Jacob Ward, and the Estate of
Robert McAnallen.
c. The HAP Contract established rights and duties of Evergreen Arbors
Associates (as the owner) and the Authority (as the contract administrator)
with respect to the project and tenant assistance.
d. The HAP Contract was approved by HUD on March 7, 1984.
77. Evergreen Arbors Associates utilizes the services of Arbors Management, Inc. for
the management of the Evergreen Arbors project.
a. Arbors Management is a full service property management company.
b. Arbors Management is responsible for approving bills, preparing HAP
requests, rent input, accounting, etc.
78. Arbors Management utilizes the services of an on -site manager at the Evergreen
Arbors project to address day -to -day operational issues.
a. The on -site manager is responsible for marketing of the units, renting the
units, interviewing applicants, addressing tenant complaints, performing
tenant certification, and determining tenant eligibility among other duties.
79. The entire monthly payment (HAP) due to Evergreen Arbors is compiled by Arbors
Management on a monthly basis.
a. The Arbors Management Accounting Department prepares a voucher based
on the number of units occupied and any new or re- certifications provided by
the on -site manager.
b. Vouchers are currently submitted to the Authority via the United States
Postal Service CUSPS ") and electronic transmission.
1. In prior years, submission of the vouchers occurred via the USPS
only.
c. HAP vouchers are prepared and submitted one month in advance (i.e., the
voucher prepared for November's HAP is prepared in October).
1. Any adjustments required due to re- certification, new tenants, tenants
leaving, etc., are accounted for on the next month's HAP.
d. The Authority issues payment of the monthly HAP to Evergreen Arbors via
check.
Evans, 06 -028
Page 22
80. The responsibility of the Authority as the contract administrator is limited to
issuance of the monthly HAP to Evergreen Arbors and conduction of annual
inspections.
a. Annual inspections include actual unit inspections and inspections of
required forms /documentation regarding tenant certification, eligibility, etc.
81. From its inception in July 1982 until May 1990, the Corporation received /generated
no consistent income from any source as a result of issuing the 11(b) bonds which
financed the construction of Evergreen Arbors.
a. The Corporation accounts at National City Bank, Account Numbers xxxxx901
and xxx>000c411, were opened in May 1990 and March 1996 respectively.
82. On or about July 3, 1989, James E. Schoenberger, General Deputy Assistant
Secretary for Housing -HUD, issued a memorandum for all State Housing Finance
Agencies and Public Housing Agencies, and all HUD Regional Administrators,
Category A, B, and C Office Managers regarding the refunding of bonds issued to
finance Section 8 Financing Adjustment Factor Projects.
a. The memo noted that long -term tax - exempt interest rates continued to be
highly favorable to advance refunding which would provide substantial
Section 8 subsidy savings to the government and lock in future low mortgage
rates for the project owner.
b. The memo additionally noted HUD's interest in working with entities to
complete the refunding initiative promptly while market conditions were
feasible.
83. Evans took steps as the Corporation President to initiate the refunding /refinancing
requested by HUD.
a. Evans contacted Sanwa -BGK and requested a proposal be drawn for the
possible refinancing.
84. In or about August 1989, Evans requested advice from HUD concerning the
proposal of Sanwa -BGK to act as the exclusive agent of the Corporation to organize
the refinancing of the original 11(b) issue associated with Evergreen Arbors.
a. The request from Evans was in response to the July 3, 1989, memorandum
issued by Schoenberger.
85. Suzanne S. McLaughlin, Attorney- Advisor, Office of Chief Counsel -HUD, issued
correspondence to Evans dated August 24, 1989, which addressed the proposed
refinance of Evergreen Arbors.
a. McLaughlin advised that Schoenberger's memo suggested that HUD would
be "pretty flexible" in considering various possible approaches to achieve
refinancing.
b. McLaughlin further advised that Schoenberger's memo indicated that HUD
would not participate in a Public Housing Agency's selection of an
underwriter or consultant.
1. Due to this clause, McLaughlin advised that she could not assist
Evans in evaluation of the Sanwa -BGK proposal.
Evans, 06 -028
Page 23
86. Minutes of the September 20, 1989, Authority board meeting document Evans's
disclosure of the proposed refinancing for Evergreen Arbors to the Authority Board.
a. Evans reported that he had received written notice from HUD mandating that
Evergreen Arbors be refinanced and that refinancing would reduce the
original interest rate obtained.
b. Evans reminded the board that the Corporation had been formed to bond
finance the project.
1. Evans advised that the Corporation board (at that time) was
composed of himself as President, Beverly Snyder as Vice- President,
and Albert as Secretary.
c. Evans stated that the refinancing would not affect or change in any way the
duties performed or monies received by the Authority.
87. At the September 20, 1989, meeting, the Authority Board voted unanimously for
Evans to proceed with the necessary steps to refinance Evergreen Arbors in
accordance with the HUD mandate.
a. The minutes note no vote or approval by the board to increase Evans's
compensation or to grant Evans "allowable expenses" in association with
efforts taken to refinance Evergreen Arbors.
88. Minutes of the April 18, 1990, Authority Board meeting document Snyder's
resignation from both the Authority and Corporation Boards.
a. Authority Board member Mary Sterrett was appointed as the Vice - President
of the Corporation by unanimous vote at the April 18, 1990, Authority Board
meeting.
89. A meeting of the Corporation Board was held on May 30, 1990.
a. Minutes note the meeting attended by board members Evans, Albert and
Sterrett; Corporation Solicitor Terrance Whitling; and Kearney as a non -
board member.
90. Under the "President's Report" section of the minutes, Evans informed the board
that the Corporation had an agreement with Sanwa -BGK to complete the bond
refinancing.
a. Evans advised that, "... Sanwa -BGK and Venango Housing Corporation
entered into an agreement in writing where by they would do everything that
was necessary to refund the bonds...."
b. Evans noted that the re- financing was occurring as a result of the July 3,
1989, Schoenberger memo.
c. Evans identified parties involved in the refinancing as follows: Counsel -
Brown & Wood; Bond Counsel- Rogers & Wells; and Trustee -Chase Lincoln
First Bank National Association.
1. Additional parties involved in the refinancing but not noted in the
minutes included: Underwriter -BGK Securities Co., L.P.; Trustee's
Counsel- Nixon, Hargrave, Devans, and Dolye; and Escrow Agent-
Mellon Bank, N.A.
Individual
Office
Position
Evans
President
Financial Coordinator
Sterrett
Vice - President
Financial Coordinator
Albert
Secretary
Financial Coordinator
Whitling
Solicitor
Attorney
Kearney
N/A
Financial Advisor
Evans, 06 -028
Page 24
91. After discussion of the bond refinancing, the Corporation Board unanimously
passed a Resolution dated May 30, 1990, approving the refinancing of the
Evergreen Arbors project.
a. The Resolution was signed by Evans as the President of the Corporation.
b. The resolution acknowledged the Corporation Board's approval of the
entities involved to complete all tasks required to complete the refinancing.
92. Documented in the minutes of the May 30, 1990, Corporation Board meeting is
approval that Board Members Evans, Sterrett, and Albert, along with Kearney and
Whitling, hold the positions noted below:
a. The May 30, 1990, minutes document on at least two separate occasions
that Evans, Sterrett, Albert, and Kearney are to serve in the positions noted
above.
b. The May 30, 1990, minutes document on at least two separate occasions
that Evans, Sterrett, Albert, and Kearney are to be compensated for their
services in said positions.
93. Evans subsequently called for a motion for Resolution that each member acting as
a Financial Coordinator, Financial Advisor, or Attorney be compensated for their
services.
a. The vote to approve the Resolution passed unanimously (3 -0) with no
abstentions noted.
1. Evans made the motion and participated in the vote to approve his
receipt of compensation as a Financial Coordinator for the
Corporation.
b. Minutes do not document actual services to be performed or the amount or
type of compensation to be received by any individual noted.
94. Minutes of the May 30, 1990, Corporation meeting document Evans's demands in
relation to the bond refinancing.
a. The Minutes note Evans's refusal to sign any bonds and place them in
escrow without payment to the Corporation.
b. The Minutes also note Evans's refusal, as President and Financial
Coordinator of the Corporation, to sign any bonds without compensation.
95. On May 30, 1990, an Emergency Meeting of the Authority was held immediately
after the adjournment of the Corporation meeting.
a. Authority board members in attendance at the meeting were Kearney,
Sterrett, and Albert.
Evans, 06 -028
Page 25
1. Two positions were vacant on the Authority board at that time.
b. Also present at the meeting were Evans and Whitling.
96. Minutes note that prior to the adjournment of the May 30, 1990, Emergency
Meeting, an Executive Session was held to discuss personnel matters.
a. Typed minutes of the alleged Executive Session exist.
97. Although typed minutes of the alleged Executive Session exist, the legitimacy of the
minutes is questionable.
a. No copy (original, official, or photocopy) of the existing Executive Session
minutes is present in the Authority minute book which contains the May 30,
1990, regular meeting minutes.
98. Minutes of the Executive Session document Evans's explanation that the resolution
to be discussed was in relation to the refinance of Evergreen Arbors.
a. Evans referenced the Board to his letter dated August 21, 1989, addressed
to John Bates, Chief Counsel, HUD - Pittsburgh Office and to HUD's alleged
response from Suzanne McLaughlin, Attorney- Advisor, Office of Chief
Counsel -HUD.
1. No copy (original, official, or photocopied) of the letter allegedly sent
to Bates is present in the Authority minute book which contains the
May 30, 1990, regular meeting minutes.
99. In the correspondence dated August 21, 1989, allegedly sent to Bates, Evans
outlined that since approximately $5,200,000.00 was anticipated to be refinanced
and that the Corporation was to be compensated one percent or $52,000.00, the
terms of Evans's agreement were that as Financial Agent and Coordinator, Evans
receive forty percent of the principal amount at closing and a continued $6,000.00
quarterly after closing until all responsibilities associated with Evans's functions
were complete.
a. The correspondence noted that Evans had recently spoken to McLaughlin
regarding the refinancing and his activity as refinancing agent as President
of the Corporation.
b. The correspondence noted that due to the magnitude of the requests on the
Corporation and Evans to accomplish the goals suggested by HUD, the
monetary terms of the agreement must be settled before Evans would exert
the additional time needed for the effort.
100. Correspondence received from McLaughlin dated August 24, 1989, was presented
to the Board as a response to Evans's August 21, 1989, letter allegedly sent to
Bates.
a. The correspondence from McLaughlin noted that Evans had requested
advice concerning the proposal of Sanwa -BGK to act as exclusive agent of
the Corporation to arrange the refinancing of the original Evergreen Arbors
11(b) bond issue.
b. Additionally noted was that while HUD was going to be "pretty" flexible in
considering various possible approaches to achieve refinancing, HUD would
Evans, 06 -028
Page 26
not participate in PHA (public housing authority) selection of an underwriter
or consultant.
101. After referencing the Board to the August 21, 1989, and August 24, 1989,
correspondence, Evans requested that the Authority transfer the fees received as
Administrative costs to the Corporation to accomplish the requests of HUD per
Schoenberger's July 3, 1989, memorandum.
a. Executive Session minutes note that the intent of the transfer was to
compensate Evans for his responsibility as President and Financial Agent
and Coordinator of the Corporation in the amount as stated in the August 21,
1989, letter to Bates for the magnitude of responsibilities after the mentioned
meeting in New York.
b. The approval of the transfer of administrative fees to the Corporation to
compensate Evans occurred after Evans had voted himself into a paid
position with the Corporation.
102. The Board subsequently approved a resolution transferring the administrative fee of
the 11 b Evergreen Arbors to the Corporation to accomplish the requests of HUD for
compensation of Evans acting as President, Financial Agent, and Coordinator of
the Corporation for the continuous responsibility for the term of the refinanced 11 b
bonds after closing at $6,000.00 quarterly.
a. The vote approving the Resolution passed 3 -0 with Kearney, Sterrett, and
Albert voting affirmatively.
103. Although minutes of the May 30, 1990, Authority Executive Session document
approval for Evans to receive compensation in the amount of $6,000.00 quarterly
for services performed as President, Financial Advisor, and Coordinator of the
Corporation in association with the bond refinance, Evans did not receive checks
from either entity in the amount specified on a quarterly basis.
a. The amount referenced in the minutes was to represent compensation to be
paid to the Corporation quarterly.
104. At his Civil Service hearing on July 18, 2005, Evans provided testimony under oath
regarding the August 21, 1989, letter to Bates and the May 30, 1990, Authority
Executive session as follows:
a. The letter Evans addressed to Bates requesting compensation represented
compensation to be paid to the Corporation, not Evans personally.
1. Evans's use of language including "1" and "my" in the letter to Bates
was in reference to his position as an officer of the Corporation.
2. Evans's intention in writing the letter was for the compensation to go
to the Corporation.
b. The resolution passed by the Authority during the May 30, 1990, Executive
Session was not approved for the purpose of paying Evans compensation.
1. Evans believed it was approved as payment to him as President of
the Corporation and indicated it could be interpreted as
compensation.
2. Evans was not paid the $6,000.00 quarterly amount.
Evans, 06 -028
Page 27
105. Evans represented McLaughlin's August 24, 1989, letter to the Board as HUD's
approval to the terms and conditions set forth by Evans in his August 21, 1989,
[letter] addressed to Bates.
a. The Board approved the Resolution authorizing the transfer of the
administrative fees based on Evans's representation that McLaughlin's
August 24, 1989, letter [w]as an approving response by HUD to the August
21, 1989, letter he addressed to Bates.
106. The August 21, 1989, letter Evans purportedly sent to Bates was never received at
the HUD Pittsburgh Office.
a. Each section /division of the HUD Pittsburgh Office, including the Office of
Chief Counsel, maintains a log documenting correspondence coming into its
respective section /division.
1. Noted in the log is the date received, the individual to whom the
correspondence is addressed, and a due date for response.
b. The correspondence log for the Office of Chief Counsel notes no receipt of
Evans's August 21, 1989, letter.
107. The August 24, 1989, letter to Evans from McLaughlin was not responsive to
Evans's August 21, 1989, letter allegedly sent to Bates.
a. McLaughlin did not view or review the August 21, 1989, letter to Bates.
1. The letter was not received at the Office of Chief Counsel for review.
b. The subject matter of the two letters did not agree.
c. The response time between the dates of the two letters was unrealistic.
1. Typical correspondence response time for non - emergency situations
in the Office of Chief Counsel was one and one -half to two weeks.
108. Evans's factual misrepresentation of correspondence allegedly issued to and
received from HUD and Evans's misrepresentation of his responsibilities regarding
the actual refinancing prompted the Board to approve the transfer of administrative
fees received from HUD by the Authority to the Corporation.
a. Evans's misrepresentation of correspondence to and from HUD gave the
Board the impression that HUD approved Evans's terms and conditions
regarding compensation for the Corporation.
b. Evans's misrepresentation of his responsibilities regarding the actual
refinancing gave the Board the impression that Evans's workload would be
dramatically increased.
1. Evans's responsibilities regarding the refinancing were limited to
meeting with the Corporation Solicitor, choosing various entities to
complete the refinancing (i.e., the underwriter, investment banker,
bond counsel, etc.), organizing paperwork and documents regarding
the initial bond issue, and signing the actual refinancing documents.
2. Evans had no ongoing responsibilities regarding the refinancing after
Evans, 06 -028
Page 28
the closing for the bond refinancing.
109. Evans generated two contracts between the Authority and the Corporation dated
March 20, 1990, and May 30, 1990, respectively, regarding the refinancing of
Evergreen Arbors.
a. The contracts were to serve as evidence that the Authority would remunerate
the Corporation the ongoing administrative fee from HUD for the Evergreen
Arbors project for the consecutive years of the Refinancing Agreement
annually.
b. Both contracts were signed by Evans on behalf of the Corporation and by
Kearney on behalf of the Authority.
110. The contracts were duplicate documents with the exception of the contract date.
a. The initial contract signed by Evans and Kearney was dated March 20, 1990.
b. The second contract signed by Evans and Kearney was dated May 30, 1990.
1. The date of March 20, 1990, was deleted with correction fluid and the
date of May 30, 1990, was typed in its place.
111. Neither of the contracts generated were ratified at any meeting of the Authority or
the Corporation.
a. Neither the Authority nor the Corporation held meetings on March 20, 1990,
at which the initial contract could have been ratified.
b. Minutes of the Corporation and Authority Emergency Meeting of May 30,
1990, document no approval by either board to enter into such a contract.
112. The closing of the bond refinance was held on June 14, 1990, at the office of Brown
& Wood, One World Trade Center, New York, New York.
a.
b.
Evans and Albert attended the closing in dual capacities with each individual
representing both the Authority and Corporation.
Evans signed the refinancing documents as the President of the Corporation.
113. From approximately July 1990 through at least January 2004, Evans transferred
administrative fees received by the Authority from HUD for administration of
Evergreen Arbors to the Corporation.
a. Evans transferred the entire HUD monthly subsidy received (HAPs and
Administrative Fees) from the Authority account at Citizen's Bank (a /k/a
Mellon Bank) to the Authority account at Northwest Savings Bank via check
on a monthly basis.
1. Occasional transfers in excess of the total subsidy provided by HUD
were made regarding months in which HUD reduced the subsidy
provided to account for overpayment during the fiscal year.
b. Evans subsequently issued one check monthly from the Northwest Savings
Bank Account to Evergreen Arbors representative of monthly HAPs due.
c. Evans issued occasional checks throughout the fiscal year from the Authority
HUD Deposits
Bank*
Transfers to Northwest
Savings Bank **
Payment From Northwest
Savings Bank to Evergreen
Admin Fee Transfer From
Northwest Savings Bank To
Corporation *
Date
Everqree
Check
Date
Amt
Check
Check
Amt
Check
Check
Amt>
91,215.00
n
Arbors
No
80,548.00
-
No
Date
No ''
Date
84329
03 -05 -02
04 -01 -01
0.00
-
87,227.00
-
239
04 -01 -01
94,956.00
91,215.00
84736
04 -01 -02
05 -01 -01
14,323.00
80538
05 -01 -01
14,323.00
240
05 -01 -01
76,901.00
-
-
-
06 -01 -01
91,215.00
80931
06 -01 -01
91,215.00
241
06 -01 -01
76,305.00
-
-
-
06 -29 -01
91,215.00
81329
07 -01 -01
91,215.00
242
07 -01 -01
79,744.00
243
07 -02 -01
7,425.00
08 -01 -01
91,215.00
81731
08 -01 -01
91,215.00
245
08 -01 -01
84,334.00
246
08 -22 -01
7,425.00
08 -31 -01
91,215.00
82181
09 -01 -01
91,215.00
247
09 -01 -01
82,795.00
-
-
-
10 -03 -01
91,215.00
82525
10 -01 -01
91,215.00
248
10 -01 -01
77,216.00
-
-
-
11 -01 -01
91,215.00
82893
11 -01 -01
91,215.00
249
11 -01 -01
75,135.00
-
-
-
11 -30 -01
91,215.00
82935
12 -01 -01
91,215.00
250
12 -01 -01
82,654.00
251
12 -11 -01
7,425.00
Total
652,828
11 -01 -02
83,853.00
652,828
11 -01 -02
5,000.00
730,040
91,628.00
87726
22,275
01 -02 -02
91,215.00
83315
01 -01 -02
91,215.00
252
01 -01 -02
53,875.00
253
01 -18 -02
7,425.00
02 -01 -02
91,215.00
83665
02 -01 -02
91,215.00
254
02 -01 -02
80,548.00
-
-
-
03 -01 -02
15,560.00
84329
03 -05 -02
15,560.00
255
03 -01 -02
87,227.00
-
-
-
04 -01 -02
91,215.00
84736
04 -01 -02
91,215.00
256
04 -01 -02
75,904.00
-
-
-
05 -01 -02
91,215.00
84799
05 -01 -02
91,215.00
257
05 -01 -02
94,555.00
-
-
-
06 -01 -02
91,215.00
85180
06 -01 -02
91,215.00
258
06 -01 -02
83,384.00
-
-
-
07 -01 -02
91,634.00
85903
07 -01 -02
91,634.00
259
07 -01 -02
101,049.0
260
07 -01 -02
7,415.50
0
08 -01 -02
91,628.00
86245
08 -01 -02
91,628.00
261
08 -01 -02
89,294.00
262
08 -30 -02
7,415.50
09 -01 -02
91,628.00
86306
09 -01 -02
91,628.00
263
09 -01 -02
82,539.00
-
-
-
10 -01 -02
0.00
86649
10 -01 -02
91,628.00
264
10 -01 -02
94,154.00
-
-
-
11 -01 -02
74,239.00
87675
11 -07 -02
74,239.00
265
11 -01 -02
83,853.00
266
11 -01 -02
5,000.00
12 -03 -02
91,628.00
87726
12 -01 -02
91,628.00
267
12 -01 -02
87,466.00
268
12 -09 -02
7,415.50
Total
912,392
1,004,020
1,013,848
34,671.50
01 -02 -03
91,628.00
88169
01 -01 -03
91,628.00
269
01 -01 -03
60,435.00
270
01
-22 -03
7,415.50
02 -03 -03
91,628.00
88560
02 -01 -03
91,628.00
271
02 -01 -03
85,895.00
-
-
-
03 -03 -03
91,628.00
88957
03 -01 -03
91,628.00
272
03 -03 -03
89,635.00
-
-
-
04 -01 -03
91,628.00
89342
04 -01 -03
91,628.00
273
04 -01 -03
80,302.00
-
-
-
05 -01 -03
91,628.00
89767
05 -01 -03
91,628.00
274
05 -01 -03
95,698.00
-
-
-
06 -02 -03
91,628.00
* **
* **
* **
275
06 -01 -03
88,500.00
-
-
-
Evans, 06 -028
Page 29
account at Northwest Savings Bank to the Corporation account at National
City Bank representative of the transfer of administrative fees due.
1. Evans did not issue the checks to the Corporation on any set
schedule (i.e., monthly, bi- monthly, quarterly, etc.).
d. Evans maintained sole custody and control of the Authority's account at
Northwest Savings Bank and the Corporation's account at National City
Bank.
114. From April 2001 through January 2005, transfers of funds between the Authority
accounts at Citizen's Bank and Northwest Savings Bank, and transfers of funds
between the Authority account at Northwest Savings Bank and the Corporation's
account at National City Bank as described in Finding No. 124 [sic] occurred by
calendar year as follows:
01 -02 -04
91,682.00
93193
01 -01 -04
91,682.00
286
01 -02 -04
64,084.00
287
01 -08 -04
7,578.75
02 -02 -04
91,682.00
93559
02 -01 -04
91,682.00
288
02 -01 -04
79,192.00
-
-
-
03 -01 -04
91,682.00
93953
03 -01 -04
91,682.00
289
03 -02 -04
102,503.0
0
-
-
-
04 -01 -04
59,729.00
94335
04 -01 -04
59,729.00
290
04 -01 -04
88,208.00
-
-
-
05 -03 -04
91,682.00
94732
05 -01 -04
91,682.00
291
05 -01 -04
89,090.00
-
-
-
06 -01 -04
91,682.00
95307
06 -01 -04
91,682.00
292
06 -01 -04
89,135.00
-
-
-
07 -01 -04
86,146.00
95756
07 -01 -04
86,146.00
293
07 -01 -04
84,951.00
294
07 -01 -04
7,578.75
08 -02 -04
86,146.00
96206
08 -01 -04
86,146.00
295
08 -02 -04
69,389.00
297
08 -26 -04
7,578.75
09 -01 -04
24,236.00
96639
09 -01 -04
86,146.00
296
09 -01 -04
91,270.00
-
-
-
10 -01 -04
86,146.00
97111
10 -01 -04
86,146.00
298
10 -01 -04
82,600.00
-
-
-
11 -01 -04
86,146.00
97518
11 -01 -04
24,236.00
299
11 -01 -04
58,159.00
300
11 -01 -04
7,578.75
12 -01 -04
86,146.00
97907
12 -01 -04
86,146.00
301
12 -01 -04
89,036.00
-
-
-
Total
973,105
973,105
987,617
30,315
01 -03 -05
86,146.00
98374
01 -01 -05
86,146.00
302
01 -03 -05
57,129.00
303
01 -03 -05
7,578.75
Total
86,146
86,146
57,129
7,578.75
HUD Deposits
Citizen's Bank*
Transfers to Northwest
Savings Bank **
Payment From Northwest
Savings Bank to Evergreen
Arbors**
Admin Fee Transfer From
Northwest Savings Bank To >'
Corporation **
Date
Evergree
Check
Date
Amt
Check
Check
Amt
Check
Check
Amt>
n
Arbors
No
No
Date
No
Date
07 -01 -03
91,693.00
90658
07 -01 -03
91,693.00
276
07 -01 -03
91,404.00
277
07 -01 -03
7,578.75
08 -01 -03
91,682.00
91114
08 -01 -03
91,682.00
278
08 -01 -03
68,290.00
279
08 -08 -03
5,000.00
09 -02 -03
91,682.00
91523
09 -01 -03
91,682.00
280
09 -02 -03
80,769.00
281
09 -24 -03
7,578.75
10 -01 -03
91,682.00
91930
10 -01 -03
91,682.00
282
10 -01 -03
73,293.00
-
-
-
11 -03 -03
91,682.00
92404
11 -01 -03
91,682.00
283
11 -01 -03
95,032.00
-
-
-
12 -01 -03
91,682.00
93060
12 -01 -03
91,682.00
284
12 -01 -03
81,681.00
285
12 -02 -03
7,578.75
Total
1,099,871
1,008,243
990,934
35,151.75
Evans, 06 -028
Page 30
*HUD deposit dates are dates posted on the bank statement
* *Other dates represent dates on actual checks
* * *No check to NWSB in June 2003 —Catch up for check issued in October 2002 when no
EA monies received from HUD
a. Evans transferred a total of $129,992.00 in administrative fees received by
the Authority for the administration of Evergreen Arbors to the Corporation
spanning the time frame of April 2001 through January 2005.
1. A balance of $3,741.84 existed in the Corporation account as of April
1, 2001.
b. Evans affixed both his name stamp and Kearney's name stamp to all of the
checks noted above.
115. In addition to the transfer of administrative fees received by the Authority for the
administration of Evergreen Arbors to the Corporation, Evans transferred /deposited
at least $58,626.12 into the Corporation account at National City Bank from the
Authority account at First National Bank from May 2002 through January 2005 as
shown below:
Check
No.
Check
Date
Check
Amount
Payee
Signatories
Deposit
Date
Description
1002
05/10/02
$1,521.12
Venango Housing Corp.
Evans /Kearney
05/10/02
Computer Purchase
1009
11/04/02
1,500.00
Venango Housing Corp.
Evans /Kearney
04/09/03
Alloc Plan 2002 Housing
1028
04/01/03
1,500.00
Venango Housing Corp.
Evans /Kearney
04/09/03
Alloc Plan Fiscal Yr 2003
1047
03/20/04
995.00
Venango Housing Corp.
Evans /Kearney
04/02/04
Acct 2004 Adm Plan
1050
03/02/04
995.00
Venango Housing Corp.
Evans /Kearney
04/02/04
Acct 2004 Adm Plan
1049
04/02/04
1,500.00
Venango Housing Corp.
Evans /Kearney
04/27/04
Bond Restructure 2004
1052
04/27/04
1,500.00
Venango Housing Corp.
Evans /Kearney
04/27/04
Bond Restructure 2004
1053
05/13/04
900.00
Venango Housing Corp.
Evans /Kearney
05/13/04
Housing Allocation Plan
1055
05/13/04
900.00
Venango Housing Corp.
Evans /Kearney
05/13/04
Housing Allocation Plan
1069
12/14/04
30,315.00
Venango Housing Corp.
Evans /Kearney
12/15/04
Acct 200511
1074
12/21/04
17,000.00
Venango Housing Corp.
Evans /Kearney
01/06/05
Tr 112005
Total
$58,626.12
Check
Origin
Check
No.
Check
Date
Check
Amount
Payee',
Signatory
Deposit
Date
American Express
Acct xx005
5122
05/22/01
$2,000.00
Venango Housing Corp.
Evans
05/22/01
National Grange Mutual Ins. Co.
7038377
07/04/01
2,433.42
Venango Housing Corp.
N/A
07/16/01
Pa Assoc. of Notaries
51239
05/29/01
36.73
Venango Housing corp.
N/A
08/02/01
A. Crivelli Chevrolet
012686
07/18/01
20.00
Venango Housing Corp.
N/A
08/02/01
American Express
Acct xx008
9012
03/28/02
2,500.00
Venango Housing Corp.
Evans
03/28/02
Total
$6,990.15
Evans, 06 -028
Page 31
a. Authorizing signatures were affixed to all of the checks with facsimile stamps
of Evans's and Kearney's signatures.
