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HomeMy WebLinkAbout1547 Seropian PLEASE NOTE: The Commission decision identified as Order No. 1547 was reversed to the extent that it found that Mr. Seropian violated Section 1103(a) of the Ethics Act and ordered him to pay restitution. See, Seropian v. State Ethics Commission, No. 948 C.D. 2010 (Pa. Cmwlth. April 7, 2011) (2010 Pa. Commw. LEXIS 728). In Re: David Seropian, : File Docket: 07-090 Respondent : X-ref: Order No. 1547 : Date Decided: 12/15/09 : Date Mailed: 12/29/09 Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Raquel K. Bergen Mark Volk 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 allegation(s). Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an “Investigative Complaint.” An Answer was filed and a hearing was held. The record is complete. 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. Seropian, 07-090 Page 2 I. ALLEGATIONS: That David Seropian, a (public official/public employee) in his capacity as the Business Manager for the McKeesport [Area] School District, Allegheny County violated the following provisions of the State Ethics Act (Act 93 of 1998) when he used the authority of his public position for a private pecuniary gain by utilizing the facilities and equipment of the school district while being compensated by the McKeesport School District for his personal benefit including, but not limited to, his candidacy for a school director position with the West Jefferson Hill School District; and his position as a baseball team official; when he solicited school district vendors to make campaign contributions to him and/or committees on his behalf; and when he failed to disclose the receipt of gifts received from a school district vendor, Gleason Insurance valued in excess of $250.00 on Statements of Financial Interests filed for the 2002 and 2006 calendar years. § 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). § 1105. Statement of financial interests (b) Required information.— The statement shall include the following information for the prior calendar year with regard to the person required to file the statement: (6) The name and address of the source and the amount of any gift or gifts valued in the aggregate at $250 or more and the circumstances of each gift. This paragraph shall not apply to a gift or gifts received from a spouse, parent, parent by marriage, sibling, child, grandchild, other family member or friend when the circumstances make it clear that the motivation for the action was a personal or family relationship. However, for the purposes of this paragraph, the term "friend" shall not include a registered lobbyist or an employee of a registered lobbyist. 65 Pa.C.S. § 1105(b)(6). § 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 Seropian, 07-090 Page 3 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. II. FINDINGS: A. Pleadings 1. On September 5, 2007, a letter was forwarded to David Seropian by the Investigative Division of the State Ethics Commission informing himthat a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7006 2150 0000 8771 6758. b. The domestic return receipt bore the signature of David Seropian, with a delivery date of September 11, 2007. 2. On December 21, 2007, the Investigative Division of the State Ethics Commission filed an application for a ninety day extension of time to complete the investigation. 3. The Commission issued an order on January 28, 2008, granting the ninety day extension. 4. On August 13, 2008, an amended Notice of Investigation was forwarded to David Seropian, c/o John F. Cambest, Esquire, by the Investigative Division of the State Ethics Commission informing [Seropian] that the allegations contained in the September 5, 2007, Notice of Investigation were being amended. a. Said letter was forwarded by certified mail, no. 7007 0220 0001 4375 2730. b. The domestic return receipt bore the signature of Rita Patrick, but was undated. 5. The Investigative Complaint was mailed to the Respondent on August 29, 2008. 6. David Seropian has served as the Business Manager/Board Secretary for McKeesport Area School District (hereafter MASD), most recently from October 1997 to the present. a. Seropian previously served as Business Manager/Board Secretary for MASD from October 1990 to June 1993. 7. Seropian was previously employed by Duquesne City School District and West Jefferson Hills School District (hereafter WJHSD) prior to his employment with MASD. a. Seropian served as Business Manager for Duquesne City School District from 1986 to 1990. b. Seropian served as Business Manager for WJHSD from late 1993 to mid 1997. 8. Seropian, as Business Manager for MASD, is responsible for performing the following duties among others: Seropian, 07-090 Page 4 a. Preparing the annual school district budget. b. Coordinating, supervising, and evaluating all personnel within his jurisdiction. c. Formulating and supervising a uniform purchasing program of supplies and equipment in accordance with legal requirements and School Board Policy. d. Familiarizing himself with the provisions of the Pennsylvania School Employees’ Retirement System, Social Security, and other fringe benefits offered to employees. e. Interpreting fiscal policies [for] staff and public. f. Supervising the management of the financial affairs of the schools within the district. g. Assuming responsibility for budget development and long-range financial planning. h. Establishing and supervising a program of accounting that will record in detail all money and credit transactions. i. Supervising all accounting operations. j. Supervising the collection, safekeeping, and distribution of all funds. k. Assisting in facility renovation programs and plan construction. l. Administering a budget control system for the district. m. Serving as a member of the district’s negotiating team. n. Serving as district coordinator for food service and act[ing] as district liaison to the food service management company. 9. Seropian, as Business Manager, routinely attends Board workshop meetings, committee meetings, and legislative meetings. a. Seropian has been … assigned to the finance committee and the building and grounds committee for the last five years. b. At regular Board meetings, Seropian and/or other administrators inform the Board of services that are needed. 1. Authorization by the Board needs to be granted for a service to be put out for public bid. 2. Seropian supervises the advertising of projects/services to be bid. c. Sealed bids for projects/services are submitted to Seropian’s attention at the district. d. Seropian is involved in researching businesses, submitting RFPs (Request for Proposals) to businesses [and] reviewing quotes submitted by businesses…. Seropian, 07-090 Page 5 e. At times, Seropian has negotiated with vendor representatives to get services for the district. 10. Seropian, as Board Secretary, is responsible for completing or delegating the following duties for completion: a. Attending all meetings of the School Board. b. Generating accurate meeting minutes. c. Providing the Board a copy of the meeting minutes for the last meeting at least one week prior to the next regularly scheduled Board meeting. d. Maintaining the meeting minutes. e. Publishing all legal notices concerning district business. f. Performing the following duties as prescribed by Section 433 of the Public School Code of 1949 as amended: 1. Keep a correct and proper record of all the proceedings of the board, and prepare such reports and keep such accounts as are required by the provisions of the act. 2. Prepare and sign an order on the treasurer for the payment of [any bill or account approved by the board]. Prepare and sign orders on the treasurer for the payment of amounts owing under any contracts which shall previously have been approved by the board, and by the prompt payment of which the district will receive a discount or other advantage, without the approval of the board first having been secured. 3. Attest, in writing, the execution of all deeds, contracts, reports, and other instruments that are to be executed by the board. 4. Furnish, whenever requested, any and all reports concerning the school affairs of the district, on such form, and in such manner, as the State Board of Education or the Superintendent of Public Instruction may require. 5. Supervise all the business affairs of the school district, subject to the instructions and direction of the board of school directors. 6. Be the custodian of all the records, papers, office property, and official seal of the school district, and at the expiration of his term turn the same over to his successor. 7. Keep correct accounts with each receiver of taxes, school treasurer, or school tax collector of the district, reporting a statement of the same, together with a statement of the finances of the district, at each regular meeting of the board, which statement shall be entered in full upon the minutes. 8. Perform such other duties pertaining to the business of the district as are required by the act or as the board of school directors may direct. 11. Seropian has resided within the boundaries of WJHSD for approximately sixteen Seropian, 07-090 Page 6 years. a. Seropian currently resides at [address redacted]. b. Seropian’s employment by the MASD does not require that he reside within the district. 12. Seropian previously served as a director for the WJHSD school board from 1999 to 2003. a. Seropian did not seek reelection once his term of office expired. 13. The terms for five of the nine directors of WJHSD expired as of December 2007. a. Those board directors whose terms ended were: 1. Marianne Neel 2. David Graham 3. Shauna D’Alessandro 4. William Kunkle Jr. 5. Craig McVicker b. All five directors were seeking re-election. 14. Seropian was one of ten candidates listed below for the five seats up for election in 2007 on the WJHSD school board: a. Seropian f. Alan Caponi b. Dennis Cmar g. Shauna D’Alessandro c. Anthony Angotti h. David Graham d. Janet Glunk i. Marianne Neel e. William Kunkle Jr. j. Craig McVicker 15. Seropian, Angotti, and Cmar formed a campaign committee called Candidates for a New Direction (hereafter CFAND) in approximately early 2007. a. Seropian, Angotti, and Cmar were the initial members of the committee. 1. Candidate Janet Glunk joined the committee in March 2007. 16. CFAND initially registered with the Allegheny County Election Bureau on March 5, 2007, and again on March 29, 2007. a. The committee formally registered a second time with the Allegheny County Election Bureau as a result of Glunk joining the committee on approximately March 5, 2007. 1. Glunk joined the committee after the first registration was filed. 17. Commonwealth of Pennsylvania Committee Registration Statements dated March 1, 2007, and March 17, 2007, for CFAND document that Seropian served as Treasurer of the committee. a. Seropian signed the aforementioned forms acknowledging his appointment as Treasurer on March 1, 2007, and March 17, 2007, respectively. b. The Political Committee Registration Statement filed by CFAND lists Seropian, 07-090 Page 7 Seropian’s MASD email address and telephone number as points of contact for the committee. 1. Seropian’s MASD email address, [email address redacted], and his MASD telephone number were listed on the registration statements. 18. Seropian, as Treasurer, was responsible for depositing contributions received into the bank account utilized by CFAND, issuing checks from the aforementioned account to pay for campaign related expenses, maintaining receipts/invoices documenting campaign expenses, and completing Commonwealth of Pennsylvania Campaign Finance Reports. a. All of the members of CFAND signed a Commonwealth of Pennsylvania Political Committee to Receive Funds on Behalf of a Candidate form. 19. Campaign contributions received by CFAND were deposited into a checking account at National City Bank (Account No. XXXXXX1382). a. Seropian opened the account on February 23, 2007. b. The current account balance is $415.79. c. Seropian, as Treasurer, deposited contributions received by all committee members into the committee’s account at National City Bank. d. Seropian had sole signature authority over the account. 20. Commonwealth of Pennsylvania Campaign Finance Reports for CFAND for the time period of March 27, 2007, through June 4, 2007, confirm that CFAND received $8,071.00 in contributions. a. Individuals contributing an aggregate value of $50.01 or more must be identified along with the amount of the contribution. b. Contributions with an aggregate value of $50.00 or less are required to be reported; however, individual contributors do not have to be identified. c. Seropian signed campaign finance reports filed on behalf of CFAND as Treasurer and listed his contact telephone number as . . . his telephone number at MASD. 21. Campaign finance reports filed by CFAND for the time period of March 27, 2007, through June 4, 2007, disclose $4,821.00 in [individual] contributions of $50.00 or less … as shown below: Reporting Period Amount Contributed March 27, 2007, through April 30, 2007 $4,721.00 May 1, 2007, through June 4, 2007 $100.00 Total: $4,821.00 22. Campaign finance reports filed by CFAND for the time period of March 27, 2007, through June 4, 2007, reflect $3,272.59 in contributions of $50.01 or more from the following contributors: Seropian, 07-090 Page 8 Contributor Date of Contribution Amount Daniel Bailey March 28, 2007 $100.00 Vince Cannillo March 30, 2007 $250.00 Harry Elinsky March 30, 2007 $100.00 Mary Jane Fagan April 2, 2007 $250.00 Michael Gleason April 2, 2007 $250.00 Leo Kimball April 4, 2007 $200.00 Tom Kratzenbrg April 5, 2007 $200.00 Paula McClelland April 10, 2007 $100.00 Scott McLane April 10, 2007 $100.00 Gerry Moore April 11, 2007 $200.00 Thomas Rush April 11, 2007 $250.00 Lou Seropian April 12, 2007 $100.00 Jack Cambest April 5, 2007 $300.00 Gregory Jacobs April 20, 2007 $850.00* Total: $3,250.00* * Actual amount contributed by Jacobs was $872.59, making the total $3,272.59 23. Of the $3,279.59 in contributions in excess of $50.00 received by CFAND, $2,072.59 was from individuals affiliated with companies doing business with MASD in 2007. Contributor Business Associated With Position Within Amount of Business Contribution Mary Jane Fagan Fagan Sanitary Supply Owner $250.00 Michael Gleason Gleason Insurance Vice President $250.00 Gerry Moore Nutrition Inc. President $200.00 Gregory Jacobs North Atlantic Retirement Consultant $872.59 Services* Leo Kimball Kimball Engineering Owner $200.00 Jack Cambest Dodaro, Cambest, & Associates Solicitor $300.00 *[sic – see, Fact Finding 102]. 