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HomeMy WebLinkAbout1524 VinokurIn Re: Gabe Vinokur, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Nicholas A. Colafella Mark Volk 08 -010 Order No. 1524 7/22/09 8/4/09 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) 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 subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth 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. Vinokur, 08 -010 Page 2 I. ALLEGATIONS: That Gabe Vinokur, a public official /public employee in his capacity as a Member and Chairman/Vice- Chairman of the Lower Southampton Township Zoning Hearing Board, Bucks County, violated Sections 1103(a) and 1105(b) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a) and 1105(b), when he used the authority of his public position for the private pecuniary gain of himself and /or a business with which he is associated by participating in discussions and decisions of the Zoning Hearing Board regarding requests of Colonial Nissan, Colonial Volkswagen and /or New Colonial Realty Company at a time when his company, Creative Printing by R'MAE, was performing printing services for these entities; when he filed a deficient Statement of Financial Interests for the 2005 calendar year by failing to disclose any information relating to real estate interests, creditors, gifts, transportation, lodging and hospitality, financial interest in any legal entity engaged in business for profit and identity of any financial interest transferred to a family member; when he failed to disclose on the Statement of Financial Interests filed for the 2006 calendar year any information relating to creditors, real estate interests, direct /indirect sources of income, gifts, transportation, lodging, hospitality, and financial interest in any legal entity in business for profit and financial interests in a business transferred to a member of his immediate family; and when he filed a deficient Statement of Financial Interests for the 2007 calendar year by failing to disclose any information relating to [the] calendar year for which the form was filed, direct /indirect sources of income, financial interest in any legal entity in business for profit and financial interest in a business transferred to a member of his immediate family. II. FINDINGS: 1. Gabe Vinokur has served as a board member of the Lower Southampton Township Zoning Hearing Board, Bucks County from at least 2000 until the present time. a. Vinokur served as Vice - Chairman of the board in 2007. 2. Vinokur owns and operates a printing business known as Creative Printing by R'Mae. 3. Articles of Incorporation for R'Mae, Inc. list Gabriel Vinokur as the President and Eleanor Vinokur as the Secretary /Treasurer. 4. Creative Printing by R'Mae provides various types of printing services. a. This includes business cards, envelopes and stationary. 5. Board members are appointed to the Zoning Hearing Board by the Board of Supervisors for Lower Southampton Township. a. The board consists of five members. 6. The jurisdiction of the Zoning Hearing Board is outlined in the Pennsylvania Municipalities Planning Code (MPC) which in part provides that the zoning hearing board shall have exclusive jurisdiction to hear and render final adjudications in relation to but not limited to the following matters: 1. Substantive challenges to the validity of any land use ordinance; 2. Challenges to the validity of a land use ordinance [regarding] questions or alleged defects in the process of enactment or adoption; 3. Appeals from the determination of the zoning officer or municipal Vinokur, 08 -010 Page 3 engineer; 4. Applications for variances from the terms of the zoning ordinance and flood hazard ordinance or such provisions within a land use ordinance; 5. Applications for special exceptions under the zoning ordinance or flood plain or flood hazard ordinance or such provisions within a land use ordinance; 6. Appeals from the determination of any officer or agency charged with the administration of any transfers of development rights or performance density provisions of the zoning ordinance. 7 Hearings are conducted by the Zoning Hearing Board under Section 908 of the MPC, which section sets forth the process and procedures for such hearings. 8. From 2002 through 2007 Officers representing Colonial Nissan, Inc., New Colonial Realty Co., and Colonial Volkswagen, Inc. submitted applications to the Lower Southampton Township Zoning Hearing Board requesting variances of Zoning Ordinances involving land use and signs. a. In 2007 Colonial Nissan was looking to expand its business. 9. Articles of Incorporation for Colonial Nissan, Inc. list Ronald Schwartz as the President and William Stamps as the Vice - President. 10. Fictitious Name Registration for New Colonial Realty Co. lists the officers as Jeffrey Feldman and William Stamps. 11. Articles of Incorporation of Colonial Volkswagen, Inc. list James Boyle as the President and William Stamps as the Vice President. 