1. Evans affixed both his name stamp and Kearney's name stamp to all
of the checks noted above.
b. Interest accrued on the account is not included in the deposit totals.
116. Remaining deposits into the Corporation account at National City Bank totaling
$6,990.15 spanning the time frame of May 2001 through January 2005 consist of
American Express convenience checks and refund checks issued as shown below:
a. Evans signed both American Express convenience checks as the authorizing
signatory.
b. Interest accrued on the account is not included in the deposit totals.
117. Evans has resided at and received mail at 152 Parker Avenue, Franklin, PA 16323
since approximately September 1997.
a. In addition to receiving mail at the 152 Parker Avenue address, Evans
maintained PO Box No. 1518 in Oil City, PA in his personal capacity.
1. Evans has maintained PO Box 1518 in Oil City, PA since May 1986.
118. Evans received an annual salary in his position of Executive Director.
a. Authority employees received payroll checks on a bi- weekly basis.
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories*
4/5/2001
2154
18.90
NRA Endorsed Insurance Programs
EVAE 12646A00005
Evans /Kearney
4/11/2001
2158
120.45
AARP Life Insurance Program
A0914418
Evans /Kearney
4/30/2001
2163
257.20
Keystone Individual HMO
58908 -00
Evans /Kearney
5/1/2001
2171
35.04
NRA Endorsed Insurance Programs
EVAE 12646A
Evans /Kearney
5/8/2001
2172
65.00
AARP
4382151575434600
Evans /Kearney
5/22/2001
2176
257.20
Keystone Individual HMO
58908 -00
Evans /Kearney
5/22/2001
2177
367.40
Seabury & Smith
57656901010022
Evans /Kearney
5/22/2001
2178
74.75
Monumental Life
4430030003920930
Evans /Kearney
6/18/2001
2186
486.46
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
6/18/2001
2187
18.90
NRA Endorsed Insurance Programs
EVAE 12646A00005
Evans /Kearney
7/6/2001
2193
214.00
Old Guard Insurance Co
10000048369
Evans /Kearney
7/19/2001
2201
263.10
Keystone Individual HMO
58908 -00
Evans /Kearney
7/19/2001
2202
563.60
The Prudential
63046425
Evans /Kearney
7/19/2001
2204
159.60
AARP Life Insurance Program
A0494240
Evans /Kearney
7/30/2001
2205
56.70
NRA Endorsed Insurance Programs
EVAE 12646A0005
Evans /Kearney
8/15/2001
2214
263.10
Keystone Individual HMO
58908 -00
Evans /Kearney
8/21/2001
2218
74.75
Monumental Life
443 - 003 - 00039200933
Evans /Kearney
8/21/2001
2219
400.11
Central United Life Insurance
YN3338
Evans /Kearney
9/5/2001
2223
385.20
Prudential
99274081
Evans /Kearney
9/5/2001
2226
90.20
Prudential
40521574
Evans /Kearney
9/19/2001
2232
263.10
Keystone Individual HMO
58908 -00
Evans /Kearney
10/1/2001
2236
486.46
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
10/1/2001
2237
120.45
AARP Life Insurance Program
A0914418
Evans /Kearney
10/1/2001
2238
58.70
NRA Endorsed Insurance Programs
EVAE 12646A00005
Evans /Kearney
10/1/2001
2242
35.04
NRA Endorsed Insurance Programs
EVAE12646A00001
Evans /Kearney
10/22/2001
2252
263.10
Keystone Individual HMO
58908 -00
Evans /Kearney
11/20/2001
2263
263.10
Keystone Individual HMO
58908 -00
Evans /Kearney
11/27/2001
2267
74.75
Monumental Life
4430030003920930
Evans /Kearney
12/1/2001
2274
492.80
Seabury & Smith
57656901010031
Evans /Kearney
12/12/2001
2279
486.46
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
Evans, 06 -028
Page 32
119. Evans's approximate yearly salary from April 2001 through January 2005 is shown
below:
a.
20
01 2002 2
0
0
3
20
04 2005
$48,649.00 $51,087.00 $53,642.00 $57,988.00 $57,988.00
a. Salary figures noted are rounded to the nearest dollar.
120. From at least April 2001 through January 2005, Evans used the authority of his
public position to routinely utilize the Corporation account at National City Bank
(Account No. xx)x901) to issue payments in his name or on his behalf to
companies /businesses for personal insurance premiums, investment annuities or
other personal purposes without board approval totaling $50,653.44.
Evans had payments made to at least eleven different insurance providers
for personal policies, a country club and motor club.
121. The following chart details the payments made by Evans for personal interests:
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories*
12/28/2001
2289
295.90
Keystone Individual HMO
58908 -00
Evans /Kearney
12/28/2001
2290
296.70
Central United Life Insurance
95613383
Evans /Kearney
12/28/2001
2293
67.00
AARP Motoring Plan
8808256250534
Evans /Kearney
1/02/2002
2299
811.90
New York Life
42858923
Evans /Kearney
1/02/2002
2301
54.70
NRA Endorsed Insurance Programs
EVAE 12646A 00005
Evans /Kearney
1/02/2002
2303
205.00
Old Guard Insurance Co
10000048369
Evans /Kearney
1/3/2002
2304
85.00
Nevada Secretary of State
Accord Enterprises
Evans /Kearney
1/3/2002
2305
135.00
Laughlin Associates Inc.
Filing Fee Accord Ent
Evans /Kearney
1/3/2002
2306
85.00
Nevada Secretary of State
Venango Housing Corp
Evans /Kearney
1/3/2002
2307
135.00
Laughlin Associates Inc.
Filing Fee Ven Housing Corp
Evans /Kearney
1/3/2002
2308
85.00
Nevada Secretary of State
Edwin Adair Evans Inc
Evans /Kearney
1/3/2002
2309
135.00
Laughlin Associates Inc.
Filing Fee Edwin A Evans
Evans /Kearney
1/5/2002
2310
563.60
Prudential
63046425
Evans /Kearney
1/5/2002
2311
656.50
Wanango Country Club
#508 EA Evans
Evans /Kearney
1/11/2002
2312
126.65
Scottish Rite Insurance Plans
S33C002132
Evans /Kearney
1/18/2002
2314
159.60
AARP Life Insurance
A0494240
Evans /Kearney
2/4/2002
2317
655.00
Prudential
R1100808
Evans /Kearney
2/21/2002
2327
295.90
Keystone Individual HMO
58408 -00
Evans /Kearney
2/21/2002
2328
74.75
Monumental Life
443 - 003 - 0003920930
Evans /Kearney
3/5/2002
2338
13.54
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
3/28/2002
2353
385.20
Prudential
99274081
Evans /Kearney
4/4/2002
2347
40.02
NRA Endorsed Insurance Plans
EVAE12646A/00001
Evans /Kearney
4/8/2002
2357
120.45
AARP Life Insurance Program
A0914418
Evans /Kearney
4/8/2002
2359
56.70
NRA Endorsed Insurance Program
EVAE 12646A/00005
Evans /Kearney
5/20/2002
2372
295.90
Keystone Individual HMO
58908 - 00/177 -38 -8076
Evans /Kearney
5/20/2002
2373
74.75
Monumental Life
443 - 003 - 0003920933
Evans /Kearney
7/1/2002
2374
295.90
Keystone Individual HMO
58908/177 -38 -8076
Evans /Kearney
7/1/2002
2379
67.74
NRA Endorsed Insurance Programs
EVAE12646A/00005
Evans /Kearney
7/1/2002
2387
205.00
Old Guard Insurance Co
10000048369
Evans /Kearney
7/8/2002
2389
563.60
Prudential
63046425
Evans /Kearney
7/22/2002
2391
295.90
Keystone Individual HMO
58908 - 177 -38 -8076
Evans /Kearney
8/15/2002
2400
189.60
AARP Life Insurance
A0494240
Evans /Kearney
8/15/2002
2401
295.90
Keystone Individual HMO
58908 - 00/177 -38 -8076
Evans /Kearney
9/1/2002
2404
90.20
Prudential
40521574
Evans /Kearney
9/1/2002
2408
400.11
Central United Life Insurance
YN3338
Evans /Kearney
9/1/2002
2412
74.75
Monumental Life
4430030003920930
Evans /Kearney
9/9/2002
2415
510.87
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
9/20/2002
2416
295.90
Keystone Individual HMO
58909 - 00/177 -38 -8076
Evans /Kearney
9/20/2002
2417
63.80
NRA Endorsed Insurance Programs
EVAE12646A/00001
Evans /Kearney
9/20/2002
2419
385.20
Prudential
99274081
Evans /Kearney
10/1/2002
2424
78.78
NRA Endorsed Insurance Programs
EVAE12646A0005
Evans /Kearney
10/1/2002
2428
400.00
Accord Enterprises Inc.
To Transfer
Evans /Kearney
10/4/2002
2434
120.45
AARP Life Insurance Program
A0914418
Evans /Kearney
10/16/2002
2437
295.90
Keystone Individual HMO
58909 - 00/177 -38 -8076
Evans /Kearney
11/20/2002
2447
295.90
Keystone Individual HMO
5890800177 -38 -8076
Evans /Kearney
11/20/2002
2450
531.82
Seabury & Smith
57656901010031
Evans /Kearney
11/26/2002
2453
74.75
Monumental Life
4430030003920930
Evans /Kearney
Evans, 06 -028
Page 33
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories*
12/9/2002
2462
510.87
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
12/26/2002
2469
295.90
Keystone Individual HMO
58908 - 00/177 -38 -8076
Evans /Kearney
12/26/2002
2473
89.82
NRA Endorsed Insurance Programs
None
Evans /Kearney
12/27/2002
2475
135.00
Laughlin International Inc.
1770 -93 VHC
Evans /Kearney
12/27/2002
2476
85.00
Nevada Secretary of State
1770 -93 VH Inc.
Evans /Kearney
12/27/2002
2477
135.00
Laughlin International Inc.
1748 -93 Edwin A Evans Inc
Evans /Kearney
12/27/2002
2478
85.00
Nevada Secretary of State
1748 -93 Edwin A Evans Inc
Evans /Kearney
12/27/2002
2479
85.00
Nevada Secretary of State
1749 -93 Accord Ent Inc
Evans /Kearney
12/27/2002
2480
135.00
Laughlin International Inc.
1749 -93 Accord Ent Inc
Evans /Kearney
12/31/2002
2481
811.90
New York Life Insurance Company
42- 858 -923
Evans /Kearney
1/2/2003
2474
296.70
Central United Life Insurance
613383
Evans /Kearney
1/3/2003
2491
563.60
Prudential
63046425
Evans /Kearney
1/7/2003
2490
126.65
Scottish Rite Insurance Plans
333C002132 Cancer Ins
Evans /Kearney
1/7/2003
2492
700.00
Wanango Country Club
#508 Edwin A. Evans
Evans /Kearney
1/10/2003
2493
256.10
AARP Life Insurance
A0494240
Evans /Kearney
1/10/2003
2494
262.00
Westfield Group
370036707500100000
Evans /Kearney
1/21/2003
2499
295.90
Keystone Individual HMO
58908 - 00/177388076
Evans /Kearney
2/17/2003
2509
74.75
Monumental Life
443 - 003 - 0003920933
Evans /Kearney
2/17/2003
2511
295.90
Keystone Individual HMO
58908 - 00/177 -38 -8076
Evans /Kearney
3/5/2003
2516
385.20
Prudential
99274081
Evans /Kearney
3/6/2003
2520
536.42
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
3/18/2003
2522
369.25
Keystone Individual HMO
58908 - 00/177 -38 -8076
Evans /Kearney
3/18/2003
2523
100.86
NRA Endorsed Insurance Programs
EVAE12646A/00005
Evans /Kearney
4/1/2003
2526
120.45
AARP Life Insurance
A0914418
Evans /Kearney
4/15/2003
2536
45.00
NRA Endorsed Insurance Programs
EVAE12646A/00001
Evans /Kearney
4/22/2003
2537
369.25
Keystone Individual HMO
58908 - 00/177388076
Evans /Kearney
5/6/2003
2545
532.40
Seabury & Smith
57656901010031
Evans /Kearney
5/20/2003
2549
369.25
Keystone Individual HMO
58908 - 00177 -38 -8076
Evans /Kearney
5/20/2003
2550
74.75
Monumental Life
4430030003920930
Evans /Kearney
7/1/2003
2553
369.25
Keystone Individual HMO
58908 - 177 -38 -8076
Evans /Kearney
7/2/2003
2562
536.42
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
7/3/2003
2566
150.00
Wanango Country Club
#508 -Evans
Evans /Kearney
7/11/2003
2568
262.00
Westfield Group
8567488
Evans /Kearney
7/27/2003
2569
369.25
Keystone Individual HMO
ID # 177 -38 -8076
Evans /Kearney
7/27/2003
2570
256.10
AARP Life Insurance
A0494240
Evans /Kearney
7/27/2003
2571
563.60
Prudential
63046425
Evans /Kearney
8/15/2003
2580
100.86
NRA Endorsed Insurance Programs
EVAE12646A00005
Evans /Kearney
8/21/2003
2583
369.25
Keystone Individual HMO
ID # 177 -38 -8076
Evans /Kearney
8/21/2003
2584
74.75
Monumental Life
4430030003920930
Evans /Kearney
8/21/2003
2585
400.11
Central United Life Insurance
YN3338
Evans /Kearney
8/31/2003
2586
90.20
Prudential
40521574
Evans /Kearney
9/5/2003
2598
385.20
Prudential
99274081
Evans /Kearney
9/14/2003
2602
536.42
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
9/26/2003
2604
369.25
Keystone Health Plan West
177 -38 -8076
Evans /Kearney
10/1/2003
2607
45.00
NRA Endorsed Insurance Programs
EVAE12646A00001
Evans /Kearney
10/9/2003
2613
120.45
AARP Life Insurance
A0914418
Evans /Kearney
10/9/2003
2615
150.00
Wanango Country Club
#508
Evans /Kearney
Evans, 06 -028
Page 34
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories*
10/9/2003
2617
111.90
NRA Endorsed Insurance Program
EVAE12646A00005
Evans /Kearney
10/30/2003
2620
369.25
Keystone Health Plan West
ID #177 -38- 8078 /Illegible
Evans /Kearney
10/31/2003
2619
532.40
Administrator, Group Ins. Program
305765690101002
Evans /Kearney
11/12/2003
2629
500.00
Wanango Country Club
#508 Evans 2004 Dues
Evans /Kearney
11/20/2003
2633
74.75
Monumental Life
443 - 0030003920933
Evans /Kearney
11/24/2003
2634
369.25
Keystone Health Plan West
177 -38 -8076
Evans /Kearney
12/1/2003
2641
536.42
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
12/28/2003
2650
296.70
Central United Life Insurance
613383
Evans /Kearney
12/28/2003
2651
369.25
Keystone Health Plan West
CNTR177 -38 -8076
Evans /Kearney
1/6/2004
2664
811.90
New York Life Insurance Company
42858923
Evans /Kearney
1/6/2004
2665
563.60
Prudential
63046425
Evans /Kearney
1/6/2004
2666
300.00
Wanango Country Club
#508
Evans /Kearney
1/8/2004
2668
329.50
Westfield Group
8567488
Evans /Kearney
1/8/2004
2669
151.85
Scottish Rite Insurance Plans
S33C002132
Evans /Kearney
1/16/2004
2672
256.10
AARP Life Insurance
A0494240
Evans /Kearney
1/16/2004
2673
189.95
NRA Endorsed Insurance Programs
EVAE12646A00005
Evans /Kearney
1/29/2004
2675
655.00
Prudential
R1100808
Evans /Kearney
1/29/2004
2678
369.25
Keystone Health Plan West
36305890800
Evans /Kearney
2/24/2004
2686
369.25
Keystone Health Plan West
Contract#177 -38 -8076
Evans /Kearney
2/25/2004
2688
74.75
Monumental Life
4430030003920930
Evans /Kearney
3/11/2004
2695
385.20
Prudential
99274081
Evans /Kearney
3/11/2004
2696
563.23
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
3/26/2004
2697
369.25
Keystone Health Plan West
CNTR177 -38 -8076
Evans /Kearney
4/8/2004
2707
120.45
AARP Life Insurance
A0914418
Evans /Kearney
4/8/2004
2708
45.00
NRA Endorsed Insurance Programs
EVAE12646A00001
Evans /Kearney
4/27/2004
2709
532.40
Administrator, Group Ins. Program
5765690101003
Evans /Kearney
4/27/2004
2712
369.25
Keystone Health Plan West
ID # 177 -38 -8076
Evans /Kearney
5/13/2004
2721
369.25
Keystone Health Plan West
ID #177 -38 -8078
Evans /Kearney
7/1/2004
2732
579.85
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
7/8/2004
2740
189.95
NRA Endorsed Insurance Programs
EVAE12646A00005
Evans /Kearney
7/8/2004
2741
563.60
Prudential
63046425
Evans /Kearney
7/8/2004
2742
369.25
Keystone Health Plan West
#177 -38 -8076
Evans /Kearney
7/8/2004
2743
225.00
Wanango Country Club
#508 -Evans
Evans /Kearney
7/12/2004
2744
256.10
AARP Life Insurance
A0494240
Evans /Kearney
7/12/2004
2745
329.50
Westfield Group
#8567488
Evans /Kearney
8/1/2004
2750
369.25
Keystone Health Plan West
ID # 177 -38 -8076
Evans /Kearney
8/26/2004
2755
400.11
Central United Life Insurance
YN3338
Evans /Kearney
8/26/2004
2756
74.75
CBCA Administrators Inc
None
Evans /Kearney
9/1/2004
2759
90.20
Prudential
40521574
Evans /Kearney
9/1/2004
2763
386.25
Keystone Health Plan West
177 -38 -8076
Evans /Kearney
9/1/2004
2765
385.20
Prudential
99274081
Evans /Kearney
9/15/2004
2767
579.85
Federal Kemper Life Insurance Co
FK4045360
Evans /Kearney
9/30/2004
2776
45.00
NRA Endorsed Insurance programs
EVAE12646A
Evans /Kearney
10/5/2004
2780
386.25
Keystone Health Plan West
1026129440010
Evans /Kearney
10/11/2004
2783
120.45
AARP Life Insurance
A0914418
Evans /Kearney
10/28/2004
2785
225.00
Wanango Country Club
#508 -Evans
Evans /Kearney
11/4/2004
2792
386.25
Keystone Health Plan West
1026129440010
Evans /Kearney
Evans, 06 -028
Page 35
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories*
11/20/2004
2796
189.95
NRA Endorsed Insurance Programs
EVAE 12646A00005
Evans /Kearney
11/20/2004
2797
74.75
CBCA Administrators Inc
443003920933
Evans /Kearney
12/1/2004
2803
386.25
Keystone Health Plan West
ID #1026129440010
Evans /Kearney
12/1/2004
2807
579.85
Chase Insurance Life & Annuity Co
FK4045360
Evans /Kearney
12/28/2004
2815
532.40
Administrator, Group Ins. Program
57656901010031
Illegible
12/28/2004
2817
296.70
Central United Life Insurance
613383
Evans /Kearney
12/28/2004
2820
811.90
New York Life
42858923
Evans /Kearney
12/28/2004
2822
386.25
Keystone Health Plan West
1026129440010
Evans
Total
$50,653.44
Evans, 06 -028
Page 36
*Signature Stamps utilized to authorize checks
122. Evans authorized and /or made payments through the issuance of Corporation
checks to the following entities:
a. NRA Endorsed Insurance Programs.
1. Group Hospital Indemnity Insurance Policy No. NRA 503001 carried
by Life Insurance Company of North America.
2. Cancer Care Policy No. NRA 504001 carried by Life Insurance
Company of North America.
3. Corporation checks written for the policies were made payable to
NRA Endorsed Insurance Plan or NRA Endorsed Insurance
program(s).
4. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
5. These policies were for personal insurance coverage for Evans.
b. AARP Life Insurance Programs.
1. AARP Permanent Life Policy No. AA -15, Certificate No. A0914418
carried by New York Life Insurance Company.
2. AARP 5 Year Term Life Policy No. AA -18, Certificate No. A04942240
carried by New York Life Insurance Company.
3. Corporation checks written for the policies were made payable to
AARP Life Insurance or AARP Life Insurance Program.
4. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
5. These policies were for personal insurance coverage for Evans.
c. Highmark.
1. Keystone Health Plan West /Keystone Individual HMO Group No.
363058908000, Contract ID 177388076.
2. Evans's Contract ID changed to 1026129440010 in the fall of 2004.
Evans, 06 -028
Page 37
6. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
d. Hartford Life Insurance Company (administered by Seabury & Smith, an
affiliate of Marsh & McClennan).
1. Group Disability Income Insurance Policy No. AGP -5062.
2. Corporation checks written for the policy were made payable to
Seabury & Smith or Administrator, Group Insurance Program.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
4. These policies were for personal insurance coverage for Evans.
e. Monumental Life (a subsidiary of American Wholesale Insurance Holding
Company, LLC).
1. Group Hospital Indemnity Insurance Policy No. MZ0909595H0001A.
2. Corporation checks written for the policy were made payable to
Monumental Life or CBCA Administrators, Inc.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
4. These policies were for personal insurance coverage for Evans.
f. Federal Kemper Life Assurance Company (now known as Chase Insurance).
1. Deferred Annuity Contract (IRA) Policy No. FK4045360.
2. Corporation checks written for the policy were written to Federal
Kemper Life Insurance Company or Chase Insurance Life & Annuity
Company.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
4. These policies were for personal insurance coverage for Evans.
Old Guard Insurance Company (a current affiliate of the Westfield Group).
1. Personal Automobile Insurance under Old Guard Policy No.
010000048369.
g.
3. Evans filed the application for Keystone Blue Cross Blue Shield on
December 5, 1997, and requested an effective date of January 1,
1998, or as soon as possible.
4. Evans obtained the coverage for himself as a result of the Authority
canceling medical benefits for employees effective November 1,
1997.
5. Corporation checks written for the policy were made payable to
Keystone Individual HMO or Keystone Health Plan West.
Evans, 06 -028
Page 38
2. Personal Automobile Insurance under Westfield Group Policy No.
AVP 8567488.
3. Corporation checks written for the policies were written to Old Guard
Insurance Co. and Westfield Group.
4. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
5. These policies were for personal insurance coverage for Evans.
h. Prudential Financial.
1. Variable Appreciable Life Insurance Policy No. R1100808 through
Pruco Life Insurance Company (a subsidiary of Prudential Insurance
Company of America).
2. Modified Life No. 3 Policy No. D40521574 through Prudential
Insurance Company of America.
3. Whole Life Policy No. 63046425 through Prudential Insurance
Company of America.
4. Variable Depreciable Life Insurance Policy No. 99274081 through
Prudential Insurance Company of America.
5. Corporation checks written for the policies were written to
Prudential /The Prudential.
6. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
7. These policies were for personal insurance coverage for Evans.
Central United Life Insurance.
J.
1. Disability Insurance Policy No. YN3338 (initially with American States
Insurance Company).
2. Disability Insurance policy No. 613383 (initially with American States
Insurance Company).
3. Corporation checks written for the policies were written to Central
United Life Insurance.
4. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
5. These policies were for personal insurance coverage for Evans.
GE Motor Club.
1. AARP Motoring Plan under Member No. 0321127146 (originally
offered by Amoco Motor Club under Member No. 8808256250534).
2. Corporation checks written for the policy were written to AARP
Evans, 06 -028
Page 39
Motoring Plan.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
5. These policies were for personal insurance coverage for Evans.
k. New York Life.
1. Whole Life Insurance Plan Policy No. 42858923 with New York Life
Insurance Company.
2. Corporation checks written for the policy were written to New York
Life or New York Life Insurance Company.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
4. These policies were for personal insurance coverage for Evans.
Laughlin Associates /Nevada Department of State.
1. Laughlin Associates is a Nevada based business providing
incorporating, asset protection, and tax planning services.
2. Evans utilized Laughlin Associates as the Resident Agent to
incorporate Edwin Adair Evans, Inc. (Corporation No. C1748- 1993);
Accord Enterprises, Inc. (Corporation No. C1749- 1993); and Venango
Housing, Inc. (Corporation No. C1770 -1993) in Nevada on or about
February 19, 1993.
3. Evans is the sole Corporate Officer (i.e., President, Secretary,
Treasurer, and Director) for each Corporation formed.
4. Nevada Secretary of State Corporation records do not note the
purpose of the Corporations.
5. Corporation checks written for services provided and annual filing
fees were written to Laughlin Associates or Laughlin International,
Inc., and the Nevada Secretary of State respectively.
6. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
m. Wanango Country Club.
1. Wanango Country Club Membership for Evans under Member No.
508.
2. Corporation checks written for the policy were written to Wanango
Country Club for membership dues, assessments, and unspent
minimums.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
n. Scottish Rite Group Cancer Expense Insurance Plan.
Evans, 06 -028
Page 40
1. Scottish Rite Group Cancer Expense Insurance Policy No.
0800419/12A administered by RKI Group Plan.
2. Corporation checks written for the policy were written to Scottish Rite
Insurance Plans.
3. Evans's personally controlled PO Box (PO Box 1518, Oil City, PA) is
documented on the application.
4. These policies were for personal insurance coverage for Evans.
123. The payments to Keystone Health Plan were made for a personal policy for Evans
after the authority canceled medical benefits for all employees, including Evans,
effective November 1, 1999.
a. No other authority employees were offered an opportunity to receive the
Highmark benefits.
b. Evans did not disclose to anyone at the authority of his receipt of this
benefit.
124. None of the one hundred seventy -nine checks issued by Evans were approved by
the Corporation board at any official board meeting.
a. Although in existence since July 1982, minutes of only two official
Corporation meetings exist.
b. Corporation minutes note no official action by the respective board members
to approve any checks issued by Evans from the Corporation account.
125. No minutes of Authority board meetings document Corporation meetings held
concurrently with Authority meetings.
1. No official votes by the Corporation board to approve checks issued
from Corporation accounts are present in Authority minutes.
126. No Corporation checks issued /expensed were presented to the Authority board at
any meeting for approval.
1. The Authority board had no knowledge of Corporation checks
expensed by Evans for his personal benefit.
127. Evans issued check number 1039, dated December 17, 2003, in the amount of
$67.00 from the Authority account at First National Bank for payment in his name to
GE Motor Club.
a. The check was written to AARP Motoring Club.
128. Evans, as President of the Corporation, realized a financial gain of $50,720.44 as
the result of voting to approve himself into a compensated position with the
Corporation and issuing Corporation checks to businesses /companies on his behalf
for personal purposes without approval of the Corporation or Authority board of
directors.