24. Solicitor Cambest was approached by Cmar to provide a contribution to CFAND. 25. Fagan Sanitary Supply specializes in the distribution of cleaning related products and equipment to a variety of businesses, school districts, and federal facilities. a. Fagan Sanitary Supply is located within the WJHSD. b. Fagan and his wife reside within the WJHSD. 26. [Fagan Sanitary Supply began doing business with MASD] after David Seropian began service as MASD business manager. a. Fagan was the successful bidder to supply the district with trash can liners for 2007. 1. The bid was awarded on May 23, 2007. 27. Fagan has known Seropian for [at least] five years. Seropian, 07-090 Page 9 a. When Seropian first met Fagan, Fagan was an employee of Hillyard, a sanitary supply company. b. Fagan does not socialize with Seropian. 28. Cmar is employed as the Business Manager for West Mifflin School District (hereafter WMSD). 29. … Fagan’s wife issued check #1884 … to CFAND. 30. On April 23, 2007, Fagan’s check #1884 was deposited into CFAND’s National City Bank account (Account No. XXXXX1382). a. Seropian signed the reverse side of the check endorsing it to be deposited. 31. The Fagans’ contribution purchased ten $25.00 fundraiser tickets to attend the CFAND fundraiser held on April 21, 2007, at the Skyview Fire Hall #4 located in West Mifflin, Pennsylvania. a. The Fagans did not attend the fundraiser. b. Fagan requested that the tickets his contribution purchased be provided to individuals that may have an interest in attending. 32. Michael Gleason is Vice President of Gleason Insurance located at 875 Greentree Road, Building 4 West, Suite 325, Pittsburgh, PA 15220. a. Gleason Insurance specializes in providing various insurance policies (property, liability, workers’ compensation, etc.) to numerous school districts, government entities, and county entities. b. Gleason Insurance has been providing insurance policies to numerous school districts located in Pennsylvania for multiple years. 33. [Insurance coverages provided to MASD] are not put out for bid as they are considered a professional service. 34. Gleason has known Seropian for approximately eight years. a. Gleason initially came to know Seropian via his position as Business Manager for MASD. b. Seropian and Gleason interact approximately three to four times a year on business related matters. 35. On March 1, 2007, Gleason issued personal check #144 in the amount of $250.00 to CFAND. a. The check was mailed to Seropian at or about the same time it was issued. 36. On March 9, 2007, Gleason’s contribution was mistakenly deposited into National City Bank Account No. XXXXX2190 [and not] CFAND Account No. XXXXX1382. a. Seropian signed the reverse side of the check endorsing it to be deposited. b. On March 29, 2007, the CFAND bank account (Account No. XXXXX1382) was credited the amount of Gleason’s check. Seropian, 07-090 Page 10 37. Gleason’s contribution purchased ten $25.00 fundraiser tickets to attend the CFAND fundraiser held on April 21, 2007, at the Skyview Fire Hall #4 located in West Mifflin, Pennsylvania. a. Gleason did not attend the fundraiser but sent then Gleason Insurance Business Development employee Dave Jason to go on his behalf. 38. Gleason would not have known Seropian absent Gleason’s professional relationship with MASD. 39. Scott [Palmquist] is employed by L. Robert Kimball and Associates (hereafter Kimball) located at 615 West Highland Avenue, Ebensburg, PA 15931 as Vice President of Business Development, Architectural Department. a. Leo Kimball is Chairman of the Board of Directors of Kimball. 1. Jeff Kimball is CEO. b. Kimball specializes in providing the following: architectural services, engineering services, telecommunication services, and transportation services (i.e. planning the construction of bridges/roads). c. Kimball provides services to numerous state, government, and public entities within the states of Pennsylvania, New Jersey, New York, Virginia, West Virginia, Texas, and Florida. 40. Kimball has had a [business relationship/contract] with MASD since 2007. a. Kimball’s [business relationship/contract] with MASD is on an as needed basis. 41. In 2007, Kimball was utilized by the MASD to complete a feasibility study in regard to remodeling a school building and possibly constructing two new elementary schools. a. The MASD Board of Directors eventually awarded Kimball a contract to complete a feasibility [study of] the remodeling work for the district. 1. The Board voted on April 25, 2007, to award the contract to Kimball. b. The contract was not put out for public bid [since] the services Kimball provided were considered by the Board to be professional services. 42. Palmquist has known Seropian for many years since Seropian was employed as Business Manager for Duquesne City School District. a. Prior to being employed by Kimball, Palmquist was employed by Nutrition Inc. for approximately twenty years. 1. Nutrition Inc. had a food services contract with Duquesne City School District during Seropian’s tenure [there]. b. Seropian’s interactions with Palmquist are business related even though at times district business may be discussed outside of an office setting. 43. On April 11, 2007, Leo Kimball issued check #832 in the amount of $200.00 to Seropian, 07-090 Page 11 CFAND. 44. Approximately one week after the check was made out, Palmquist hand-delivered the check to Seropian. 45. On April 23, 2007, check #832 was deposited into CFAND’s National City Bank account (Account No. XXXXX1382). a. Seropian signed the reverse side of the check endorsing it to be deposited. b. Four days later, Seropian signed Kimball’s proposal to perform a feasibility study for the MASD. 46. The contribution provided by Kimball purchased four $25.00 fundraiser tickets to attend the CFAND fundraiser held on April 21, 2007, at the Skyview Fire Hall #4 located in West Mifflin, Pennsylvania. a. No one from Kimball attended the fundraiser. 47. Neither Leo Kimball nor Jeff Kimball knows Seropian personally or professionally. rd 48. Gerald Moore is President of Nutrition Inc. located at 202 South 3 Street, West Newton, PA 15089. a. Nutrition Inc. has been in operation since 1975. b. Nutrition Inc. specializes in supplying meals, custodial maintenance, and vending machines to numerous schools and businesses. c. Nutrition Inc. provides services to approximately one hundred and ten school districts located in parts of Pennsylvania, Ohio, and New Jersey. 49. Nutrition Inc. has [done business] with MASD for approximately twenty years. a. Nutrition Inc. submits a proposal to the district each year in order to be considered as the district’s food service provider. 1. Nutrition Inc.’s contracts with the district run for one year, but can be renewed for up to four years at renegotiated rates. 50. Moore has known Seropian for approximately twenty-five years through Seropian’s positions as business manager at various school districts. a. Moore initially came to know Seropian when Seropian served as Business Manager for Duquesne City School District. 1. Duquesne City School District utilized Nutrition Inc. as its food supplier for an extended period of time. b. On May 23, 2007, the MASD Board of Directors voted to continue to utilize Nutrition Inc. to provide food services to the district. c. On June 1, 2007, the MASD entered into a Food Service Management Contract Addendum with Nutrition [Inc.] 1. Seropian signed the contract as the MASD’s authorized representative. Seropian, 07-090 Page 12 d. Moore has contact with Seropian approximately three times a year to discuss issues involving the MASD food contract. 51. Moore issued check #1634 in the amount of $200.00 to CFAND. a. The check was mailed to the committee’s address shortly after it was generated. 52. On March 9, 2007, Moore’s contribution to CFAND was mistakenly deposited into National City Bank Account No. XXXXX2190. a. Seropian signed the reverse side of the check endorsing it to be deposited. b. On March 29, 2007, the CFAND bank account (Account No. XXXXX1382) was credited the amount of Moore’s check. c. Approximately two months after making a contribution to Seropian, Nutrition’s contract [was] renewed by the MASD…. 53. Moore’s contribution purchased eight $25.00 fundraiser tickets to attend the CFAND fundraiser held on April 21, 2007, at the Skyview Fire Hall #4 located in West Mifflin, Pennsylvania. a. Moore did not attend the fundraiser. b. Moore requested that the tickets his contribution purchased be provided to individuals [who] may have an interest in attending. 54. [Gregory] Jacobs is part owner of North Atlantic Retirement Services LLC (NARS) in the capacity of Financial Advisor. 55. ING has had a business relationship with MASD for approximately ten years. 56. On August 9, 1982, the Board adopted District Policy No. 615, Payroll Deductions, which outlines the procedure that must be followed in order for a tax sheltered annuity program to be implemented in MASD. a. Companies interested in offering a tax sheltered annuity program in the district must advise the Secretary/Business Manager in writing of their intent. b. The company must secure signed salary modification forms from at least fifteen employees in order to gain final approval and for payroll deductions to proceed. 57. Jacobs initially came to know Seropian through Seropian’s position as Business Manager for MASD. a. Seropian and Jacobs interact [more than] one to two times a year. 58. Jacobs does not reside within WJHSD. 59. During [a lunch that Seropian had with Jacobs in 2007], Seropian informed Jacobs that he was running for school board for WJHSD. 60. … Jacobs issued personal check #828 in the amount of $872.59 to “Dave Suropian.” Seropian, 07-090 Page 13 a. Jacobs hand-delivered the check to Seropian shortly after the check was issued. 61. On April 27, 2007, Seropian deposited check #828 into CFAND’s National City Bank account (Account No. XXXXX1382). a. Seropian signed the reverse side of the check endorsing it to be deposited. 62. Jacobs did not attend [a CFAND fundraiser held on April 21, 2007, at the Skyview Fire Hall #4 located in West Mifflin, Pennsylvania]. 63. Four of the five vender representatives [from whom Seropian received campaign contributions] were not residents of the WJHSD where Seropian was seeking public office…. The following findings relate to the allegation that Seropian used the authority of his public position for a private pecuniary gain by utilizing the facilities and equipment of the school district while being compensated by the McKeesport School District for his personal benefit including, but not limited to, his candidacy for a school director position with the West Jefferson Hills School District; and his position as a baseball team official. 64. As the Business Manager for MASD, Seropian’s work hours are the same as the normal district administrative hours of 8:00 a.m. to 4:00 p.m. Monday through Friday. a. During the month of July, Seropian routinely works [from] 8:00 a.m. to 3:00 p.m. b. As a salaried employee, Seropian is expected to work additional hours as necessary (i.e. attend Board meetings, conferences, etc.). 65. MASD maintains and utilizes a policy manual in association with the day-to-day operations of the district. a. As a district employee and member of the administrative staff, Seropian is subject to the policies set forth in the policy manual. b. Seropian was provided a copy of a policy manual as the district’s Business Manager. 66. Policy No. 815 of the “Operations” section of the manual sets forth “Acceptable Use of Technology/Internet.” a. Policy No. 815 was adopted by the Board on June 28, 1995, and subsequently revised on August 23, 1995, and August 22, 2001. b. Subsection 4 of the policy addresses “Guidelines” and states: 1. Use of the technology/Internet for non-work or non-school related communications is prohibited. 2. Use of the technology/Internet for product advertisement or political lobbying is prohibited. 3. Use of the technology/Internet to access obscene or pornographic Seropian, 07-090 Page 14 material is prohibited. 67. MASD employees are required to sign a “Staff Technology/Internet Policy Agreement” acknowledging the guidelines set forth [in] district Policy No. 815. a. Seropian signed the agreement on August 31, 2001. b. By signing the document, Seropian acknowledged [receiving and agreed to the terms of] the McKeesport Area School District Technology Handbook and the Acceptable Use of Technology/Internet Policy No. 815 as adopted by the Board of Directors of McKeesport Area School District. 