12. On or around April 17, 2007, Colonial Nissan through New Colonial Realty Co. submitted a preliminary subdivision plan for three parcels of land in Lower Southampton Township located at 117 Bustleton Pike, 16 Dolton Road and 4 Village Drive. a. The properties were zoned both R -3 Residence and C- Commercial. b. The plan called for a relocation of the property to allow for the expansion of the Colonial Nissan parking area. 13. Minutes of the Lower Southampton Township Board of Supervisors meeting for June 13, 2007, confirmed discussions about the New Colonial Realty subdivision plan: a. The proposed land development plan was going to require relief from the requirements of the Zoning Ordinance. b. The Board of Supervisors requested that New Colonial Realty Co. submit an application to the Zoning Hearing Board before it would review this plan any further. c. The Board of Supervisors agreed until October 31, 2007, for New Colonial Realty Co. to apply to the Zoning Hearing Board for interpretation and /or variances of the Zoning Ordinances. Vinokur, 08 -010 Page 4 14. On or around August 7, 2007, New Colonial Realty Co. filed an application, Appeal No. Z07 -14, with the Lower Southampton Township Zoning Hearing Board requesting an interpretation and /or variances of the Lower Southampton Township Zoning Ordinance for sections of land 2003.4.A, 1402.4 and 1402.2. a. New Colonial Realty Co. filed this application in connection with a subdivision /land development application before the Board of Supervisors of Lower Southampton Township. b. New Colonial Realty Co. sought an interpretation or variance to allow the adjustment of the existing common boundary between the properties, a variance as to the required rear yard and buffer strip between the commercial and residential zone and a variance as to the placement of dumpsters within the front yard area on the commercial property. 15. Minutes of the Lower Southampton Township Zoning Hearing Board Meeting for September 6, 2007, included discussions on the zoning issues involving New Colonial Realty Co. Board member Gabe Vinokur served as the Chairman of the Board for the meeting due to the absence of Board Chairman George Williams. b. New Colonial Realty Co. was seeking a variance for a buffer zone involving a dumpster and parking spaces for its property zoned in a commercial area that bordered a residential area. a. c. The participants included Ron Schwartz as the applicant for New Colonial Realty Co., and he was represented by Attorney William Benz. d. Lower Southampton Township Solicitor Michael Savona represented Lower Southampton Township. e. The meeting was continued until October 4, 2007. 16. On September 11, 2007, Michael Savona, Township Solicitor, on behalf of Lower Southampton Township, submitted a letter to Lower Southampton Township Zoning Hearing Board Solicitor Stephen Moyer requesting that a subpoena be issued by the Zoning Hearing Board to New Colonial Realty Co. and Ron Schwartz for the production of the following materials to the township: a. Copies of all sales reports, invoices, and /or any other records indicating the number of vehicles sold monthly and annually for 2005 and 2006 by Colonial Nissan. b. Copies of any floor plan or other records identifying the number of new cars in stock or stored at 117 Bustleton Pike during each month of 2005 and 2006. c. Copies of service records, including records for warranty service, maintenance service, routine service, body work, repairs, and any and all other vehicle service performed by Colonial Nissan, its service department or mechanics, during 2005 and 2006, including daily, weekly, monthly, quarterly and annual figures reflecting total vehicles serviced at 117 Bustleton Pike. d. Identification of the total number of individuals employed by Colonial Nissan Vinokur, 08 -010 Page 5 and assigned to work at 117 Bustleton Pike, including mechanics, parts department employees, receptionists, janitorial staff, maintenance employees, and any others, including both full and part -time employees, and identifying the employment position of each. 17. On September 18, 2007, Moyer responded to Savona's letter requesting a subpoena to be issued by the Zoning Hearing Board to New Colonial Realty Co., [which response] included the following: a. In his capacity as acting Chairman of the Board, Gabriel Vinokur declined to issue the requested subpoena. 1. Vinokur found the requested information to not be relevant to the proceedings and the subpoena request to be overly burdensome. b. Moyer referenced Section 908 of MPC [providing] that the Chairman or Acting Chairman of the Board "shall have power to administer oaths and issue subpoenas to compel the attendance of witnesses and the production of relevant documents and papers, including witnesses and documents requested by the parties." c. Based on Acting Chairman Vinokur's decision concerning the subpoena request, a subpoena was not issued. 18. Minutes of the Zoning Hearing Board meeting for October 4, 2007, confirmed there was further discussion on the variances being requested by New Colonial Realty Co. a. Gabe Vinokur continued to serve as Acting Chairman even though Board Chairman George Williams was present for the meeting. 1. This was also requested by Ron Schwartz and William Benz representing New Colonial Realty Co. b. Township Solicitor Michael Savona started the discussion by indicating that he and Mr. Benz had met since the initial hearing and had agreed to the following principles: 1. That the proposed lot line change for section of land 2003(4)(A) did not violate the Zoning Ordinance. 