HomeMy WebLinkAbout1565 Burchfield
In Re: David Burchfield, Sr., : File Docket: 08-066
Respondent : X-ref: Order No. 1565
: Date Decided: 10/19/10
: Date Mailed: 10/26/10
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Raquel K. Bergen
Nicholas A. Colafella
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 allegations. Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an “Investigative Complaint.” An Answer was filed and a hearing was requested. A
Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were
subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
This adjudication of the State Ethics Commission is issued under the Ethics Act and
will be made available as a public document thirty days after the mailing date noted above.
However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with the Ethics Act.
Burchfield, 08-066
Page 2
I.ALLEGATIONS:
That David Burchfield, Sr., a public official/public employee in his capacity as a
Supervisor of Blair Township, Blair County, violated Section 1103(a) of the State Ethics Act
(Act 93 of 1998), 65 Pa.C.S. § 1103(a), when he used the authority of his public position
for private pecuniary gain, including but not limited to participating in actions of the Board
of Supervisors to provide payments and/or donations to the Duncansville Blair Township
Fire Department which said funds were used to pay rental on a facility owned by
Burchfield.
II.FINDINGS:
1. David Burchfield, Sr. served as a Supervisor for Blair Township, Blair County from
approximately January 1998 until February 20, 2009.
a. Burchfield resigned his position effective February 20, 2009.
2. Blair Township is designated a township of the second class and is governed by a
three (3) member Board of Supervisors.
a. David Burchfield, Sr., Arlene Bush, and Palmer Brown comprised the Blair
Township Board of Supervisors during calendar years 2005 through 2007.
b. Blair Township Supervisors are elected to six-year terms.
3. Professionally, David Burchfield, Sr. has business interests including but not limited
to The Burchfield Limited Partnership, The Burchfield Organization, Inc., and
Burchfield Auto Sales.
4. The Burchfield Organization, Inc., was incorporated in December 1994 with its
principal place of business at 713 Route 764, Duncansville, PA 16635.
a. Burchfield, his wife, and two sons are employed by The Burchfield
Organization, Inc.
b. Burchfield and his family members hold corporate officer positions in The
Burchfield Organization, Inc., as follows:
1. David E. Burchfield, Sr. – Chief Executive Officer
2. Linda L. Burchfield (Burchfield’s wife) – Secretary
3. David E. Burchfield, Jr. (Burchfield’s son) – Vice President
4. Richard E. Burchfield (Burchfield’s son) – Treasurer
5. The Burchfield Organization, Inc., was incorporated for the purpose of performing
services and providing materials for auto and truck sales and repairs, truck and
equipment salvage, and other related activities.
a. The Burchfield Organization, Inc., encompasses several Burchfield
businesses including Burchfield Towing & Auto Sales and Burchfield Auto &
Truck Salvage.
6. Records of the Pennsylvania Department of State Corporation Bureau include the
following information on Burchfield-owned business entities:
Burchfield, 08-066
Page 3
Entity Name Entity Number Officers
Burchfield Auto Sales 1055269 David Burchfield Sr. (Fictitious Name)
Burchfield Auto & 1055270 David Burchfield Sr. (Fictitious Name)
Truck Salvage
The Burchfield 2612090 David E. Burchfield, President
Organization Inc. Linda Burchfield, Secretary
Richard E. Burchfield, Treasurer
David Burchfield, Jr., Vice-President
The Burchfield Limited 556596 David E. Burchfield, Sr., General
Partnership Partner
Entity Name Filing Date
Burchfield Auto Sales 09/15/1988
Burchfield Auto & Truck Salvage 09/15/1988
The Burchfield Organization Inc. 12/14/1994
The Burchfield Limited Partnership 10/25/2005
7. The Burchfield Limited Partnership was created on or about October 1, 2005, with
its principal place of business at 713 Route 764, Duncansville, PA 16635.
a. This is the same business address as that of The Burchfield Organization,
Inc.
b. Limited partnership applications for The Burchfield Limited Partnership were
filed with the Pennsylvania Department of State on October 25, 2005.
c. David E. Burchfield, Sr. is identified as the general partner.
8. David E. Burchfield, Sr. has had a 95% ownership interest in The Burchfield Limited
Partnership since October 1, 2005.
a. David E. Burchfield, Sr. has had a 95% ownership interest in The Burchfield
Limited Partnership at all times relevant to this investigation.
b. The remaining five (5) percent ownership interest is held by Burchfield’s
wife, Linda Burchfield, and their children.