68. Policy No. 815 sets forth consequences for inappropriate use of technology/Internet as shown below: a. The user shall be responsible for damages to the equipment, system, and software resulting from deliberate or willful acts. b. Illegal use of the network; intentional deletion or damage to files belonging to others; copyright violations; and theft of services will be reported to the appropriate legal authorities for possible prosecution. c. General rules for behavior and communications apply when using the Internet, in addition to the stipulations of this policy. Loss of access and other disciplinary actions shall be consequences for inappropriate use. d. Vandalism will result in cancellation of access privileges. Vandalism is defined as any malicious attempt to harm or destroy data of another user, Internet or other networks; this includes but is not limited to uploading or creating computer viruses. e. Offenders may also be subject to criminal prosecution. Under Pennsylvania law it is a felony punishable by a fine of up to $15,000 and imprisonment of up to seven years for any person to access, alter or damage any computer system, networking, software or database, or any part thereof, with the intent to interrupt the normal functioning of an organization. Knowingly and without authorization, disclosing a password to a computer system, network, etc., is a misdemeanor punishable by a fine of up to $10,000 and imprisonment of up to five years, as is intentional and unauthorized access to a computer, or alteration of computer software. 69. Policy No. 421 of the “Professional Employees” section of the manual, adopted by the Board on August 9, 1982, is titled “Political Activities.” a. Subsection 1 of the policy addresses the “Purpose” of the policy and states: 1. The Board recognizes and encourages the right of its employees, as citizens, to engage in political activity. School property and school time, paid for by all the people, may not be used for political purposes. 70. Seropian, as Business Manager for MASD, maintains a private office…. a. The High School is located at 1960 Eden Park Blvd., McKeesport, PA 15132. b. Seropian, in his private office, has access to a district purchased Dell computer tower (Model #GX240, Serial #9286M11) and Dell computer Seropian, 07-090 Page 15 monitor ( … Serial #MX01Y3114760537NAL2R) among other equipment. c. MASD inventory records reflect that the computer tower and computer monitor were assigned to Seropian in approximately July 2002 and approximately August 2003 respectively. 1. Seropian utilized a previous computer monitor prior to August 2003. 71. The MASD computer tower assigned to Seropian (Model #GX240, Serial #9286M11) was paid for via MASD check #046106 dated July 26, 2002, issued to Dell Marketing LP. a. The MASD computer tower (Model #GX240, Serial #9286M11) was one of several computers purchased by MASD via check #046106. b. The cost of the computer tower (Model #GX240, Serial #9286M11) was $889.80. c. The MASD computer monitor assigned to Seropian (Model #1703FPS, Serial #MX01Y3114760537NAL2R) was paid for via MASD check #052215 dated September 26, 2003, issued to Dell Marketing LP. d. The MASD computer monitor (Model #1703FPS, Serial # MX01Y3114760537NAL2R) was one of several monitors purchased by MASD check #052215. 72. Seropian admits that he used his MASD computer to engage in campaign related activities prior to the primary election in May 2007 but avers that such use constituted a de minimis economic impact. (Investigative Complaint, at paragraphs 90, 90 a; Answer to Investigative Complaint, at paragraphs 90, 90 a). 73. Listed below are documents [received] by Seropian … related to his campaign for WJHSD Board of [School] Directors: Date Created Document Name Generated By April 10, 2007 2007 Primary Candidate Profile.doc* Westminster Holdings April 10, 2007 2007 Primary Candidate Profile1.doc* Westminster Holdings April 22, 2007 Campaign letter 5.doc Janice Glunk May 9, 2007 WJHBoardMailing1.doc September 18, 2007 SCHOOL BOARD MAILER.doc Tony Angotti *[Seropian avers that he received one but not both of these documents on April 10, 2007]. 74. The letter generated by Glunk on April 22, 2007, was created to identify members of CFAND [and] to inform potential voters of their campaign platform and solicited votes for members of CFAND including Seropian. 75. The document titled “WJHBoardMailing1.doc” was [received by Seropian, saved, and then edited] on a MASD computer between 10:14 a.m. and 11:38 a.m. on May 9, 2007. a. MASD attendance records confirm that Seropian was at work on May 9, 2007. b. The properties of the document detail that Seropian was the last individual who saved the document. Seropian, 07-090 Page 16 c. The document, which compared the campaign strategy of CFAND and those in opposition of the committee, solicited votes for the members of CFAND including Seropian. 76. The September 18, 2007, mailer was drafted by Tom [sic] Angotti and forwarded to Seropian’s school district email account. 77. Seropian’s district email account is [email address redacted]. a. Seropian has utilized his assigned district email account since his most recent employment by the district. b. Seropian utilizes his district email account for both personal and business purposes. 78. On Monday, May 14, 2007, at 3:30 p.m., Seropian sent a mass email from his district email account to thirty-nine email accounts soliciting votes for himself and members of CFAND for the May 2007 primary election: “Dear Baseball Friends, I have had the great pleasure of meeting so many great people through baseball over the past several years through either coaching some of your sons, or just being at the fields watching games with many of you. I apologize in advance for sending this email to you if it offends you in any way because it’s nothing about baseball. Many of you may know that I’m running for school board in West Jefferson Hills. While many times I think I’m crazy for doing so there are other times when I’m reminded of why I’m doing it. It’s because I care about doing what is right for our kids and our community and do not trust some of the current board members running for re-election to do the same. Having been on the board before I don’t really see the personal benefits of it except to feel some satisfaction in knowing that you made intelligent, well-thought out, and well-intentioned decisions, that in some way your decisions help to make this a better school district. I am running with three fine people who some of you may know. Having spent many hours with them recently I can tell you that they are all people who share the same honest values that we want in school board members. Tony Angotti, Dennis Cmar, and Jan Glunk all have the same motivation that I do to always, 100% of the time, attempt to do what’s right for our kids and our community. This has been a different kind of campaign, one that I have never seen in my 21 years of working in school districts. Our opponents, who are currently on the board and say they want to “focus on the future” have resorted to lying, making up false rumors and innuendo, and generally trying to smear those of us who dare to run against them. Hopefully you did not have to be subjected to some of their mailings which personally attacked me, Jan, Denny and Tony. Even so, we have run ourselves with [sic] a positive campaign. I humbly ask for your support tomorrow when you go to vote. Please consider voting for the four of us when you go to the polls. Thank you! Dave Seropian” 79. Seropian was at work at the district on May 14, 2007, when the email was sent out. Seropian, 07-090 Page 17 a. The email was sent out at 3:30 p.m. during Seropian’s normal working hours for the MASD. 80. Seropian’s salary for the 2001/2002 school year was $97,241.00. a. Seropian’s hourly wage for the 2001/2002 school year was approximately $46.75 [$97,241.00 / 2,080 (8 hours a day X 260 work days in a year) = $46.75]. 81. Seropian’s salary for the 2002/2003 school year was $102,103.00. a. Seropian’s hourly wage for the 2002/2003 school year was approximately $49.09 [$102,103.00 / 2,080 (8 hours a day X 260 work days in a year) = $49.09]. 82. The Nasty Kats is a traveling baseball team managed by Seropian that plays in various tournaments and leagues. a. Seropian has been managing the team since approximately 2005. 1. Seropian’s son, [name redacted], is one of the players for The Nasty Kats. b. The Nasty Kats team is not associated with the MASD baseball program. c. The Nasty Kats compete at a local level as well as participate in tournaments located outside the boundaries of the Jefferson Hills Baseball League. d. Seropian, as the team manager, is responsible for registering the team for tournaments, being aware of league rules and regulations, location of games, etc. 83. Seropian admits that he utilized his MASD computer from 2004 to 2007 in relation to The Nasty Kats baseball team, but he avers that such use was on a limited basis and had a de minimis economic impact. (Investigative Complaint, at paragraph 106; Answer to Investigative Complaint, at paragraph 106). The following findings relate to Seropian’s failure to disclose the receipt of gifts received from a school district vendor, Gleason Insurance, valued in excess of $250.00 on Statements of Financial Interests filed for the 2002 and 2006 calendar years. 84. Statement of Financial Interests filing requirements for public officials and public employees are mandated by Section 1104 of the State Ethics Act. st a. Seropian is required to file Statements of Financial Interests by May 1 annually in his position as Business Manager for MASD. 85. A review of Statements of Financial Interests on file at MASD was conducted on August 22, 2007. a. Statements of Financial Interests forms on file with MASD include the following filings for Seropian: Calendar Year: 2002 Date filed: 04/10/03 on SEC form 01/03 Seropian, 07-090 Page 18 Position: Board Secretary/Business Mgr. Real Estate Interests: None th Creditors: McKeesport School Employee’s FCU, 2225 5 Ave., McKeesport; Three Rivers Bank, Large, PA Interest rate: 6.75 and 6.99, 8.5 th Direct or indirect sources of income: McKeesport Area School District, 2225 5 Ave., McKeesport, PA 15132 Gifts: None All other financial interests: None Calendar Year: 2003 Date filed: 04/22/04 on SEC form 01/04 Position: Business Manager/Board Sec. Real Estate Interests: None th Creditors: McKeesport School Employee’s FCU, 2225 5 Ave., McKeesport, Sky Bank, Large, PA. Interest Rate: Not disclosed th Direct or indirect sources of income: McKeesport Area School District, 2225 5 Ave., McKeesport, PA Gifts: None All other financial interests: None Calendar Year: 2004 Date filed: 03/14/05 on SEC Form 01/05 Position: Business Manager/Board Sec. Real Estate Interests: None Creditors: McKeesport Sch. Empl. FCU, 3590 O’Neil Boulevard, McKeesport, PA, 15132. Sky Bank, Large, PA. Interest rate: Not disclosed Direct or indirect sources of income: McKeesport Area School District, 3590 O’Neil Blvd., McKeesport, PA Gifts: None All other financial interests: None Calendar Year: 2005 Date filed: 04/26/06 on SEC Form 01/06 Position: Business Manager/Board Sec. Real Estate Interests: None Creditors: McKeesport Sch. Empl. FCU, 3590 O’Neil Blvd., McKeesport, PA, 15132, Chase Financial Services, Sky Bank, Large, PA. Interest rate: Not disclosed Direct or indirect sources of income: McKeesport Area School District, 3590 O’Neil Blvd., McKeesport, PA Gifts: None All other financial interests: None Calendar Year: 2006 Date filed: 04/23/07 on SEC Form 01/07 Position: Business Manager/Brd. Secretary Real Estate Interests: None Creditors: McKeesport School Employee’s FCU, 3590 O’Neil Blvd., McKeesport, PA, 15132 Sky Bank, PO Box 76564, Cleveland, OH 44101, Lexus Financial, Chase Financial, PO Box 15153, Wilmington, DE 19886. Interest rate: 6.57, 10.75, 6.50, 4.99. Direct or indirect sources of income: McKeesport Area School District, 3590 O’Neil Blvd., McKeesport, PA 15132 Gifts: None All other financial interests: None 86. Section 1105 (b) (6) of the State Ethics Act requires the disclosure on Statements of Financial Interests of the name and address of the source and the circumstances Seropian, 07-090 Page 19 and value of any gift(s) received valued at $250 or more in the aggregate. 87. In 2006, Seropian received [Pittsburgh Pirate baseball tickets and a golf outing] from Michael Gleason, Vice President, Gleason Insurance…. 88. In 2006, Gleason Insurance purchased four season tickets for the Pittsburgh Pirates baseball team. a. Each ticket cost $23.00. b. In 2006, the seats were located in section 7, row L, seats 9 through 12. 89. Sometime prior to May 31, 2006, Seropian was contacted by Michael Gleason and offered four Pittsburgh Pirates baseball tickets for [a game] held on … August 13, 2006, at PNC Park. 90. On [or about] June 14, 2006, Seropian attended a golf outing sponsored by Gleason Insurance … at Diamond Run Golf Course. a. During the event, Seropian played eighteen holes of golf with a cart and [may have] had lunch with those in attendance after finishing his round of golf. b. At a minimum, Seropian’s attendance at the event cost Gleason Insurance $129.48 ($99.00 for golf + [$30.48] for lunch = $129.48). 91. Seropian also received a gift from Gleason in 2002 in the form of Pittsburgh Pirates baseball tickets. a. Seropian received four tickets valued at $92.00 for the April 21, 2002, Pirates baseball game. 92. In a sworn statement provided to Commission Investigators on August 14, 2008, and August 22, 2008, Seropian indicated the following: a. Seropian came to know Michael Gleason and Greg Jacobs during his recent tenure with MASD. b. Seropian came to know [Gerald] Moore and Scott Palmquist through his prior employment with Duquesne City School District and West Jefferson Hills School District, and through his past and recent employment with MASD. 1. Seropian’s interactions with Moore … always revolve around business related activities involving MASD. c. Seropian initially came to know Larry Fagan in Fagan’s capacity as a West Jefferson Hills resident and not as CEO of Fagan Sanitary Supply. d. Seropian denies soliciting Gleason, Jacobs, Moore, and Palmquist for a campaign contribution. e. Seropian stated that he did not solicit campaign contributions from Fagan or Jack Cambest. 