2. That a variance should be granted for section of land 1402(4) allowing the buffer zone to be placed on the adjoining lot conditioned upon: aa. The creation of an easement on the residential lot in favor of the commercial tract which would require the applicant and all successors and assigns to maintain the buffer in perpetuity. ab. The applicant would limit the number of vehicular spaces on the proposed plan to 165, with no less than 20 spaces designated as employee parking. ac. The township should have reasonable access to the site. c. A variance from the Zoning Ordinance for Section of Land 1402(2) should be granted allowing the dumpsters, fence, and a buffer to be placed in Vinokur, 08 -010 Page 6 accordance with the existing features plan. 19. On October 18, 2007, the Lower Southampton Township Zoning Hearing Board issued an order in connection with the Application filed by New Colonial Realty Co. for the properties located at 117 Bustleton Pike, 4 Village Drive and 16 Dolton Road, Feasterville, Lower Southampton Township, Pennsylvania. a. The Board interpreted the provisions for Section of Land 2003.4.A of the Zoning Ordinance such that the proposed lot line adjustment was permitted as of right and provisions of the Zoning Ordinance did not preclude extension of the parking area onto the commercially zoned portion of the Residential Properties. b. The Board granted the variance request for sections of land 1402.2 and 1402.4 of the Zoning Ordinance, such that a variance was granted allowing the reduction of the side /rear yard of the Commercial Property to 20 feet of open space, a variance was granted as to the required buffer strip on the Commercial Property, with such planted buffer strip to be planted and maintained on the Residential Property located on Dolton Road, and a variance from the front yard requirements under Section 1402.2 of the Zoning Ordinance was granted such that dumpsters and other screening could be placed within the front yard area along Dolton Road. c. The order contained the signatures of all five Board Members approving the variances, including Gabe Vinokur. 20. In addition to the foregoing, New Colonial Realty Co. had previously filed an application for zoning relief in 2005 with the Lower Southampton Township Zoning Appeal Board. 21. On October 3, 2005, New Colonial Realty Co. located at 104 Bustleton Pike, Feasterville, Lower Southampton Township, Bucks County, Pennsylvania filed an application, Appeal No. Z05 -21, with the Lower Southampton Township Zoning Hearing Board requesting variances from the Sign Ordinance under Sections 103 and Section 115, Schedule A of Chapter 19 of the Ordinances of Lower Southampton Township to permit installation of a new "Nissan" ground sign with support poles in excess of 14 inches in diameter and an area in excess of thirty square feet. a. Section 115, Schedule A of the Sign Ordinance provides that in the C- Commercial District a ground sign used for identification purposes is permitted provided the area does not exceed 30 square feet. b. Section 103 requires that the support poles for the proposed sign must not be more than 14 inches in diameter. 1. Supporting structures in excess of this measurement shall be considered in the overall size of the sign. 22. On November 17, 2005, a hearing was held by the Lower Southampton Township Zoning Hearing Board to discuss the application filed by New Colonial Realty Co. a. Gabe Vinokur along with the other board members was present and took part in the board deliberations. b. Ron Schwartz of New Colonial Realty Co. testified to the height of the existing sign and requests for replacing the existing "Nissan" ground sign Vinokur, 08 -010 Page 7 with a new sign complying with the standards and requirements imposed by Nissan. 23. On December 1, 2005, the Lower Southampton Township Zoning Hearing Board issued an Order that approved the variances for the Sign Size at New Colonial Realty Co. [and specifically] a. Granted a variance with regard to support poles of the proposed ground sign such that the diameter of the two support poles could be increased from the maximum of 14 inches as set forth in the definition of "Sign Size" under Section 103 of the Sign Ordinance, to a maximum diameter of 4 feet 4 inches per support pole. b. Granted a variance that supporting poles in excess of the 14 inch diameter limitation would not be considered in the overall size of the proposed ground sign as otherwise required under the definition of "Sign Size" under Section 103 of the Sign Ordinance. c. Granted a variance with regard to the area of the proposed ground sign to be installed on the Property located at 104 Bustleton Pike, Feasterville, Pennsylvania such that the face of the proposed ground sign (excluding the support poles) could be increased from the maximum limit of 84 square feet as permitted under the variance to Section 115, Schedule "A" of the Sign Ordinance to a maximum of 100 square feet. d. The Order contained the signatures of all five board members including Gabe Vinokur approving the variances. 24. Creative Printing by R'Mae has been providing printing services since at least 2004 to Colonial Nissan and Colonial Volkswagen. a. The printing work has included business cards, envelopes, labels and office stationary. b. Colonial Volkswagen had matters before the Zoning Hearing Board in 2002 resulting from an appeal made by the Township's Zoning Officer. 