9. A Limited Partnership Agreement dated October 1, 2005, between David E.
Burchfield, Sr. as general partner and members of his immediate family delineates
partnership interests.
a. Stated partners along with their ownership interests include:
Linda L. Burchfield 1%
David E. Burchfield, Jr. 1%
Richard Burchfield 1%
Tina Burchfield 1%
Jody Reading 1%
b. David E. Burchfield, Sr. as general partner has a 95% ownership interest in
The Burchfield Limited Partnership.
Burchfield, 08-066
Page 4
c. Exhibit 1 of The Burchfield Limited Partnership Agreement identifies David E.
Burchfield, Sr. 713 Route 764, Duncansville, PA 16635, as the general
partner with the same address being used as the registered office.
d. The signature page of The Burchfield Limited Partnership Agreement
includes the signature of David E. Burchfield, Sr. as the general partner with
signatures for Linda L. Burchfield, David E. Burchfield, Jr., Richard
Burchfield, Tina Burchfield, and Jody Reading as limited partners.
10. Burchfield’s powers and duties as general partner are outlined in Article 5, Section
2, of The Burchfield Limited Partnership Agreement:
“The General Partner shall be authorized and empowered to carry out and
implement any and all of the purposes of the partnership, in accordance with the
terms of this agreement, applicable law and any policies established by the General
Partner. Subject to the foregoing the Powers of the General Partner, which shall be
exercised by it as a fiduciary on behalf of all partners shall include but not be limited
to the following:”
a. To engage personnel.
b. To engage attorneys, accountants or such other persons as the general
partner deems necessary or advisable.
c. To receive, buy, sell, option, exchange, trade and deal otherwise with
securities and other investments and other property of the partnership.
d. To open, maintain and close bank accounts and brokerage accounts, and to
draw checks and other orders for the payment of money.
e. To borrow money and to make, issue, accept, endorse and execute
promissory notes, drafts, bills of exchange and other instruments and
evidences of indebtedness, all without limit as to amount, and to secure the
payment thereof by mortgage, hypothecation, pledge or other assignment of
or arrangement or security interests in all or any part of any property of the
partnership.
f. To take such actions and incur such expenses on behalf of the partnership
as the general partner deems necessary or advisable in connection with the
conduct of the affairs of the partnership.
g. To enter into, make and perform such contracts, agreements and other
undertakings as the general partner deems necessary or advisable for the
conduct of the affairs of the partnership including but limited to contracts,
agreements, undertakings and transactions with any partner or with any
other person having any business, financial or other relationship with the
general partner or any other partner.
h. To compromise any claim due the partnership or submit to arbitration any
dispute or controversy involving the partnership.
11. The general partner’s responsibility as identified under subsection (g) gave
Burchfield, Sr. the authority to enter into agreements on behalf of The Burchfield
Limited Partnership.
a. Burchfield, Sr.’s 95% ownership interest in The Burchfield Limited
Partnership gave him the authority to make any decision on behalf of The
Burchfield, 08-066
Page 5
Burchfield Limited Partnership without any other partner’s consent.
12. Blair Township is primarily a rural township near the communities of Duncansville,
Hollidaysburg, and Roaring Springs.
a. Prior to 2006, the Township did not have any fire protection based within the
geographical boundaries of the Township.
b. The Township’s fire and emergency response needs were split among five
volunteer fire companies from the surrounding communities and townships
based on the location of the call.
c. Five volunteer fire companies provided services to Blair Township residents,
including The Duncansville Volunteer Fire Company (DVFC), Hollidaysburg
(Phoenix), Geeseytown, Roaring Spring, and Freedom (Freedom Township).
d. Of the five volunteer fire companies providing services within Blair Township,
the DVFC received the most emergency calls.
13. Prior to 2006, Blair Township would contribute to all five volunteer fire companies
which provided services to portions of the Township.
a. The Township split State funding it received from the Fire Relief Association
Fund for fire protection equally among the companies to cover the cost of
workers’ compensation insurance.
b. The Township also would make an annual donation of approximately
$3,262.50 to four (4) of the five (5) volunteer fire companies serving the
Township.
1. The Friendship Volunteer Fire Company received $1,450.00 annually
based on a smaller coverage area.