1. Seropian averred that contributions provided by Fagan and Cambest were obtained by Cmar. Seropian, 07-090 Page 20 f. Seropian admitted utilizing his district computer to access personal emails, to view documents related to his son’s baseball activities, … to solicit votes for members of CFAND via a mass email, and to view websites that are prohibited by District Policy 815 Acceptable Use of Technology/Internet. 1. Seropian estimated that within the last five years he has visited personal websites at a minimum of ten hours each year. 2. Seropian stated that he utilized his district email address for personal use because he cannot access his personal email account. 93. The following companies provide high speed internet service/access to customers in the Greater McKeesport area: Internet Provider Monthly Costs Costs Over Six (6) Months Comcast $42.95 $257.70 WildBlue $54.95 $329.70 HughesNet $59.95 $359.70 a. Utilizing the information provided in the chart above, the average monthly cost for high speed internet service/access within the Greater McKeesport Area totals $52.62 ($42.95 + $54.95 + $59.95 = $157.85 / 3 = $52.62). b. The average cost for six (6) months of high speed internet service/access within the Greater McKeesport area totals $315.72 ($52.62 x 6 = $315.72). B. Testimony 94. Shirley Golofski (“Golofski”) was employed with the McKeesport Area School District (“MASD,” “School District,” or “District”) as Superintendent of Schools (“Superintendent”) at the time of her retirement from the School District on June 29, 2009. a. Golofski served as Superintendent for approximately two years, and immediately before then she served as the Assistant Superintendent for three years. b. Golofski’s duties as Superintendent included budget preparation, overseeing the curriculum and staffing, evaluating employees, working with community groups, and fulfilling the directives of the MASD School Board (“School Board” or “Board”). c. Seropian was employed as MASD’s Business Manager and also served as Secretary to the School Board during the five years in which Golofski served as Superintendent or Assistant Superintendent for the School District. 1. In her capacity as Superintendent, Golofski had daily contact with Seropian and was responsible for completing his progress reports and yearly evaluations. d. Seropian’s job duties as MASD’s Business Manager include preparing and overseeing the budget, ensuring that budgeted amounts are not exceeded, preparing financial reports, and overseeing the purchasing department. 1. Seropian’s regular work hours are from 8:00 a.m. to 4 p.m., Monday through Friday. Seropian, 07-090 Page 21 e. As School Board Secretary, Seropian is responsible for attending Board meetings and advising the Board on financial issues. f. ID Exhibit 2, pages 1-4 consist of a job description for the position of Secretary/Business Manager of MASD. 1. The job description sets forth separate performance responsibilities for the School Board Secretary and the School District Business Manager. 2. Per the job description, the performance responsibilities of the School Board Secretary include the following: (a) Attending all meetings of the Board and keeping full and accurate minutes of Board meetings. (b) Performing duties prescribed by the Public School Code of 1949 as amended, including, inter alia: having general supervision of all of the business affairs of the School District subject to the instructions and direction of the School Board; attesting in writing the execution of all deeds, contracts, reports, and other instruments to be executed by the School Board; and keeping correct accounts with each receiver of taxes, school treasurer, or school tax collector of the District. 3. Per the job description, the performance responsibilities of the School District Business Manager include, inter alia, the following: (a) Preparing the annual School District budget. (b) Computing tax rates based upon current assessed valuation and equalization rates and coordinating the tax collection process. (c) Coordinating, supervising, and evaluating all personnel within his jurisdiction. (d) Formulating and supervising a uniform purchasing program of supplies and equipment in accordance with legal requirements and School Board policy. (e) Supervising the management of the financial affairs of the schools. (f) Assuming responsibility for budget development and long- range financial planning. (g) Supervising all accounting operations. (h) Supervising the collection, safekeeping, and distribution of all funds. (i) Administering a budget control system for the District. (j) Managing the District’s real estate and insurance programs. Seropian, 07-090 Page 22 (k) Serving as District coordinator for food service and as District liaison to the food service management company. g. Golofski testified as to the process by which the School District purchases products or supplies, including the procedures followed by the School District with regard to bidding, awarding, and renewing contracts where required by law and Seropian’s role in such procedures. (7/13/09 Tr. at 39- 46, 63-76). h. The School District issued Seropian a computer to use in his capacity as Business Manager. 1. Seropian is subject to the School District’s policy on acceptable use of the internet. i. ID Exhibit 2, pages 7-11 consist of MASD Policy No. 815, titled “Acceptable Use of Technology/Internet,” which was adopted June 28, 1995, and revised most recently on August 22, 2001. (See, Fact Finding 66). 1. Section 1 of Policy No. 815 provides, in pertinent part, that “[a]ll use of technology and the Internet must be in support of education and research and consistent with the purposes of the McKeesport Area School District.…” (ID Exhibit 2, page 7). 2. Section 4 of Policy No. 815 provides, in pertinent part, as follows: Prohibitions The use of technology/Internet computer network for illegal, inappropriate, or unethical purposes by students or employees is prohibited. More specifically: 1. Use of technology/Internet to facilitate illegal activity is prohibited. 2. Use of the technology/Internet for commercial or for-profit purposes is prohibited. 3. Use of the technology/Internet for non-work or non-school related communications is prohibited. 4. Use of the technology/Internet for product advertisement or political lobbying is prohibited. 5. Gang-related language, profanity, hate mail, harassment, discriminatory remarks, and other offensive antisocial communications on the network is [sic] prohibited. 6. The illegal installation, distribution, reproduction or use of copyrighted software on district computers is prohibited. 7. Use of the technology/Internet to access obscene or pornographic material is prohibited. Seropian, 07-090 Page 23 . . . . (ID Exhibit 2, page 8). j. ID Exhibit 2, page 12 consists of a MASD “Staff Technology/Internet Policy Agreement” signed by Seropian on August 31, 2001, by which Seropian acknowledged receipt of the MASD Technology Handbook and Policy No. 815 and agreed to the terms outlined therein. (See, Fact Finding 67 a, b). k. ID Exhibit 2, pages 5-6 consist of MASD Policy No. 421, titled “Political Activities,” which was adopted August 9,1982. 1. Policy No. 421 provides, in pertinent part, that “[n]o professional employe shall engage in political activities upon property under the jurisdiction of the Board unless permission has been granted for that purpose through the ‘Use of Facilities’ policy of the Board.” (ID Exhibit 2, page 5). 2. Policy No. 421 further provides that “[t]he collection of campaign funds and/or the solicitation for campaign workers is prohibited on school property.” (ID Exhibit 2, page 5). 95. Lori M. Spando (“Spando”) has served as a School Director for the School District since December 1999 to the present and currently serves as President of the School Board. a. The School Board consists of nine members. b. Seropian has served as MASD Business Manager throughout the entirety of Spando’s service on the School Board. c. A few years ago, at a School Board meeting, an architectural firm named “L. Robert Kimball and Associates” (“Kimball”) was recommended to the School Board for an upcoming renovation project involving the demolition and replacement of old elementary school buildings. d. ID Exhibit 3, pages 1-5 consist of a proposal from Kimball dated April 17, 2007, for the performance of architectural and engineering services to conduct a District-wide feasibility study and develop a long term master plan for MASD. 1. The proposal is addressed to Seropian in his capacity as MASD Business Manager. e. By letter dated April 27, 2007, Seropian advised Kimball that at a meeting on April 25, 2007, the School Board accepted Kimball’s proposal to conduct a district wide feasibility study and develop a master plan. (ID Exhibit 3, page 6). f. ID Exhibit 3, pages 7-21 consist of a contract executed between Kimball and MASD on March 26, 2008, for the provision of architectural services for capital improvement projects related to the District-wide strategic master plan. 1. The contract contains the signature of Seropian in his capacity as Secretary to the MASD School Board. Seropian, 07-090 Page 24 g. Seropian served as the intermediary for communication between Kimball and the School District relative to Kimball’s provision of architectural services to the School District. h. Seropian serves as the intermediary for business dealings between the School District and a business named “Nutrition Inc.,” which provides food service to the School District. i. Spando testified with regard to Seropian’s role in the process followed by the School District when soliciting bids and awarding contracts for the purchase of supplies or the provision of services. (7/13/09 Tr. at 103-108). 96. David Donato has served as a School Director for MASD since December 2003 to the present. a. ID 6, pages 4-10 consist of a contract executed between MASD and Nutrition Inc. on June 27, 2006, for the provision of food services to the District for the period from July 1, 2006, through June 30, 2007. 1. The contract is signed by Seropian in his capacity as Business Manager/Board Secretary. b. ID 6, pages 13-19 consist of a contract executed between MASD and Nutrition Inc. on June 1, 2007, for the provision of food services to the District for the period from July 1, 2007, through June 30, 2008. 1. The contract is signed by Seropian in his capacity as Business Manager/Board Secretary. c. Seropian serves as the point man with regard to any negotiations or grievances that the School District may have with regard to Nutrition Inc.’s performance under the food service contract. 97. Scott E. Palmquist (“Palmquist”) is Vice President of Business Development, Architectural Department for Kimball, an architectural engineering company. a. Palmquist has known Seropian since the mid to late 1980s and became acquainted with him when Palmquist worked for a different employer. 1. Palmquist considers Seropian to be a friend and has attended social and sporting events with him. b. At some time prior to April 17, 2007, Kimball and MASD entered into discussions with regard to having Kimball perform a feasibility study and do some design work for two elementary school projects under consideration within the District. c. In the course of explaining the services that Kimball could offer to the School District, Palmquist made presentations to numerous School Directors and District administrators. d. Palmquist met with Seropian on more than three occasions and also spoke with him by telephone to discuss the services that Kimball had to offer to MASD. Seropian, 07-090 Page 25 e. Palmquist’s sister lives in the West Jefferson Hills School District (“WJHSD”), and when he saw a campaign flyer at her house, he became aware that Seropian was seeking election as a School Director for WJHSD. 1. Palmquist does not reside within WJHSD. f. Palmquist was also informed by Ryan Pierce (“Pierce”), a Kimball staff member who lives in WJHSD, that Seropian was running for election to the WJHSD School Board. g. At the conclusion of a business meeting that Palmquist and Pierce attended with Seropian in the MASD administrative office building, either Palmquist or Pierce offered to support Seropian’s campaign by purchasing five tickets for a campaign fundraiser. 1. Palmquist testified that Seropian did not ask for a donation for his campaign or coerce Palmquist in any way into making a campaign contribution. h. On April 11, 2007, Palmquist submitted a request to Kimball’s Political Action Committee (“PAC”) which recommended that a $200.00 contribution be made in support of Seropian’s election campaign. (ID Exhibit 3, page 22). i. At the conclusion of a meeting that Palmquist later had with Seropian at the School District, Palmquist personally delivered to Seropian a check for $200.00 from Kimball’s PAC. 1. No representatives from Kimball attended the fundraising event for which Kimball purchased tickets. 98. Jeffrey Kimball (“Mr. Kimball”) is President and Chief Executive Officer of Kimball. a. Kimball uses its PAC to provide contributions to campaigns in Pennsylvania for the purpose of being able to participate in campaign events and foster business relationships. b. Campaign contributions from Kimball’s PAC typically require approval by both Mr. Kimball and Mr. Kimball’s father, Leo Kimball. c. In April 2007, Kimball was engaged in discussions or negotiations with MASD regarding the performance of a District-wide feasibility study. d. After Palmquist’s request for a donation to Seropian’s campaign was approved, Kimball’s PAC issued a check dated April 11, 2007, in the amount of $200.00, in support of Seropian’s campaign. 1. ID Exhibit 3, page 24 consists of a check dated April 11, 2007, issued by “L. Robert Kimball & Assoc. PAC” to “Candidates for a New Direction,” in the amount of $200.00. 