129. In addition to Evans's use of Corporation funds to issue payment to
companies /organizations for Evans's personal purpose, Evans routinely utilized the
Statement Date
Transaction Date
Description
Payee
Amount
4/18/2001
3/21/2001
CC# 5118
Evans
$900.00
4/18/2004
FC
-
$73.23
5/18/2001
5/15/2001
CC# 5121
Evans
$900.00
5/18/2001
FC
-
$73.31
6/19/2001
5/23/2001
CC# 5122
VHC
$2,000.00
6/19/2001
FC
-
$120.90
7/18/2001
7/5/2001
CC# 5123
Keystone HMO
$263.10
7/5/2001
CC# 5124
Speers Public Golf Co
$158.00
7/18/2001
FC
-
$112.28
8/19/2001
7/27/2001
CC# 5136
Dave Padilioni
$220.00
8/17/2001
CC# 5110
GMAC
$546.86
8/19/2001
FC
-
$125.18
9/19/2001
9/19/2001
FC
-
$124.45
10/18/2001
10/18/2001
FC
-
$114.55
11/19/2001
11/19/2001
FC
-
$120.38
12/19/2001
12/19/2001
FC
-
$107.84
1/18/2002
1 / 18/2002
FC
-
$102.93
2/19/2002
2/19/2002
FC
-
$107.94
3/19/2002
3/19/2002
FC
-
$98.93
4/18/2002
4/18/2002
FC
-
$105.95
5/19/2002
5/19/2002
FC
-
$108.82
6/19/2002
6/19/2002
FC
-
$108.09
7/18/2002
7/18/2002
FC
-
$99.83
8/19/2002
8/19/2002
FC
-
$109.51
9/18/2002
9/18/2002
FC
-
$101.78
10/18/2002
10/18/2002
FC
-
$101.19
11/19/2002
11/19/2002
FC
-
$107.22
12/18/2002
12/18/2002
FC
-
$96.72
1/19/2003
1/19/2003
FC
-
$102.55
2/19/2003
2/19/2003
FC
-
$97.68
3/19/2003
3/19/2003
FC
-
$87.45
4/18/2003
4/18/2003
FC
-
$93.13
5/19/2003
5/19/2003
FC
-
$102.33
6/18/2003
6/18/2003
FC
-
$98.84
7/18/2003
7/18/2003
FC
-
$97.52
8/19/2003
8/4/2003
CC# 5231
Citibank
$1,696.77
8/4/2003
CC# 5234
Citibank
$4,706.07
8/4/2003
Balance Transfer FC
-
$50.00
8/4/2003
Balance Transfer FC
-
$50.00
8/5/2003
CC# 5233
BankCard Svcs
$3,316.51
8/5/2003
Balance Transfer FC
-
$50.00
8/6/2003
CC# 5232
DiscoverCard
$1,038.20
Evans, 06 -028
Page 41
Corporation's lines of credit with American Express for purchases of a personal
nature without Corporation board approval resulting in charges to the Corporation
totaling $80,939.85 as shown below:
Account No. xxxxxxxxxxxx005
Statement Date
Transaction Date
Description
Payee
Amount
8/6/2003
Balance Transfer FC
-
$31.14
8/8/2003
CC# 5235
Citibank
$2,700.00
8/8/2003
Balance Transfer FC
-
$50.00
8/19/2003
FC
-
$129.43
9/18/2003
9/18/2003
FC
-
$151.39
10/19/2003
10/19/2003
FC
-
$156.66
11/19/2003
11/19/2003
FC
-
$156.48
12/18/2003
12/18/2003
FC
-
$146.27
1/19/2004
1/19/2004
FC
-
$160.98
2/18/2004
2/18/2004
FC
-
$150.68
3/18/2004
3/18/2004
FC
-
$145.16
4/19/2004
4/19/2004
FC
-
$160.81
5/19/2004
5/19/2004
FC
-
$150.35
6/18/2004
6/18/2004
FC
-
$150.20
7/19/2004
7/19/2004
FC
-
$155.59
8/18/2004
8/18/2004
FC
-
$151.53
9/19/2004
9/19/2004
FC
-
$162.55
10/19/2004
10/19/2004
FC
-
$153.80
11/18/2004
11/18/2004
FC
-
$153.97
12/19/2004
12/19/2004
FC
-
$160.61
1/19/2005
1/19/2005
FC
-
$162.57
Total
$24,336.21
Evans, 06 -028
Page 42
*FC= Finance Charge
*CC= Convenience Check
a. Charges incurred regarding the line of credit associated with Account No.
005 from March 21, 2001, through January 19, 2005, were
limited to the issuance of convenience checks and accrual of finance
charges.
1. Evans issued Convenience Check No. 5123 as payment for Evans's
personal health care policy with Keystone HMO.
2. Evans issued Convenience Check No. 5124 as payment for Evans
and Whitling regarding Speers Public Golf Course.
3. Evans issued Convenience Check No. 5136 to Dave Padlioni for
"plumbing."
4. Evans Issued Convenience Check No. 5110 to GMAC representative
of the first payment on the 2001 Monte Carlo purchased by the
Corporation.
5. Evans's signature appears on the checks as the authorized signatory.
b. Evans issued the remaining Convenience Checks listed in order to transfer
balances from Evans's personal credit cards to the Corporation's line of
credit under Account No. 005.
1. Evans issued Convenience Check No. 5231 to Choice Visa in order
to transfer the existing balance on his personal Choice Visa card
(Account No. 061) to the Corporation.
Evans, 06 -028
Page 43
aa. Documented in the "Memo" section of the check is "Transfer
Pay Off 061."
bb. Evans's signature appears on the check as the authorized
signatory.
cc. American Express statements document the check payable to
Citibank.
2. Evans issued Convenience Check No. 5234 to Citi Cards in order to
transfer the existing balance on his personal Citi Gold Card (Account
No. 415) to the Corporation.
aa. Documented in the "Memo" section of the check is "Transfer
Pay Off 415."
bb. Evans's signature appears on the check as the authorized
signatory.
cc. American Express statements document the check payable to
Citibank.
3. Evans issued Convenience Check No. 5233 to BankCard Services in
order to transfer the existing balance on his personal BankCard Visa
(Account No. 803) to the Corporation.
aa. Documented in the "Memo" section of the check is "Transfer
Pay Off 803."
bb. Evans's signature appears on the check as the authorized
signatory.
cc. American Express statements document the check payable to
BankCard Services.
4. Evans issued Convenience Check No. 5232 to Discover Platinum
Card in order to transfer the existing balance on his personal
Discover card (Account No. 356) to the Corporation.
aa. Documented in the "Memo" section of the check is "Transfer
Pay Off 356."
bb. Evans's signature appears on the check as the authorized
signatory.
cc. American Express statements document the check payable to
Discover Card.
5. Evans issued Convenience Check No. 5235 to Citi Cards in order to
transfer the existing balance on his personal Citi Dividend Platinum
Select Card (Account No. 229) to the Corporation.
aa. Documented in the "Memo" section of the check is "Transfer
229."
bb. Evans's signature appears on the check as the authorized
Statement
Date
Transaction
Date
Description
Amount
4/21/2001
3/21/2001
Walmart (General Merchandise)
$36.41
3/23/2001
Blair (Apparel /Accessories)
$168.70
4/5/2001
Hoss's (Food /Beverage)
$20.15
4/13/2001
Eckerd Drug (Health Care /Personal)
$89.04
4/16/2001
Eckerd Drug (Health Care /Personal)
$131.28
4/21/2001
Finance Charge
$100.26
5/21/2001
5/2/2001
Walmart (General Merchandise)
$55.50
5/2/2001
Kmart (General Merchandise)
$88.74
5/6/2001
Giant Eagle (Grocery /Pharmacy)
$69.41
5/8/2001
Walmart (General Merchandise)
$30.55
5/8/2001
Walmart (General Merchandise)
$46.47
5/9/2001
Walmart (General Merchandise)
$63.80
5/21/2001
Finance Charge
$97.05
6/20/2001
5/21/2001
Hoss's (Food /Beverage)
$20.00
5/22/2001
Eckerd Drug (Health Care /Personal)
$147.16
6/20/2001
Finance Charge
$94.42
7/21/2001
6/28/2001
Red River BBQ & Grill (Food /Beverage)
$36.92
6/29/2001
USPS (Postal Services)
$68.00
7/1/2001
Walmart (General Merchandise)
$64.46
7/1/2001
Eckerd Drug (Health Care /Personal)
$160.97
7/4/2001
Walmart (General Merchandise)
$75.50
7/4/2001
Giant Eagle (Grocery /Pharmacy)
$58.47
7/6/2001
Walmart (General Merchandise)
$37.85
7/8/2001
Walmart (General Merchandise)
$103.18
7/9/2001
Walmart (General Merchandise)
$68.22
7/9/2001
Enterprise Rent -A -Car
$100.00
7/12/2001
The Franklin Club (Food /Beverage)
$22.56
7/14/2001
Walmart (General Merchandise)
$49.86
7/17/2001
El Campesino (Food /Beverage)
$74.58
7/17/2001
Enterprise Rent -A -Car
$93.38
7/21/2001
Finance Charge
$96.01
8/20/2001
8/7/2001
Walmart (General Merchandise)
$898.00
8/9/2001
Eckerd Drug (Health Care /Personal)
$168.48
8/10/2001
84 Lumber (Lumber /Building Materials)
$17.11
8/17/2001
Buyers Fair (Hardware)
$32.40
8/19/2001
84 Lumber (Lumber /Building Materials)
$15.75
8/20/2001
Finance Charge
$97.44
Evans, 06 -028
Page 44
signatory.
cc. American Express statements document the check payable to
Citibank.
c. Evans's personal use of the Corporation's American Express line of credit
associated with Account No. 005 totaled $24,336.21 in
Convenience Checks issued and Finance Charges incurred.
Account No. xxxxxxxxxxxx008
Statement
Date',
Transaction
Date
Description
Amount
9/20/2001
8/19/2001
Kmart (General Merchandise)
$94.15
9/3/2001
Ames (General Merchandise)
$102.76
9/9/2001
Eckerd Drug (Health Care /Personal)
$94.09
9/10/2001
Walmart (General Merchandise)
$61.46
9/12/2001
Eckerd Drug (Health Care /Personal)
$94.79
9/13/2001
Walmart (General Merchandise)
$39.31
9/16/2001
Walmart (General Merchandise)
$46.24
9/16/2001
Ames (General Merchandise)
$66.35
9/20/2001
Finance Charge
$106.01
10/21/2001
9/20/2001
Annual Membership Fee -Evans
$95.00
9/28/2001
Buyers Fair (Hardware)
$24.64
9/29/2001
Walmart (General Merchandise)
$71.70
9/29/2001
Quality Farm & Fleet (General
Merchandise)
$29.28
10/1/2001
Ames (General Merchandise)
$47.67
10/2/2001
Carter Lumber (Lumber /Building
Materials)
$273.96
10/2/2001
USPS (Postal Services)
$55.00
10/3/2001
Walmart (General Merchandise)
$27.92
10/3/2001
Carter Lumber (Lumber /Building
Materials)
$64.65
10/3/2001
Buyers Fair (Hardware)
$21.36
10/8/2001
Buyers Fair (Hardware)
$28.93
10/10/2001
Eckerd Drug (Health Care /Personal)
$161.69
10/13/2001
Max & Erma's (Food /Beverage)
$62.79
10/17/2001
Walmart (General Merchandise)
$67.67
10/17/2001
Staples (Office Supplies)
$43.85
10/21/2001
Finance Charge
$107.89
11/20/2001
11/2/2001
Sherwin- Williams (Paint Supplies)
$49.21
11/3/2001
Carter Lumber (Lumber /Building
Materials)
$55.01
11/3/2001
Carter Lumber (Lumber /Building
Materials)
$57.64
11/5/2001
84 Lumber (Lumber /Building Materials)
$32.61
11/5/2001
Buyers Fair (Hardware)
$55.11
11/7/2001
GNC
$39.88
11/9/2001
Haband Company (Clothing)
$137.70
11/9/2001
GNC
$63.98
11/12/2001
Citgo (Gas)
$14.90
11/14/2001
Eckerd Drug (Health Care /Personal)
$179.09
11/15/2001
Giant Eagle (Grocery /Pharmacy)
$48.27
11/16/2001
Buyers Fair (Hardware)
$31.33
11/17/2001
Texaco
$59.27
11/19/2001
Haband Company (Clothing)
$99.35
11/19/2001
Citgo (Gas)
$15.00
11/19/2001
A Crivelli Chevrolet (Auto /Truck Dealer)
$24.85
11/20/2001
Finance Charge
$102.44
12/21/2001
11/20/2001
Walmart (General Merchandise)
$21.52
Evans, 06 -028
Page 45
Statement
Date',
Transaction
Date
Description
Amount
11/20/2001
Walmart (General Merchandise)
$137.00
11/21/2001
Giant Eagle (Grocery /Pharmacy)
$39.66
11/22/2001
Sandalinis Bistro (Food /Beverage)
$39.22
11/25/2001
Walmart (General Merchandise)
$53.43
11/25/2001
Walmart (General Merchandise)
$52.88
11/26/2001
USPS (Postal Services)
$68.00
11/27/2001
Buyers Fair (Hardware)
$43.26
11/29/2001
Hoss's (Food /Beverage)
$41.63
11/29/2001
Irvine Park (Apparel)
$436.63
12/11/2001
Walmart (General Merchandise)
$42.37
12/12/2001
Citgo (Gas)
$14.50
12/19/2001
Yellow Dog Lantern (Food /Beverage)
$555.91
12/21/2001
Finance Charge
$109.81
1/21/2002
12/29/2001
Citgo (Gas)
$13.81
12/30/2002
Citgo (Gas)
$8.51
1/3/2002
Red Lobster (Food /Beverage)
$29.14
1/9/2002
Giant Eagle (Grocery /Pharmacy)
$62.31
1/9/2002
RRR Roadhouse (Prepared Food)
$24.43
1/10/2001
Walmart (General Merchandise)
$68.86
1/16/2002
Jo Jo's Variety Store (Auto
Parts /Assessories)
$79.98
1/17/2002
Walmart (General Merchandise)
$74.65
1/21/2002
Finance Charge
$107.37
2/20/2002
1/24/2002
Primo Barones (Food /Beverage)
$25.00
1/26/2002
TA # 67
$31.70
2/20/2002
Finance Charge
$101.88
3/22/2002
2/25/2002
Hasson Heights (Gas /Miscellaneous)
$40.61
3/4/2002
Red Lobster (Food /Beverage)
$27.99
3/7/2002
Carter Lumber (Lumber /Building
Materials)
$52.38
3/7/2002
Carter Lumber (Lumber /Building
Materials)
($13.82)
3/7/2002
Kwik Fill (Gas /Misc)
$13.27
3/22/2002
Finance Charge
$106.57
4/21/2002
3/28/2002
Check 9012 -VHC
$2,500.00
4/4/2002
A Crivelli Chevrolet (Auto /Truck Dealer)
$152.17
4/4/2002
Citgo (Gas)
$10.20
4/12/2002
Haband Company (Clothing)
($48.95)
4/21/2002
Finance Charge
$122.13
5/21/2002
4/24/2002
Giant Eagle (Grocery /Pharmacy)
$81.93
4/26/2002
Kmart (General Merchandise)
$84.52
4/27/2002
Sherwin- Williams (Paint Supplies)
$26.52
5/2/2002
Check 9013 - Keystone
$295.90
5/8/2002
Eckerd Drug (Health Care /Personal)
$56.33
5/10/2002
Check 9014 -GMAC
$546.86
5/11/2002
TA # 67
$14.38
5/12/2002
Walmart (General Merchandise)
$30.80
5/21/2002
Finance Charge
$127.82
Evans, 06 -028
Page 46
Statement
Date',
Transaction
Date
Description
Amount
6/20/2002
5/24/2002
Hoss's (Food /Beverage)
$48.49
5/25/2002
Red Lobster (Food /Beverage)
$44.07
6/5/2002
Kmart (General Merchandise)
$286.18
6/10/2002
Check 9015 - Seabury & Smith
$492.80
6/16/2002
GNC
$60.94
6/19/2002
Chi Chi's (Food /Beverage)
$34.74
6/20/2002
Finance Charge
$132.02
7/21/2002
7/12/2002
Erie Petroleum, Inc (Gas /Miscellaneous)
$135.36
7/12/2002
Sunoco
$11.09
7/21/2002
Finance Charge
$135.78
8/21/2002
7/22/2002
Citgo (Gas)
$19.30
7/24/2002
Eckerd Drug (Health Care /Personal)
$49.05
7/29/2002
Red Lobster (Food /Beverage)
$29.14
7/30/2002
Erie Petroleum, Inc (Gas /Miscellaneous)
$20.00
8/2/2002
Cross Creek Resort, Inc
(Food /Beverage)
$48.03
8/6/2002
Jo Jo's Variety Store (Auto
Parts /Assessories)
$79.98
8/9/2002
Eckerd Drug (Health Care /Personal)
$32.89
8/16/2002
Citgo (Gas)
$17.74
8/21/2002
Finance Charge
$134.52
9/21/2002
9/5/2002
USPS (Postal Services)
$74.00
9/10/2002
Eckerd Drug (Health Care /Personal)
$52.97
9/13/2002
Hasson Heights (Gas /Miscellaneous)
$19.02
9/15/2002
Red Lobster (Food /Beverage)
$43.01
9/18/2002
Hoss's (Food /Beverage)
$81.00
9/21/2002
Finance Charge
$132.20
10/21/2002
9/21/2002
Annual Membership Fee -Evans
$95.00
9/21/2002
TA # 67
$26.21
9/23/2002
Eckerd Drug (Health Care /Personal)
$67.56
9/26/2002
Walmart (General Merchandise)
$81.08
9/28/2002
Pizzeria Uno (Food /Beverage)
$60.00
10/2/2002
Cellular One
$42.39
10/21/2002
Finance Charge
$127.56
11/20/2002
10/22/2002
Walmart (General Merchandise)
$35.30
10/24/2002
Anderson's Green House
(Flowers /Plants /Gifts)
$44.52
11/20/2002
Finance Charge
$125.10
12/21/2002
11/19/2002
Citgo (Gas)
$18.60
11/21/2002
Kmart (General Merchandise)
$67.96
11/23/2002
Walmart (General Merchandise)
$60.64
12/7/2002
Walmart (General Merchandise)
$106.59
12/8/2002
Giant Eagle (Grocery /Pharmacy)
$68.02
12/21/2002
Finance Charge
$128.08
1/21/2003
12/24/2002
Hoss's (Food /Beverage)
$100.00
12/26/2002
Eckerd Drug (Health Care /Personal)
$83.98
1/6/2003
Walmart (General Merchandise)
$47.27
1/12/2003
Walmart (General Merchandise)
$89.99
Evans, 06 -028
Page 47
Statement
Date',
Transaction
Date
Description
Amount
1/16/2003
Hasson Heights (Gas /Miscellaneous)
$30.00
1/18/2003
Giant Eagle (Grocery /Pharmacy)
$46.95
1/21/2003
Finance Charge
$126.64
2/20/2003
1/20/2003
Eckerd Drug (Health Care /Personal)
$31.14
1/22/2003
Walmart (General Merchandise)
$52.59
2/5/2003
Hasson Heights (Gas /Miscellaneous)
$30.00
2/5/2003
Benjamin's (Food /Beverage)
$30.74
2/20/2003
Finance Charge
$122.46
3/22/2003
3/5/2003
Walmart (General Merchandise)
$68.98
3/8/2003
Walmart (General Merchandise)
$44.26
3/10/2003
Eckerd Drug (Health Care /Personal)
$60.95
3/19/2003
Walmart (General Merchandise)
$64.43
3/21/2003
Benjamin's (Food /Beverage)
$23.97
3/22/2003
Finance Charge
$119.96
4/21/2003
4/3/2003
Red Lobster (Food /Beverage)
$36.95
4/5/2003
Primo Barones (Food /Beverage)
$38.27
4/20/2003
Walmart (General Merchandise)
$97.15
4/21/2003
Finance Charge
$118.45
5/21/2003
4/24/2003
Red Lobster (Food /Beverage)
$51.19
4/28/2003
Walmart (General Merchandise)
$120.37
5/8/2003
Red Lobster (Food /Beverage)
$37.25
5/20/2003
Walmart (General Merchandise)
$36.41
5/21/2003
Finance Charge
$117.67
6/21/2003
5/25/2003
Red Lobster (Food /Beverage)
$48.39
5/29/2003
Walmart (General Merchandise)
$119.99
6/21/2003
Finance Charge
$120.78
7/22/2003
6/21/2003
Wolf's Den Restaurant (General
Merchandise)
$46.97
7/2/2003
Walmart (General Merchandise)
$104.88
7/12/2003
Kmart (General Merchandise)
$110.28
7/13/2003
Walmart (General Merchandise)
$52.78
7/19/2003
Walmart (General Merchandise)
$77.48
7/22/2003
Finance Charge
$117.72
8/21/2003
7/23/2003
Hasson Heights (Gas /Miscellaneous)
$41.01
7/28/2003
Primo Barones (Food /Beverage)
$83.26
7/28/2003
Eckerd Drug (Health Care /Personal)
$52.39
7/30/2003
Eckerd Drug (Health Care /Personal)
$63.97
8/3/2003
Red Lobster (Food /Beverage)
$47.88
8/5/2003
Walmart (General Merchandise)
$75.84
8/8/2003
Walmart (General Merchandise)
$69.80
8/13/2003
Walmart (General Merchandise)
$77.30
8/14/2003
Walmart (General Merchandise)
$47.49
8/14/2003
USPS (Postal Services)
$74.00
8/15/2003
Sears Roebuck
$74.19
8/15/2003
Sears Roebuck
$683.67
8/18/2003
Cellular One
$104.88
8/19/2003
Eckerd Drug (Health Care /Personal)
$56.61
Evans, 06 -028
Page 48
Statement
Date',
Transaction
Date
Description
Amount
8/21/2003
Finance Charge
$117.55
9/21/2003
8/22/2003
Benjamin's (Food /Beverage)
$36.31
8/31/2003
Walmart (General Merchandise)
$83.68
9/1/2003
Cross Creek Resort, Inc
(Food /Beverage)
$39.86
9/4/2003
Walmart (General Merchandise)
$89.11
9/10/2003
Walmart (General Merchandise)
$27.23
9/11/2003
Eckerd Drug (Health Care /Personal)
$95.19
9/17/2003
Walmart (General Merchandise)
$98.82
9/18/2003
Eckerd Drug (Health Care /Personal)
$65.48
9/19/2003
JC Penny Co (Dresses)
$79.98
9/20/2003
Sehman Tire (Tire Sales & Service)
$343.16
9/21/2003
Finance Charge
$128.59
10/21/2003
9/21/2003
Annual Membership Fee -Evans
$150.00
9/24/2003
Walmart (General Merchandise)
$53.50
9/25/2003
Haband Company (Clothing)
$182.20
9/29/2003
CVS (Health /Beauty Aids)
$66.51
10/7/2003
USPS (Postal Services)
$68.00
10/17/2003
Walmart (General Merchandise)
$102.12
10/18/2003
Kings Family Restaurant
(Food /Beverage)
$30.29
10/21/2003
Finance Charge
$130.02
11/20/2003
10/20/2003
Eckerd Drug (Health Care /Personal)
$95.09
10/25/2003
Eckerd Drug (Health Care /Personal)
$38.11
10/25/2003
Eckerd Drug (Health Care /Personal)
$71.28
10/28/2003
Giant Eagle (Grocery /Pharmacy)
$81.57
10/30/2003
Erie Petroleum, Inc (Gas /Miscellaneous)
$44.71
11/3/2003
Kwik Fill (Gas /Misc)
$22.25
11/6/2003
Sehman Tire (Tire Sales & Service)
$239.32
11/6/2003
Monro Muffler /Brake (Auto Supply)
$84.93
11/8/2003
Walmart (General Merchandise)
$176.69
11/12/2003
Holmes BP Car Wash
$23.68
11/20/2003
Walmart (General Merchandise)
$168.24
11/20/2003
Finance Charge
$134.09
12/21/2003
11/20/2003
Eckerd Drug (Health Care /Personal)
$169.58
11/21/2003
Wolf's Den Restaurant (General
Merchandise)
$69.28
12/1/2003
C and A Trees (Landscaping)
$47.70
12/2/2003
Walmart (General Merchandise)
$128.73
12/18/2003
JC Penny Co (Dresses)
$129.97
12/21/2003
Walmart (General Merchandise)
$99.80
12/21/2003
Finance Charge
$143.49
1/22/2004
12/27/2003
Walmart (General Merchandise)
$88.78
1/6/2004
Hasson Heights (Gas /Miscellaneous)
$40.00
1/10/2004
Eckerd Drug (Health Care /Personal)
$219.47
1/19/2004
Hasson Heights (Gas /Miscellaneous)
$46.49
1/21/2004
Cow Shed Inc. (Restaurant)
$50.57
1/22/2004
Finance Charge
$148.52
Evans, 06 -028
Page 49
Statement
Date',
Transaction
Date
Description
Amount
2/21/2004
1/23/2004
Laughlin Associates (Professional
Services)
$260.00
1/23/2004
Laughlin Associates (Professional
Services)
$260.00
1/26/2004
Laughlin Associates (Professional
Services)
$260.00
1/27/2004
Hajduk & Kerna Associates
(Dentist /Orthodontist)
$234.00
1/29/2004
Citgo (Gas)
$37.00
2/1/2004
Citgo (Gas)
$34.00
2/12/2004
Walmart (General Merchandise)
$80.19
2/18/2004
Blair (Apparel /Accessories)
$210.91
2/21/2004
Finance Charge
$147.03
3/22/2004
2/22/2004
TA # 67
$22.65
2/24/2004
Walmart (General Merchandise)
$182.20
2/25/2004
Red Lobster (Food /Beverage)
$56.12
3/8/2004
Eckerd Drug (Health Care /Personal)
$154.91
3/22/2004
Finance Charge
$148.33
4/21/2004
3/24/2004
Walmart (General Merchandise)
$85.00
3/30/2004
Eckerd Drug (Health Care /Personal)
$61.33
4/2/2004
Citgo (Gas)
$22.51
4/5/2004
Kwik Fill (Gas /Misc)
$20.71
4/8/2004
Haband Company (Clothing)
$181.28
4/8/2004
W Rick's Taproom (Restaurant)
$42.32
4/9/2004
Kwik Fill (Gas /Misc)
$20.10
4/13/2004
Citgo (Gas)
$13.62
4/19/2002
Walmart (General Merchandise)
$79.73
4/21/2004
Finance Charge
$149.26
5/21/2004
4/25/2004
Eckerd Drug (Health Care /Personal)
$138.48
5/2/2004
Giant Eagle (Grocery /Pharmacy)
$52.63
5/6/2004
Walmart (General Merchandise)
$84.56
5/13/2004
Walmart (General Merchandise)
$94.58
5/17/2004
Eckerd Drug (Health Care /Personal)
$206.99
5/19/2004
Walmart (General Merchandise)
$69.41
5/21/2004
Finance Charge
$149.64
6/21/2004
6/3/2004
Hoss's (Food /Beverage)
$85.55
6/4/2004
Check 9018 - Citibank
$4,000.00
6/7/2004
Check 9017 -GMAC
$7,167.38
6/14/2004
A Crivelli Chevrolet (Auto /Truck Dealer)
$156.89
6/15/2004
Eckerd Drug (Health Care /Personal)
$252.00
6/21/2004
Finance Charge
$202.01
7/22/2004
6/27/2004
Walmart (General Merchandise)
$62.84
7/9/2004
Walmart (General Merchandise)
$116.65
7/11/2004
RRR Roadhouse (Prepared Food)
$37.60
7/22/2004
Finance Charge
$245.92
8/21/2004
7/29/2004
Giant Eagle (Grocery /Pharmacy)
$29.00
8/8/2004
Erie Petroleum, Inc (Gas /Miscellaneous)
$29.51
8/21/2004
Finance Charge
$234.60
Evans, 06 -028
Page 50
Statement
Date',
Transaction
Date
Description
Amount
9/21/2004
8/27/2004
Eckerd Drug (Health Care /Personal)
$175.65
8/31/2004
Walmart (General Merchandise)
$38.46
9/21/2004
Finance Charge
$240.59
10/21/2004
9/21/2004
Annual Membership Fee -Evans
$250.00
9/22/2004
A Crivelli Chevrolet (Auto /Truck Dealer)
$45.77
9/28/2004
USPS (Postal Services)
$111.00
10/21/2004
Finance Charge
$227.37
11/20/2004
10/23/2004
Eckerd Drug (Health Care /Personal)
$119.49
10/25/2004
Walmart (General Merchandise)
$127.00
10/28/2004
Citgo (Gas)
$49.75
10/31/2004
Emlenton Truck Plaza (Auto
Parts /Accessories)
$41.91
11/3/2004
Walmart (General Merchandise)
$85.84
11/11/2004
Walmart (General Merchandise)
$76.70
11/14/2004
CVS (Health /Beauty Aids)
$102.99
11/16/2004
Kwik Fill (Gas /Misc)
$31.87
11/18/2004
Walmart (General Merchandise)
$91.00
11/20/2004
Finance Charge
$227.40
12/21/2004
11/27/2004
Sehman Tire (Tire Sales & Service)
$175.73
11/29/2004
Kwik Fill (Gas /Misc)
$35.60
11/29/2004
C and A Trees (Landscaping)
$107.98
12/17/2004
Walmart (General Merchandise)
$64.80
12/18/2004
Benedum Center (Admissions /Tickets)
$98.00
12/19/2004
Walmart (General Merchandise)
$60.95
12/21/2004
Finance Charge
$236.77
1/22/2005
12/24/2004
Walmart (General Merchandise)
$300.00
12/28/2004
Enterprise Rent -A -Car
$170.26
12/28/2004
A Crivelli Chevrolet (Auto /Truck Dealer)
$1,117.48
1/3/2005
Laughlin Associates (Professional
Services)
$260.00
1/3/2005
Laughlin Associates (Professional
Services)
$260.00
1/3/2005
Laughlin Associates (Professional
Services)
$260.00
1/18/2005
Check 9021 - Housing Authority Co
$20,315.00
1/22/2005
Finance Charge
$199.11
2/21/2005
2/1/2005
Sheetz (Service Station)
$26.50
2/3/2005
Check 9022 - Michael Hadley
(Goods /Services)
$1,000.00
2/21/2005
Finance Charge
$207.59
Total
$56,603.64*
Evans, 06 -028
Page 51
*[sic.]. [Respondent receives the benefit of the stipulated amount. Cf., Bartholomew
v. State Ethics Commission, 795 A.2d 1073 (Pa. Cmwlth. 2002).]
d. Charges incurred regarding the line of credit associated with Account No.