14. Around April of 2005, discussions by the Board of Supervisors began regarding
determining a primary and backup company for emergency calls within Blair
Township.
a. As of April 14, 2005, Blair Township did not have a primary volunteer fire
company designated to be the first responder for fire emergency calls
throughout the entire Township.
b. Primary and backup responding companies were called based on the
location of the incident.
c. At that time, a 9-1-1 dispatcher would make the determination based on the
location of the call with each company having designated call boxes
covering specific portions of the Township.
d. The Township was receiving complaints from the volunteer fire companies
regarding the number of dispatch calls they were receiving and the amount
of contributions being received from the Township.
15. The Duncansville Fire Company #1, d/b/a The Duncansville Volunteer Fire
Company (DVFC) was receiving in excess of fifty percent of the emergency calls
within Blair Township at the time based on coverage area.
a. The DVFC was providing fire protection services to part or all of
Burchfield, 08-066
Page 6
Duncansville Borough, Newry Borough, Blair Township, and Juniata
Township at the time.
th
b. The DVFC primary station was located at 317 14 Street, Duncansville,
Pennsylvania, at the time.
c. The DVFC did not have a station or substation within the geographical
boundaries of Blair Township in 2005.
16. Between January 2005 and December 2008, Burchfield, in his official capacity as a
Blair Township Supervisor, oversaw and/or participated in official actions
designating the DVFC as the Township’s primary emergency responder and
establishing and awarding EMS and/or Local Services taxes or other funding to the
DVFC.
17. Between January 2005 and December 2008, Burchfield, in his official capacity as a
Blair Township Supervisor, participated in the following actions designating the
DVFC as the Township’s primary emergency responder:
a. May 11, 2006
Burchfield seconds a motion and votes (approved 3-0) to make the DVFC
Blair Township’s primary fire company and forward a $29.00 portion of the
EMS tax to it.
b. May 10, 2007
Burchfield makes the motion and votes (approved 3-0) to approve
Resolution No. 2007-09 designating the Blair Township/Duncansville
Volunteer Fire Department as the primary fire company for Blair Township.
c. January 7, 2008
Burchfield seconds a motion and votes (approved 3-0) to reappoint the
Duncansville Volunteer Fire Company as Blair Township’s primary volunteer
fire company.
18. Between January 2005 and December 2008, Burchfield, in his official capacity as a
Blair Township Supervisor, participated in the following actions approving EMS
tax/Local Services tax collections and awarding portions of them to the DVFC.
a. January 3, 2006
Chairman Burchfield made a motion to set the EMS tax amount at $39.00 for
persons employed in the Township earning $12,000.00 or more annually,
and for persons earning less than $12,000.00 at $10.00 annually.
Supervisor Bush seconded the motion. The motion passed with a minimum
[sic] vote.
b. February 9, 2006
Supervisor Burchfield made the motion and voted 2-1 [sic] to adopt
ordinance number 2006-01 establishing the Emergency and Municipal
Services tax and repealing the Occupational Privilege tax.
c. May 11, 2006
Burchfield seconded a motion and voted (approved 3-0) to forward a $29.00
portion of the EMS tax collected to the DVFC quarterly.
d. January 2, 2007
“Chairman Burchfield made a motion to reaffirm distribution of the EMS Tax;
$10.00 is to be deposited in the General Fund Account and the remaining
Burchfield, 08-066
Page 7
$29.00 is to be paid to Blair Township’s Primary Volunteer Fire Company.
Supervisor Bush seconded the motion. The motion passed with a
unanimous vote.”
e. September 19, 2007
The Board discussed the Emergency and Municipal Services tax, to be
known as the Local Services tax beginning on January 1, 2008.
Supervisor Bush made a motion to approve an annual amount of $52.00 for
persons earning over $12,000.00 and employed in Blair Township.
Chairman Burchfield seconded the motion. This change would take effect on
January 1, 2008. The motion passed with a unanimous vote.
Supervisor Bush suggested that $30.00 be allocated to the Blair
Township/Duncansville Volunteer Fire Department, $11.00 be allocated to
the Blair Township Police Department, and the remaining $11.00 be
allocated to the Blair Township Highway Department. Chairman Burchfield
made a motion to approve the suggested distribution. Supervisor Brown
seconded the motion. The motion passed with a unanimous vote.
f. January 7, 2008
“Chairman Burchfield made a motion to reaffirm distribution of the EMS Tax;
$11.00 is designated for the Police Department, $11.00 is designated to the
Highway Department and $30.00 is to be paid to Blair Township’s Primary
Volunteer Fire Company. Supervisor Bush seconded the motion. The
motion passed with a unanimous vote.”