2. Candidates for a New Direction (“CFAND”) was the political committee authorized to receive donations on behalf of Seropian and three other candidates for School Director for WJHSD. (See, Fact Findings 15-18). Seropian, 07-090 Page 26 99. Michael Gleason (“Gleason”) is an insurance broker with Gleason Inc., which provides advisory services for its clients on the purchase of insurance. a. Gleason Inc. brokers life insurance and property casualty coverage for the School District and secures renewal quotes from insurance carriers for such coverage. b. Gleason first met Seropian when they were introduced by an MASD School Director and considers Seropian to be a friend. c. When Gleason heard that Seropian was seeking election to the WJHSD School Board, Gleason telephoned Seropian and offered to support his candidacy because of their friendship. d. Gleason subsequently issued a personal check to CFAND dated March 1, 2007, in the amount of $250.00, in support of a campaign fundraiser. (ID Exhibit 4, pages 1-2). 1. Gleason did not attend the campaign fundraiser. 100. Gerald Moore (“Moore”) is President of Nutrition Inc., which has a contract to provide food service and management to MASD. a. Nutrition Inc. has provided food service to MASD for approximately the last twenty years. b. Seropian negotiates on behalf of MASD with regard to the renewal of the food service contract with Nutrition Inc., and Nutrition Inc. works with Seropian if there is an issue with the food service contract. c. Moore first met Seropian twenty-five years ago, when Seropian was business manager for another school district with which Nutrition Inc. had business dealings. d. In 2007, when Moore and Seropian met to discuss the MASD food service contract, Seropian asked whether Moore would purchase some tickets to a fundraiser for Seropian’s campaign for election to the WJHSD School Board. 1. Moore issued a personal check to CFAND dated March 3, 2007, in the amount of $200.00. (ID Exhibit 6, page 24). e. At the time that Moore made the contribution to Seropian’s campaign, Nutrition Inc. had an ongoing contract to provide food services to MASD. 1. Moore testified that he was not coerced and voluntarily made the contribution because he thought Seropian was a good candidate for the WJHSD School Board, and not because Seropian was the MASD Business Manager. f. At the time that Moore contributed to Seropian’s campaign, Nutrition Inc. had had a business relationship with WJHSD for twenty years. g. A few months after Moore contributed to Seropian’s campaign, the WJHSD School Board decided to solicit bids for food service for WJHSD instead of renewing Nutrition Inc.’s contract with WJHSD. Seropian, 07-090 Page 27 h. While Nutrition Inc. still had an ongoing relationship with WJHSD, Moore left two messages on the voicemail for a WJHSD School Director. 1. In the voicemail messages, Moore indicated that he had been coerced into making the donation to Seropian’s campaign. 2. Moore testified that he claimed he had been coerced because he had learned Seropian and the other CFAND candidates were running against incumbents on the WJHSD School Board, and it was a “little white lie” to try to prevent Nutrition Inc. from losing its contract with WJHSD. i. Moore believes that Nutrition Inc. lost its contract with WJHSD because of the donation he made to Seropian’s campaign. 101. Lawrence Fagan (“Fagan”) is Chief Executive Officer of Fagan Sanitary Supply (“FSS”), located in West Elizabeth, Pennsylvania. a. FSS is in the business of providing custodial management services and janitorial products and equipment. b. Within the last five years, FSS responded to two different bid requests from MASD. c. Approximately three year ago, FSS submitted and was awarded a bid to provide MASD with T-bar covers for applying gym finish. 1. As the lowest responsible bidder, FSS supplied MASD with approximately two to four T-bar covers at a total cost of less than $100.00. d. In or about May 2007, FSS submitted and was awarded a bid to provide trash can liners to MASD, but the award was withdrawn and given to the next lowest responsible bidder once it was determined that FSS made an error when calculating its price for the trash can liners. e. Other than the T-bar covers, FSS has supplied no products or services to MASD in the last five years. f. Fagan’s residence is located in WJHSD, and he is acquainted with Seropian as a result of Seropian’s prior employment as business manager for WJHSD and Seropian’s activities as a baseball coach. 1. Fagan has no business dealings with Seropian in his capacity as Business Manager for MASD. g. At some time in 2007, Fagan learned from Dennis Cmar (“Cmar”), a candidate for the WJHSD School Board, that Seropian also was seeking election to the WJHSD School Board. h. At Cmar’s prompting, Fagan had FSS make a contribution to CFAND. 1. ID Exhibit 7, page 5 is a check dated April 1, 2007, issued by FSS to CFAND, in the amount of $250.00. 2. The check is signed by Fagan’s spouse in her capacity as President of FSS. Seropian, 07-090 Page 28 i. Fagan testified that he does not recall Seropian ever telephoning him and asking him to make a contribution to Seropian’s campaign. 102. Gregory Jacobs (“Jacobs”) is employed as a Financial Advisor with ING Financial Advisors (“ING”). a. ING is an investment company that offers financial planning and investment plans to its clients. b. ING is one of approximately fifteen companies that provide employees of MASD with the opportunity to invest in a voluntary retirement plan consisting of a tax shelter annuity. c. Jacobs markets ING’s investment services to individual MASD employees by making presentations in the School District, and he has no business dealings or contract with the School District itself. d. Jacobs first became acquainted with Seropian approximately five years ago when Jacobs introduced himself to Seropian as the new ING representative for MASD clients. e. As an ING representative, Jacobs meets with Seropian several times per year. f. Jacobs became aware that Seropian was a candidate for the WJHSD School Board when the topic came up in conversation while Jacobs, Seropian, and another School District employee were at a “networking” lunch. g. Jacobs offered on his own to donate to Seropian’s campaign because Jacobs viewed it as an opportunity to network and get name recognition for himself. h. Seropian did not ask or suggest that Jacobs donate any specific amount, so Jacobs determined the amount of his donation based upon the amount available in his budget. 1. Jacobs issued a personal check to Seropian dated April 15, 2007, in the amount of $872.59. (ID Exhibit 8). 103. Henry Benton South (“South”) has been employed as the Technology Coordinator for MASD for the last fifteen years. a. As Technology Coordinator, South is responsible for all of the computers, satellite dishes, and networks used by MASD. b. MASD uses a filtering system to block access for students, staff, and faculty to websites that are not related to the School District curriculum. 1. The filtering system is set for the entire School District and cannot be altered for an individual work station. c. MASD provides Seropian with a computer, monitor, internet access, and email account for use in his office in the administrative wing of the MASD High School. Seropian, 07-090 Page 29 1. The computer assigned to Seropian is a Dell Optiflex, Model #GX240, Serial #9286M11. (ID Exhibit 10, page 7). 2. The monitor assigned to Seropian is a Dell, Model #1703FPS, Serial #MX01Y3114760537NAL2R. (ID Exhibit 10, page 7). d. The computer system assigned to Seropian was purchased by MASD in 2002 at a cost of $889.80, and the monitor assigned to Seropian was purchased by MASD in August 2003 at a cost of $532.20. (ID Exhibit 10, pages 1-6). e. A password is required to obtain access to Seropian’s School District user account. 104. Robert Caruso (“Caruso”) is the Deputy Executive Director and Director of Investigations for the State Ethics Commission. a. Caruso’s job responsibilities include reviewing complaints received by the Commission, making recommendations to the Executive Director of the Commission regarding the initiation of preliminary inquiries, supervising the investigative staff, assigning investigations to investigators based on the location of the investigation and the experience of the investigators, and reviewing investigative reports. b. On June 7, 2007, the State Ethics Commission received two signed and sworn complaints and accompanying documents alleging that Seropian had violated the Ethics Act. (ID Exhibit 1, pages 1-51). 1. Each complaint alleged, in pertinent part, that “[Seropian] has utilized school district assets for private purposes….” (ID Exhibit 1, pages 2, 31). c. Upon review of the complaints, the Investigative Division of the State Ethics Commission initiated a preliminary inquiry on July 12, 2007. (ID Exhibit 1, page 52). 1. The preliminary inquiry was completed within sixty days. d. On September 5, 2007, a Notice of Investigation was issued to Seropian by the Investigative Division, informing him of the allegations against him and that a full investigation was being commenced. (ID Exhibit 1, pages 54-58). e. On December 21, 2007, the Investigative Division filed an application for a ninety-day extension of time to complete the investigation. (ID Exhibit 1, pages 69-73). 1. On January 28, 2008, the State Ethics Commission issued an Order granting the Investigative Division’s request for a ninety-day extension from the last day of the previous deadline. (ID Exhibit 1, page 74). f. On April 8, 2008, the Investigative Division filed an application for a second ninety-day extension of time to complete the investigation. (ID Exhibit 1, pages 75-79). 1. On April 28, 2008, the State Ethics Commission issued an Order granting the Investigative Division’s second request for a ninety-day Seropian, 07-090 Page 30 extension from the last day of the previous deadline. (ID Exhibit 1, page 80). g. On August 13, 2008, an amended Notice of Investigation was issued to Seropian by the Investigative Division, informing him that the allegations contained in the September 5, 2007, Notice of Investigation were being modified. (ID Exhibit 1, pages 59-68). 105. Daniel P. Cali (“Cali”) is a Special Investigator with the State Ethics Commission. a. Cali was assigned to the Seropian investigation. b. Records provided by National City Bank (“Bank”) during the course of the Seropian investigation indicated that Seropian had signature authority over an account that CFAND maintained at the Bank for campaign contributions. 1. ID Exhibit 20, page 3 is a Consumer Signature Card signed by Seropian on February 23, 2007, for a checking account with National City Bank. c. During the course of the Seropian investigation, Cali determined that two campaign contribution checks Seropian deposited at the Bank were mistakenly deposited by the Bank into an account that was not affiliated with Seropian and/or CFAND. 1. The campaign contribution checks were from Michael Gleason and Gerald Moore. 2. The two campaign contribution checks were eventually credited to the CFAND account by the Bank. d. On March 5, 2007, forms authorizing CFAND to receive contributions on behalf of the candidacies of Seropian, Angotti, and Cmar were filed with the Allegheny County Department of Administrative Services, Election Division. (ID Exhibit 11, pages 4-6). 1. On March 29, 2007, an additional form authorizing CFAND to receive contributions on behalf of the candidacy of Glunk was filed with the Allegheny County Department of Administrative Services, Election Division. (ID Exhibit 11, page 7). e. ID Exhibit 11, pages 8-11 consist of Political Committee Registration Statements filed on behalf of CFAND with the Allegheny County Department of Administrative Services, Election Division, on or about March 5, 2007, and March 29, 2007. 1. Seropian’s MASD telephone number and email address are listed on the documents as contact information for CFAND. f. Campaign Finance Reports and Statements that Seropian, as CFAND Treasurer, filed with the Allegheny County Department of Administrative Services, Election Division, on May 4, 2007, and June 18, 2007, list Seropian’s MASD telephone number as his contact information. C. Stipulations Seropian, 07-090 Page 31 106. The parties have entered into the following stipulation regarding the testimony of Sean Firestine (“Firestine”). a. Sean Firestine is an employee of the State Ethics Commission, employed in the capacity of Information Technology Generalist/Computer Forensics Generalist. b. Firestine would testify as to his findings made pursuant to a forensic analysis of David Seropian’s computer, as assigned to Mr. Seropian by the McKeesport Area School District. c. Firestine would authenticate, as true and correct copies, the following exhibits: ID 12, in its entirety; ID 13, in its entirety; ID 14, in its entirety; ID 15, in its entirety; ID 16, in its entirety; ID 17, in its entirety; and ID 18, in its entirety; as being true and correct copies of documents found pursuant to a forensic analysis of Mr. Seropian’s computer, as assigned to Mr. Seropian by the McKeesport Area School District. d. Firestine would authenticate, as a true and correct copy, his findings report, as contained within ID 19. e. The parties agree that Firestine’s report, as contained within Exhibit ID 19 will be accepted into evidence, in lieu of Firestine’s live testimony before the Commission. f. It is stipulated that Encase is a recognized and approved software program accepted by the courts of the Commonwealth as a method to be utilized in the forensic recovery of files contained on computers and/or other electronic storage data bases. g. It is stipulated that Firestine possesses the proper qualifications, training and technological knowledge necessary to employ Encase software and obtain a consistent result, as intended by the software. h. The following items, in their entirety, will be introduced into evidence without objection: ID 12 ID 13 ID 14 ID 15 ID 16 ID 17 ID 18 ID 19 107. The parties have entered into the following stipulation regarding the testimony of Frank Szubra (“Szubra”). a. Frank