008 from March 21, 2001, through February 21, 2005, involved
general use (i.e., retail purchases, restaurant charges, charges for services
received, etc.), issuance of convenience checks and accrual of finance
Evans, 06 -028
Page 52
charges for Evans's personal purchases.
1. Evans issued Convenience Check No. 9013 as payment for Evans's
personal health care policy with Keystone HMO.
2. Evans issued Convenience Check No. 9014 and 9017 to GMAC as
the final payment on the 2001 Monte Carlo purchased by the
Corporation.
aa. The memo section of Convenience Check No. 9017
documents "Pay Off xxx>00000c053."
bb. The account number associated with the loan is
053.
3. Evans issued Convenience Check No. 9015 to Seabury & Smith
representative of payment to Hartford Life Insurance Company for
Evans's Group Disability Income Insurance Policy No. AGP -5062.
4. Evans issued Convenience Check No. 9018 to Citi Cards in order to
transfer the existing balance on his personal Citi Platinum select card
(Account No. 182) to the Corporation.
aa. Documented in the "Memo" section of the check is
182.
bb. Evans's signature appears on the check as the authorized
signatory.
cc. American Express statements document the check payable to
Citibank.
5. Evans issued Convenience Check No. 9021 to the Authority account
at First National Bank in an effort to replenish funds in the account.
aa. On December 15, 2004, Evans wrote First National Bank
check number 1069 from the authority's account payable to the
Corporation in the amount of $30,315.00.
bb. Evans issued the check from the authority to the Corporation
in order to be able to make significant payment on the
American Express (Account No. 008) existing
balance of $29,394.98 prior to the seating of the new Authority
board.
1. The seating of new Authority board members to replace
Oelkrue and Kearney was mandated by the Court of
Common Pleas decision at CIV. No 831 -2003 dated
July 12, 2004.
2. The Venango County Commissioners appointed Steve
Eakin, Cindy McBride, and Gene Miller to replace board
members Kearney, Joseph Stahlman, and Max Serafin
respectively on December 22, 2004.
3. The seating of new Authority board members to replace
Kearney, Stahlman, and Serafin and the establishment
Statement
Closing Date
Payment
Date
Corporation
Check
Number
Amount
Signatories
4/18/2001
4/7/2001
2151
$114.00
Evans /Kearney
5/18/2001
5/3/2001
2165
$132.00
Evans /Kearney
6/19/2001
6/1/2001
2182
$151.00
Evans /Kearney
7/18/2001
7/8/2001
2189
$191.00
Evans /Kearney
8/19/2001
8/9/2001
2211
$198.00
Evans /Kearney
9/19/2001
8/26/2001
2220
$211.00
Evans /Kearney
10/18/2001
10/5/2001
2243
$210.00
Evans /Kearney
11/19/2001
10/28/2001
2256
$208.00
Evans /Kearney
12/19/2001
11/29/2001
2265
$206.00
Evans /Kearney
1/18/2002
12/31/2001
2291
$204.00
Evans /Kearney
2/19/2002
2/13/2002
2316
$202.00
Evans /Kearney
3/19/2002
3/1/2002
2333
$200.00
Evans /Kearney
4/18/2002
4/10/2002
2355
$198.00
Evans /Kearney
5/19/2002
5/12/2002
2368
$196.00
Evans /Kearney
7/18/2002
7/3/2002
2375
$193.00
Evans /Kearney
8/19/2002
8/4/2002
2395
$191.00
Evans /Kearney
9/18/2002
9/1/2002
2410
$189.00
Evans /Kearney
10/18/2002
10/3/2002
2427
$188.00
Evans /Kearney
11/19/2002
11/3/2002
2443
$186.00
Evans /Kearney
12/18/2002
12/7/2002
2460
$184.00
Evans /Kearney
1/19/2003
1/3/2003
2484
$500.00
Evans /Kearney
2/19/2003
2/8/2003
2502
$175.00
Evans /Kearney
3/19/2003
3/7/2003
2515
$173.00
Evans /Kearney
4/18/2003
4/7/2003
2530
$171.00
Evans /Kearney
5/19/2003
5/9/2003
2548
$170.00
Evans /Kearney
Evans, 06 -028
Page 53
of term ending dates was mandated by the Court of
Common Pleas Order dated January 16, 2005, to be
effective January 1, 2005.
cc. Evans's signature appears on the check as the authorized
signatory.
6. Evans issued Convenience Check No. 9022 to Attorney Michael
Hadley as a retainer for legal services in association with his
suspension and eventual termination from the Authority /Corporation.
aa. Documented in the memo section of the check is "retainer."
bb. Evans's signature appears on the check as the authorized
signatory.
e. Evans's personal use of the Corporation's American Express line of credit
associated with Account No. 008 totaled $56,603.54 in general
purchases /charges, Convenience Checks issued and Finance Charges
incurred.
130. Evans issued payment to American Express on both accounts (Account No.
005 and 008) via Corporation checks without specific
Corporation or Authority board approval totaling $61,547.00 ($12,052.00 +
$49,495.00) as shown below:
Account No. xxxxxxxxxxxx005:
Statement
Closing Date
Payment
Date
Corporation
Check
Number
Amount
$359.00
Signatories
Evans /Kearney
4/21/2001
4/8/2001
2155
5/21/2001
5/3/2001
2166
$369.00
Evans /Kearney
6/20/2001
6/1/2001
2179
$372.00
Evans /Kearney
7/21/2001
7/8/2001
2191
$367.00
Evans /Kearney
8/20/2001
8/9/2001
2209
$389.00
Evans /Kearney
9/20/2001
9/7/2001
2227
$414.00
Evans /Kearney
10/21/2001
10/5/2001
2244
$430.00
Evans /Kearney
11/20/2001
10/28/2001
2254
$545.00
Evans /Kearney
12/21/2001
11/29/2001
2268
$462.00
Evans /Kearney
1/21/2002
12/31 /2001
2292
$502.00
Evans /Kearney
2/20/2002
2/14/2002
2319
$499.00
Evans /Kearney
3/22/2002
3/1/2002
2335
$484.00
Evans /Kearney
4/21/2002
4/10/2002
2356
$482.00
Evans /Kearney
5/21/2002
5/12/2002
2366
$559.00
Evans /Kearney
7/21/2002
7/3/2002
2377
$603.00
Evans /Kearney
8/21/2002
8/4/2002
2397
$598.00
Evans /Kearney
9/21/2002
9/3/2002
2413
$592.00
Evans /Kearney
10/21/2002
10/3/2002
2425
$584.00
Evans /Kearney
11/20/2002
11/3/2002
2442
$670.00
Evans /Kearney
12/21/2002
12/7/2002
2461
$562.00
Evans /Kearney
1/21/2003
1 /3/2003
2486
$562.00
Evans /Kearney
2/20/2003
2/8/2003
2504
$559.00
Evans /Kearney
3/22/2003
3/7/2003
2513
$550.00
Evans /Kearney
Statement
Closing
Date
Payment
Date
Corporation
Check
Number
Amount
Signatories
7/18/2003
7/4/2003
2559
$200.00
Evans /Kearney
8/19/2003
7/30/2003
2572
$165.00
Evans /Kearney
9/18/2003
8/31/2003
2590
$438.00
Evans /Kearney
10/19/2003
10/3/2003
2605
$432.00
Evans /Kearney
11/19/2003
11/4/2003
2623
$427.00
Evans /Kearney
12/18/2003
12/6/2003
2640
$421.00
Evans /Kearney
1/19/2004
1/2/2004
2652
$416.00
Evans /Kearney
2/18/2004
1/31/2004
2676
$411.00
Evans /Kearney
3/18/2004
2/29/2004
2689
$406.00
Evans /Kearney
4/19/2004
4/6/2004
2705
$400.00
Evans /Kearney
5/19/2004
4/30/2004
2710
$396.00
Evans /Kearney
6/18/2004
5/28/2004
2723
$391.00
Evans /Kearney
7/19/2004
7/4/2004
2731
$386.00
Evans /Kearney
8/18/2004
8/2/2004
2749
$381.00
Evans /Kearney
9/19/2004
8/29/2004
2758
$377.00
Evans /Kearney
10/19/2004
10/1/2004
2775
$372.00
Evans /Kearney
11/18/2004
10/30/2004
2787
$368.00
Evans /Kearney
12/19/2004
12/5/2004
2801
$364.00
Evans /Kearney
1/19/2005
1/14/2005
2823
$360.00
Evans /Kearney
Total
$12,052.00
Evans, 06 -028
Page 54
*Signature Stamps utilized to authorize checks with the exception of check number
2823
Account No. xxxxxxxxxxxx008:
Statement
Closing
Date
Payment
Date
Corporation
Check
Number
Amount
Signatories
4/21/2003
4/7/2003
2531
$542.00
Evans /Kearney
5/21/2003
5/9/2003
2546
$534.00
Evans /Kearney
7/22/2003
7/4/2003
2557
$525.00
Evans /Kearney
8/21/2003
8/6/2003
2576
$408.00
Evans /Kearney
9/21/2003
8/31/2003
2587
$443.00
Evans /Kearney
10/21/2003
10/3/2003
2608
$460.00
Evans /Kearney
11/20/2003
11/4/2003
2621
$469.00
Evans /Kearney
12/21/2003
12/6/2003
2638
$489.00
Evans /Kearney
1/22/2004
1/2/2004
2649
$498.00
Evans /Kearney
2/21/2004
2/5/2004
2681
$500.00
Evans /Kearney
3/22/2004
2/29/2004
2691
$529.00
Evans /Kearney
4/21/2004
4/6/2004
2702
$530.00
Evans /Kearney
5/21/2004
5/1/2004
2714
$534.00
Evans /Kearney
6/21/2004
5/28/2004
2725
$541.00
Evans /Kearney
7/22/2004
7/4/2004
2733
$855.00
Evans /Kearney
8/21/2004
8/5/2004
2752
$845.00
Evans /Kearney
9/21/2004
9/11/2004
2760
$829.00
Evans /Kearney
10/21/2004
10/1/2004
2773
$819.00
Evans /Kearney
11/20/2004
10/30/2004
2786
$814.00
Evans /Kearney
12/21/2004
12/5/2004
2802
$818.00
Evans /Kearney
1/22/2005
1/10/2005
2812
$26,000.00
Evans /Kearney
Total
$49,495.00
Evans, 06 -028
Page 55
*Signature Stamps utilized to authorize checks
a. The payment date listed references the payment made on the prior month's
statement.
131. None of the eighty -eight checks issued by Evans in payment of charges incurred
through the American Express line of credit were approved by the Corporation
board at any official board meeting.
a. Neither the Corporation board nor the Authority board gave approval or had
knowledge of Evans's personal use of Corporation credit cards /lines of
credit.
132. Evans, as President of the Corporation, realized a private pecuniary gain of
$78,733.85 as the result of utilizing credit cards /lines of credit in the name of the
Corporation for personal use without specific approval of the Corporation or
Authority board of directors to do so as shown below:
a.
Descri
ption
Account No. 005
Account No. 008
Credit For Personal Payment
Total
C
harcies In
$24,336.21
$56,603.64
- $2,206.00
$78,733.85
curred
issued eighty -eight checks totaling $61,547.00 from the Corporation
account to American Express in payment for personal purchases /services
charged to the Corporation lines of credit.
Ck Date
Ck No.
Ck Amt.
Payee
Description
Signatories*
5/30/2001
2180
$ 95.42
American Insurance Administrators
126- 186392
Evans /Kearney
9/5/2001
2225
$ 102.05
American Insurance Administrators
6186392
Evans /Kearney
11/27/2001
2266
$ 102.65
American Insurance Administrators
126- 186 -392
Evans /Kearney
2/21/2002
2329
$ 102.05
American Insurance Administrators
126- 186392
Evans /Kearney
9/1/2002
2403
$ 166.29
American Insurance Administrators
Incomplete
Evans /Kearney
11/20/2002
2448
$ 166.29
American Insurance Administrators
126- 186 -392
Evans /Kearney
3/5/2003
2518
$ 166.29
American Insurance Administrators
126186392
Evans /Kearney
7/1/2003
2554
$ 166.29
American Insurance Administrators
126- 186392
Evans /Kearney
8/31/2003
2588
$ 176.50
American Insurance Administrators
126186392
Evans /Kearney
11/20/2003
2631
$ 176.50
American Insurance Administrators
126- 186392
Evans /Kearney
2/25/2004
2687
$ 176.50
American Insurance Administrators
126- 186392
Evans /Kearney
5/26/2004
2722
$ 176.50
American Insurance Administrators
126- 186392
Evans /Kearney
8/26/2004
2757
$ 186.71
American Insurance Administrators
126186392
Evans /Kearney
11/20/2004
2795
$ 186.71
American Insurance Administrators
126- 186392
Evans /Kearney
Evans, 06 -028
Page 56
b. A minimum of $17,186.85 remained to be paid by the Corporation for
charges of a personal nature incurred by Evans.
c. Evans made personal payment in the total amount of $2,206.00 on the two
accounts.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS ASSOCIATED WITH
ADDITIONAL INSURANCE POLICIES OF A PERSONAL NATURE IN EVANS'S
NAME WHICH WERE PAID FOR VIA THE USE OF CORPORATION FUNDS
133. Evans routinely issued payment for insurance policies of a personal nature through
the Corporation National City Account without approval of the Corporation or
Authority board of directors.
134. In addition to companies /organizations from which specific policy information was
obtained, Evans maintained additional policies through American Insurance
Administrators, ReAssure America (previously administered by Prudential
Insurance Company of America), Physicians Mutual Insurance Company, AOPA
Insurance Plans (a /k/a Non - Sponsored Insurance Plans), The Hartford, and
Metropolitan Life.
135. Neither the Authority nor the Corporation had any professional /business
relationship with American Insurance Administrators, ReAssure America,
Physicians Mutual Insurance Company, AOPA Insurance Plans, The Hartford, or
Metropolitan Life.
a. Corporation checks issued to the entities were issued by Evans for policies
in his name.
b. Corporation checks issued to the entities bore Evans's handwriting.
136. From at least April 2001 through January 2005, Evans routinely utilized the
Corporation account at National City Bank (Account No. xxxx901) to issue
payments in his name to companies /businesses with which Evans had personal
interests without Corporation or Authority board approval totaling $12,543.01 as
shown below:
a. American Insurance Administrators:
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories
4/18/2001
2161
$ 84.21
AOPA Insurance Plans
60403- 3831443
Evans /Kearney
5/1/2001
2169
$ 79.80
AOPA Insurance Plans
604140006264 -2
Pymts
Evans /Kearney
7/19/2001
2203
$ 84.21
AOPA Insurance Plans
60403- 3831443
Evans /Kearney
9/20/2001
2233
$ 39.90
AOPA Insurance Plans
60414- 0606264
Evans /Kearney
10/26/2001
2255
$ 123.69
AOPA Insurance Plans
604033831443
Evans /Kearney
12/21/2001
2280
$ 39.90
AOPA Insurance Plans
604140006264
Evans /Kearney
2/12/2002
2320
$ 123.69
AOPA Insurance Plans
604033831443
Evans /Kearney
4/8/2002
2361
$ 39.90
AOPA Insurance Plans
60414- 0006264
Evans /Kearney
5/14/2002
2370
$ 123.69
AOPA Insurance Plans
604033831443
Evans /Kearney
7/1/2002
2378
$ 39.90
AOPA Insurance Plans
604140006264
Evans /Kearney
7/22/2002
2390
$ 123.69
AOPA Insurance Plans
604033831443
Evans /Kearney
9/20/2002
2420
$ 399.00
AOPA Insurance Plans
604140006264
Evans /Kearney
11/1/2002
2445
$ 123.69
AOPA Insurance Plans
604033831443
Evans /Kearney
12/26/2002
2471
$ 39.90
AOPA Insurance Plans
604140006264
Evans /Kearney
1/21/2003
2498
$ 123.69
AOPA Insurance Plans
604033831443
Evans /Kearney
3/18/2003
2524
$ 39.90
AOPA Insurance Plans
604140006264
Evans /Kearney
7/2/2003
2560
$ 39.90
AOPA Insurance Plans
604140006264
Evans /Kearney
9/24/2003
2601
$ 39.90
Non Sponsored Insurance Plans
60414- 0006264
Evans /Kearney
12/28/2003
2653
$ 39.90
Non Sponsored Insurance Plans
604140006064
Evans /Kearney
Ck Date
Ck No.
Ck Amt.
Payee
Description
Signatories*
12/11/01
2277
$ 507.10
Physicians Mutual
016 - 752 -475
Evans /Kearney
12/12/2002
2463
$ 507.10
Physicians Mutual Insurance Company
16752475
Evans /Kearney
12/26/2002
2470
$ 585.75
Physicians Mutual Insurance Company
16752475
Evans /Kearney
7/2/2003
2561
$ 24.06
Physicians Mutual Insurance Company
016752475 -0
Evans /Kearney
12/28/2003
2658
$ 753.50
Physicians Mutual Insurance Company
16752475
Evans /Kearney
12/14/2004
2808
$ 753.50
Physicians Mutual Insurance Company
016 - 752 -475
Evans /Kearney
Total
$ 3,131.01
Ck Date
Ck No.
Ck Amt.
Payee
Description
Signatories
10/11/2000
2057
$ 88.89
Prudential Insurance Co of America
H1807595
Evans /Kearney
10/17/2001
2249
$ 88.89
Prudential Insurance Co of America
H1807595
Evans /Kearney
10/1/2002
2421
$ 88.89
Prudential Insurance Co of America
H1807595
Evans /Kearney
10/9/2003
2611
$ 88.89
Prudential
H1807595
Evans /Kearney
9/30/2004
2774
$ 88.89
Prudential Insurance Co of America
H1807595
Evans /Kearney
Total
$ 444.45
Ck Date
Ck No.
Ck Amt.
Payee
Description
Signatories*
Total
$ 2,146.75
Evans, 06 -028
Page 57
*Signature stamps utilized to authorize checks.
b. ReAssure America (previously administered by Prudential):
*Signature stamps utilized to authorize checks.
c. Physicians Mutual Insurance Company:
*Signature stamps utilized to authorize checks.
d. AOPA/Non Sponsored Insurance Plans
Ck Date
Ck No.
Ck Amt. >
Payee
Description
Signatories*
4/5/2001
2149
$ 169.02
Hartford Life Insurance Company
165427
Evans /Kearney
7/6/2001
2192
$ 169.02
Hartford Life Insurance Company
0165427 -22453
Evans /Kearney
10/1/2001
2241
$ 169.02
Hartford Life Insurance Company
165427
Evans /Kearney
2/1/2002
2342
$ 169.02
Hartford Life Insurance Program
143 -114
Evans /Kearney
4/8/2002
2360
$ 169.02
Hartford Life Insurance Company
0165427 -37557
Evans /Kearney
7/1/2002
2380
$ 169.02
Hartford Life Insurance Company
165427
Evans /Kearney
10/1/2002
2423
$ 169.02
Hartford Life Insurance Company
0165427 -47879
Evans /Kearney
1/7/2003
2489
$ 169.02
Hartford Life Insurance Programs
0165427 -52974
Long Term
Evans /Kearney
4/15/2003
2534
$ 169.02
Hartford
7544 -50
Evans /Kearney
7/11/2003
2567
$ 169.02
Hartford
7544 -50 Long Term
Evans /Kearney
10/9/2003
2616
$ 169.02
Hartford
7544 -50
Evans /Kearney
1/16/2004
2671
$ 169.02
Hartford
7544 -50
Evans /Kearney
4/27/2004
2711
$ 169.02
Hartford
7544 -50
Evans /Kearney
7/14/2004
2746
$ 169.02
Hartford
7544 -50
Evans /Kearney
10/11/2004
2782
$ 169.02
Hartford
7544 -50
Evans /Kearney
Total
$2,535.30
Ck Date
Ck No.
Ck Amt.
Payee
Description
Signatories*
8/20/2001
2215
$ 54.78
Metropolitan Life
94444 - 0770816691
Evans /Kearney
9/20/2001
2234
$ 164.34
Metropolitan Life
770816691
Evans /Kearney
12/21/2001
2282
$ 164.34
Metropolitan Life
94444 - 0770816691
Evans /Kearney
4/1/2002
2348
$ 164.34
Metropolitan Life
94444 - 0770816691
Evans /Kearney
7/1/2002
2376
$ 164.34
Metropolitan Life
94444
Evans /Kearney
9/20/2002
2418
$ 177.15
Metropolitan Life
94444
Evans /Kearney
12/26/2002
2472
$ 173.95
Metropolitan Life
944440770816691
Evans /Kearney
3/18/2003
2525
$ 173.95
Metropolitan Life
94444 AARP #0770816691
Evans /Kearney
9/24/2003
2600
$ 187.82
Metropolitan Life
94444 - 0770816691
Evans /Kearney
12/28/2003
2654
$ 184.35
Metropolitan Life
94444 - 0770816691
Evans /Kearney
3/26/2004
2699
$ 184.35
Metropolitan Life
776816691
Evans /Kearney
7/1/2004
2734
$ 184.35
Metropolitan Life
94444
Evans /Kearney
9/15/2004
2768
$ 201.88
Metropolitan Life
#94444
Evans /Kearney
12/28/2004
2811
$ 197.50
Metropolitan Life
94444
Evans /Kearney
Total
$2,377.44
Ck Date
Ck
No.
Ck Amt.
Payee
Description
Signatories
3/26/2004
2698
$ 39.90
Non Sponsored Insurance Plans
604140006264
Evans /Kearney
7/1/2004
2738
$ 39.90
Non Sponsored Insurance Plans
604140006264
Evans /Kearney
9/23/2004
2770
$ 39.90
Non Sponsored Insurance Plans
604140066264
Evans /Kearney
12/28/2004
2816
$ 39.90
Non Sponsored Insurance Plans
604140006264
Illegible /Kearney
Total
$ 1,908.06
Evans, 06 -028
Page 58
*Signature stamps utilized to authorize checks.
e. The Hartford.
*Signature stamps utilized to authorize checks.
f. Metropolitan Life.
*Signature stamps utilized to authorize checks.
g.
None of the seventy -seven checks issued by Evans were approved by the
Corporation or Authority board.
Evans, 06 -028
Page 59
1 Although in existence since July 1982, minutes of only two official
Corporation meetings exist.
aa. Corporation minutes note no official action by the respective
board members to approve any checks issued by Evans from
the Corporation account.
h. No minutes of Authority board meetings document Corporation meetings
held concurrently with Authority meetings.
1. No official votes by the Corporation board to approve checks issued
from Corporation accounts are present in Authority minutes.
No Corporation checks issued /expensed were presented to the Authority
board at any meeting for approval.
1. The Authority board had no knowledge of Corporation checks
expensed for Evans's personal benefit.
137. Evans, as President of the Corporation, realized a financial gain of $12,543.01 as
the result of voting to approve himself into a compensated position with the
Corporation and issuing Corporation checks to businesses /companies on his behalf
for personal interest without approval of the Corporation or Authority board of
directors.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT EVANS UTILIZED A
VEHICLE OWNED BY THE CORPORATION FOR HIS OWN PERSONAL USE
138. The Corporation has existed as an instrumentality of the Authority since July 14,
1982.
a. The Corporation was formed solely for the purpose of issuing tax -free bonds
for the construction of Evergreen Arbors.
b. The Corporation owns and /or leases no office space separate from the
Authority office.
139. The Corporation currently owns a 2001 Chevrolet Monte Carlo (License Plate No.
DSY -5586; Vehicle Identification No. 2G1WW12E819153653).
a. The Corporation has owned or leased various vehicles since at least
approximately 1990.
1. The Corporation has owned /leased only one vehicle at any specific
time.
140. A Corporation resolution dated June 27, 1990, authorized the first purchase of a
vehicle by the Corporation.
a. The resolution approved the purchase of an un -used automobile by sending
dealerships specifications and receiving bids.
b. The motion was made by Evans, seconded by Sterrett, and approved via 3 -0
vote of the Corporation board.
Evans, 06 -028
Page 60
1 The Corporation board at that time was composed of Evans
(President), Sterrett (Vice- President), and Albert
(Secretary /Treasurer).
141. No Corporation minutes exist documenting the June 27, 1990, meeting where the
resolution was allegedly approved.
a. Corporation meeting minutes exist solely for Corporation meetings held on
July 14, 1982, and May 30, 1990.
142. Authority minutes document an Authority meeting held on June 27, 1990.
a. Authority minutes for the June 27, 1990, meeting document no discussion or
vote by Corporation or Authority board members approving the purchase of a
vehicle for the Corporation.
143. From January 23, 1997, through July 13, 2001, the Corporation maintained
possession of a 1997 Ford Taurus, Vehicle Identification No.
1 FALP52U4VG146122.
a. The vehicle was originally leased from Century Ford in Seneca, PA, through
VT, Inc. as trustee for World Omni Financial Corp. as of January 23, 1997.
1. Evans completed the Standard Credit Application for the lease.
aa. Evans documented an address of 9 Rockwood Ave, PO Box
1518, Oil City, PA 16301 on the application.
bb. Evans mistakenly documented the address as 9 Rockwood
Ave. instead of the Corporation /Authority address of 19
Rockwood Ave.
2. Evans also completed a Lease Application For Business for the
lease.
aa. Evans documented the Corporation name and physical
address, but not the mailing address, on the application.
bb. Evans provided his own personal PO Box number (PO Box
1518) along with the Corporation physical address.
cc. Evans signed the Lease Application For Business as the
President of the Corporation on January 23, 1997.
3. The lease agreement documented the primary use of the vehicle as
"Business or Agricultural."
aa. The vehicle's odometer reading at the time the vehicle was
leased documented twenty -two miles on the vehicle.
bb. Evans's signature is documented on the Odometer Disclosure
Statement completed at the time of the lease.
b. The Corporation ultimately purchased the vehicle from VT, Inc., as Trustee
for World Omni Financial Corp. effective October 27, 1999.
Evans, 06 -028
Page 61
1 Evans signed the Bill of Sale as the President of the Corporation on
October 27, 1999.
2. The vehicle's odometer reading at the time of purchase documented
70,144 miles on the vehicle.
aa. Evans's signature is documented on the Odometer Disclosure
Statement completed at the time of the purchase.
144. From July 14, 2001, through the present, the Corporation has maintained
possession of a 2001 Chevrolet Monte Carlo, Vehicle Identification No.
2G1 WW12E819153653.
a. The vehicle was purchased used at A. Crivelli Chevrolet in Franklin, PA, and
financed through General Motors Acceptance Corporation (GMAC) effective
July 14, 2001.
1. Evans completed the Credit Sale /Lease Application as the
Corporation President.
aa. Evans documented the Corporation name and physical
address, but not the mailing address, on the application.
bb. Evans provided his own personal PO Box number (PO Box
1518) along with the Corporation physical address.
cc. Evans signed the application as a co- applicant in his personal
capacity.
b. The cost of the vehicle including financing charges minus trade -in (the 1997
Ford Taurus) was $26,249.28 over a term of forty -eight months.
c. The vehicle's odometer reading at the time of purchase documented 13,562
miles on the vehicle.
145. Automobile insurance coverage for the Corporation 1997 Taurus and 2001 Monte
Carlo was maintained through National Grange Mutual Insurance Company
(administered by The Main Street America Group).
a. Policy No. B1Z89972 is a commercial automobile liability and physical
damage insurance policy that originally insured the 1997 Taurus but now
insures the 2001 Monte Carlo.
b. The policy was effective as of January 28, 1998.
146. Evans signed the completed insurance application on behalf of the Corporation on
January 28, 1998.
a. The application noted the Corporation address as PO Box 988, Oil City, PA
16301.
b. The application documented Evans as the sole individual driving company
vehicles.
c. The application documented Evans as the sole insured operator.
Evans, 06 -028
Page 62
d. The application documented vehicle use as "Drive To Work/School -Under
15 Miles."
147. Vehicles purchased /leased by the Corporation were to be utilized for business -
related purposes only.
a. Corporation vehicles were not approved for personal use.
148. From at least July 14, 2001, Evans was the primary driver /operator of the 2001
Monte Carlo owned by the Corporation.
a. Evans drove the Monte Carlo to and from the Authority /Corporation office
location on a daily basis.
b. Evans's address at that time was 152 Parker Ave, Franklin, PA 16323.
1. Approximate mileage for Evans from his residence to 19 Rockwood
Ave., Oil City, PA 16301 was ten miles one way.
2. Approximate annual mileage associated with Evans's travel to and
from the Authority /Corporation office is 5,200 miles (20 miles /day X 5
days /week X 52 weeks /year).