25. The same officers of Colonial Nissan are also part of Colonial Volkswagen. a. Colonial Nissan and Colonial Volkswagen are part of the Colonial Auto Group. 26. Creative Printing by R'Mae performed printing services for Colonial Nissan and Colonial Volkswagen on or around the same time that variances were reviewed and approved by the Lower Southampton Township Zoning Hearing Board involving Colonial Nissan. a. As a Board Member of the Zoning Hearing Board Vinokur participated in the process to deliberate and approve variances in 2005 and 2007 involving Colonial Nissan while his business performed printing work for Colonial Nissan and Colonial Volkswagen. b. Vinokur never disclosed his business relationship with Colonial Nissan and Colonial Volkswagen while reviewing zoning issues affecting them as a Board Member of the Zoning Hearing Board. 27. During the period of time from October 2005 through December 2005, while the Vinokur, 08 -010 Page 8 Lower Southampton Township Zoning Hearing Board was considering the Colonial Nissan zoning application, Creative Printing by R'Mae received $5,088.23 from Colonial Nissan and $1,572.82 from Colonial Volkswagen for work performed for those entities. 28. During the period of time from August 2007 through October 2007, while the Lower Southampton Township Zoning Hearing Board was considering the Colonial Nissan zoning application, Creative Printing by R'Mae received $6,901.16 from Colonial Nissan and $4,868.39 from Colonial Volkswagen for work performed for those entities. 29. Gabriel and Eleanor Vinokur filed U.S. Income Tax Returns on Internal Revenue Service Form 1120 for Creative Printing by R'Mae for the calendar years 2005 and 2007. 30. Gabriel and Eleanor Vinokur realized profit percentages for Creative Printing by R'Mae for the years 2005 and 2007 as follows: a. 2005: Gross Profit Percent Profit b. 2007: Gross Profit Percent Profit 31. Based on the percent of profit, Creative Printing by R'Mae's profit on the business received from Colonial Nissan and Colonial Volkswagen in 2005 and 2007 while, on or around the same time, Vinokur was participating in discussions and decisions of the Zoning Hearing Board affecting Colonial Nissan and /or New Colonial Realty Company, totaled $2,917.85 as follows: a. Colonial Nissan $228, 785 12% $185,726 18% 1. 2005: Business Sales $5,088.23 Percent Profit 12% Profit $ 610.59 2. 2007: Business Sales $6,901.16 Percent Profit 18% Profit $1,242.21 3. Total Profit $1,852.80 b. Colonial Volkswagen 1. 2005: Business Sales $1,572.82 Percent Profit 12% Profit $ 188.74 2. 2007: Business Sales $4,868.39 Percent Profit 18% Profit $ 876.31 3. Total Profit $1,065.05 c. Total Profit for business received Vinokur, 08 -010 Page 9 from Colonial Nissan and Colonial Volkswagen $2,917.85 The following findings relate to Vinokur's failure to disclose information on his Statement of Financial Interests forms for calendar years 2005, 2006 and 2007. 32. As a Board Member in calendar years 2005 through 2007, Gabe Vinokur was required to file a Statement of Financial Interests (SFI) for the preceding calendar years by no later than May 1. 33. An SFI compliance reviewed was conducted by the Investigative Division of the State Ethics Commission on April 21 and 23, 2008, for Lower Southampton Township. 34. Vinokur did not complete his SFI information for calendar years 2005 through 2007 for the following categories: a. 2005: Real Estate Interests #8 Creditors #9 Gifts #11 Transportation, lodging #12 hospitality Financial interest in any #14 legal entity engaged in business for profit Business interests transferred #15 to immediate family member b. 2006: Real Estate Interests #8 Creditors #9 Gifts #11 Transportation, lodging #12 Hospitality Financial interest in any #14 legal entity engaged in business for profit Business interests transferred #15 to immediate family member c. 2007: Calendar year filing #7 Direst /indirect sources of #10 Income Financial interest in any #14 legal entity in business for profit Business interest transferred #15 to immediate family member 35. All of the foregoing categories were left blank on the forms. III. DISCUSSION: As a Member of the Lower Southampton Township Zoning Hearing Board, Respondent Gabe Vinokur (hereinafter also referred to as "Respondent," "Respondent Vinokur," and "Vinokur ") is a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Vinokur, 08 -010 Page 10 The allegations are that Respondent Vinokur violated Sections 1103(a) and 1105(b) of the Ethics Act: (1) When he used the authority of his public position for the private pecuniary gain of himself and /or a business with which he is associated by participating in discussions and decisions of the Zoning Hearing Board regarding requests of Colonial Nissan, Colonial Volkswagen and /or New Colonial Realty Company at a time when his company, Creative Printing by R'MAE, was performing printing services for these entities; (2) When he filed a deficient Statement of Financial Interests for the 2005 calendar year by failing to disclose any information relating to real estate interests, creditors, gifts, transportation, lodging and