Szubra is an adult male residing or maintaining a mailing address at [address redacted]. b. Szubra resides within the West Jefferson Hills School District. c. Szubra is aware of the identity of David Seropian through Seropian’s affiliation with the Jefferson Hills Youth Baseball Association. d. On or about May 14, 2007, Szubra received an email communication originating from David Seropian containing the email address: [email address redacted]. e. The content of the email was addressed to “Dear Baseball Friends.” Seropian, 07-090 Page 32 f. Szubra has received less than five (5) emails from Seropian, throughout Szubra’s association with Seropian. g. With the exception of the aforementioned email, no other emails received by Szubra from Seropian related to political topics. h. The May 14, 2007, email received by Szubra was addressed to a number of individuals, which included Szubra. i. Exhibit ID 9-1, 9-2 is a true and correct copy of the email received by Szubra on or about May 14, 2007. D. Admissions 108. At the hearing held in this matter, Seropian admitted that he used his computer at MASD to access non-work related websites as detailed in ID Exhibit 19. (7/13/09 Tr. at 486-487). E. Documents 109. ID 19 consists of a report from Sean Firestine (“Firestine”) dated July 23, 2008, regarding a forensic examination performed by Firestine on the MASD computer issued to Seropian. a. On March 10, 2008, Firestine accompanied State Ethics Commission Investigator Cali to the MASD High School, where Firestine was provided with access to the computer assigned to Seropian. b. Firestine removed the computer’s hard drive (a Maxtor D740x-6L 40 GB drive), created a forensic image of the hard drive, and replaced the hard drive. c. Firestine’s forensic examination of the hard drive found the following campaign-related documents on the hard drive: two candidate profiles for Seropian (ID Exhibit 12, pages 1-2); two campaign letters from the four candidates of CFAND (ID Exhibit 14 and ID Exhibit 16); and a campaign letter from WJHSD School Board candidates Angotto and Cmar (ID Exhibit 15, pages 1-2). d. The following baseball-related items were found on the hard drive of Seropian’s computer: 1. Thirty emails exchanged between Seropian and various individuals between February 2, 2004, and March 23, 2005, pertaining to the Nasty Kats baseball team managed by Seropian. (ID Exhibit 19, pages 19-44). 2. A total of forty-nine documents consisting of forty Word documents, seven spreadsheets, one PDF document, and one text document. (ID Exhibit 18, pages 1-148). a. Included among the forty-nine documents are tournament rules, league and tournament schedules, league standings, registration forms, and team rosters. Seropian, 07-090 Page 33 e. The unallocated hard drive space of Seropian’s computer contained twelve images of pornographic or adult-oriented material. (ID Exhibit 19, pages 11, 57-61). 1. No time or date information about the images was available. f. The forensic examination of the hard drive was able to determine the dates and times that Seropian’s computer was used to access inappropriate and non-work related websites during the time period properly subject to review. (ID Exhibit 19, pages 6-10). 1. For the 2002/2003 school year, Seropian’s computer was used to access inappropriate and non-work related websites for a total of 721 minutes during normal work hours. 2. For the 2003/2004 school year, Seropian’s computer was used to access inappropriate and non-work related websites for a total of fifty- nine (59) minutes during normal work hours. 110. ID Exhibit 2, page 30 is a memorandum dated August 30, 2002, from Stephen J. Tomaino, Ed.D., MASD Superintendent, to Seropian. a. The memorandum indicates that Seropian’s salary would be $102,103.00 for serving as Business Manager/Board Secretary for the 2002/2003 school term. b. Based upon a forty hour work week, Seropian’s hourly wage for the 2002/2003 school year was approximately $49.09 [$102,103.00 / 2,080 (40 hours per week X 52 weeks) = $49.09]. 111. ID Exhibit 2, page 29 consists of a memorandum dated August 29, 2003, from Stephen J. Tomaino, Ed.D., MASD Superintendent, to Seropian. a. The memorandum indicates that Seropian’s salary would be $105,881.00 for serving as Business Manager/Board Secretary for the 2003/2004 school term. b. Based upon a forty hour work week, Seropian’s hourly wage for the 2003/2004 school year was approximately $50.90 [$105,881.00 / 2,080 (40 hours per week X 52 weeks) = $50.90]. F. Derivative Findings 112. Seropian was paid approximately $590.06 for the 721 minutes that his computer was used to access inappropriate and non-work related websites during the 2002/2003 school year [$49.09 hourly rate X (721 minutes / 60 minutes per hour) = $590.06]. 113. Seropian was paid approximately $50.05 for the 59 minutes that his computer was used to access inappropriate and non-work related websites during the 2003/2004 school year [$50.90 hourly rate X (59 minutes / 60 minutes per hour) = $50.05]. III. DISCUSSION: At all times relevant to this matter, Respondent David Seropian (also referred to herein as “Respondent,” “Respondent Seropian,” and “Seropian”) has been a public Seropian, 07-090 Page 34 official/public employee subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. Before addressing the allegations, we preliminarily note that at the hearing held in this matter, the Investigative Division indicated that it is no longer pursuing the alleged violation of Section 1105(b) of the Ethics Act in this case. (7/13/09 Tr. at 139-140). We conclude that there has been a nol pros of the Section 1105(b) allegation, and we need not address it further. The allegations are that David Seropian, as Business Manager for the McKeesport Area School District (also referred to herein as “MASD,” “School District,” or “District”), Allegheny County, violated Section 1103(a) of the Ethics Act when he used the authority of his public position for a private pecuniary gain by utilizing the facilities and equipment of the school district for his personal benefit including, but not limited to, his candidacy for a school director position with the West Jefferson Hill School District and his position as a baseball team official; and when he solicited school district vendors to make campaign contributions to him and/or committees on his behalf. Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a)Conflict of interest.— No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official/public employee from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. We shall now summarize the relevant facts. Seropian, 07-090 Page 35 Seropian has served as Business Manager for MASD and Secretary to the MASD School Board (“School Board” or “Board”) from October 1997 to the present. Seropian previously served as Business Manager/Board Secretary for MASD from October 1990 to June 1993 and as Business Manager for West Jefferson Hills School District (hereinafter “WJHSD”) from late 1993 to mid 1997. In his capacity as Business Manager for MASD, Seropian’s responsibilities include, inter alia, preparing the annual School District budget; formulating and supervising a uniform purchasing program of supplies and equipment in accordance with legal requirements and School Board policy; supervising the management of the financial affairs of the schools within the District; assuming responsibility for budget development and long- range financial planning; supervising the collection, safekeeping, and distribution of all funds; administering a budget control system for the District; serving as District coordinator for food service; and acting as District liaison to the food service management company. Seropian routinely attends Board workshop meetings, committee meetings, and legislative meetings in his role as Business Manager. At regular Board meetings, Seropian and/or other administrators inform the Board of services that are needed. The Board’s approval is required for a service to be put out for public bid. Seropian supervises the advertising of projects/services to be bid, and sealed bids for projects/services are submitted to his attention. Seropian is involved in researching businesses, submitting Requests for Proposals to businesses, and reviewing quotes submitted by businesses, and at times he has negotiated with vendor representatives to get services for the District. Seropian’s responsibilities as Board Secretary include, inter alia, attending all meetings of the School Board; keeping a correct and proper record of all the proceedings of the Board; preparing and signing orders on the treasurer for the payment of amounts as authorized by the Public School Code; attesting, in writing, the execution of all deeds, contracts, reports, and other instruments that are to be executed by the Board; and supervising all the business affairs of the School District, subject to the instructions and direction of the Board. Campaign Contributions MASD maintains and utilizes a policy manual in association with the day-to-day operations of the District. MASD Policy No. 421, adopted August 9, 1982, governs political activities by MASD employees. Pursuant to Policy No. 421, professional employees of MASD are prohibited, in pertinent part, from collecting campaign funds and/or soliciting for campaign workers on MASD property. Seropian’s employment with MASD does not require him to reside within the School District. For approximately sixteen years, Seropian has resided within the boundaries of WJHSD. From 1999 to 2003, Seropian served as a School Director for WJHSD. Seropian did not seek reelection when his term of office expired. In 2007, five of the nine School Directors for WJHSD were seeking reelection since their terms of office were to expire in December 2007. Five other individuals, including in pertinent part Seropian, Dennis Cmar (“Cmar”), Anthony Angotti (“Angotti”), and Janet Glunk (“Glunk”), also were seeking election to the WJHSD School Board. In early 2007, Seropian, Cmar, and Angotti formed a campaign committee named “Candidates for a New Direction” (hereinafter referred to as “CFAND”). CFAND was initially registered with the Allegheny County Department of Administrative Services, Election Division (“Election Division”) on March 5, 2007. CFAND was registered again with the Election Division on March 29, 2007, as a result of Glunk joining the campaign committee. Each member of the campaign committee authorized CFAND to receive contributions on behalf of his or her candidacy. Seropian, 07-090 Page 36 The registration documents and campaign finance reports filed on behalf of CFAND with the Election Division identified Seropian as the appointed Treasurer of CFAND and listed Seropian’s MASD telephone number and/or email address as contact information for CFAND. Seropian, as CFAND Treasurer, was responsible for depositing contributions received into the bank account utilized by CFAND, issuing checks from such account to pay for campaign related expenses, maintaining receipts/invoices documenting campaign expenses, and completing Commonwealth of Pennsylvania Campaign Finance Reports. Seropian had signature authority over a checking account that CFAND maintained at National City Bank (“the Bank”) for campaign contributions, and he deposited contributions received by campaign committee members into CFAND’s checking account. Commonwealth of Pennsylvania Campaign Finance Reports for CFAND indicate that CFAND received $8,071.00 in contributions during the time period from March 27, 2007, through June 4, 2007. Five individuals affiliated with companies doing business with MASD in 2007 contributed a total of $1,772.59 to CFAND during the aforesaid time period as detailed in Fact Finding 23. The facts pertaining to the contributions made by the aforesaid five individuals are as follows. Fagan Sanitary Supplies Lawrence Fagan (“Mr. Fagan”) is Chief Executive Officer of Fagan Sanitary Supply (“FSS”), located in West Elizabeth, Pennsylvania. Mr. Fagan’s spouse, Mary Jane (“Mrs. Fagan”), is President of FSS. FSS specializes in the distribution of cleaning related products and equipment to a variety of businesses, school districts, and federal facilities. Within the last five years, FSS responded to two different bid requests from MASD. Approximately three year ago, FSS submitted and was awarded a bid to provide MASD with T-bar covers for applying gym finish. As the lowest responsible bidder, FSS supplied MASD with approximately two to four T-bar covers at a total cost of less than $100.00. In or about May 2007, FSS submitted and was awarded a bid to provide trash can liners to MASD, but the award was withdrawn and given to the next lowest responsible bidder once it was determined that FSS made an error when calculating its price for the trash can liners. Other than the T-bar covers, FSS has supplied no products or services to MASD in the last five years. Mr. and Mrs. Fagan reside within WJHSD. Mr. Fagan has known Seropian for at least five years, and he is acquainted with Seropian as a result of Seropian’s prior employment as business manager for WJHSD and Seropian’s activities as a baseball coach. Mr. Fagan has no business dealings with Seropian in his capacity as Business Manager for MASD. At some time in 2007, Mr. Fagan learned from Cmar that Seropian was seeking election to the WJHSD School Board. At Cmar’s prompting, Mr. Fagan had FSS make a contribution to CFAND. Mrs. Fagan, as President of FSS, issued a check to CFAND dated April 1, 2007, in the amount of $250.00. On April 23, 2007, the FSS check was deposited into CFAND’s checking account at the Bank. The contribution from FSS purchased ten tickets to attend a CFAND fundraiser (“the CFAND Fundraiser”) held on April 21, 2007, at the Skyview Fire Hall #4 located in West Mifflin, Pennsylvania. Mr. Fagan requested that the tickets purchased be provided to individuals that might have an interest in attending