149. Evans routinely utilized the Monte Carlo for personal use in addition to driving the
vehicle to work on a daily basis.
a. Evans accrued approximately 87,524 miles on the vehicle during the
approximate three years, nine months in which the vehicle was in his
possession.
1. Evans returned the Monte Carlo to the Authority /Corporation office in
or about late March /early April 2005.
2. Authority employees did not utilize the vehicle until it passed
Pennsylvania State inspection in July 2005.
150. Miles accrued on the 2001 Monte Carlo diminished significantly after Evans's
termination from the Authority /Corporation.
a. Authority employees utilizing the vehicle from August 2005 through June 16,
2006, accrued approximately 9,658 miles.
151. Between the time period of July 2001 through March 2005, Evans maintained
personal insurance on privately owned vehicles as identified below:
a. 1977 MG Convertible (July 2001 through March 2005).
1. Evans accrued approximately two hundred sixty -three miles on his
1977 MG Convertible from late 2001 through late 2003.
2. Evans obtained antique license plates on the 1977 MG Convertible in
2003.
3. Section 1340 of the Pennsylvania Vehicle Code states that it is
unlawful for any person to operate a motorcycle or vehicle with
antique, classic, or collectible registration plates for general daily
transportation.
Ck No. >
Ck Date
Ck Amt.
Payee
Description
Signatories*
5110
8/12/2001
$546.86
GMAC
1 payment on 01 Monte Carlo
Evans **
2224
9/5/2001
546.86
GMAC
4030441053
Evans /Kearney
2247
10/10/2001
546.86
GMAC
4030441053
Evans /Kearney
Evans, 06 -028
Page 63
4. Insurance on the 1977 MG was paid for with Corporation funds.
aa. Permitted use is limited to participation in club activities,
exhibits, tours, parades, occasional transportation and similar
uses.
bb. Occasional transportation and similar uses is defined as one
day per week.
b. 1987 Oldsmobile Cutlass Sierra (November 24, 2003, through August 13,
2004).
1. Insurance on the 1987 Oldsmobile was paid for with Corporation
funds.
c. 2000 Chevrolet Lumina (February 28, 2005, to the present).
1. Evans purchased the Lumina on February 28, 2005, with personal
check number 504 in the amount of $7,375.00 from his personal bank
account at Citizen's Bank.
2. Evans purchased the vehicle as the result of receiving
correspondence dated February 24, 2005, from Eakin, Authority
Chairman at that time, which specified that Evans was no longer
authorized to operate the Corporation vehicle for any reason.
aa. The correspondence specified that the Monte Carlo along
with all funds, records, property, and other things owned by
the Corporation in Evans's possession must be returned by
March 2, 2005, or legal action would be taken.
3. Evans purchased the Lumina as a result of having no vehicle to utilize
on a daily basis when the Monte Carlo was returned to the
Corporation.
152. Between the dates of July 2001 - November 2003 and August 2004 - February 2005,
Evans had no properly insured vehicle to utilize for personal use with the exception
of the Corporation Monte Carlo.
a. Evans maintained insurance on a privately owned vehicle for daily personal
use for only nine months during the time frame of July 2001 through
February 2005.
b. Evans did not utilize his 1977 MG Convertible for daily personal use.
153. Evans realized a financial benefit of $24,662.90 through his personal use of the
Corporation 2001 Monte Carlo and his issuance of thirty -three checks from the
Corporation account at National City Bank and /or American Express convenience
checks for the purchase /payment of the vehicle without specific Corporation Board
approval as shown below:
Ck No.
Ck Date
Ck Amt.
Payee
Description
Signatories*
2259
11/6/2001
546.86
GMAC
1030441053
Evans /Kearney
2270
12/11/2001
546.86
GMAC
4030441053
Evans /Kearney
2296
1/2/2002
546.86
GMAC
4030441053
Evans /Kearney
2318
2/4/2002
546.86
GMAC
4030441053
Evans /Kearney
2341
3/6/2002
546.86
GMAC
4030441053
Evans /Kearney
2352
4/5/2002
546.86
GMAC
4030441053
Evans /Kearney
9014
5/06/02
546.86
GMAC
4030441053
Evans **
2388
7/1/2002
546.86
GMAC
4030441053
Evans /Kearney
2399
8/2/2002
546.86
GMAC
4030441053
Evans /Kearney
2414
9/9/2002
546.86
GMAC
4030441053
Evans /Kearney
2431
10/4/2002
546.86
GMAC
4030441053
Evans /Kearney
2444
11/1/2002
546.86
GMAC
4030441053
Evans /Kearney
2456
12/12/2002
546.86
GMAC
4030441053
Evans /Kearney
2488
1/2/2003
546.86
GMAC
4030441053
Evans /Kearney
2505 * **
2/11/03
546.86
GMAC
4030441053
Evans /Kearney
2519
3/5/2003
546.86
GMAC
4030441053
Evans /Kearney
2532
4/4/2003
542.86
GMAC
4030441053
Evans /Kearney
2543
5/6/2003
546.86
GMAC
4030441053
Evans /Kearney
2563
7/2/2003
546.86
GMAC
4030441053
Evans /Kearney
2579
8/8/2003
546.86
GMAC
4030441053
Evans /Kearney
2596
9/4/2003
546.86
GMAC
4030441053
Evans /Kearney
2610
10/1/2003
546.86
GMAC
4030441053
Evans /Kearney
2626
11/6/2003
546.86
GMAC
4030441053
Evans /Kearney
2642
12/8/2003
546.86
GMAC
4030441053
Evans /Kearney
2659
12/28/2003
546.86
GMAC
4030441053
Evans /Kearney
2684
2/2/2004
546.86
GMAC
4030441053
Evans /Kearney
2692
2/26/2004
546.86
GMAC
004 - 0304 -41053
Evans /Kearney
2704
4/1/2004
546.86
GMAC
4030441053
Evans /Kearney
2715
4/28/2004
546.86
GMAC
4030441053
Evans /Kearney
9017
6/02/2004
7,167.38
GMAC
Pay Off 4030441053
Evans*
Total
$24,662.90
Evans, 06 -028
Page 64
* Signature Stamps utilized to authorize checks.
Represents American Express convenience checks.
**
* ** Actual check not available; check date represents the date the check
cleared.
a. Convenience Check number 5110 was written on the Corporation American
Express Account No. 3722 - 608685 - 12005.
b. Convenience Check numbers 9014 and 9017 were written on the
Corporation American Express Account No. 3722 - 808666 - 81008.
c. Evans's signature appears as an authorized signatory on all thirty -three
checks issued.
154. From approximately mid -1993, Evans established a line of credit in association with
a Sheetz Fleet Account (Account No. 1939011456508) in the name of the
Corporation for use with the Corporation vehicle.
a. Evans documented the Venango Housing Corporation as the
Ck No.
Ck Date
Ck Amt.
Payee
Description
Signatories*
2167
5/1/2001
$ 125.14
Sheetz Fleet
None
Evans /Kearney
2181
5/30/2001
$ 139.98
Sheetz Fleet
1939011456508
Evans /Kearney
2195
7/6/2001
$ 150.10
Sheetz Fleet
1939011456508
Evans /Kearney
2206
7/30/2001
$ 143.37
Sheetz Fleet
1939011456508
Evans /Kearney
2221
9/5/2001
$ 145.73
Sheetz Fleet
None
Evans /Kearney
2240
10/1/2001
$ 106.15
Sheetz Fleet
1939011456508
Evans /Kearney
2257
10/29/2001
$ 121.52
Sheetz Fleet
1939011456508
Evans /Kearney
2276
12/11/2001
$ 121.39
Sheetz Fleet
8207854 Invoice
Evans /Kearney
2288
12/28/2001
$ 31.69
Sheetz Fleet
None
Evans /Kearney
2321
2/12/2002
$ 71.27
Sheetz Fleet
1939011456508
Evans /Kearney
2337
3/1/2002
$ 78.71
Sheetz Fleet
193901145650S
Evans /Kearney
2349
4/2/2002
$ 50.55
Sheetz Fleet
1939011456508
Evans /Kearney
2369
5/13/2002
$ 133.64
Sheetz Fleet
1939011456508
Evans /Kearney
2383
7/1/2002
$ 142.69
Sheetz ADV Card
1939011456508
Evans /Kearney
2398
8/2/2002
$ 92.29
Sheetz ADV Card
1939011456508
Evans /Kearney
2405
9/1/2002
$ 67.95
Sheetz Advantage Card
1939011456508
Evans /Kearney
2432
10/4/2002
$ 106.40
Sheetz ADV Card
1939011456508
Evans /Kearney
2439
11/1/2002
$ 106.89
Sheetz Advantage Card
None
Evans /Kearney
2454
12/1/2002
$ 32.40
Sheetz ADV Card
None
Evans /Kearney
2485
12/31/2002
$ 82.35
Sheetz ADV Card
1939 - 011456508
Evans /Kearney
2508
2/13/2003
$ 74.36
Sheetz Advantage Card
1939011456508
Evans /Kearney
Evans, 06 -028
Page 65
applicant /buyer.
1. Evans noted that the Corporation was a subsidiary of the Authority.
b. Evans documented his personally controlled PO Box Number (PO Box 1518)
as the address of the Corporation /Authority.
1. Evans changed the billing address PO Box from Box 1518 to Box 988
effective August 10, 1995.
2. Evans attempted to change the billing address back to his personally
controlled PO Box (Box 1518) approximately six days after his
suspension from the Authority /Corporation became effective.
c. Evans documented himself as the "accounts payable" individual for the
Corporation on the application.
d. Evans designated himself as the Fleet Contact Person for the account on the
application.
1. The Fleet Contact Person receives all credit cards, Vehicle Analysis
Reports, and other information Sheetz provides from time to time.
e. Evans maintained sole custody of the credit card associated with the
account.
155. From April 2001 through January 2005, Evans utilized the Corporation account at
National City Bank and the Authority Account at First National Bank to issue forty -
four checks totaling $5,704.46 to Sheetz without prior Corporation or Authority
board approval for charges incurred which included personal use as follows:
1024
2/19/2003
$ 111.08
Sheetz Adv Card
193901 1456508
Evans /Kearney
2528
4/4/2003
$ 130.38
Sheetz ADV Card
1939011456508
Evans /Kearney
2542
4/30/2003
$ 109.60
Sheetz ADV Card
1939011456508
Evans /Kearney
1035
6/2/2003
$ 138.80
Sheetz Adv Card
Housing Authority Truck Fuel
Evans /Kearney
2556
7/2/2003
$ 116.97
Sheetz ADV Card
1939- 011456508
Evans /Kearney
2576
8/3/2003
$ 147.45
Sheetz ADV Card
1939011456508
Evans /Kearney
2593
9/2/2003
$ 99.42
Sheetz ADV Card
Authority Truck Fuel
Evans /Kearney
2609
10/1/2003
$ 187.38
Sheetz ADV Card
1939011456508
Evans /Kearney
2622
10/31/2003
$ 186.85
Sheetz ADV Card
Invoice # 3613855
Evans /Kearney
2639
12/1/2003
$ 147.58
Sheetz ADV Card
3802008 Invoice #
Evans /Kearney
2663
1/6/2004
$ 266.36
Sheetz ADV Card
4044124 Invoice
Evans /Kearney
2679
1/29/2004
$ 196.98
Sheetz ADV Card
4240770 - Invoice #
Evans /Kearney
1045
3/1/2004
$ 111.88
Sheetz Adv Card
1939 01 1456508
Evans /Kearney
2700
4/1/2004
$ 160.17
Sheetz ADV Card
1939011456508
Evans /Kearney
2718
5/7/2004
$ 175.62
Sheetz ADV Card
1939011456508
Evans /Kearney
2726
5/30/2004
$ 252.23
Sheetz ADV Card
1939011456508
Evans /Kearney
2736
7/1/2004
$ 176.05
Sheetz ADV Card
1939011456508
Evans /Kearney
2747
7/30/2004
$ 133.11
Sheetz ADV Card
1939011456508
Evans /Kearney
2764
9/1/2004
$ 96.01
Sheetz ADV Card
5641846- Invoice #
Evans /Kearney
2778
10/5/2004
$ 149.01
Sheetz ADV Card
5036312 Invoice #
Evans /Kearney
2790
10/28/2004
$ 182.24
Sheetz ADV Card
Invoice # 6040957
Evans /Kearney
2804
12/1/2004
$ 182.70
Sheetz ADV Card
0237878 - Invoice #
Evans /Kearney
2819
12/28/2004
$ 122.02
Sheetz ADV Card
None
Illegible
TOTAL
$5,704.46
Evans, 06 -028
Page 66
*Signature Stamps utilized to authorize checks.
a. Check numbers 1024, 1035, and 1045 were issued from the Authority
account at First National Bank.
b. Remaining checks were issued from the Corporation account at National City
Bank.
c. Evans's signature appears as an authorized signatory on at least forty -three
of the checks issued.
1. Authorizing signatures on check number 2819 were not legible.
156. Evans's normal working hours at the Authority were Monday through Friday, 8:30
a.m. to 4:30 p.m.
a. Evans was routinely absent from the Authority office by 10:00 a.m. on a daily
basis.
b. Evans did not work weekends in his position.
157. Evans routinely utilized the Sheetz Fleet Account line of credit outside the
parameters of his normal work hours (8:30 a.m. -4:30 p.m.), on weekends, and on
holidays which resulted in a financial gain of $3,925.69 as shown below:
a. The bulk of Evans's purchases were super unleaded (premium) gasoline.
158. Following is a breakdown of gasoline purchases at Sheetz's made by Evans.
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Thursday, April 05, 2001
201900
UNL PLUS
12.485
$19.34
CRANBERRY
PA
Tuesday, April 17, 2001
070200
SUPER UN
8.798
$15.30
CRANBERRY
PA
Wednesday, May 02, 2001
192800
SUPER UN
10.322
$16.30
FRANKLIN
PA
Wednesday, May 02, 2001
060900
SUPER UN
9.555
$17.00
FRANKLIN
PA
Friday, May 04, 2001
210100
SUPER UN
7.419
$13.20
FRANKLIN
PA
Thursday, May 17, 2001
070200
UNL PLUS
10.468
$18.10
CRANBERRY
PA
Tuesday, May 22, 2001
045400
SUPER UN
10.467
$19.25
FRANKLIN
PA
Tuesday, May 29, 2001
195000
SUPER UN
9.948
$17.50
FRANKLIN
PA
Tuesday, June 05, 2001
173300
SUPER UN
10.375
$18.25
CRANBERRY
PA
Tuesday, June 19, 2001
064400
SUPER UN
7.742
$13.00
CRANBERRY
PA
Monday, July 09, 2001
034700
UNL PLUS
5.768
$8.59
CRANBERRY
PA
Thursday, July 12, 2001
210000
SUPER UN
6.627
$10.20
CRANBERRY
PA
Friday, July 13, 2001
180300
SUPER UN
6.808
$10.75
MEADVILLE
PA
Tuesday, August 07, 2001
021500
SUPER UN
6.562
$10.10
CRANBERRY
PA
Wednesday, August 08, 2001
044200
SUPER UN
5.009
$7.71
FRANKLIN
PA
Tuesday, August 14, 2001
021900
SUPER UN
7.407
$11.40
FRANKLIN
PA
Tuesday, August 21, 2001
015900
SUPER UN
7.283
$11.50
CRANBERRY
PA
Thursday, August 23, 2001
043400
SUPER UN
7.979
$12.60
CRANBERRY
PA
Monday, September 10, 2001
054500
SUPER UN
8.053
$13.20
FRANKLIN
PA
Thursday, September 13, 2001
072900
SUPER UN
8.739
$13.80
CRANBERRY
PA
Tuesday, September 18, 2001
071800
SUPER UN
12.412
$19.60
CRANBERRY
PA
Tuesday, September 25, 2001
065300
SUPER UN
6.562
$10.10
CRANBERRY
PA
Thursday, September 27, 2001
064200
SUPER UN
9.357
$13.84
CRANBERRY
PA
Friday, October 05, 2001
070100
SUPER UN
10.885
$16.10
CRANBERRY
PA
Monday, October 08, 2001
191700
SUPER UN
6.712
$9.66
CRANBERRY
PA
Monday, October 15, 2001
202000
SUPER UN
8.622
$11.20
FRANKLIN
PA
Wednesday, October 17, 2001
131400
UNL PLUS
9.764
$12.00
CRANBERRY
PA
Friday, October 19, 2001
070000
SUPER UN
7.005
$9.10
CRANBERRY
PA
Tuesday, October 23, 2001
092000
SUPER UN
8.468
$11.00
FRANKLIN
PA
Thursday, October 25, 2001
195300
SUPER UN
8.287
$10.60
CRANBERRY
PA
Thursday, November 01, 2001
070800
SUPER UN
9.03
$11.55
CRANBERRY
PA
Wednesday, November 07, 2001
194600
SUPER UN
5.657
$7.01
FRANKLIN
PA
Friday, November 09, 2001
195300
SUPER UN
8.555
$10.60
CRANBERRY
PA
Wednesday, November 14, 2001
193400
SUPER UN
5.278
$6.54
CRANBERRY
PA
Tuesday, November 27, 2001
065200
SUPER UN
7.336
$9.09
FRANKLIN
PA
Wednesday, December 19, 2001
071900
SUPER UN
10.405
$13.10
CRANBERRY
PA
Thursday, January 03, 2002
071000
SUPER UN
7.89
$10.25
CRANBERRY
PA
Monday, January 07, 2002
221400
UNLEADED
9.424
$11.30
FRANKLIN
PA
Tuesday, January 08, 2002
064300
SUPER UN
7.419
$9.86
CRANBERRY
PA
Monday, January 14, 2002
181000
SUPER UN
9.104
$12.10
FRANKLIN
PA
Thursday, January 17, 2002
032200
SUPER UN
6.62
$8.60
CRANBERRY
PA
Wednesday, January 23, 2002
213100
UNLEADED
8.644
$9.50
MERCER
PA
Wednesday, January 30, 2002
064200
SUPER UN
9.577
$12.25
FRANKLIN
PA
Tuesday, February 12, 2002
190500
SUPER UN
9.342
$12.51
FRANKLIN
PA
Tuesday, April 09, 2002
214900
SUPER UN
7.147
$11.00
FRANKLIN
PA
Tuesday, April 23, 2002
072100
SUPER UN
9.953
$14.92
CRANBERRY
PA
Evans, 06 -028
Page 67
a. Use prior to 7:30 a.m. and after 4:30 p.m.:
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Friday, April 26, 2002
072500
SUPER UN
9.219
$13.82
CRANBERRY
PA
Thursday, May 23, 2002
064800
SUPER UN
10.006
$14.40
CRANBERRY
PA
Monday, May 27, 2002
210400
SUPER UN
6.518
$9.38
CRANBERRY
PA
Monday, June 03, 2002
071300
SUPER UN
8.214
$11.82
CRANBERRY
PA
Friday, June 07, 2002
182300
SUPER UN
6.435
$9.26
CRANBERRY
PA
Tuesday, June 11, 2002
072200
SUPER UN
10.034
$14.44
CRANBERRY
PA
Friday, June 14, 2002
181600
SUPER UN
9.971
$13.95
CRANBERRY
PA
Tuesday, June 18, 2002
200200
SUPER UN
8.827
$12.35
CRANBERRY
PA
Monday, June 24, 2002
070200
SUPER UN
5.796
$8.11
CRANBERRY
PA
Monday, July 01, 2002
181500
UNLEADED
6.004
$7.80
GROVE CITY
PA
Tuesday, July 02, 2002
213600
SUPER UN
11.931
$17.17
CRANBERRY
PA
Monday, September 30, 2002
193800
SUPER UN
9.74
$14.99
CRANBERRY
PA
Wednesday, October 09, 2002
201800
SUPER UN
10.206
$15.30
CRANBERRY
PA
Thursday, November 07, 2002
184200
SUPER UN
11.955
$18.40
FRANKLIN
PA
Friday, December 27, 2002
190100
SUPER UN
8.836
$13.60
CRANBERRY
PA
Tuesday, February 11, 2003
042700
SUPER UN
7.873
$13.85
FRANKLIN
PA
Friday, February 14, 2003
035400
SUPER UN
7.305
$12.85
CRANBERRY
PA
Wednesday, February 19, 2003
033400
SUPER UN
6.31
$11.10
FRANKLIN
PA
Tuesday, February 25, 2003
173700
SUPER UN
9.43
$16.40
CRANBERRY
PA
Wednesday, March 05, 2003
044200
UNL PLUS
8.539
$14.85
FRANKLIN
PA
Thursday, March 13, 2003
181200
UNL PLUS
8.282
$14.90
CRANBERRY
PA
Wednesday, March 19, 2003
034000
UNL PLUS
8.393
$15.10
FRANKLIN
PA
Friday, April 04, 2003
031800
UNL PLUS
7.962
$13.05
FRANKLIN
PA
Monday, April 07, 2003
040500
UNL PLUS
10.372
$17.00
FRANKLIN
PA
Thursday, April 24, 2003
190500
UNLEADED
10.007
$14.00
FRANKLIN
PA
Thursday, May 01, 2003
193500
UNL PLUS
12.675
$19.00
CRANBERRY
PA
Thursday, May 08, 2003
173700
UNL PLUS
15.339
$21.00
MEADVILLE
PA
Tuesday, May 20, 2003
034900
UNL PLUS
10.84
$16.25
FRANKLIN
PA
Wednesday, May 28, 2003
195200
UNL PLUS
10.818
$16.65
FRANKLIN
PA
Thursday, July 17, 2003
061659
SUPER UN
8.031
$13.16
CRANBERRY
PA
Thursday, July 24, 2003
071259
SUPER UN
7.349
$11.75
CRANBERRY
PA
Friday, July 25, 2003
043659
UNLEADED
15.574
$23.35
FRANKLIN
PA
Thursday, July 31, 2003
033559
SUPER UN
11.134
$17.80
CRANBERRY
PA
Thursday, September 04, 2003
041659
SUPER UN
10.198
$18.75
CRANBERRY
PA
Wednesday, September 10, 2003
044959
SUPER UN
8.863
$16.30
CRANBERRY
PA
Wednesday, September 24, 2003
052659
SUPER UN
7.563
$13.15
FRANKLIN
PA
Monday, October 13, 2003
185359
SUPER UN
11.514
$19.10
FRANKLIN
PA
Wednesday, October 22, 2003
190659
SUPER UN
11.228
$18.40
FRANKLIN
PA
Wednesday, November 05, 2003
183059
SUPER UN
11.727
$18.75
FRANKLIN
PA
Monday, December 08, 2003
174259
UNL PLUS
10.278
$15.00
BUTLER
PA
Friday, December 19, 2003
202359
UNL PLUS
7.588
$11.60
FRANKLIN
PA
Tuesday, December 23, 2003
192159
SUPER UN
9.062
$14.85
FRANKLIN
PA
Wednesday, January 21, 2004
184459
UNL PLUS
11.983
$20.00
MEADVILLE
PA
Thursday, January 29, 2004
203759
SUPER UN
8.957
$16.11
FRANKLIN
PA
Thursday, February 12, 2004
071559
SUPER UN
10.867
$18.90
CRANBERRY
PA
Thursday, April 01, 2004
205859
UNL PLUS
14.379
$25.44
HARRISVILLE
PA
Monday, April 19, 2004
051659
SUPER UN
6.743
$12.80
CRANBERRY
PA
Wednesday, April 21, 2004
210359
UNL PLUS
10.254
$18.75
CRANBERRY
PA
Evans, 06 -028
Page 68
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Thursday, April 29, 2004
041359
SUPER UN
7.347
$14.25
CRANBERRY
PA
Friday, May 07, 2004
042059
SUPER UN
5.651
$11.30
CRANBERRY
PA
Monday, May 10, 2004
201759
SUPER UN
9.368
$19.10
CRANBERRY
PA
Thursday, May 13, 2004
051859
SUPER UN
7.025
$14.60
CRANBERRY
PA
Tuesday, May 18, 2004
045159
UNL PLUS
7.347
$15.20
CRANBERRY
PA
Friday, May 28, 2004
045159
UNL PLUS
6.742
$14.15
CRANBERRY
PA
Monday, May 31, 2004
201059
UNL PLUS
7.074
$14.85
CRANBERRY
PA
Friday, June 11, 2004
050059
SUPER UN
7.337
$15.40
CRANBERRY
PA
Wednesday, June 16, 2004
035959
SUPER UN
5.911
$12.41
CRANBERRY
PA
Monday, June 21, 2004
201506
UNLEADED
7.899
$15.00
FRANKLIN
PA
Friday, July 09, 2004
045159
SUPER UN
9.807
$19.60
CRANBERRY
PA
Thursday, July 15, 2004
031659
SUPER UN
7.592
$15.63
CRANBERRY
PA
Wednesday, July 21, 2004
205459
UNL PLUS
12.112
$24.21
CRANBERRY
PA
Wednesday, July 21, 2004
224459
UNL PLUS
14.944
$29.87
CRANBERRY
PA
Friday, July 23, 2004
065659
UNL PLUS
9.168
$18.33
CRANBERRY
PA
Monday, August 09, 2004
045959
SUPER UN
5.575
$10.81
CRANBERRY
PA
Thursday, August 12, 2004
192459
SUPER UN
9.749
$18.90
FRANKLIN
PA
Thursday, August 26, 2004
040259
SUPER UN
10.484
$22.01
FRANKLIN
PA
Tuesday, August 31, 2004
192959
SUPER UN
10.005
$19.40
FRANKLIN
PA
Thursday, September 02, 2004
041859
UNL PLUS
12.935
$24.18
CRANBERRY
PA
Friday, October 01, 2004
072835
UNL PLUS
10.098
$20.89
CRANBERRY
PA
Friday, October 08, 2004
072224
UNL PLUS
9.768
$20.21
CRANBERRY
PA
Wednesday, October 13, 2004
041717
UNL PLUS
11.163
$23.10
CRANBERRY
PA
Thursday, October 14, 2004
072428
UNL PLUS
5.823
$12.05
CRANBERRY
PA
Wednesday, October 27, 2004
040655
UNL PLUS
7.66
$15.85
CRANBERRY
PA
Thursday, November 11, 2004
042626
UNL PLUS
7.153
$14.30
CRANBERRY
PA
Thursday, November 18, 2004
040019
SUPER UN
10.578
$22.20
CRANBERRY
PA
Friday, December 03, 2004
044456
SUPER UN
6.55
$13.75
CRANBERRY
PA
Thursday, December 16, 2004
181322
SUPER UN
10.807
$21.60
CRANBERRY
PA
Wednesday, December 22, 2004
025630
SUPER UN
6.281
$12.56
CRANBERRY
PA
Wednesday, December 29, 2004
185450
SUPER UN
6.913
$13.54
CRANBERRY
PA
Total
$1,844.47
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Sunday, April 08, 2001
202600
SUPER UN
10.78
$18.10
FRANKLIN
PA
Sunday, April 29, 2001
163700
SUPER UN
11.748
$20.90
FRANKLIN
PA
Sunday, May 06, 2001
204400
SUPER UN
10.089
$17.95
FRANKLIN
PA
Sunday, May 13, 2001
222600
SUPER UN
8.782
$15.80
FRANKLIN
PA
Saturday, May 26, 2001
201700
SUPER UN
6.367
$11.20
CRANBERRY
PA
Sunday, June 03, 2001
094400
SUPER UN
7.987
$14.05
CRANBERRY
PA
Sunday, June 17, 2001
040800
SUPER UN
12.36
$21.00
FRANKLIN
PA
Evans, 06 -028
Page 69
1
Evans utilized the Corporation Sheetz Advantage card one hundred
twenty -five times on a Saturday or Sunday which were not his working
hours.