hospitality, financial interest in any legal entity engaged in business for profit and identity of any financial interest transferred to a family member; When he failed to disclose on the Statement of Financial Interests filed for the 2006 calendar year any information relating to creditors, real estate interests, direct /indirect sources of income, gifts, transportation, lodging, hospitality, and financial interest in any legal entity in business for profit and financial interests in a business transferred to a member of his immediate family; and (4) When he filed a deficient Statement of Financial Interests for the 2007 calendar year by failing to disclose any information relating to the calendar year for which the form was filed, direct /indirect sources of income, financial interest in any legal entity in business for profit and financial interest in a business transferred to a member of his immediate family. 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: (3) 65 Pa. C. S. § 1103(a). § 1103. Restricted activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 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 Vinokur, 08 -010 Page 11 same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa. C. S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the Statement of Financial Interests form must provide. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent has served as a Member of the Lower Southampton Township Zoning Hearing Board ( "Zoning Hearing Board ") from at least 2000 until the present time. Respondent served as Vice - Chairman of the Zoning Hearing Board in 2007. The Zoning Hearing Board consists of five Members. Zoning Hearing Board Members are appointed by the Lower Southampton Township ( "Township ") Board of Supervisors. Per the Pennsylvania Municipalities Planning Code, the Zoning Hearing Board's jurisdiction includes, but is not limited to, hearing and rendering final adjudications in relation to applications for variances from the terms of the Township Zoning Ordinance. In a private capacity, Respondent owns and operates a printing business known as "Creative Printing by R'Mae." Articles of Incorporation for R'Mae, Inc. list "Gabriel Vinokur" as President. Since at least 2004 Creative Printing by R'Mae has been providing printing services to two corporations named "Colonial Nissan, Inc." ( "Colonial Nissan ") and "Colonial Volkswagen, Inc." ( "Colonial Volkswagen "). Per the Stipulated Findings, there are connections between Colonial Nissan and Colonial Volkswagen. The officers of Colonial Nissan are part of Colonial Volkswagen, and Colonial Nissan and Colonial Volkswagen are part of the "Colonial Auto Group." Stipulated Fact Findings 25 -25 a. An individual named William Stamps is an officer of both corporations and is also an officer of a third business named New Colonial Realty Company." Stipulated Fact Findings 9 -11. On October 3, 2005, New Colonial Realty Company filed an application with the Zoning Hearing Board requesting variances from the Township Sign Ordinance to permit installation of a new "Nissan" ground sign with support poles in excess of the authorized maximum of 14 inches in diameter and an area in excess of the authorized thirty square feet. On November 17, 2005, the Zoning Hearing Board held a hearing to discuss the application. Ron Schwartz of New Colonial Realty Company testified regarding the height of the existing sign and requests for replacing the existing "Nissan" ground sign with a new sign complying with the standards and requirements imposed by Nissan. Respondent was present at the meeting and took part in the deliberations of the Zoning Hearing Board. On December 1, 2005, the Zoning Hearing Board issued an Order that approved the variances requested by New Colonial Realty Company. The Order: (1) granted a variance such that the diameter of the two support poles could be increased to a maximum Vinokur, 08 -010 Page 12 diameter of 4 feet 4 inches each; (2) granted a variance that support poles in excess of the 14 inch diameter limitation would not be considered in the overall size of the proposed ground sign; and (3) granted a variance such that the face of the proposed ground sign (excluding the support poles) could be increased to a maximum of 100 square feet. The Order approving the variances contained the signatures of all five Zoning Hearing Board Members including Respondent. In 2007 Colonial Nissan was looking to expand its business. On or about April 17, 2007, Colonial Nissan through New Colonial Realty Company submitted a preliminary subdivision plan for three parcels of land in the Township located at 117 Bustleton Pike, 16 Dolton Road and 4 Village Drive. The properties were zoned both R -3 Residence and C- Commercial. The plan would allow for the expansion of the Colonial Nissan parking area. The proposed land development plan would require relief from the requirements of the Zoning Ordinance. On or about August 7, 2007, New Colonial Realty Company filed an application with the Zoning Hearing Board requesting an interpretation and /or variances of the Township Zoning Ordinance in connection with the aforesaid subdivision /land development application. New Colonial Realty Company sought an interpretation or variance to allow the adjustment of the existing common