the fundraiser, and the Fagans did not attend the fundraiser. Mr. Fagan testified that he does not recall Seropian ever telephoning him and asking him to make a contribution to Seropian’s campaign. Seropian, 07-090 Page 37 Gleason Insurance Michael Gleason (“Mr. Gleason”) is Vice President of Gleason Insurance, located in Pittsburgh, Pennsylvania. Gleason Insurance specializes in providing coverage such as property, liability, and workers’ compensation insurance to numerous school districts, government entities, and county entities. Gleason Insurance brokers life insurance and property casualty coverage for the School District and secures renewal quotes from insurance carriers for such coverage. Mr. Gleason has known Seropian for approximately eight years, having first met him when they were introduced by an MASD School Director. Mr. Gleason and Seropian interact approximately three to four times a year on business related matters, and Mr. Gleason considers Seropian to be a friend. When Mr. Gleason heard that Seropian was seeking election as a School Director for WJHSD, Mr. Gleason telephoned Seropian and offered to support his candidacy because of their friendship. Mr. Gleason subsequently issued a personal check to CFAND dated March 1, 2007, in the amount of $250.00, and he mailed the check to Seropian. Mr. Gleason’s contribution purchased ten tickets to attend the CFAND Fundraiser, but he did not attend and instead sent an employee of Gleason Insurance on his behalf. When Seropian deposited Mr. Gleason’s campaign contribution check with the Bank, the Bank mistakenly deposited the check into an account that was not affiliated with Seropian or CFAND. The Bank subsequently rectified its error by crediting the check to CFAND’s account. L. Robert Kimball and Associates Scott E. Palmquist (“Palmquist”) is Vice President of Business Development, Architectural Department for L. Robert Kimball and Associates (“Kimball”), located in Ebensburg, Pennsylvania. Kimball specializes in providing architectural, engineering, telecommunication, and transportation services to numerous entities in Pennsylvania and other states. Palmquist has known Seropian since the mid to late 1980s, and they met when they both were working for different employers. Palmquist considers Seropian to be a friend, and they have attended social and sporting events together. At some time prior to April 17, 2007, Kimball and MASD entered into discussions with regard to having Kimball perform a feasibility study and do some design work for two elementary school projects under consideration within the District. In the course of explaining the services that Kimball could offer to the School District, Palmquist made presentations to numerous School Directors and District administrators. Palmquist met with Seropian on more than three occasions and also spoke with him by telephone to discuss the services that Kimball had to offer to MASD. Palmquist does not reside in WJHSD. Palmquist’s sister lives in WJHSD, and when he saw a campaign flyer at her house, he became aware that Seropian was seeking election to the WJHSD School Board. Palmquist was also informed by Ryan Pierce (“Pierce”), a Kimball employee who lives in WJHSD, about Seropian’s candidacy. At the conclusion of a business meeting that Palmquist and Pierce attended with Seropian in the MASD administrative office building, either Palmquist or Pierce offered to support Seropian’s campaign by purchasing five tickets for a campaign fundraiser. Palmquist testified that Seropian did not ask for a donation for his campaign or coerce Palmquist in any way into making a campaign contribution. Seropian, 07-090 Page 38 On April 11, 2007, Palmquist submitted a request to Kimball’s Political Action Committee (“PAC”) that recommended a $200.00 contribution be made in support of Seropian’s campaign for election to the WJHSD School Board. Kimball uses its PAC to provide contributions to campaigns in Pennsylvania for the purpose of being able to participate in campaign events and foster business relationships. Campaign contributions from Kimball’s PAC typically require approval by Jeffrey Kimball, President and Chief Executive Officer of Kimball, and by Leo Kimball, Chairman of Kimball’s Board of Directors. After Palmquist’s request for a donation to Seropian’s campaign was approved, Kimball’s PAC issued a check to CFAND dated April 11, 2007, in the amount of $200.00. Approximately one week after the check was issued, Palmquist hand-delivered the check to Seropian at the conclusion of a meeting at the School District. Although Kimball’s campaign contribution purchased four tickets to attend the CFAND Fundraiser, no one from Kimball attended it. Kimball’s campaign contribution was deposited with the Bank on April 23, 2007. On April 25, 2007, the MASD School Board voted to award Kimball a contract to complete the feasibility study, and two days later, Seropian signed Kimball’s proposal regarding the feasibility study. Nutrition Inc. Gerald Moore (“Moore”) is President of Nutrition Inc., located in West Newton, Pennsylvania. Nutrition Inc. specializes in supplying meals, custodial maintenance, and vending machines to numerous schools and businesses, including approximately one hundred and ten school districts located in parts of Pennsylvania, Ohio, and New Jersey. Moore first met Seropian approximately twenty-five years ago, when Seropian was business manager for another school district with which Nutrition Inc. had business dealings. Nutrition Inc. has provided food service and management to MASD for approximately the last twenty years. Each year, Nutrition Inc. submits a proposal to MASD to be considered for providing food service to the District. Nutrition Inc.’s contracts with the District run for one year but can be renewed for up to four years at renegotiated rates. Seropian negotiates on behalf of MASD with regard to the renewal of Nutrition Inc.’s food service contract. Seropian is the District’s coordinator for food service, and Moore has contact with Seropian approximately three times a year to discuss issues involving the food service contract. In 2007, when Moore and Seropian met to discuss the MASD food service contract, Seropian asked whether Moore would purchase some tickets to a fundraiser for Seropian’s campaign for election as a School Director for WJHSD. Moore subsequently issued a personal check to CFAND dated March 3, 2007, in the amount of $200.00, and he mailed the check to CFAND’s campaign committee address. Although Moore’s contribution purchased eight tickets to attend the CFAND Fundraiser, Moore did not attend the Fundraiser and instead requested that the tickets be provided to individuals who might have an interest in attending it. Moore testified that he was not coerced and voluntarily made the contribution because he thought Seropian was a good candidate for the WJHSD School Board, and not because Seropian was MASD’s Business Manager. When Seropian deposited Moore’s campaign contribution check with the Bank, the Bank mistakenly deposited the check into an account that was not affiliated with Seropian or CFAND. The Bank subsequently rectified its error by crediting the check to the correct account. On May 23, 2007, the MASD School Board voted to renew Nutrition Inc.’s contract to provide food services to the District. On June 1, 2007, Seropian, as MASD’s authorized Seropian, 07-090 Page 39 representative, signed a Food Service Management Contract Addendum executed by MASD and Nutrition Inc. At the time that Moore contributed to Seropian’s campaign, Nutrition Inc. had been in a business relationship with WJHSD for twenty years. A few months after Moore contributed to Seropian’s campaign, the WJHSD School Board decided to solicit bids for food service for WJHSD instead of renewing Nutrition Inc.’s contract with WJHSD. While Nutrition Inc. still had an ongoing relationship with WJHSD, Moore left two messages on the voicemail for a School Director for WJHSD. In the voicemail messages, Moore indicated that he had been coerced into making the donation to Seropian’s campaign. Moore testified that he claimed he had been coerced because he had learned Seropian and the other CFAND candidates were running against the incumbents on the WJHSD School Board, and it was a “little white lie” to try to prevent Nutrition Inc. from losing its contract with WJHSD. Moore believes that Nutrition Inc. lost its contract with WJHSD because of the donation he made to Seropian’s campaign. ING Financial Advisors Gregory Jacobs (“Jacobs”) is employed as a Financial Advisor with an investment company named “ING Financial Advisors” (“ING”). ING offers financial planning and investment plans to its clients. ING is one of approximately fifteen companies that provide employees of MASD with the opportunity to invest in a voluntary retirement plan consisting of a tax shelter annuity. Jacobs markets ING’s investment services to individual MASD employees by making presentations in the School District, and he has no business dealings or contracts with the School District itself. Jacobs first became acquainted with Seropian approximately five years ago when Jacobs introduced himself to Seropian as the new ING representative for MASD clients. As an ING representative, Jacobs meets with Seropian several times per year. Jacobs, who does not reside within WJHSD, became aware that Seropian was a candidate for the WJHSD School Board when the topic came up in conversation while Jacobs, Seropian, and another School District employee were at a “networking” lunch. Jacobs offered on his own to donate to Seropian’s campaign because Jacobs viewed it as an opportunity to network and get name recognition for himself. Seropian did not ask or suggest that Jacobs donate any specific amount, so Jacobs determined the amount of his donation based upon the amount available in his budget. Jacobs subsequently issued and hand-delivered a personal check to Seropian dated April 15, 2007, in the amount of $872.59. On April 27, 2007, Seropian deposited Jacobs’ campaign contribution with the Bank. Use of MASD Facilities and Equipment for Personal Purposes MASD Policy No. 815, adopted June 28, 1995, and revised most recently on August 22, 2001, governs acceptable use of technology and/or the internet by MASD students and staff. Policy No. 815 expressly prohibits use of technology/the internet for: (1) facilitating illegal activity; (2) commercial or for-profit purposes; (3) non-work or non-school related communications; (4) product advertisement or political lobbying; (5) offensive anti-social communications; (6) the illegal installation, distribution, reproduction or use of copyrighted software; and (7) accessing obscene or pornographic material. Seropian is subject to Policy No. 815. On August 31, 2001, Seropian signed a “Staff Technology/Internet Policy Agreement” by which he acknowledged receipt of the MASD Technology Handbook and Seropian, 07-090 Page 40 Policy No. 815 and agreed to the terms outlined therein. MASD provides Seropian with a computer, monitor, internet access, and email account for use in his capacity as Business Manager. The computer is located in Seropian’s private office in the administrative wing of the MASD High School. The computer assigned to Seropian is a Dell Optiflex, Model #GX240, Serial #9286M11, that was purchased by MASD at a cost of $889.80 and assigned to Seropian in approximately July 2002. The monitor assigned to Seropian is a Dell, Model #1703FPS, Serial #MX01Y3114760537NAL2R, that was purchased by MASD in August 2003 at a cost of $532.20. A password is required to obtain access to Seropian’s School District user account. Seropian has used his District email account for both personal and business purposes. Seropian’s regular work hours as Business Manager for MASD are from 8:00 a.m. to 4 p.m., Monday through Friday. During the month of July, Seropian routinely works from 8:00 a.m. to 3:00 p.m. Since approximately 2005 to the present, Seropian has managed The Nasty Kats (“the Team”), a traveling baseball team that competes at a local level and plays in various tournaments and leagues. The Team is not associated with the MASD baseball program. Seropian, as Team manager, has responsibilities such as registering the Team for tournaments and being aware of league rules and regulations. Seropian’s son plays for the Team. Sean Firestine, who is employed as Technology Generalist/Computer Forensics Generalist with this Commission, conducted a forensic examination of the hard drive of the computer assigned to Seropian by MASD. Forensic examination found the following baseball-related items on the hard drive: (1) thirty emails exchanged between Seropian and various individuals between February 2, 2004, and March 23, 2005, pertaining to the Team; and (2) forty-nine documents pertaining to the Team, including tournament rules, league and tournament schedules, league standings, registration forms, and Team rosters. Forensic examination of the hard drive found the following campaign-related documents that were created on the hard drive between April 10, 2007, and September 18, 2007: (1) two candidate profiles for Seropian; (2) two campaign letters from the four candidates of CFAND; and (3) a campaign letter from WJHSD School Board candidates Angotto and Cmar. Seropian also used his MASD computer and email account during normal work hours on May 14, 2007, to send a mass email soliciting votes for himself and the other members of CFAND for the May 2007 primary election. Seropian admits that he used his MASD computer for matters related to the Team from 2004 to 2007 and for campaign-related activities prior to the primary election in May 2007, including soliciting votes for the members of CFAND via a mass email, but he avers that such use was limited and had a de minimis economic impact. See, Fact Findings 72, 83, 92. Seropian further admits that he used his MASD computer to view websites