2. Transaction time is documented in twenty -four hour military time.
b. Use on Saturday and Sunday (non- working days for Evans):
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Sunday, June 17, 2001
181700
SUPER UN
4.002
$6.80
CRANBERRY
PA
Saturday, June 30, 2001
162700
SUPER UN
6.016
$9.50
CRANBERRY
PA
Sunday, July 01, 2001
204600
SUPER UN
6.649
$10.50
CRANBERRY
PA
Saturday, July 07, 2001
173000
SUPER UN
10.094
$15.94
CRANBERRY
PA
Saturday, July 14, 2001
132100
SUPER UN
9.876
$15.20
CRANBERRY
PA
Sunday, July 15, 2001
185500
SUPER UN
6.627
$10.20
CRANBERRY
PA
Sunday, July 29, 2001
104200
SUPER UN
9.103
$14.01
FRANKLIN
PA
Saturday, August 04, 2001
045800
SUPER UN
7.271
$10.90
FRANKLIN
PA
Sunday, August 05, 2001
074600
SUPER UN
5.803
$8.70
FRANKLIN
PA
Sunday, August 12, 2001
065600
SUPER UN
7.569
$11.65
FRANKLIN
PA
Sunday, August 19, 2001
072000
SUPER UN
12.311
$19.44
CRANBERRY
PA
Saturday, September 01, 2001
155900
SUPER UN
8.866
$14.00
CRANBERRY
PA
Saturday, September 08, 2001
044000
SUPER UN
3.799
$6.00
CRANBERRY
PA
Saturday, September 29, 2001
033600
SUPER UN
6.774
$10.02
CRANBERRY
PA
Sunday, October 07, 2001
163200
SUPER UN
9.103
$13.10
CRANBERRY
PA
Sunday, October 21, 2001
073600
SUPER UN
5.773
$7.50
CRANBERRY
PA
Saturday, October 27, 2001
145800
SUPER UN
6.059
$7.75
CRANBERRY
PA
Sunday, October 28, 2001
170600
SUPER UN
9.421
$12.05
CRANBERRY
PA
Sunday, November 04, 2001
073300
SUPER UN
7.425
$9.20
CRANBERRY
PA
Saturday, November 24, 2001
164000
SUPER UN
7.667
$9.50
FRANKLIN
PA
Saturday, January 05, 2002
053600
SUPER UN
7.89
$10.25
CRANBERRY
PA
Saturday, January 12, 2002
063900
SUPER UN
6.704
$8.91
CRANBERRY
PA
Saturday, January 26, 2002
175900
SUPER UN
9.173
$11.55
CRANBERRY
PA
Saturday, March 09, 2002
115600
UNLEADED
7.942
$10.00
FRANKLIN
PA
Sunday, March 10, 2002
173900
UNLEADED
7.942
$10.00
CRANBERRY
PA
Sunday, March 10, 2002
072300
SUPER UN
7.983
$10.85
CRANBERRY
PA
Sunday, March 24, 2002
185000
SUPER UN
8.105
$12.15
CRANBERRY
PA
Saturday, April 20, 2002
203400
SUPER UN
10.44
$15.65
CRANBERRY
PA
Saturday, April 27, 2002
135200
UNL PLUS
7.859
$11.31
FRANKLIN
PA
Sunday, May 05, 2002
202000
SUPER UN
7.227
$10.40
CRANBERRY
PA
Sunday, May 12, 2002
151800
SUPER UN
9.52
$13.70
CRANBERRY
PA
Sunday, May 26, 2002
092800
SUPER UN
9.902
$14.25
CRANBERRY
PA
Sunday, June 09, 2002
073000
SUPER UN
6.831
$9.83
CRANBERRY
PA
Sunday, June 16, 2002
071400
SUPER UN
7.512
$10.81
FRANKLIN
PA
Saturday, June 22, 2002
144800
SUPER UN
8.577
$12.00
CRANBERRY
PA
Saturday, June 29, 2002
145500
SUPER UN
9.812
$14.12
CRANBERRY
PA
Saturday, July 06, 2002
145500
SUPER UN
7.47
$10.75
CRANBERRY
PA
Saturday, July 06, 2002
114200
UNL PLUS
5.025
$6.88
CRANBERRY
PA
Sunday, July 28, 2002
084100
SUPER UN
12.341
$18.50
CRANBERRY
PA
Saturday, September 07, 2002
163600
SUPER UN
10.74
$16.10
FRANKLIN
PA
Sunday, September 22, 2002
134900
SUPER UN
10.086
$15.12
CRANBERRY
PA
Sunday, October 13, 2002
090300
SUPER UN
12.378
$19.05
FRANKLIN
PA
Saturday, October 19, 2002
092200
SUPER UN
7.862
$12.10
FRANKLIN
PA
Sunday, November 03, 2002
080500
SUPER UN
9.096
$14.00
CRANBERRY
PA
Saturday, November 23, 2002
040700
SUPER UN
9.325
$13.42
CRANBERRY
PA
Sunday, November 24, 2002
184900
SUPER UN
9.027
$12.99
FRANKLIN
PA
Saturday, November 30, 2002
092200
SUPER UN
6.254
$9.00
FRANKLIN
PA
Saturday, December 07, 2002
010600
SUPER UN
11.179
$15.64
CRANBERRY
PA
Evans, 06 -028
Page 70
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Sunday, December 08, 2002
184900
SUPER UN
6.647
$9.30
CRANBERRY
PA
Sunday, January 05, 2003
190800
SUPER UN
8.067
$12.90
FRANKLIN
PA
Saturday, January 11, 2003
084700
SUPER UN
6.754
$10.80
FRANKLIN
PA
Sunday, January 26, 2003
130700
SUPER UN
12.208
$20.01
FRANKLIN
PA
Sunday, February 16, 2003
182600
SUPER UN
8.982
$15.80
CRANBERRY
PA
Saturday, February 22, 2003
122300
SUPER UN
9.775
$17.00
CRANBERRY
PA
Saturday, March 08, 2003
145600
UNL PLUS
8.522
$14.82
CRANBERRY
PA
Sunday, March 16, 2003
104400
UNL PLUS
11.395
$20.50
MERCER
PA
Sunday, March 23, 2003
094700
UNL PLUS
11.788
$20.50
CRANBERRY
PA
Sunday, April 20, 2003
044200
UNL PLUS
10.396
$16.00
FRANKLIN
PA
Sunday, April 27, 2003
082700
UNL PLUS
10.428
$16.05
FRANKLIN
PA
Sunday, May 04, 2003
052800
UNL PLUS
5.537
$8.30
CRANBERRY
PA
Saturday, May 24, 2003
213400
UNLEADED
15.725
$22.00
FRANKLIN
PA
Saturday, May 24, 2003
140300
UNL PLUS
10.071
$15.50
CRANBERRY
PA
Sunday, June 01, 2003
052800
UNL PLUS
8.544
$13.15
FRANKLIN
PA
Saturday, June 21, 2003
071559
SUPER UN
8.38
$13.40
CRANBERRY
PA
Saturday, July 05, 2003
093059
SUPER UN
8.252
$12.70
CRANBERRY
PA
Sunday, July 13, 2003
054059
UNL PLUS
8.181
$12.84
CRANBERRY
PA
Saturday, July 19, 2003
110259
UNLEADED
20.013
$30.00
CRANBERRY
PA
Sunday, August 03, 2003
095159
SUPER UN
8.051
$13.20
HERMITAGE
PA
Saturday, August 16, 2003
084259
SUPER UN
9.957
$17.32
CRANBERRY
PA
Sunday, August 24, 2003
122659
UNL PLUS
13.918
$24.62
CRANBERRY
PA
Sunday, August 31, 2003
084759
SUPER UN
6.527
$12.00
CRANBERRY
PA
Saturday, September 06, 2003
131259
UNL PLUS
12.946
$22.90
HARRISVILLE
PA
Sunday, September 07, 2003
200459
SUPER UN
7.696
$14.15
CRANBERRY
PA
Saturday, September 20, 2003
103059
SUPER UN
11.502
$20.00
FRANKLIN
PA
Sunday, September 21, 2003
094159
UNL PLUS
13.137
$21.01
HARRISVILLE
PA
Saturday, October 04, 2003
181159
SUPER UN
13.503
$22.40
CRANBERRY
PA
Sunday, October 05, 2003
192559
UNL PLUS
13.193
$21.10
CRANBERRY
PA
Saturday, October 11, 2003
131559
UNL PLUS
10.833
$17.00
HARRISVILLE
PA
Saturday, October 25, 2003
090259
SUPER UN
11.591
$19.00
FRANKLIN
PA
Sunday, October 26, 2003
114759
UNL PLUS
13.445
$21.10
MERCER
PA
Sunday, November 02, 2003
095659
SUPER UN
9.761
$16.00
CRANBERRY
PA
Saturday, November 08, 2003
162159
SUPER UN
5.898
$9.43
FRANKLIN
PA
Sunday, November 30, 2003
211659
SUPER UN
9.105
$14.92
FRANKLIN
PA
Sunday, November 30, 2003
102859
SUPER UN
13.811
$22.64
CRANBERRY
PA
Sunday, November 30, 2003
164659
SUPER UN
12.202
$20.00
CRANBERRY
PA
Saturday, December 06, 2003
085259
UNL PLUS
13.399
$20.09
HARRISVILLE
PA
Sunday, December 07, 2003
100559
SUPER UN
10.258
$16.40
MERCER
PA
Sunday, December 07, 2003
185459
UNL PLUS
4.053
$6.20
CRANBERRY
PA
Saturday, December 20, 2003
085659
SUPER UN
15.639
$25.01
CRANBERRY
PA
Saturday, December 27, 2003
042659
SUPER UN
7.007
$11.48
CRANBERRY
PA
Saturday, January 10, 2004
190959
UNL PLUS
11.982
$20.00
CRANBERRY
PA
Sunday, January 11, 2004
090359
SUPER UN
6.1
$10.61
FRANKLIN
PA
Sunday, January 18, 2004
160059
SUPER UN
10.027
$17.44
CRANBERRY
PA
Saturday, February 07, 2004
162059
SUPER UN
10.615
$19.10
FRANKLIN
PA
Sunday, February 15, 2004
201959
SUPER UN
12.305
$21.40
FRANKLIN
PA
Saturday, February 21, 2004
124059
SUPER UN
11.381
$20.47
CRANBERRY
PA
Evans, 06 -028
Page 71
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Saturday, February 28, 2004
150059
SUPER UN
11.494
$20.68
CRANBERRY
PA
Sunday, March 07, 2004
153759
UNL PLUS
12.824
$22.69
CRANBERRY
PA
Sunday, March 14, 2004
080459
SUPER UN
8.863
$16.30
CRANBERRY
PA
Saturday, March 27, 2004
192259
UNL PLUS
10.754
$19.02
HARRISVILLE
PA
Sunday, April 18, 2004
142059
UNLEADED
12.172
$21.41
FRANKLIN
PA
Sunday, April 25, 2004
121659
UNL PLUS
9.117
$16.67
CRANBERRY
PA
Saturday, May 08, 2004
110559
UNLEADED
18.436
$35.01
CRANBERRY
PA
Saturday, May 15, 2004
115359
UNL PLUS
9.085
$18.80
CRANBERRY
PA
Sunday, May 16, 2004
102259
UNLEADED
14.445
$28.30
MERCER
PA
Saturday, May 22, 2004
085359
UNL PLUS
9.625
$20.20
FRANKLIN
PA
Saturday, May 29, 2004
092459
SUPER UN
5.571
$12.25
FRANKLIN
PA
Sunday, June 06, 2004
105159
UNL PLUS
12.506
$25.00
MEADVILLE
PA
Sunday, June 13, 2004
052559
SUPER UN
9.862
$20.70
CRANBERRY
PA
Sunday, July 11, 2004
070759
SUPER UN
6.859
$14.12
CRANBERRY
PA
Sunday, July 18, 2004
173259
SUPER UN
12.47
$25.68
CRANBERRY
PA
Saturday, September 04, 2004
145159
SUPER UN
10.055
$19.50
FRANKLIN
PA
Sunday, September 12, 2004
092959
UNLEADED
4.984
$8.97
CRANBERRY
PA
Saturday, September 18, 2004
045159
SUPER UN
8.502
$17.00
CRANBERRY
PA
Saturday, September 25, 2004
182147
SUPER UN
9.291
$19.50
HARRISVILLE
PA
Sunday, October 03, 2004
190934
UNL PLUS
9.064
$18.75
CRANBERRY
PA
Saturday, October 09, 2004
083240
UNL PLUS
7.179
$14.85
FRANKLIN
PA
Saturday, October 16, 2004
172033
UNL PLUS
7.954
$16.46
FRANKLIN
PA
Sunday, October 24, 2004
103604
UNL PLUS
8.603
$17.80
CRANBERRY
PA
Sunday, November 21, 2004
191807
SUPER UN
5.79
$12.15
FRANKLIN
PA
Sunday, November 28, 2004
164551
SUPER UN
12.386
$26.00
FRANKLIN
PA
Saturday, December 18, 2004
120530
SUPER UN
4.952
$9.90
CRANBERRY
PA
Saturday, December 25, 2004
103830
SUPER UN
6.764
$13.25
CRANBERRY
PA
Sunday, January 02, 2005
083034
SUPER UN
7.35
$14.40
CRANBERRY
PA
Total
$2,034.21
Trans Date
Trans Time
Product
Gallons
Dollars
City
State
Wednesday, July 04, 2001
065400
SUPER UN
6.333
$10.00
FRANKLIN
PA
Thursday, November 22, 2001
155700
UNLEADED
9.099
$10.00
FRANKLIN
PA
Thursday, November 27, 2003
074259
SUPER UN
6.038
$9.90
CRANBERRY
PA
Thursday, January 01, 2004
081459
SUPER UN
10.439
$17.11
CRANBERRY
PA
Total
$47.01
Evans, 06 -028
Page 72
1
1
Evans utilized the Corporation Sheetz Advantage card one hundred
thirty -one times outside his normal work days (Monday through
Friday).
2. Transaction time is documented in twenty -four hour military time.
c. Use on holidays (non- working days for Evans):
Evans utilized the Corporation Sheetz Advantage card on the Fourth
of July holiday in 2001, on the Thanksgiving holiday in 2001 and
2003, and on the New Years Day Holiday in 2004.
2. Transaction time is documented in twenty -four hour military time.
Ck No.
Ck Date
Ck Amt.
Payee
Description
Signatories*
2162
4/18/2001
$ 11.51
Gulf Oil
999020969
Evans /Kearney
2168
5/01/2001
$ 21.78
Exxon Mobile /Exxon
Fleet
None
Evans /Kearney
2198
7/6/2001
$ 19.21
Exxon Mobile
None
Evans /Kearney
2222
9/5/2001
$ 9.31
Exxon Mobile
None
Evans /Kearney
2245
10/1/2001
$ 17.28
Exxon Mobile
None
Evans /Kearney
2253
10/22/2001
$ 26.58
Exxon Mobile
369802981 -0
Evans /Kearney
2264
11/27/2001
$ 8.71
Exxon Mobile
369- 802 - 981 -07
Evans /Kearney
2295
12/30/2001
$ 17.84
Gulf Oil
None
Evans /Kearney
2331
2/25/2002
$ 13.96
Exxon Mobile Fleet
2010069
Evans /Kearney
2344
3/26/2002
$ 6.26
Gulf Oil
999020969
Evans /Kearney
2343
3/26/2002
$ 34.06
Exxon Mobile Fleet
None
Evans /Kearney
2362
5/1/2002
$ 11.52
Gulf Oil
None
Evans /Kearney
2363
5/01/2002
$ 14.21
Exxon Mobile Control
Fleet
None
Evans /Kearney
2371
5/14/2002
$ 5.26
Gulf Oil
999020969
Evans /Kearney
2384
7/1/2002
$ 16.92
Gulf Oil
999020969
Evans /Kearney
2392
7/22/2002
$ 13.87
Exxon Mobile Fleet
None
Evans /Kearney
2402
8/15/2002
$ 24.43
Gulf Oil
999020969
Evans /Kearney
2407
9/1/2002
$ 34.36
Exxon Mobile
369802981 -0
Evans /Kearney
2426
10/1/2002
$ 19.30
Exxon Mobil
3698029810
Evans /Kearney
2438
11/1/2002
$ 42.63
Exxon Mobil
None
Evans /Kearney
2446
11/20/2002
$ 24.37
Gulf Oil
999020969
Evans /Kearney
2452
11/26/2002
$ 18.23
Exxon Mobil
None
Evans /Kearney
2497
1/17/2003
$ 10.38
Gulf Oil
999020969
Evans /Kearney
2506
2/11/2003
$ 31.05
Gulf Oil
999020969
Evans /Kearney
2514
3/5/2003
$ 25.16
Exxon Mobil
None
Evans /Kearney
2521
3/14/2003
$ 14.37
Gulf Oil
None
Evans /Kearney
1034
6/4/2003
$ 19.10
Exxon Mobile
369802981 0
Evans /Kearney
2552
6/25/2003
$ 23.97
Gulf Oil
None
Evans /Kearney
2574
7/27/2003
$ 24.75
Exxon Mobil
3698029810
Evans /Kearney
2591
8/31/2003
$ 13.19
Exxon Mobil
369802981 -0
Evans /Kearney
2599
9/24/2003
$ 19.75
Gulf Oil
None
Evans /Kearney
2603
9/26/2003
$ 18.45
Exxon Mobil
None
Evans /Kearney
2624
10/20/2003
$ 23.49
Gulf Oil
999020969
Evans /Kearney
2628
11/12/2003
$ 49.63
Gulf Oil
None
Evans /Kearney
Evans, 06 -028
Page 73
159. In addition to the Sheetz Fleet account line of credit, the Corporation also
maintained gas card accounts through Gulf Oil and /or Exxon Mobile fuels from at
least April 2001 through November 2004.
a. Evans maintained sole custody and control over the fuel cards /lines of credit
related to the Gulf Oil and Exxon Mobile accounts.
b. No other employees had access or utilized these credit cards.
160. From April 2001 through November 2004, Evans utilized the Corporation account at
National City Bank and the Authority Account at First National Bank to issue forty
checks totaling $800.40 to Gulf Oil and Exxon Mobile without prior Corporation or
Authority board approval for charges incurred as follows:
Ck No.
Ck Date
Ck Amt.
Payee
Description
Signatories*
2635
11/24/2003
$ 14.45
Exxon Mobil
None
Evans /Kearney
2670
1/16/2004
$ 4.00
Gulf Oil Corp
None
Evans /Kearney
2737
7/1/2004
$ 24.85
Exxon Mobil
369- 802 -981 -0
Evans /Kearney
2754
8/26/2004
$ 27.92
Exxon Mobil
None
Evans /Kearney
2772
9/30/2004
$ 19.80
Exxon Mobil
None
Evans /Kearney
2799
11/21/2004
$ 24.49
Exxon Mobil
6205952
Evans /Kearney
Total
$800.40
Evans, 06 -028
Page 74
*Signature Stamps utilized to authorize checks.
161. Evans's personal use of the Corporation's 2001 Monte Carlo and the Corporation's
Sheetz Fleet Account line of credit resulted in a financial gain of $28,588.59 to
Evans as detailed below:
Description
Corporation Funds Utilized for Vehicle
Sheetz Fleet Account Line of Credit Usage
Total
Amount
$24,662.90
$3,925.69
$28,588.59
a. An additional $800.40 in Corporation and Authority checks were issued as
payment to Gulf Oil and Exxon Mobile for which specific use, personal or
professional, could not be determined.
162. The Authority and Corporation are required to undergo an annual audit by a
Certified Public Accountant on an annual basis.
a. The annual audit of the Authority is mandated by HUD.
b. The annual audit of the Corporation is mandated under Section 5.1(d) of the
Corporation's By -Laws.
1. No independent audit was performed for the Corporation between
April 2001 and January 2005.
163. Birchard & Foulkrod, LLP., conducted the annual audits of the Authority for fiscal
years ending June 30, 2001, June 30, 2002, and June 30, 2003.
a. Terri Birchard was the individual completing the audits for Birchard &
Foulkrod.
164. Ross was Birchard's primary contact at the Authority office.
a. Birchard made arrangements through Ross for the completion of the audit.
b. Questions or concerns arising during the audit were presented to Ross for
explanation.
c. Evans was rarely present at the Authority office while Birchard conducted the
audit.
165. Prior to the start of the audit ending fiscal year 2001, Birchard provided the
Authority a Preliminary Audit Information Form for completion.
Name of Bank
Account Number
Mellon /Citizens Bank
xxxxx78 -4
National City Bank
xxx>000c677
Northwest Savings Bank
xxx>ooc039
Evans, 06 -028
Page 75
a. The form called for the identification of all relevant bank accounts,
investments, debt information, attorney information, federal program
information, and the number of audit copies required.
b. The form is utilized prior to the beginning of an audit so that the magnitude
of the audit can be determined.
166. The Preliminary Audit Information Form returned to Birchard & Foulkrod,
documented only three accounts for the Authority as noted below:
a. Although receiving transfers of funds from Authority accounts, no
Corporation accounts were identified on the form.
167. Birchard & Foulkrod provided confirmation letters dated October 17, 2001, June 20,
2002, and November 7, 2003, to the Authority for every year that Birchard &
Foulkrod completed the annual audit.
a. The letters outline the services to be performed and the manner in which the
audit would be conducted.
b. Documented in the letters in the "Management Responsibilities" section is,
"Management is responsible for making all financial records and related
information available to us and for the accuracy and completeness of that
information."
c. Evans signed the confirmation letters on behalf of the Authority as the
Executive Director on November 1, 2001, June 25, 2002, and November 12,
2003.
168. The Authority subsequently provided Birchard & Foulkrod with management
representation letters dated March 8, 2002, February 21, 2003, and February 21,
2004, regarding the audit.
a. Management representation letters were sent to Birchard & Foulkrod near
the completion of the audit certifying that the Authority did not alter any
information provided to the auditors for audit completion and that the audit
was correct per the information the client provided.
1. Information documented in the management representation letters
includes the following:
aa. That the Authority made available all financial records and
related data and all audit or relevant monitoring reports, if any,
received from funding sources;
bb. There had been no fraud involving management or employees
who have significant roles in internal control;
cc. Related party transactions, including revenues,
expenditures /expenses, loans, transfers, leasing
arrangements, and guarantees, and amounts receivable from
Evans, 06 -028
Page 76
or payable to related parties had been properly recorded or
disclosed in the financial statements.
169. During completion of the annual audits, Birchard requested from Ross all applicable
accounts for review.
a. Evans did not supply Birchard with any Corporation financial information
(i.e., account statements, cancelled checks, check ledgers, credit card /line of
credit information, etc.) for review although requested by Ross.
170. The Corporation is a related party in association with the Authority for auditing
purposes.
a. Birchard would make no material findings during the audits as a result of
Evans withholding financial information associated with the Corporation.
171. Maher Duessel, a Certified Public Accounting firm, conducted the annual audit of
the Authority for the fiscal year ending June 30, 2004.
a. Diane Edelstein was the individual completing the audit for Maher Duessel.
172. Ross was Edelstein's primary contact at the Authority office.
a. Edelstein made arrangements through Ross for the completion of the audit.
b. Questions or concerns arising during the audit were presented to Ross for
explanation.
173. Maher Duessel provided an engagement letter dated February 3, 2005, to the
Authority in association with the 2004 Authority audit.
a. The letters outline the services to be performed and the manner in which the
audit would be conducted.
b. Eakin signed the engagement letter on behalf of the Authority as the
Authority Chairman on February 15, 2005.
174. The Authority subsequently provided Maher Duessel with a representation letter
dated September 1, 2005, regarding the audit.
a. The Management representation letter was sent to Maher Duessel near the
completion of the audit certifying that the Authority did not alter any
information provided to the auditors for audit completion and that the audit
was correct per the information the client provided.
1. Information documented in the management representation letters
include the following:
aa. That the Authority made available all financial records and
related data and all audit or relevant monitoring reports, if any,
received from funding sources;
bb. There had been no fraud involving management or employees
who have significant roles in internal control;
cc. Related party transactions, including revenues,
expenditures /expenses, loans, transfers, leasing
Evans, 06 -028
Page 77
arrangements, and guarantees, and amounts receivable from
or payable to related parties have been properly recorded or
disclosed in the financial statements.
175. During completion of the annual audit, Edelstein requested from Ross all applicable
accounts for review.
a. Edelstein was provided with Corporation financial information (i.e., account
statements, cancelled checks, check ledgers, credit card /line of credit
information, etc.) for review by the Authority.
176. Maher Duessel identified the Corporation as a "blended component unit" created for
the issuance of conduit debt.
a. Maher Duessel defined blended component unit as part of the government's
operations, although legally a separate entity.
b. Data from blended component units are combined with data of the primary
government (the Authority) for auditing purposes.
177. As a result of including Corporation financial information with the audit, Maher
Duessel identified the following findings:
a. Management of the Authority was unable to locate an agreement between
the VHC and the Authority specifying the appropriate uses of funds
transferred to the Corporation by the Authority.
b. Invoices supporting the disposition of transferred funds expensed could not
be produced.
c. The Authority may be subject to repayment of all or a portion of the funds to
HUD.
178. Evans was suspended without pay from his position of Executive Director effective
January 27, 2005, at the Authority public meeting held on January 27, 2005.
a. Evans was notified of his suspension via Certified Mail, Article No. 7000
1530 0001 0005 4301 dated January 31, 2005.
179. Justification for Evans's suspension included the following:
a. Insubordination;
b. Conduct on or off duty which would bring disrepute to the Authority;
c. Failure to timely and adequately provide information, documents, and other
things to HUD upon request to do so;
d. Failure to timely and adequately provide information, documents, and other
things to the chairperson of the Authority upon request to do so;
e. Violation of HUD Litigation Handbook 1530.1 REV -5, et. seq., in that he
failed to obtain HUD approval for the appeal from an adverse judgment at
Venango County Court of Common Pleas docket number 831 -2003;
f. Directing a subordinate to falsify official records of the Authority;
Evans, 06 -028
Page 78
g. Directing a subordinate to file a civil or criminal action against an Authority
member when he knew or was informed that no action or cause existed;
h. Directly or indirectly causing funds of the Authority to be unlawfully
expended, appropriated, or disbursed; and
Misconduct amounting to violation of law, rule, or regulation.
180. Evans was not permitted on the Authority premises at any time during his period of
suspension.
a. Evans was directed via the January 31, 2005, correspondence to
immediately return all property, assets, and things of the Authority to the
Authority offices.
1. The correspondence specified that for the purpose of the directive,
"property, assets, and things" included the Corporation.
b. Evans was advised by the January 31, 2005, correspondence that the
Authority had commenced an internal investigation.
181. Evans was terminated from his employment for just cause as Executive Director of
the Authority on or about April 27, 2005.
a. Correspondence sent to Evans via Certified Mail under Article No. 7000
1530 0001 0005 4912 dated April 27, 2005, indicated that Evans was
terminated for the following:
1. Misappropriation of Authority funds;
2. Violation of law, statute, or regulation;
3. Violation of law, rule, or regulation;
4. Conduct bringing disrepute to the Authority;
5. Failure to properly administer the Section 8 Choice Voucher Program;
6. Insubordination (two counts); and
7. Violation of law or regulation.
182. Evans appealed his dismissal as the Authority Executive Director to the
Commonwealth of Pennsylvania State Civil Service Commission.
a. Evans's position as Authority Executive Director was a Civil Service position.
b. Evans's appeal was filed under Appeal No. 24262.
183. Evans's hearing was conducted in Room 1511 of the State Office Building located
at 300 Liberty Street, Pittsburgh, PA, on July 18 and 19 2005.
a. The purpose of the hearing was to assist the Civil Service Commission in
determining if Evans had been properly removed in accordance with Section
807 of the Civil Service Act and whether Evans's removal was due to
discrimination.
Evans, 06 -028
Page 79
184. In the Civil Service Commission Adjudication mailed January 12, 2006, the Civil
Service Commission dismissed Evans's appeal and sustained the action of the
Authority in removing Evans from his position of Executive Director.
a. The Civil Service Commission found that Evans had misappropriated
Authority funds, in that Evans expended funds of the Authority through its
component, the Corporation, all without authorization or board approval.
1 The Civil Service Commission found that the evidence demonstrated
that Evans was compensated for personal expenses utilizing public
funds that were funneled through the Authority to the Corporation.
2. The Civil Service Commission found that the Authority board had no
reason to believe that the public monies it approved for payment as a
lump sum administrative fee to the Corporation were being funneled
through the Corporation to pay for Evans's personal expenses.
b. The Civil Service Commission found that the majority of Evans's testimony at
the hearing was not credible.
185. Evans appealed the ruling of the Civil Service Commission to the Commonwealth
Court of Pennsylvania.
186. The Commonwealth Court issued a ruling on November 3, 2006, which affirmed the
Civil Service Commission decision that substantial evidence of record existed to
establish just cause for Evans's removal from the position of Executive Director of
the Authority.
a. The Commonwealth Court noted the following in regards to the funneling of
funds from the Authority through the corporation by Evans to pay for his
personal expenses, ranging from country club fees to life and health
insurance:
Regardless of the approval of the Old Board, our review of the record
reflects that these public funds were funneled through the Authority to pay
Petitioner's personal expenses. We agree with the Commission's statement
that:
As Executive Director of the appointing authority, [Petitioner] had an
obligation to the appointing authority to be forthright and responsible.
Nothing in the record indicates that the appointing authority had any
reason to know that the public monies it approved to be paid as a
lump sum administrative fee to the Corporation were being funneled
through the Corporation to be used to pay [Petitioner's] personal
expenses.