boundary between the properties, a variance as to the required rear yard and buffer strip between the commercial and residential zone, and a variance as to the placement of dumpsters within the front yard area on the commercial property. At a September 6, 2007, meeting of the Zoning Hearing Board, the zoning issues involving New Colonial Realty Company were discussed. Respondent served as Chairman of the Zoning Hearing Board for the meeting due to the absence of Chairman George Williams. The participants included Township Solicitor Michael Savona ( "Savona ") and Ron Schwartz as the applicant for New Colonial Realty Company, represented by Attorney William Benz ( "Benz "). The meeting was continued until October 4, 2007. Between meetings, Respondent declined a request by Savona for the issuance of a subpoena to New Colonial Realty Company and Ron Schwartz for the production of certain information /materials pertaining to Colonial Nissan as detailed at Fact Findings 16 a -16 d. Respondent found the requested information to not be relevant to the proceedings and the subpoena request to be overly burdensome. Based upon Respondent's decision concerning the subpoena request, a subpoena was not issued. At the October 4, 2007, Zoning Hearing Board meeting, Respondent continued to serve as Acting Chairman even though Chairman George Williams was present for the meeting. This was requested by Ron Schwartz and Benz. During the meeting, Savona indicated that he and Benz met after the prior meeting and were in agreement that the proposed lot line change did not violate the Zoning Ordinance and that a variance should be granted as to the buffer zone subject to certain specified conditions. The meeting minutes note that a variance should be granted allowing the dumpsters, fence, and a buffer to be placed in accordance with the existing features plan. On October 18, 2007, the Zoning Hearing Board issued an Order in connection with the aforesaid application filed by New Colonial Realty Company. The Zoning Hearing Board interpreted the provisions of the Zoning Ordinance such that the proposed lot line adjustment was permitted as of right and provisions of the Zoning Ordinance did not preclude extension of the parking area onto the commercially zoned portion of the Residential Properties. The Zoning Hearing Board granted a variance allowing the reduction of the side /rear yard of the Commercial Property to 20 feet of open space. The Zoning Hearing Board granted a variance as to the required buffer strip on the Commercial Property, with such buffer strip to be planted and maintained on the Residential Property located on Dolton Road. Additionally, the Zoning Hearing Board granted a variance from Vinokur, 08 -010 Page 13 the front yard requirements of the Zoning Ordinance such that dumpsters and other screening could be placed within the front yard area along Dolton Road. The Order contained the signatures of all five Zoning Hearing Board Members approving the variances, including Respondent. As a Member of the Zoning Hearing Board, Respondent participated in the process to deliberate and approve variances in 2005 and 2007 involving Colonial Nissan while his business performed printing work for Colonial Nissan and Colonial Volkswagen. Respondent never disclosed his business relationship with Colonial Nissan and Colonial Volkswagen while reviewing such zoning issues as a Zoning Hearing Board Member. From October 2005 through December 2005, while the Zoning Hearing Board was considering the Colonial Nissan zoning application regarding sign size, Creative Printing by R'Mae received $5,088.23 from Colonial Nissan and $1,572.82 from Colonial Volkswagen for work performed for those entities. From August 2007 through October 2007, while the Zoning Hearing Board was considering the Colonial Nissan zoning application regarding the expansion of Colonial Nissan, Creative Printing by R'Mae received $6,901.16 from Colonial Nissan and $4,868.39 from Colonial Volkswagen for work performed for those entities. The parties have stipulated that the profit made by Creative Printing by R'Mae on the business received from Colonial Nissan and Colonial Volkswagen in 2005 and 2007, at or about the time Respondent was participating in discussions and decisions of the Zoning Hearing Board affecting Colonial Nissan and /or New Colonial Realty Company, totaled $2,917.85, of which $1,852.80 was attributable to Colonial Nissan and $1,065.05 was attributable to Colonial Volkswagen. As for Respondent's Statements of Financial Interests ( "SFIs "), the parties have stipulated that Respondent did not complete the required information on his SFIs for calendar years 2005 and 2006 for the following disclosure categories: real estate interests; creditors; gifts; transportation, lodging and hospitality; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member. On his SFI for calendar year 2007, Respondent did not identify the calendar year filing and also did not complete the required information for the following disclosure categories: direct /indirect sources of income; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member. All of the foregoing categories were left blank on the forms. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That an unintentional violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Vinokur's participation in discussions and decisions of the Zoning Hearing Board regarding requests of Colonial Nissan, Colonial Volkswagen and /or New Colonial Realty Company at a time when a business with which he is associated, Creative Printing by R'MAE, was performing printing Vinokur, 08 -010 Page 14 services for these entities. b. That violations of Section 1105(b) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Vinokur filed deficient Statements of Financial Interests for calendar years 2005 through 2007. 4. Vinokur agrees to make payment in the amount of $3,667.85 in settlement of this matter payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. Vinokur agrees to file amended Statements of Financial Interests for calendar years 2005, 2006, and 2007 disclosing all required information, including but not limited to Creative Printing by R'MAE, a business with which he is associated; real estate interests; creditors; gifts; transportation; lodging and hospitality; financial interest in any legal entity engaged in business for profit and identity of any financial interest transferred to a family member, with Lower Southampton Township Zoning Hearing Board and copies to the State Ethics Commission for compliance purposes. 6. Vinokur agrees to resign from the Lower Southampton Township Zoning Hearing Board on January 1, 2010. 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 1 -2. In considering the Consent Agreement, we accept the recommendation of the parties for the finding of an unintentional violation of Section 1103(a) of the Ethics Act. Respondent used the authority of office when he participated in discussions and decisions of the Zoning Hearing Board regarding applications filed by New Colonial Realty Company in 2005 and 2007 for variances as to a Nissan ground sign and an interpretation and /or variances as to a parking area expansion of Colonial Nissan. At or about the same time Respondent was participating in the aforesaid matters before the Zoning Hearing Board, a business with which Respondent is associated, Creative Printing by R'Mae, was performing printing services for Colonial Nissan and Colonial Volkswagen. We note that Section 1103(a) of the Ethics Act pertaining to conflict of interest does not prohibit public officials /public employees from having outside business activities or employment. However, a public official /public employee generally would have a conflict of interest in his public capacity in matters involving a business with which he is associated (Gorman, Order 1041; Rembold, Order 1303; Wilcox, Order 1306), or his or the business's customer(s) /client(s) (Miller, Opinion 89 -024; Kannebecker, Opinion 92 -010). A conflict of interest would not exist under Section 1103(a) of the Ethics Act as to a customer /client from which the public official /public employee or business with which he is Vinokur, 08 -010 Page 15 associated would receive only a de minimis (insignificant) financial benefit. (See, "de minimis economic impact" exclusion to the definition of "conflict" or "conflict of interest," 65 Pa.C.S. § 1102.) In the instant matter, the parties have stipulated that the profit made by Creative Printing by R'Mae on the business received from Colonial Nissan and Colonial Volkswagen in 2005 and 2007, at or about the time Respondent was participating in discussions and decisions of the Zoning Hearing Board affecting Colonial Nissan and /or New Colonial Realty Company, totaled $2,917.85, of which $1,852.80 was attributable to Colonial Nissan and $1,065.05 was attributable to Colonial Volkswagen. We conclude that the "de minimis" exclusion to the definition of "conflict" or "conflict of interest" would not be applicable in this case. We parenthetically note that the Stipulated Findings do not reference any printing services being provided to New Colonial Realty Company. Additionally, apart from the Consent Agreement, the Stipulated Findings would not necessarily lead to the inclusion of printing services provided to Colonial Volkswagen as a basis for a conflict of interest in this case. However, per the Consent Agreement, the parties are in agreement that the recommended unintentional violation of Section 1103(a) should reference such services. We accept the recommendation of the parties, and we hold that an unintentional violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Respondent's participation in discussions and decisions of the Zoning Hearing Board regarding requests of Colonial Nissan, Colonial Volkswagen and /or New Colonial Realty Company at a time when a business with which he is associated, Creative Printing by R'MAE, was performing printing services for these entities. We agree with the parties that violations of Section 1105(b) of the Ethics Act occurred when Respondent filed deficient SFIs for calendar years 2005 through 2007. Per the Stipulated Findings, Respondent did not complete the required information on his SFIs for calendar years 2005 and 2006 for the following disclosure categories: real estate interests; creditors; gifts; transportation, lodging and hospitality; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member. On his SFI for calendar year 2007, Respondent did not identify the calendar year filing and also did not