prohibited by the School District’s policy on acceptable use of technology/the internet. See, Fact Findings 92 f, 108, 109 e-f. The forensic examination of the hard drive was able to determine the dates and times that Seropian’s computer was used to access inappropriate and non-work related websites during the time period properly subject to review. Beginning September 5, 2002, for the 2002/2003 school year, Seropian’s computer was used to access inappropriate and non-work related websites for a total of 721 minutes Seropian, 07-090 Page 41 during normal work hours. For the 2003/2004 school year, Seropian’s computer was used to access inappropriate and non-work related websites for a total of fifty-nine (59) minutes during normal work hours. Seropian was paid approximately $590.06 for the 721 minutes that his computer was used to access inappropriate and non-work related websites during the 2002/2003 school year. See, Fact Finding 112. Seropian was paid approximately $50.05 for the 59 minutes that his computer was used to access inappropriate and non-work related websites during the 2003/2004 school year. See, Fact Finding 113. Having summarized the above relevant facts, we note that the parties have filed closing statements/briefs in this matter. In its Closing Statement/Brief, the Investigative Division seeks restitution in the total amount of $4,481.80, calculated as follows: (1) $1,772.59 in campaign contributions solicited/accepted by Seropian from School District vendors; (2) $971.49 in salary/compensation received by Seropian while viewing unauthorized and inappropriate websites on his MASD computer at times when he should have been attending to his duties for MASD; (3) $1,422.00 for the amount MASD paid to purchase the computer; and (4) $315.72 for six months of internet service. In his Brief, Seropian contends that: he did not obtain any campaign donations for CFAND by any threats, coercion, promises of work or contracts, or discussion related to MASD business; personal use of MASD computers is permitted by the School District, and other School District employees use MASD computers for non-work related purposes; and any private pecuniary benefit realized by Seropian through using the MASD computer for non-work related purposes was de minimis. We must now determine whether the actions of Seropian violated Section 1103(a) of the Ethics Act. As we apply the facts to the allegations, due process requires that we not depart from the allegations. Pennsy v. Department of State, 594 A.2d 845 (Pa. Cmwlth. 1991). A violation of the Ethics Act must be based upon clear and convincing proof. 65 Pa.C.S. § 1108(g). Clear and convincing proof is “so ‘clear, direct, weighty, and convincing as to enable the trier of fact to come to a clear conviction, without hesitance, of the truth of the precise facts in issue.’” In Re: Charles E.D.M., 550 Pa. 595, 601, 708 A.2d 88, 91 (1998) (Citation omitted). In applying Section 1103(a) of the Ethics Act and the facts before us to the alleged violations, we first conclude that there is no basis for finding Seropian violated Section 1103(a) of the Ethics Act with respect to the campaign contributions made to him or CFAND in 2007 by Fagan, Gleason, Palmquist, or Jacobs. Each of the four aforesaid individuals is associated with a business that provides goods or services to MASD or MASD employees. However, based upon the evidence, Seropian did not solicit or request any of the four aforesaid individuals to contribute to his campaign for School Director for WJHSD. Seropian’s acceptance of the campaign contributions, without any act on his part to solicit, request, or otherwise obtain such contributions, in and of itself does not establish the element of a use of authority of office. Based upon the above analysis, we hold that Seropian did not violate Section 1103(a) of the Ethics Act with respect to campaign contributions made by MASD vendors Fagan, Gleason, Palmquist, or Jacobs to Seropian and/or committees on his behalf for Seropian’s candidacy for School Director for WJHSD, in that Seropian did not solicit such contributions or otherwise use the authority of his public position to obtain such contributions. With respect to the campaign contribution made by Moore, Seropian used the authority of office when he solicited Moore for a contribution to Seropian’s 2007 campaign for School Director for WJHSD. But for being Business Manager for MASD, Seropian Seropian, 07-090 Page 42 would not have been in a position to request a campaign contribution from Moore, whose business, Nutrition Inc., had an ongoing contract to provide food services to MASD. Although this type of conduct could form the basis for a conflict of interest, in this case a violation of Section 1103(a) of the Ethics Act cannot be found as the resulting private pecuniary benefit to Seropian in the amount of $200.00 was de minimis. See, Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Cmwlth. 2004) (holding that a net profit in the amount of $561.77 resulting from business transactions between a township supervisor’s employer and the township would fall within the “de minimis” exclusion to the definition of “conflict of interest”). Accordingly, we hold that Seropian did not violate Section 1103(a) of the Ethics Act when he solicited a campaign contribution from Moore, President of MASD vendor Nutrition Inc., for Seropian’s candidacy for School Director for WJHSD in that the resulting private pecuniary benefit was de minimis. We shall next consider the allegation that Seropian utilized MASD facilities and equipment for his personal benefit, including but not limited to his candidacy for School Director and his position as a baseball team official. We preliminarily note that in our prior review of a Motion to Dismiss filed by Seropian in this matter, we determined that pursuant to the five-year statute of limitations of Section 1108(m) of the Ethics Act, 65 Pa.C.S. § 1108(m), we may only review acts which occurred no more than five years prior to the commencement of the investigation in this matter. Procedurally, the investigation in this matter commenced on September 5, 2007, when the Investigative Division mailed Seropian a letter via certified mail, informing him of the nature of the alleged violations of the Ethics Act and that the Investigative Division would be undertaking an investigation as to such allegations. Accordingly, our review is limited to acts which occurred from September 5, 2002 forward. Cf., Cagno, Order 1204; Cook, Order 1203. Seropian’s use of the MASD computer and internet service was a use of the authority of his public position. But for holding his public position with the School District, Seropian would not have had access to the School District’s computer and internet service. Seropian used the computer to access inappropriate and non-work related websites, engage in campaign-related activities prior to the primary election in May 2007, and view documents and exchange emails related to The Nasty Kats baseball team. It is axiomatic that the use of government staff, time, equipment, facilities, or property for non-governmental purposes—including business, personal, or political purposes—is generally prohibited and may form the basis for a violation of Section 1103(a) of the Ethics Act. See, Confidential Opinion, 05-001; Heck, Order 1251, Holt, Order 1153 (business purposes); Pagan, Order 1466; Moore, Order 1317, Meduka, Order 1277, Sullivan, Order 1245, Dovidio, Order 1202 (personal purposes); Habay, Order 1313, Livingston, Order 1030, Rockefeller, Order 1004, Freind, Order 800 (political purposes). The Investigative Division proposes that the private pecuniary benefit realized by Seropian from using the MASD computer for his personal benefit consists of: (1) the full value of the MASD computer; (2) the cost of six months of internet service based upon an average of current fees for internet service in the area; and (3) the amount of compensation/salary Seropian received for time spent viewing unauthorized and inappropriate websites on the MASD computer instead of performing work-related duties. We do not assess the full value of the MASD computer against Seropian as part of the realized private pecuniary benefit where: (1) Seropian did not remove the computer from his MASD office; (2) the computer was not used exclusively for non-work related purposes; and (3) the computer was used intermittently for personal purposes and the total quantifiable use during the relevant time period was thirteen hours. We further do not Seropian, 07-090 Page 43 assess the cost of six months of internet service against Seropian where: (1) the internet was used for personal purposes intermittently between September 2002 and September 2007; (2) there is no basis in the record for using six months as the time period for the calculation; and (3) the evidence establishes only the current cost charged by local providers for internet service and not the cost of such service during the time period under review in this matter. With regard to the compensation/salary Seropian received for time spent viewing unauthorized and inappropriate websites on the MASD computer during normal work hours, Seropian’s computer was used to access such websites for 721 minutes during the 2002/2003 school year and 59 minutes during the 2003/2004 school years. For the two aforesaid school years, Seropian received compensation/salary totaling approximately $640.11 for time spent viewing unauthorized and inappropriate websites during normal work hours. We hold that Seropian violated Section 1103(a) of the Ethics Act when he utilized the facilities and equipment of MASD for his personal benefit, including but not limited to his candidacy for School Director for WJHSD and his position as a baseball team official. Section 1107(13) of the Ethics Act empowers this Commission to impose restitution in instances where a public official/public employee has obtained a financial gain in violation of the Ethics Act. The Investigative Division has filed a Closing Statement/Brief seeking an order for restitution. Based upon the totality of the facts and circumstances, we determine that restitution in the amount of $640.11 is warranted in this case as to the aforesaid private pecuniary benefit that Seropian received in violation of Section 1103(a) of the Ethics Act. Accordingly, Seropian is directed to make payment of restitution to MASD in the th total amount of $640.11 by no later than the thirtieth (30) day after the mailing date of this adjudication and Order, by forwarding a check payable to the McKeesport Area School District in the amount of $640.11 to this Commission for processing. Non-compliance will result in the institution of an order enforcement action. IV.CONCLUSIONS OF LAW: 1. As Business Manager for the McKeesport Area School District (“MASD”), Allegheny County, from October 1997 to the present, David Seropian (“Seropian”) has been 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. Seropian did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), with respect to campaign contributions made by MASD vendors Lawrence Fagan, Michael Gleason, Scott Palmquist, or Gregory Jacobs to Seropian and/or committees on his behalf for Seropian’s candidacy for School Director for West Jefferson Hills School District (“WJHSD”), in that Seropian did not solicit such contributions or otherwise use the authority of his public position to obtain such contributions. 3. Seropian did not violate Section 1103(a) of the Ethics Act when he solicited a campaign contribution from Gerald Moore, President of MASD vendor Nutrition Inc., for Seropian’s candidacy for School Director for WJHSD in that the resulting private pecuniary benefit was de minimis. 4. Seropian violated Section 1103(a) of the Ethics Act when he utilized the facilities and equipment of MASD for his personal benefit, including but not limited to his Seropian, 07-090 Page 44 candidacy for School Director for West Jefferson Hills School District and his position as a baseball team official. In Re: David Seropian, : File Docket: 07-090 Respondent : Date Decided: 12/15/09 : Date Mailed: 12/29/09 ORDER NO. 1547 1. David Seropian, a public official/public employee in his capacity as Business Manager for the McKeesport Area School District (“MASD”), Allegheny County, from October 1997 to the present, did not violate Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), with respect to campaign contributions made by MASD vendors Lawrence Fagan, Michael Gleason, Scott Palmquist, or Gregory Jacobs to Seropian and/or committees on his behalf for Seropian’s candidacy for School Director for West Jefferson Hills School District (“WJHSD”), in that Seropian did not solicit such contributions or otherwise use the authority of his public position to obtain such contributions. 2. Seropian did not violate Section 1103(a) of the Ethics Act when he solicited a campaign contribution from Gerald Moore, President of MASD vendor Nutrition Inc., for Seropian’s candidacy for School Director for WJHSD in that the resulting private pecuniary benefit was de minimis. 3. Seropian violated Section 1103(a) of the Ethics Act when he utilized the facilities and equipment of MASD for his personal benefit, including but not limited to his candidacy for School Director for West Jefferson Hills School District and his position as a baseball team official. Seropian is directed to make payment of restitution to MASD in the total amount of 4. th $640.11 by no later than the thirtieth (30) day after the mailing date of this Order, by forwarding a check payable to the McKeesport Area School District in the amount of $640.11 to this Commission for processing a. Non-compliance will result in the institution of an order enforcement action. BY THE COMMISSION, ___________________________ Louis W. Fryman, Chair Commissioner Nicholas A. Colafella did not participate in the adjudication of this matter.