(Commission's opinion at page 40, emphasis supplied).
Thus, we conclude that substantial evidence supports the
Commission's finding that just cause existed for Petitioner's removal
os [sic] this basis.
187. On December 1, 2006, Evans, through his attorney, filed a Petition for Allowance of
Appeal to the Pennsylvania Supreme Court.
a. The Pennsylvania Supreme Court issued an order on May 18, 2007, denying
the Petition for Allowance of Appeal.
Evans, 06 -028
Page 80
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS ASSOCIATED WITH
EVANS'S FAILURE TO FILE STATEMENTS OF FINANCIAL INTERESTS FOR
CALENDAR YEARS 2001 THROUGH 2004
188. Statement of Financial Interests filing requirements for public officials and public
employees are mandated by Section 1104 of the State Ethics Act.
a. Evans was required to file Statements of Financial Interests by May 1
annually in his position as Executive Director of the Authority.
189. Evans was aware of the requirement to file Statements of Financial Interests in his
position as Executive Director.
a. From at least 2000 through 2004, blank forms for completion were mailed to
Evans's attention at the Authority address of PO Box 988, Oil City, PA 16301
annually.
b. Evans sorted and distributed all mail received at the Authority PO Box.
c. Authority employees were not permitted to open mail addressed to Evans.
190. On May 17, 2006, a review of various records at the Authority office was conducted
by a State Ethics Commission investigator.
a. No Statements of Financial Interests could be located at the Authority for
Evans regarding calendar years 2001 through 2004.
191. Section 1104(d) of the State Ethics Act mandates that, No public official shall be
allowed to take the oath of office or enter or continue upon his duties, nor shall he
receive compensation from public funds, unless he has filed a Statement of
Financial Interests as required by this chapter."
a. Evans received compensation as the Authority Executive Director in
calendar years 2001 through 2004 although Evans had no Statements of
Financial Interests on file with the Authority.
b. Evans was paid bi- weekly in his position as Authority Executive Director.
192. From approximately April 2001 through December 2004, Evans received gross
compensation from the Authority representing wages paid as shown below:
Apr. -Dec. 2001 2002 2003 2004 Total
$36,486.00 $51,087.00 $53,642.00 $57,988.00 $199,203.00
*AII figures are rounded to the nearest dollar.
193. Evans received approximately $199,203.00 in wages as the Authority Executive
Director during the time period when he failed to file Statements of Financial
Interests (calendar years 2001 (partial) through 2004).
194. Evans, as the Executive Director of the Authority and as President of the
Corporation realized a total financial gain of approximately $170,585.89 as the
result of demanding that the Corporation be compensated by the Authority, voting to
approve himself into a compensated position with the Corporation, and approving
and issuing Corporation checks to businesses /companies on his behalf for his own
personal interest without specific approval of the Corporation or Authority board of
directors as shown below:
Evans, 06 -028
Page 81
Description
Use of Corporation Funds for Personal Insurance, Annuities, etc.
Personal Use of Corporation Credit Cards /Lines of Credit.
Personal use of Corporation Automobile and Fuel Credit Cards /Lines
of Credit
Total
III. DISCUSSION:
As Executive Director of the Venango County Housing Authority ( "Authority ") from
September 13, 1978, through April 27, 2005, and as a Member and President of the
Venango Housing Corporation ( "Corporation ") Board of Directors from July 14, 1982,
through April 27,2005, Respondent Edwin A. Evans (hereinafter also referred to as
"Respondent," "Respondent Evans," or "Evans ") was a public official /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 Evans violated Sections 1103(a) and 1104(a) of the Ethics
Act, 65 Pa.C.S. §§ 1103(a) and 1104(a), when he used the authority of his public position
as an employee of the Authority and as an employee and /or president of the Corporation to
obtain a private pecuniary gain for himself by authorizing payments using Authority and /or
Corporation funds for country club membership and dues, insurance premiums and
annuities, payments to credit cards, the purchase and use of an automobile for personal
purposes, the use of Authority and /or Corporation funds for other personal purposes
unrelated to his public position /public employment, and when he authorized payments to
entities with which he is associated; and when he failed to file Statements of Financial
Interests for the 2000, 2001, 2002, 2003 and 2004 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
Amount
$63,263.45
$78,733.85
$28,588.59
$170,585.89
Evans, 06 -028
Page 82
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.
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. The Stipulated Findings reveal repeated actions by the Respondent in his
official capacities with the Authority and Corporation, whereby Respondent received a
private financial gain in the amount of $170,585.89 through his use of governmental
property and funds for personal purposes.
We shall now summarize the relevant facts as contained in the Stipulation of
Findings.
Background information
The Authority was created by the Venango County Commissioners in 1977,
pursuant to the Pennsylvania "Housing Authorities Law." The Authority Board of Directors
( "Authority Board ") consists of five members who, by law, may not be compensated for
their service.
Respondent Evans was employed as Executive Director of the Authority from
September 13, 1978, through April 27, 2005. Evans' duties and responsibilities as
Authority Executive Director included, inter alia: (1) serving as Secretary of the Authority;
(2) keeping Authority records; (3) recording votes cast at Authority meetings; (4) having the
care and custody of all Authority funds; (5) signing all orders and checks for payment of
money and disbursing such money under the direction of the Authority; (6) keeping regular
books of account showing receipts and expenditures and rendering to the Authority
accounts of transactions and the financial condition of the Authority; and (7) general
supervision over the administration of the Authority's business and affairs.
The Corporation was created in 1982 at the direction of the Authority Board. The
Corporation was organized solely for the issuance of tax -free bonds. The Corporation
operated from the same physical address as did the Authority. The parties have stipulated
that the Corporation is an actual de facto committee of the Authority.
The Corporation Board of Directors ( "Corporation Board ") consists of three
members, all of whom are appointed by the Authority Board. Corporation Board members
are not compensated for service on the Corporation Board. Corporation By -Laws in effect
during Evans' tenure prohibited officers of the Corporation from being compensated in their
officer positions.
Evans signed the Corporation's Articles of Incorporation as the incorporator. Evans,
Edward Albert ( "Albert "), and Beverly Snyder ( "Snyder ") were appointed as the initial
directors of the Corporation. Albert and Snyder were Authority Board members at that
time. Evans, Albert, and Snyder signed the Corporation By -Laws on July 14, 1982.
Evans, 06 -028
Page 83
Evans was elected President of the Corporation at the July 14, 1982, meeting of the
Corporation Board. Evans served as the President of the Corporation Board from July 14,
1982, through April 27, 2005. Evans additionally held the position of Financial Advisor for
the Corporation from May 30, 1990, through April 27, 2005.
Evans' duties and responsibilities as President of the Corporation Board included,
inter alia: (1) serving as Chief Executive Officer of the Corporation; (2) exercising general
supervision and control of the business and affairs of the Corporation subject to the control
of the Corporation Board; (3) presiding at all meetings of the Corporation Board; and (4)
signing any deeds, mortgages, bonds, notes, contracts, or other instruments which the
Corporation Board authorized to be executed.
Effective January 27, 2005, Evans was suspended without pay from his position as
Authority Executive Director. On or about April 27, 2005, Evans' employment as Executive
Director of the Authority was terminated. At the same time Evans' employment as
Executive Director of the Authority was terminated, Evans was also removed from the
Corporation Board of Directors.
Authority housing programs
The Authority operates the following programs provided through the Department of
Housing and Urban Development (hereafter "HUD "): (1) a Public Housing Program,
consisting of a twenty unit complex known as "Cherry Hill Apartments "; (2) a Section 8
Choice Voucher Program; and (3) a Section 8 New Construction Program, consisting of a
one hundred unit, privately owned housing complex known as "Evergreen Arbors Estates"
(also referred to herein as "Evergreen Arbors ").
The Public Housing Program is funded through tenant rent and HUD operating
subsidies. Under this program, a housing authority enters into an Annual Contributions
Contract ( "ACC ") with HUD. HUD provides operating funds to the housing authority, and
the housing authority is responsible for the management and maintenance of the property.
Administrative fees for the housing authority are included within the operating subsidy
provided by HUD to account for administrative costs such as employee salaries, employee
benefits, management improvements, and the like.
Under the Section 8 Choice Voucher program, a housing authority enters into an
ACC with HUD. HUD provides Housing Assistance Payments ( "HAPs ") and administrative
fees to the housing authority. The HAPs are to be redistributed to landlords as housing
subsidies for rent due on behalf of eligible families. Administrative fees may only be used
to cover costs incurred to perform housing authority administrative responsibilities for the
program in accordance with HUD regulations and requirements.
Under the Section 8 New Construction Program, a housing authority enters into an
ACC with HUD. The project owner then enters into a HAP Contract. Either HUD or the
housing authority may serve as the contract administrator. If the housing authority serves
as the contract administrator, it receives administrative fees from HUD to offset costs for
the administration of the contract.
Authority meetings
From approximately March 1988 through December 2004, the Authority Board was
scheduled to meet quarterly. The June quarterly meeting was often cancelled. Special
meetings were called as necessary.
Although the Authority Chairman was to preside over Authority meetings, Evans
normally did so. Authority Board members did not normally question or challenge Evans'
actions, explanations, or suggestions at meetings, due to Evans' tenure with the Authority
Evans, 06 -028
Page 84
and Evans reporting that annual audits conducted of the Authority revealed no
discrepancies.
Tamala Ross ( "Ross "), the Authority's Deputy Executive Director, or Robbi Terrill
( "Terrill "), the Authority's Section 8 Program Coordinator, took minutes of the Authority
meetings. Drafts of meeting minutes were provided to Evans, who routinely altered the
content of the minutes and returned them to Ross or Terrill for correction prior to
presentation to the Authority Board. The minutes were routinely approved for accuracy at
the subsequent Authority meeting.
From at least January 2001 to January 2005, Authority Board members were not
provided with meeting packets for review prior to Authority Board meetings. A meeting
agenda, minutes from the prior meeting, and various reports were received by the
Authority Board members immediately prior to or during Authority Board meetings.
Authority Board members were not provided with bill lists or listings of checks issued from
Authority accounts for review, nor were checks issued presented to the Authority members
physically or verbally. From at least January 2001 to January 2005, no official motion or
vote was taken by the Authority Board to formally approve checks issued from Authority
accounts.
Corporation meetings
Per Corporation By -Laws in effect during Evans' tenure, meetings of the
Corporation Board were to be called by the Secretary at the request of the President or
any two directors. During Evans' tenure, the Corporation did not hold regularly scheduled
meetings. Only two documented Corporation meetings occurred from the Corporation's
inception through January 2005. Those meetings were held July 14, 1982, and May 30,
1990.
Although Section 3.8 of the Corporation By -Laws in effect during Evans' tenure
allowed that any action that could be taken by the Corporation Board at a meeting could be
taken without a meeting provided that written consent setting forth the action to be taken
would be signed by each director and filed with the Secretary, no such written consents
exist to substantiate that any official action was taken by the Corporation Board outside of
a meeting setting.
Expenditures or transfers of Corporation funds were required to be approved at an
open and public meeting. However, no official motion or vote was taken by the
Corporation directors to formally approve checks issued from Corporation accounts. No
bill lists, invoices received, or checks issued were presented for review or approval at any
Corporation Board meetings or at any Authority Board meetings at which the Corporation
was discussed.
Authority accounts
During the time period under review, the Authority maintained a corporate credit
card /line of credit account with American Express under account number 001.
Evans maintained sole control of the credit card /line of credit account in the Authority's
name with American Express. From October 2001 through January 2005, no activity
occurred on this card with the exception of charges for annual membership fees incurred.
From at least January 2001 through January 2005 the Authority also maintained the
following bank accounts. Account No. xxxx677 at National City Bank was the account
utilized for the Public Housing Program (Cherry Hill Apartments). HUD funds for the
program and any tenant rent payments were deposited into this account. Account No.
xxx>000c5l -6 at Citizens Bank was the account utilized for the Section 8 Choice Voucher
Program and the Section 8 New Construction Program (Evergreen Arbors). HUD funds for
Evans, 06 -028
Page 85
both programs were deposited into this account. Account No. xxx>ooc039 at Northwest
Savings Bank was the account utilized to segregate HAPS and Administrative Fees issued
to the Authority for the Section 8 New Construction Program from HAPS and Administrative
Fees received for the Section 8 Choice Voucher Program. Checks were issued from this
account to Evergreen Arbors Associates for HAPS, and, commencing in approximately July
1990 (as discussed more fully below), to the Corporation for administrative fees received
from HUD. Account No. xxxx092 at First National Bank was initially utilized as an interest
generating account for the Authority. After June 28, 2002, the account was utilized as a
general checking account.
From at least January 2001 through approximately January 2005, Evans and
Authority Chairman Gary Kearney ( "Kearney ") (see, Kearney, Order 1446) maintained sole
signature authority over Authority bank accounts. Checks issued from Authority accounts
required two signatures. Facsimile signature stamps were utilized to authorize Authority
checks.
At least three sets of facsimile stamps existed in the name of Evans and Kearney for
the authorizing of Authority checks. Evans maintained one set of stamps in his office at
the Authority. Ross maintained a set in her office until approximately November 2004, at
which time she returned the stamps to Evans. Kearney maintained a set of stamps at his
home.
Ross and Terrill generated Authority checks at Evans' direction. Ross and /or Terrill
affixed Evans' and Kearney's names via the facsimile stamps to the checks generated per
Evans' direction. Evans had ultimate supervisory responsibility over Ross and Terrill.
Ross and /or Terrill generated checks only from the Citizens Bank Account (No.
xxx>000(5l -6) and the National City Bank Account (No. xxxx677).
Evans maintained sole custody over Northwest Savings Bank Account (No.
)xx>oo(039) and First National Bank Account (No. )xxx092). Ross and /or Terrill did not
affix the facsimile stamps to checks representing transfers of funds for the Section 8 New
Construction Program from the Citizens Bank account into the Northwest Savings Bank
account. Evans routinely took possession of checks representing transfers of funds for the
Section 8 New Construction Program immediately after production, affixed the facsimile
signatures, and deposited the funds.
As noted above, from at least January 2001 to January 2005, Authority Members
were not supplied with bill lists or listings of checks issued from Authority accounts for
review nor were checks issued presented to the Authority members physically or verbally.
From at least January 2001 to January 2005, no official motion or vote was taken by the
Authority Members to formally approve checks issued from Authority accounts.
Corporation accounts
The Corporation maintained three separate credit card /line of credit accounts with
American Express under account numbers 000, 005, and
008. Evans maintained sole control of the credit card /line of credit accounts
in the Corporation's name with American Express. From October 2001 through November
2004, no activity occurred in account number 000 except for charges of
annual membership fees.
From at least January 2001 through January 2005, the Corporation maintained the
following bank accounts at National City Bank. Account No. xxxx901 was initially
established by Evans to serve as a checking account to be utilized in association with the
refinancing of Evergreen Arbors. Account No. xxxx901 was the Corporation's primary
account. Account No. xxx>000c411 was a secondary account with minimal activity. During
Evans, 06 -028
Page 86
the above - referenced time frame, only three deposits totaling $590.57 were entered into
the latter account, and all debits from the account were attributed to monthly service
charges and inactive account fees.
From at least January 2001 through approximately January 2005, Evans and
Kearney maintained sole signature authority over Corporation accounts. Checks issued
from the Corporation's account number xxxx901 required two signatures. Facsimile
signature stamps of Evans' and Kearney's signatures were utilized to authorize
Corporation checks.
Evans had sole control of the checks and check registers for the Corporation
accounts. Evans, as Corporation President, authorized, approved, and issued Corporation
checks of his own volition.
Evans prohibited Ross and Terrill access to Corporation checks and financial
records. All Corporation checks issued from January 2001 through January 2005 with the
exception of checks numbered 2185, 2283, 2824, and 2825 bear handwritten information
in Evans' handwriting.
As noted above, expenditures or transfers of Corporation funds were required to be
approved at an open and public meeting. However, no official motion or vote was taken by
the Corporation directors to formally approve checks issued from Corporation accounts.
No bill lists, invoices received, or checks issued were presented for review or approval at
any Corporation Board meetings or at any Authority Board meetings at which the
Corporation was discussed.
Transfers of funds from the Authority to the Corporation
In 1989 and 1990, the following events transpired, which resulted in the Authority
Board authorizing that the administrative fees received by the Authority from HUD for
administration of Evergreen Arbors be transferred to the Corporation.
On or about July 3, 1989, James E. Schoenberger, General Deputy Assistant
Secretary for Housing -HUD, issued a memorandum to various individuals and entities,
including the Authority, noting HUD's interest in working with entities to refinance Section 8
issues. Evans contacted securities company Sanwa -BGK and requested that a proposal
be drawn for the possible refinancing of the HUD Section 11(b) funding that had been used
to construct Evergreen Arbors.
In or about August 1989, Evans requested advice from HUD concerning the
proposal of Sanwa -BGK to act as the exclusive agent of the Corporation to organize the
refinancing of the original 11(b issue associated with Evergreen Arbors. Suzanne S.
McLaughlin, Attorney - Advisor, Office of Chief Counsel -HUD, issued correspondence to
Evans dated August 24, 1989, which advised that Schoenberger's memo suggested that
HUD would be "pretty flexible" in considering various possible approaches to achieve
refinancing and that HUD would not participate in a Public Housing Agency's selection of
an underwriter or consultant. McLaughlin advised that she could not assist Evans in
evaluation of the Sanwa -BGK proposal.
At the September 20, 1989, Authority Board meeting, Evans reported that he had
received written notice from HUD mandating that Evergreen Arbors be refinanced. At the
September 20, 1989, meeting, the Authority Board voted unanimously for Evans to
proceed with the necessary steps to refinance Evergreen Arbors in accordance with the
HUD mandate.
On May 30, 1990, a meeting of the Corporation Board was held. The meeting was
attended by Corporation Board members Evans, Albert and Mary Sterrett, who had
Evans, 06 -028
Page 87
replaced Snyder; Corporation Solicitor Terrance Whitling; and Kearney, who was an
Authority Board Member but not a Corporation Board Member. The Corporation Board,
including Evans as President, unanimously passed a resolution approving the refinancing
of the Evergreen Arbors project. Evans signed the resolution as Corporation President.
The Corporation Board also took action to designate each Corporation Board Member and
Kearney to a compensated position. Minutes do not document actual services to be
performed or the amount or type of compensation to be received by any individual noted.
Evans and the other Corporation Board members were appointed as "Financial
Coordinators." Kearney was appointed as a "Financial Advisor." Evans made the motion
and participated in the vote to approve his own receipt of compensation as a Financial
Coordinator for the Corporation.
The May 30, 1990, Corporation Board meeting minutes note Evans' refusal to sign
any bonds without payment to the Corporation and compensation.
On May 30, 1990, an Emergency Meeting of the Authority Board was held
immediately after the adjournment of the Corporation Board meeting. Authority Board
members in attendance at the meeting were Kearney, Sterrett, and Albert. Two positions
were vacant on the Authority Board at that time. Also present at the meeting were Evans
and Whitling. Minutes note that prior to the adjournment of the May 30, 1990, Emergency
Meeting, an Executive Session was held to discuss personnel matters. Although typed
minutes of the alleged Executive Session exist, the legitimacy of the minutes is
questionable.
According to the minutes of the alleged Executive Session, Evans referred the
Board to a letter from Evans dated August 21, 1989, addressed to John Bates, Chief
Counsel at the HUD Pittsburgh Office, and to HUD's alleged response from Suzanne
McLaughlin, Attorney- Advisor, Office of Chief Counsel -HUD. The August 21, 1989, letter
Evans purportedly sent to Bates was never received at the HUD Pittsburgh Office, and no
copy of the letter is present in the Authority minute book.
In the correspondence dated August 21, 1989, allegedly sent to Bates, Evans
outlined that since approximately $5,200,000.00 was anticipated to be refinanced and that
the Corporation was to be compensated one percent or $52,000.00, the terms of Evans'
agreement were that as Financial Agent and Coordinator, Evans receive forty percent of
the principal amount at closing and a continued $6,000.00 quarterly after closing until all
responsibilities associated with Evans' functions were complete. The correspondence
noted that Evans had recently spoken to McLaughlin regarding the refinancing and his
activity as refinancing agent as President of the Corporation. The correspondence noted
that due to the magnitude of the requests on the Corporation and Evans to accomplish the
goals suggested by HUD, the monetary terms of the agreement must be settled before
Evans would exert the additional time needed for the effort.
Evans represented to the Authority Board that McLaughlin's aforesaid August 24,
1989, letter was HUD's approval of the terms and conditions set forth by Evans in his
purported August 21, 1989, letter addressed to Bates. Evans then requested that the
Authority transfer the fees received as administrative costs to the Corporation to
accomplish the requests of HUD per Schoenberger's July 3, 1989, memorandum. The
Executive Session minutes note that the intent of the transfer was to compensate Evans for
his responsibility as President and Financial Agent and Coordinator of the Corporation in
the amount as stated in the August 21, 1989, letter to Bates.
The Board approved a resolution transferring the administrative fee for Evergreen
Arbors to the Corporation to accomplish the requests of HUD for compensation of Evans
acting as President, Financial Agent, and Coordinator of the Corporation. The vote
approving the Resolution passed 3 -0 with Kearney, Sterrett, and Albert voting affirmatively.
The Board approved the Resolution authorizing the transfer of the administrative fees
Evans, 06 -028
Page 88
based on Evans' representation that McLaughlin's August 24, 1989, letter was an
approving response by HUD to the August 21, 1989, letter Evans addressed to Bates. The
parties have stipulated that Evans made factual misrepresentations to the Authority Board,
which prompted the Board to approve the transfer of administrative fees received from
HUD by the Authority to the Corporation.
Although minutes of the May 30, 1990, Authority Executive Session document
approval for Evans to receive compensation in the amount of $6,000.00 quarterly for
services performed as President, Financial Advisor, and Coordinator of the Corporation in
association with the bond refinance, Evans did not receive checks from either entity in the
amount specified on a quarterly basis.
Evans generated two contracts between the Authority and the Corporation dated
March 20, 1990, and May 30, 1990, regarding the refinancing of Evergreen Arbors. The
contracts were to serve as evidence that the Authority would pay to the Corporation the
ongoing administrative fee from HUD for the Evergreen Arbors project for the consecutive
years of the Refinancing Agreement annually. Both contracts were signed by Evans on
behalf of the Corporation and by Kearney on behalf of the Authority. Neither contract was
ratified at any meeting of the Authority or the Corporation.
From approximately July 1990 through at least January 2004, Evans transferred
from the Authority to the Corporation administrative fees received by the Authority from
HUD for administration of Evergreen Arbors.
As detailed in Fact Finding 114, during the time frame of April 2001 through January
2005, Evans transferred a total of $129,992.00 in administrative fees received by the
Authority for the administration of Evergreen Arbors to the Corporation. Evans affixed both
his name stamp and Kearney's name stamp to all of the checks noted in Fact Finding 114
by which these fees were transferred.
As detailed in Fact Finding 115, from May 2002 through January 2005, Evans also
transferred /deposited at least $58,626.12 into the Corporation account at National City
Bank from the Authority account at First National Bank. Evans affixed both his name stamp
and Kearney's name stamp to all of the checks noted in Fact Finding 115 as authorizing
signatures.
The transfers of funds from the Authority to the Corporation were significant
because they provided Evans with a means to use substantial government funds for
personal purposes. By transferring funds from the Authority to the Corporation, Evans
obtained control over the funds. Although Evans and Kearney had signature authority for
Corporation accounts, Evans had sole control of the checks and check registers for the
Corporation accounts, and Evans had signature stamps for his signature and Kearney's
signature. Evans, as Corporation President, authorized, approved, and issued
Corporation checks of his own volition. Evans prohibited Ross and Terrill access to
Corporation checks and financial records. All Corporation checks issued from January
2001 through January 2005 with the exception of checks numbered 2185, 2283, 2824, and
2825 bear handwritten information in Evans' handwriting.
There was no review or approval by the Corporation Board of Corporation
expenditures. Additionally, as discussed more fully below, no independent audit was
performed for the Corporation between April 2001 and January 2005, while Evans was
President of the Corporation.
Evans' use of monies from Corporation bank accounts for personal purposes
As set forth in Fact Findings 120 -121, from at least April 2001 through January
2005, Evans used the authority of his public position to routinely utilize the Corporation
Evans, 06 -028
Page 89
account at National City Bank (Account No. x)xx901) to issue payments in his name or on
his behalf to companies /businesses for personal insurance premiums, investment
annuities, country club memberships /dues, or other personal purposes, without board
approval, in the total amount of $50,653.44. Such expenditures included payments in
excess of $1,300 made by Evans in 2002 to the Nevada Secretary of State and to Laughlin
Associates, Inc., for Evans' personal interests. (See, Fact Findings 120 -121, 122 I). We
also note check number 2428 in the amount of $400.00, which was issued in 2002 from the
Corporation's said account payable to Accord Enterprises Inc., a corporation formed by
Evans for which Evans is the sole corporate officer.
From 2002 through 2004, payments totaling at least $2,906.50 were made from this
Corporation account for Evans' country club membership fees and dues. See, Fact
Findings 121, 122 m.
Signature stamps of Evans and Kearney were used to authorize all of the one
hundred seventy -nine checks listed in Fact Finding 121 with the exception of check
number 2822 in the amount of $386.25, signed only by Evans, and the possible exception
of check number 2815 in the amount of $532.40, for which the signature(s) were illegible.
None of the one hundred seventy -nine checks issued by Evans as listed in Fact Finding
121 were approved by the Corporation Board at any official Board meeting. No official
votes by the Corporation Board to approve checks issued from Corporation accounts are
present in Authority minutes. No Corporation checks issued /expensed were presented to
the Authority Board at any meeting for approval. The Authority Board had no knowledge of
Corporation checks expensed by Evans for his personal benefit.
In addition to the above, from at least April 2001 through January 2005, Evans
routinely utilized the Corporation account at National City Bank (Account No. x)xx901),
without Corporation Board or Authority Board approval, to issue other payments in his
name totaling $12,543.01 to companies /businesses with which Evans had personal
interests as set forth in Fact Findings 136, 136 a -f. Signature stamps of Evans and
Kearney were used to authorize all of the seventy -seven checks listed in Fact Findings
136 a -f, with the possible exception of check number 2816 in the amount of $39.90, for
which one of the signatures was illegible. None of these checks were approved by the
Corporation Board or Authority Board.
Evans issued check number 1039, dated December 17, 2003, in the amount of
$67.00 from the Authority account at First National Bank for payment in his name to GE
Motor Club.
The parties have stipulated that Evans realized a financial gain in the amount of
$63,263.45 as the result of approving and issuing Corporation checks to
businesses /companies on his behalf for his own personal purposes without approval of the
Corporation Board or Authority Board.
Evans' personal use of Corporation credit cards /lines of credit through American
Express
During the time period under review, Evans routinely utilized the Corporation's lines
of credit with American Express (account numbers 005 and 008)
for personal expenses, without Corporation Board approval. The parties have stipulated
that Evans' use of Corporation credit cards /lines of credit through American Express for
personal purchases totaled $80,939.85 as set forth in Fact Findings 129 and 129 c.
Evans' personal expenditures using Corporation account number 005
included payments in August 2003 to transfer balances totaling $13,457.55 from five of
Evans' personal credit cards to the Corporation's account. Finance charges totaling an
additional $231.14 were charged to the Corporation account specifically for the transfers of
Evans, 06 -028
Page 90
the aforesaid balances. Evans' signature appears as the authorized signatory on the
convenience checks that were used to pay off balances on Evans' personal credit cards.
Evans' personal expenditures using Corporation account number 008
included: clothing purchases; grocery /pharmacy expenses; food and beverages; paint
supplies; gasoline; annual membership fees; dental /orthodontic services; professional
services; landscaping; admission tickets; and general merchandise from Walmart.
In January 2005, under Corporation account number 008, Evans
issued Convenience Check number 9021 in the amount of $20,315.00 payable to the
Authority account at First National Bank. This check was issued using the Corporation
credit account in an effort to replenish funds in the Authority's First National Bank account.
Approximately one month earlier, in December 2004, Evans had transferred $30,315.00
from the Authority's First National Bank account to the Corporation in order to be able to
make a significant payment on the Corporation's American Express account (Account No.
008) balance of $29,394.98, prior to the seating of the new Authority Board.
Evans' signature appears on the check as the authorized signatory.
In or about February 2005, under Corporation account number 008,
Evans also issued Convenience Check number 9022 in the amount of $1,000.00 to
Attorney Michael Hadley as a retainer for legal services in association with Evans'
suspension and eventual termination from the Authority /Corporation. Evans' signature
appears on the check as the authorized signatory.