complete the required information for the following disclosure categories: direct /indirect sources of income; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member. All of the foregoing categories were left blank on the forms. Accordingly, we hold that violations of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Respondent filed deficient SFIs for calendar years 2005 through 2007. As part of the Consent Agreement, Respondent has agreed to make payment in the amount of $3,667.85 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Respondent has also agreed to file amended SFIs with the Zoning Hearing Board for calendar years 2005, 2006, and 2007 disclosing all required information, including but not limited to disclosing Creative Printing by R'MAE as a business with which he is associated and accurately completing the blocks pertaining to real estate interests; creditors; gifts; transportation, lodging, and hospitality; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member. Respondent has agreed to forward copies of all such filings to this Commission for compliance verification purposes. Vinokur, 08 -010 Page 16 2010. Respondent has also agreed to resign from the Zoning Hearing Board on January 1, We determine that the Consent Agreement submitted by the parties sets forth a 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, Respondent is directed to make payment in the amount of $3,667.85 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30 day after the mailing date of this adjudication and Order. To the extent he has not already done so, Respondent is directed to file amended SFIs with the Zoning Hearing Board for calendar years 2005, 2006, and 2007 disclosing all required information, including but not limited to disclosing Creative Printing by R'MAE as a business with which he is associated and accurately completing the blocks pertaining to real estate interests; creditors; gifts; transportation, lodging, and hospitality; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member, and to forward copies of all such filing t �s to this Commission for compliance verification purposes by no later than the thirtieth (30 day after the mailing date of this adjudication and Order. Finally, having agreed to resign from the Zoning Hearing Board on January 1, 2010, Respondent is directed to satisfy that term of the Consent Agreement. 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 a Member of the Lower Southampton Township Zoning Hearing Board ( "Zoning Hearing Board "), Respondent Gabe Vinokur ( "Vinokur ") is a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Vinokur unintentionally violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his participation in discussions and decisions of the Zoning Hearing Board regarding requests of Colonial Nissan, Inc., Colonial Volkswagen, Inc. and /or New Colonial Realty Company at a time when a business with which Vinokur is associated, Creative Printing by R'MAE, was performing printing services for these entities. 3. Violations of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Vinokur filed deficient Statements of Financial Interests for calendar years 2005 through 2007. In Re: Gabe Vinokur, Respondent ORDER NO. 1524 File Docket: 08 -010 Date Decided: 7/22/09 Date Mailed: 8/4/09 1 As a Member of the Lower Southampton Township Zoning Hearing Board ( "Zoning Hearing Board "), Respondent Gabe Vinokur ( "Vinokur ") unintentionally violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to his participation in discussions and decisions of the Zoning Hearing Board regarding requests of Colonial Nissan, Inc., Colonial Volkswagen, Inc. and /or New Colonial Realty Company at a time when a business with which Vinokur is associated, Creative Printing by R'MAE, was performing printing services for these entities. 2. Violations of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Vinokur filed deficient Statements of Financial Interests for calendar years 2005 through 2007. 3. Per the Consent Agreement of the parties, Vinokur is directed to make payment in the amount of $3,667.85 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30 day after the mailing date of this Order. 4. To the extent he has not already done so, Vinokur is directed to file amended Statements of Financial Interests with the Zoning Hearing Board for calendar years 2005, 2006, and 2007 disclosing all required information, including but not limited to disclosing Creative Printing by R'MAE as a business with which he is associated and accurately completing the blocks pertaining to real estate interests; creditors; gifts; transportation, lodging, and hospitality; financial interest in any legal entity engaged in business for profit; and identity of any financial interest in a business which has been transferred to an immediate family member, and to forward copies of all such filings to the Pennsylvania State Ethics Commission for compliance verification purposes by no later than the thirtieth (30 day after the mailing date of this Order. 5. Having agreed to resign from the Zoning Hearing Board on January 1, 2010, Respondent is directed to satisfy that term of the Consent Agreement. 6. Compliance with Paragraphs 3, 4, and 5 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 Name, Case # Page 18