Loading...
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; Evans, 06 -028 Page 3 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 Evans, 06 -028 Page 4 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). Evans, 06 -028 Page 5 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. Evans, 06 -028 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 Page 7 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 Page 9 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. Evans, 06 -028 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: Evans, 06 -028 Page 13 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 Evans, 06 -028 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. Evans, 06 -028 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