As detailed in Fact Finding 130, Evans issued payments totaling $61,547.00
($12,052.00 + $49,495.00) to American Express on both accounts (Account No.
005 and 008) via Corporation checks without specific
Corporation Board or Authority Board approval. All of the eighty -eight checks listed in Fact
Finding 130 were signed using the signature stamps of Evans and Kearney with the
exception of check 2823 in the amount of $360.00, which still bore signatures of Evans and
Kearney as authorizing signatures. None of the eighty -eight checks listed in Fact Finding
130, which were issued by Evans in payment of charges incurred through the American
Express lines of credit, were approved by the Corporation Board at any official Board
meeting. Neither the Corporation Board nor the Authority Board approved or had
knowledge of Evans' personal use of Corporation credit cards /lines of credit.
The parties have stipulated that Evans, as President of the Corporation, realized a
private pecuniary gain of $78,733.85 as the result of utilizing Corporation credit cards /lines
of credit through American Express for his own personal use without specific approval of
the Corporation Board or Authority Board to do so. Evans issued eighty -eight checks
totaling $61,547.00 from the Corporation account to American Express in payment for
personal purchases /services charged to the Corporation lines of credit. A minimum of
$17,186.85 remained to be paid by the Corporation for charges of a personal nature
incurred by Evans. Evans made personal payment in the total amount of $2,206.00 on the
two accounts.
Evans' personal use of a Corporation automobile and fuel credit cards /lines of
credit
The Corporation has owned or leased various vehicles since at least approximately
1990. A corporate resolution dated June 27, 1990, authorized the first purchase of a
vehicle by the Corporation. There are no meeting minutes documenting the approval of
that resolution. There are no meeting minutes of the Corporation Board documenting
authorization for the purchase of any other vehicles by the Corporation.
From July 14, 2001, through the present, the Corporation has owned a 2001
Chevrolet Monte Carlo (Vehicle Identification No. 2G1WW12E819153653). Evans
Evans, 06 -028
Page 91
completed the Credit Sale /Lease Application for the vehicle as Corporation President.
Evans signed the application as a co- applicant in his personal capacity and provided his
own personal PO Box number (PO Box 1518) along with the Corporation physical address.
The Monte Carlo was insured under a commercial policy that had previously insured
another Authority vehicle. Evans signed the completed insurance application on behalf of
the Corporation on January 28, 1998. The application documented Evans as the sole
individual driving company vehicles and as the sole insured operator. The application
documented vehicle use as "Drive To Work/School -Under 15 Miles."
Commencing July 14, 2001, Evans was the primary driver /operator of the 2001
Monte Carlo owned by the Corporation.
Corporation vehicles were not approved for personal use. Evans routinely utilized
the Monte Carlo for personal use in addition to driving the vehicle to and from work
between his residence and the Authority /Corporation office on a daily basis. Evans
accrued approximately 87,524 miles on the vehicle during the approximate three years,
nine months in which the vehicle was in his possession.
Between the dates of July 2001 - November 2003 and August 2004 - February 2005,
Evans had no properly insured vehicle to utilize for personal use with the exception of the
Corporation Monte Carlo.
On February 28, 2005, Evans purchased a 2000 Chevrolet Lumina as the result of
receiving correspondence dated February 24, 2005, from the Authority Chairman
specifying that Evans was no longer authorized to operate the Corporation vehicle for any
reason. The correspondence specified that the Monte Carlo along with all funds, records,
property, and other things owned by the Corporation in Evans' possession must be
returned by March 2, 2005, or legal action would be taken. Evans returned the Monte
Carlo to the Authority /Corporation office in or about late March /early April 2005.
The parties have stipulated that Evans realized a financial benefit of $24,662.90
through his personal use of the Corporation's 2001 Monte Carlo and his issuance of thirty -
three checks from the Corporation account at National City Bank and /or American Express
convenience checks for the purchase /payment of the vehicle without specific Corporation
Board approval. (See, Fact Finding 153). Evans's signature appears as an authorized
signatory on all thirty -three checks issued.
From approximately mid -1993, Evans established a line of credit in association with
a Sheetz Fleet Account in the name of the Corporation for use with the Corporation
vehicle. On the application, Evans designated himself as the Fleet Contact Person. The
Fleet Contact Person receives all credit cards, Vehicle Analysis Reports, and other
information Sheetz provides from time to time. Evans maintained sole custody of the credit
card associated with the account.
Evans routinely utilized the Corporation's Sheetz Fleet Account line of credit outside
the parameters of his normal work hours (Monday through Friday, 8:30 a.m. -4:30 p.m.), on
weekends, and on holidays which resulted in a financial gain to Evans in the amount of
$3,925.69 as detailed in Fact Findings 157 and 158 a -c.
As set forth in Fact Finding 155, from April 2001 through January 2005, Evans
utilized the Corporation account at National City Bank and the Authority Account at First
National Bank to issue forty -four checks totaling $5,704.46 to Sheetz without prior
Corporation or Authority Board approval for charges incurred which included Evans'
personal use. Signature stamps were used to authorize the checks. Evans' signature
appears as an authorized signatory on at least forty -three of the checks issued. The
authorizing signatures on one check were illegible.
Evans, 06 -028
Page 92
The parties have stipulated that Evans' personal use of the Corporation's 2001
Monte Carlo and the Corporation's Sheetz Fleet Account line of credit resulted in a total
financial gain of $28,588.59 to Evans as detailed in Fact Finding 161.
Total financial gain received by Evans
The parties have stipulated that Evans, as the Executive Director of the Authority
and as President of the Corporation, realized a total financial gain of approximately
$170,585.89 calculated as follows: (1) $63,263.45 (for use of Corporation funds for
personal insurance, annuities, etc.); (2) $78,733.85 (for personal use of Corporation credit
cards /lines of credit through American Express); and (3) $28,588.59 (for personal use of
Corporation automobile and fuel credit cards /lines of credit. (See, Fact Finding 194).
Audits
Both the Authority and the Corporation are required to undergo an annual audit by a
Certified Public Accountant. No independent audit was performed for the Corporation
between April 2001 and January 2005.
For the fiscal years ending June 30, 2001, June 30, 2002, and June 30, 2003, Terri
Birchard of Birchard & Foulkrod, LLP conducted annual audits of the Authority. Birchard's
primary contact at the Authority office was Ross.
Prior to the start of the audit ending fiscal year 2001, Birchard provided a
Preliminary Audit Information Form to the Authority for completion. The form required
identification of all relevant bank accounts. The form as returned to Birchard & Foulkrod
documented only three accounts for the Authority (account number x)xxx78 -4 at
Mellon /Citizens Bank; account number xxx>000c677 at National City Bank; and account
number xxx>oo(039 at Northwest Savings Bank) and no Corporation accounts.
On November 1, 2001, June 25, 2002, and November 12, 2003, Evans as Authority
Executive Director signed confirmation letters provided by Birchard & Foulkrod, which
stated, "Management is responsible for making all financial records and related information
available to us and for the accuracy and completeness of that information."
During completion of the annual audits, Birchard requested from Ross all applicable
accounts for review. Evans did not supply Birchard with any Corporation financial
information for review although requested by Ross.
The Authority provided Birchard & Foulkrod with management representation letters
dated March 8, 2002, February 21, 2003, and February 21, 2004, certifying that the
Authority did not alter any information provided to the auditors for audit completion and
that the audit was correct per the information the client provided. Information documented
in the management representation letters included the following:
(1) That the Authority made available all financial records and related data and
all audit or relevant monitoring reports, if any, received from funding sources;
(2) That there had been no fraud involving management or employees who have
significant roles in internal control; and
That related party transactions, including revenues, expenditures /expenses,
loans, transfers, leasing arrangements, and guarantees, and amounts
receivable from or payable to related parties had been properly recorded or
disclosed in the financial statements.
(3)
Evans, 06 -028
Page 93
The parties have stipulated that the Corporation is a related party in association
with the Authority for auditing purposes, and that Birchard would make no material findings
during the audits as a result of Evans withholding financial information associated with the
Corporation.
For the fiscal year ending June 30, 2004, the firm of Maher Duessel conducted the
annual audit of the Authority. This audit was conducted after Evans had been suspended
and /or terminated from his position with the Authority. During this annual audit, the
Authority provided Corporation financial information to Maher Duessel for review.
Maher Duessel identified the Corporation as a "blended component unit" created for
the issuance of conduit debt. Maher Duessel defined blended component unit as part of
the government's operations, although legally a separate entity. Data from blended
component units are combined with data of the primary government (the Authority) for
auditing purposes.
As a result of including Corporation financial information with the audit, Maher
Duessel identified the following findings:
(1) Management of the Authority was unable to locate an agreement between
the VHC (Corporation) and the Authority specifying the appropriate uses of
funds transferred to the Corporation by the Authority.
(2) Invoices supporting the disposition of transferred funds expensed could not
be produced.
The Authority may be subject to repayment of all or a portion of the funds to
HUD.
(3)
Evans' failure to file Statements of Financial Interests
As Executive Director of the Authority, Evans was required to file annual Statements
of Financial Interests in conformity with Section 1104 of the Ethics Act. Evans was aware
of this requirement.
The Stipulated Findings clearly establish that Evans failed to file Statements of
Financial Interests with the Authority for calendar years 2001 through 2004 (see, Fact
Findings 190 a -193). The Stipulated Findings also establish Evans' failure to file a
Statement of Financial Interests for calendar year 2000, in that Fact Finding 191 a states
that Evans received compensation in 2001 even though he had no Statement of Financial
Interests on file with the Authority. The Statement of Financial Interests that would have
been due in 2001 would have been for calendar year 2000.
Evans received approximately $199,203.00 in wages as the Authority Executive
Director during the time period when he failed to file Statements of Financial Interests.
Analysis
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, dated December 6, 2007, sets forth a proposed
resolution of the allegations as follows:
3. The Investigative Division will recommend the following in relation to
the above allegations:
Evans, 06 -028
Page 94
a. That a violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when
Evans authorized payments to himself for country club
membership fees and dues; and for personal purchases made
on Venango County Housing Authority and /or Venango
Housing Corporation issued credit cards — including balance
transfers from Evans' personal credit cards; and
b. That a violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in
relation to Evans authorizing payments for insurance
premiums and annuities for himself; and
c. That a violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when
Evans utilized a Venango County Housing Authority and /or
Venango Housing Corporation owned automobile for personal
purposes; and
d. That a violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in
relation to Evans' use of Venango County Housing Authority
and /or Venango Housing Corporation funds for other personal
purposes unrelated to his public position /public employment;
and
e. That a violation of Section 1104(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1104(a) occurred when
Evans failed to file Statements of Financial Interests for the
2000, 2001, 2002, 2003 and 2004 calendar years.
4. In settlement of this matter and under the terms of this Consent
Agreement, Evans agrees to make payment in the amount of $40,000
as follows:
a. An initial payment of $30,000, by way of certified check,
payable to the Venango County Housing Authority and
forwarded to the Pennsylvania State Ethics Commission for
compliance purposes, is due within thirty (30) days of the
issuance of the final adjudication in this matter; and
b. The remaining balance of $10,000 is due within approximately
twenty -four (24) months from the payment date of the initial
$30,000. The remaining $10,000 balance is payable in
monthly installments, by way of certified check, payable to the
Venango County Housing Authority and forwarded to the
Pennsylvania State Ethics Commission for compliance
purposes, in an amount of at least $416.70, due on or before
the last day of each month until the remaining $10,000 is paid
in full. The first monthly payment shall not be due any sooner
than 30 days from receipt of the initial $30,000 payment. The
first monthly payment shall be due at the end of the month
following the month in which the original $30,000 payment is
due (e.g. if the initial $30,000 is paid February 15, 2008 the
first monthly payment shall be due by the end of March 2008
and the end of each month thereafter). Evans may prepay this
balance at anytime.
Evans, 06 -028
Page 95
5. Evans agrees that he will neither seek nor hold any position of public
office or of public employment in the Commonwealth of Pennsylvania
at anytime from the date of this agreement forward.
6. Evans agrees to file Statements of Financial Interests with Venango
County Housing Authority, through the Pennsylvania State Ethics
Commission, for calendar years 2000, 2001, 2002, 2003 and 2004
calendar years [sic] within thirty (30) days of the issuance of the final
adjudication in this matter.
7 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. The Consent Agreement further notes that Evans accepts the
Consent Agreement solely for the purpose of resolving this matter. Id. at 3.
In considering the Consent Agreement, we initially note the following points.
First, Evans was a public official /public employee in his capacities as Executive
Director of the Authority and as a Member and President of the Corporation Board.
As Executive Director of the Authority, Evans' duties included: having care and
custody of all Authority funds; signing all orders and checks for payment of money and
disbursing such money under the direction of the Authority; keeping regular books of
account showing receipts and expenditures and rendering to the Authority accounts of
transactions and the financial condition of the Authority; and having general supervision
over the administration of the Authority's business and affairs. Such duties clearly brought
Evans within the definition of the term "public employee" as set forth in the Ethics Act. 65
Pa.C.S. § 1102. See, Seitz, Order 1370.
As a Member and President of the Corporation Board, Evans was a "public official"
subject to the Ethics Act. The Stipulated Findings establish that the Corporation is a de
facto committee of the Authority (Fact Finding 59). Additionally, from a legal perspective,
the Corporation is an entity organized by the Authority, and therefore it is a "political
subdivision" as that term is defined by the Ethics Act. See, definition of "political
subdivision," 65 Pa.C.S. § 1102; Cf., Eiben, Opinion 04 -002. The statutory exception for
members of purely advisory boards lacking authority to expend public funds would clearly
not be applicable. See, definition of "public official," 65 Pa.C.S. § 1102. Thus, as an
appointed Member and President of the Corporation Board, Evans was a "public official"
subject to the Ethics Act.
Second, Evans used the authority of his public position as Executive Director of the
Authority or as a Member and President of the Corporation Board over a course of years,
when he: established Authority or Corporation accounts and established himself as an
authorized signatory as to such accounts; demanded payment to the Corporation and
compensation for himself relative to the refinancing of the Evergreen Arbors project; made
false representations to the Authority Board, prompting that Board to approve the transfer
of administrative fees received from HUD as to the Evergreen Arbors project to the
Corporation; voted together with other Corporation Board members to pass a resolution
approving the refinancing of the Evergreen Arbors project and signed the resolution as
Evans, 06 -028
Page 96
Corporation President; voted together with other Corporation Board members to appoint
himself to a compensated position as a Financial Coordinator of the Corporation;
generated contracts between the Authority and the Corporation regarding the transfer of
administrative fees from the Authority to the Corporation and signed those contracts on
behalf of the Corporation; effectuated the transfers of administrative fees from the
Authority to the Corporation; authorized and issued payments with Authority or Corporation
funds; affixed signatures or directed subordinate employees to affix facsimile signatures of
his own and /or Kearney's signatures to Authority or Corporation checks /expenditures;
arranged and authorized the Corporation's acquisition of the 2001 Monte Carlo and
related insurance coverage and fuel purchases; used the Corporation's 2001 Monte Carlo
and fuel purchased for same; maintained control over Authority or Corporation accounts or
financial documents or records; and withheld Corporation financial records from auditors.
Some of Evans' official actions occurred prior to the statutory limitations period and may
not now form the basis for a finding of a violation of the Ethics Act. 65 Pa.C.S. § 1108(m).
However, all of the violations recommended by the Consent Agreement have been
established by actions occurring within the limitations period.
We shall first consider the recommendation of the parties that a violation of Section
1103(a) of the Ethics Act occurred when Evans authorized payments to himself for country
club membership fees and dues; and for personal purchases made on Venango County
Housing Authority and /or Venango Housing Corporation issued credit cards, including
balance transfers from Evans' personal credit cards. Each element of the recommended
violation has been established.
The Stipulated Findings establish that Evans did in fact authorize and issue
payments for his country club membership fees and dues using Corporation funds. See,
Fact Findings 121, 122 m. Such expenditures totaled at least $2,906.50 from 2002
through 2004. Id.
Additionally, during the time period under review, Evans routinely made personal
expenditures using the Corporation's lines of credit with American Express (account
numbers 005 and 008) without Corporation Board approval.
Evans' personal expenditures using Corporation account number 005
included payments in August 2003 to transfer balances totaling $13,457.55 from five of
Evans' personal credit cards to the Corporation's account. Finance charges totaling an
additional $231.14 were charged to the Corporation account specifically for the transfers of
the aforesaid balances. Evans' signature appears as the authorized signatory on the
convenience checks that were used to pay off balances on Evans' personal credit cards.
Evans' personal expenditures using Corporation account number 008
included: clothing purchases; grocery /pharmacy expenses; food and beverages; paint
supplies; gasoline; annual membership fees; dental /orthodontic services; professional
services; landscaping; admission tickets; and general merchandise from Walmart.
The parties have stipulated that Evans' use of Corporation credit cards /lines of
credit for personal purchases totaled $80,939.85 as set forth in Fact Findings 129 and 129
c. As detailed in Fact Finding 130, Evans issued payments totaling $61,547.00
($12,052.00 + $49,495.00) to American Express on both accounts (Account No.
005 and 008) via Corporation checks without specific
Corporation Board or Authority Board approval. Evans only made personal payment in the
amount of $2,206.00 toward those expenditures. Based upon the stipulations of the
parties, Evans received a private pecuniary benefit in the amount of $78,733.85 from his
use of the Corporation's American Express credit cards /lines of credit for personal
expenditures.
In addition to the above, Evans routinely utilized the Corporation's Sheetz Fleet
Account line of credit outside the parameters of his normal work hours (Monday through
Evans, 06 -028
Page 97
Friday, 8:30 a.m. -4:30 p.m.), on weekends, and on holidays which resulted in a financial
gain to Evans in the amount of $3,925.69 as detailed in Fact Findings 157 and 158 a -c.
Neither the Corporation Board nor the Authority Board approved or had knowledge
of Evans' personal use of Corporation credit cards /lines of credit. But for being in his
aforesaid public positions, effectuating the transfer of Authority administrative fees to the
Corporation, and having control over Authority and Corporation bank accounts and credit
cards, Evans would not have been in a position to use such governmental funds for
personal expenditures.
We therefore hold that a violation of Section 1103(a) of the Ethics Act occurred
when Evans authorized payments to himself for country club membership fees and dues;
and for personal purchases made on Authority and /or Corporation issued credit cards,
including balance transfers from Evans' personal credit cards. Cf., Pierce, Order 1449;
Krisher, Order 1425; Gorr, Order 1423; Cobb, Order 1354.
We next consider the recommendation of the parties that a violation of Section
1103(a) of the Ethics Act occurred in relation to Evans authorizing payments for insurance
premiums and annuities for himself. This violation has been established by Fact Findings
121 -123, 136, and 136 a -g. Evans used the authority of his public positions by accessing
and using Authority or Corporation funds to pay for personal expenditures consisting of
substantial insurance premiums and expenses for annuities for himself.
We hold that a violation of Section 1103(a) of the Ethics Act occurred in relation to
Evans authorizing payments from Authority or Corporation funds for insurance premiums
and annuities for himself.
Turning to the third recommended violation set forth in the Consent Agreement, it is
clear that a violation of Section 1103(a) of the Ethics Act occurred when Evans utilized an
Authority and /or Corporation owned automobile for personal purposes. Evans used the
authority of his public position as President of the Corporation when he arranged and
authorized the Corporation's acquisition of the 2001 Monte Carlo as well as expenses
related to the operation /use of the said vehicle without Corporation Board approval. Evans
further used the authority of his public position when he used the Corporation's 2001
Monte Carlo for personal purposes.
The parties have stipulated that Evans realized a financial benefit of $24,662.90
through his personal use of the Corporation's 2001 Monte Carlo and his issuance of thirty -
three checks from the Corporation account at National City Bank and /or American Express
convenience checks for the purchase /payment of the vehicle without specific Corporation
Board approval. (See, Fact Finding 153). Evans' signature appears as an authorized
signatory on all thirty -three checks issued.
We hold that a violation of Section 1103(a) of the Ethics Act occurred when Evans
utilized an Authority and /or Corporation owned automobile for personal purposes. See,
Charles, Order 1427; Keeney, Order 1243.
The parties have further recommended that a violation of Section 1103(a) of the
Ethics Act occurred in relation to Evans' use of Authority and /or Corporation funds for other
personal purposes unrelated to his public position /public employment. We accept the
parties' recommendation based upon expenditures made by Evans using Authority or
Corporation funds for personal purposes other than those already mentioned in the
violations addressed above. Such expenditures would include payments made by Evans
in 2002 from the Corporation account at National City Bank (account number xxxx901) to
the Nevada Secretary of State and to Laughlin Associates, Inc., for Evans' personal
interests. (See, Fact Findings 120 -121, 122 I). Such expenditures were in excess of
$1,300. We also note check number 2428 in the amount of $400.00, which was issued in
Evans, 06 -028
Page 98
2002 from the Corporation's said account payable to Accord Enterprises Inc., a corporation
formed by Evans for which Evans is the sole corporate officer.
We hold that a violation of Section 1103(a) of the Ethics Act occurred in relation to
Evans' use of Authority and /or Corporation funds for other personal purposes unrelated to
his public position /public employment.
The parties have stipulated that Evans, as the Executive Director of the Authority
and as President of the Corporation, realized a total financial gain of approximately
$170,585.89 calculated as follows: (1) $63,263.45 (for use of Corporation funds for
personal insurance, annuities, etc.); (2) $78,733.85 (for personal use of Corporation credit
cards /lines of credit through American Express); and (3) $28,588.59 (for personal use of
Corporation automobile and fuel credit cards /lines of credit. (See, Fact Finding 194).
Finally, the parties have recommended that a violation of Section 1104(a) of the
Ethics Act occurred when Evans failed to file Statements of Financial Interests for the
2000, 2001, 2002, 2003 and 2004 calendar years. This violation clearly has been
established, as Evans was required to file the forms and failed to do so. We hold that a
violation of Section 1104(a) of the Ethics Act occurred when Evans failed to file with the
Authority Statements of Financial Interests for the 2000, 2001, 2002, 2003 and 2004
calendar years.
As part of the Consent Agreement, Evans has agreed to make payment in the
amount of $40,000 in settlement of this matter, payable under the terms set forth in
Paragraphs 4 a -b of the Consent Agreement quoted above. Evans has also agreed that
he will neither seek nor hold any position of public office or of public employment in the
Commonwealth of Pennsylvania at any time from the date of the Consent Agreement
(December 6, 2007) forward. Finally, Evans has agreed to file Statements of Financial
Interests for calendar years 2000, 2001, 2002, 2003, and 2004 with the Authority, through
this Commission, within 30 days of the issuance of this adjudication and Order.
Although the amount of restitution agreed upon by the parties is less than the
private pecuniary benefit received by Evans in violation of the Ethics Act, we recognize
that the Consent Agreement including the amount of proposed restitution is the result of
the negotiations of the parties for an overall settlement of this case.
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, per the Consent Agreement
of the parties, Evans is directed to make payment in the amount of $40,000, payable under
the terms set forth in Paragraphs 4 a -b of the Consent Agreement, specifically:
a. An initial payment of $30,000, by way of certified check,
payable to the Venango County Housing Authority and
forwarded to the Pennsylvania State Ethics Commission for
compliance purposes, is due within thirty (30) days of the
issuance of this adjudication and Order; and
b. The remaining balance of $10,000 is due within approximately
twenty -four (24) months from the payment date of the initial
$30,000. The remaining $10,000 balance is payable in
monthly installments, by way of certified check, payable to the
Venango County Housing Authority and forwarded to the
Pennsylvania State Ethics Commission for compliance
purposes, in an amount of at least $416.70, due on or before
the last day of each month until the remaining $10,000 is paid
in full. The first monthly payment shall not be due any sooner
than 30 days from receipt of the initial $30,000 payment. The
Evans, 06 -028
Page 99
first monthly payment shall be due at the end of the month
following the month in which the original $30,000 payment is
due (e.g., if the initial $30,000 is paid February 15, 2008, the
first monthly payment shall be due by the end of March 2008
and the end of each month thereafter). Evans may prepay this
balance at any time.
Per the Consent Agreement, Evans is further directed that he is to neither seek nor
hold any position of public office or of public employment in the Commonwealth of
Pennsylvania at any time from the date of the Consent Agreement (December 6, 2007)
forward.
Finally, Evans is directed to file Statements of Financial Interests for calendar years
2000, 2001, 2002, 2003, and 2004 with the Authority, through this Commission, within 30
days of the issuance of this adjudication and Order.
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. As Executive Director of the Venango County Housing Authority ( "Authority ") from
September 13, 1978, through April 27, 2005, and as a Member and President of the
Venango Housing Corporation ( "Corporation ") Board of Directors from July 14,
1982, through April 27, 2005, Respondent Edwin A. Evans ( "Evans ") was a public
official /public employee subject to the provisions of the Public Official and
Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq.
2. Evans violated Section 1103(a) of the Ethics Act when he authorized payments
from Authority or Corporation funds for his country club membership fees and dues;
and for personal purchases made on Authority and /or Corporation issued credit
cards, including balance transfers from Evans' personal credit cards.
3. Evans violated Section 1103(a) of the Ethics Act when he authorized payments
from Authority or Corporation funds for insurance premiums and annuities for
himself.
4. Evans violated Section 1103(a) of the Ethics Act when he utilized an Authority
and /or Corporation owned automobile for personal purposes.
5. Evans violated Section 1103(a) of the Ethics Act when he used Authority and /or
Corporation funds for other personal purposes unrelated to his public
position /public employment.
6. Evans violated Section 1104(a) of the Ethics Act when he failed to file with the
Authority Statements of Financial Interests for the 2000, 2001, 2002, 2003 and
2004 calendar years.
7 Restitution is warranted.
In Re: Edwin A. Evans,
Respondent
ORDER NO. 1457
File Docket: 06 -028
Date Decided: 1/28/08
Date Mailed: 2/15/08
1 Edwin A. Evans ( "Evans "), a public official /public employee in his capacity as
Executive Director of the Venango County Housing Authority ( "Authority ") from
September 13, 1978, through April 27, 2005, and as a Member and President of the
Venango Housing Corporation ( "Corporation ") Board of Directors from July 14,
1982, through April 27, 2005, violated Section 1103(a) of the Public Official and
Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), when he authorized
payments from Authority or Corporation funds for his country club membership fees
and dues; and for personal purchases made on Authority and /or Corporation issued
credit cards, including balance transfers from Evans' personal credit cards.
2. Evans violated Section 1103(a) of the Ethics Act when he authorized payments
from Authority or Corporation funds for insurance premiums and annuities for
himself.
3. Evans violated Section 1103(a) of the Ethics Act when he utilized an Authority
and /or Corporation owned automobile for personal purposes.
4. Evans violated Section 1103(a) of the Ethics Act when he used Authority and /or
Corporation funds for other personal purposes unrelated to his public
position /public employment.
5. Evans violated Section 1104(a) of the Ethics Act when he failed to file with the
Authority Statements of Financial Interests for the 2000, 2001, 2002, 2003 and
2004 calendar years.
6. Per the Consent Agreement of the parties, Evans is directed to make payment in
the amount of $40,000, payable under the terms set forth in Paragraphs 4 a -b of the
Consent Agreement, specifically:
a. An initial payment of $30,000, by way of certified check,
payable to the Venango County Housing Authority and
forwarded to the Pennsylvania State Ethics Commission for
compliance purposes, is due within thirty (30) days of the
issuance of this Order; and
b. The remaining balance of $10,000 is due within approximately
twenty -four (24) months from the payment date of the initial
$30,000. The remaining $10,000 balance is payable in
monthly installments, by way of certified check, payable to the
Venango County Housing Authority and forwarded to the
Pennsylvania State Ethics Commission for compliance
purposes, in an amount of at least $416.70, due on or before
the last day of each month until the remaining $10,000 is paid
in full. The first monthly payment shall not be due any sooner
than 30 days from receipt of the initial $30,000 payment. The
Evans, 06 -028
Page 101
first monthly payment shall be due at the end of the month
following the month in which the original $30,000 payment is
due (e.g., if the initial $30,000 is paid February 15, 2008, the
first monthly payment shall be due by the end of March 2008
and the end of each month thereafter). Evans may prepay this
balance at any time.
7 Per the Consent Agreement of the parties, Evans is further directed that he is to
neither seek nor hold any position of public office or of public employment in the
Commonwealth of Pennsylvania at any time from the date of the Consent
Agreement (December 6, 2007) forward.
8. Per the Consent Agreement of the parties, Evans is directed to file Statements of
Financial Interests for calendar years 2000, 2001, 2002, 2003, and 2004 with the
Authority, through this Commission, within 30 days of the issuance of this Order.
9. Compliance with paragraphs 6, 7, and 8 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