19. As a condition of receiving the EMS tax revenue from Blair Township, the DVFC
was required to provide the Township with a detailed accounting of how the
revenue was used.
a. DVFC Treasurer David Skurnick, Sr. was responsible for submitting
accounting reports to Blair Township.
b. Funds provided by Blair Township were to be used for services provided by
DVFC within the Township.
20. Records of the DVFC include the following total revenue and disbursements of
funds received from Blair Township since 2006:
2006 2007 2008
Revenue
Donations-Municipalities $62,843.00 $77,850.50 $40,088.89
Donations-General $ 0.00 $ 1,000.00 $ 0.00
Interest Income $ 338.07 $ 1,627.84 $ 944.28
Total Revenue $63,181.07 $80,478.34 $41,033.17
Disbursements
General Supplies $ 1,451.66 $ 295.50 $ 143.22
Telephone $ 219.78 $ 365.65 $ 333.62
Administrative $ 79.28 $ 6.04 $ 1,950.00
Fire Equipment $ 3,318.12 $6,603.67 $ 0.00
Burchfield, 08-066
Page 8
Legal Services $ 0.00 $ 0.00 $ 2,548.94
Engineering $ 0.00 $ 0.00 $ 1,162.18
Property Taxes $ 0.00 $ 0.00 $ 116.71
Truck Repairs $ 0.00 $ 0.00 $ 4,118.06
Transfer to General Fund $ 0.00 $ 0.00 $45,000.00
Building Rent $14,000.00 $8,000.00 $ 0.00
Property/Maintenance $12,062.50 $6,000.00 $64,000.00
Utilities $ 609.09 $2,773.29 $ 594.85
Total Disbursements $31,738.43* $24,044.15 $119,967.58
* [sic]. [The noted calculation contains a discrepancy that does not affect the
outcome of this case.]
21. Since 2006, the DVFC received income from fundraisers and donations in addition
to funding provided by Blair Township as listed below:
a. Municipal donations: Duncansville Borough, Juniata Township, Newry
Borough, Blair Township.
b. General Fund drive
Truck fund drive
General donations
Grants
Memberships/dues
Program services
Fundraising events
Sale of assets
Miscellaneous income
Interest income
22. Since 2006, the DVFC has operated based on the following:
Year Total Revenue Total Disbursements
2006 $219,857.32 $244,027.33
2007 $178,484.98 $107,122.05
2008 $192,056.58 $193,468.63
$590,398.88 $544,618.01
a. Of the $590,398.88 in total revenue received during this timeframe,
approximately $200,601.09 was from Blair Township in the form of EMS
taxes collected and general donations.
23. DVFC records confirm payments received from Blair Township as a result of the
EMS/Local tax and general donations. Payments received occurred on the following
dates:
Blair Twp
Date Amount Source Check # Signed
01/26/06 $31,349.00 EMS tax 4467 Bush, Robertson
11/27/06 $31,494.00 EMS tax 3101 Bush, Robertson
01/06/07 $ 3,262.50 EMS tax 3148 Bush, Robertson
05/05/07 $ 6,670.00 EMS tax 3355 Bush, Robertson
08/06/07 $59,102.00 EMS tax 3531 Bush, Robertson
11/23/07 $ 8,816.00 EMS tax 3717 Bush, Robertson
01/22/08 $ 3,262.50 General Donation 3811 Bush, Robertson
Burchfield, 08-066
Page 9
06/11/08 $ 4,405.52 LST 1003 Bush, Robertson
06/11/08 $ 5,945.00 EMS tax 4102 Bush, Robertson
08/25/08 $25,141.87 LST 1005 Bush, Robertson
09/11/08 $ 1,334.00 EMS tax 4283 Bush, Robertson
12/30/08 $ 3,262.50 General Donation 4487 Bush, Robertson
12/31/08 $16,556.20 LST 1018 Bush, Robertson
Total $200,601.09
24. Of the $200,601.09 received by the DVFC from Blair Township, $194,076.09 was a
result of the EMS tax and Local Services tax collected.
a. The remaining $6,525.00 was in the form of general donations.
25. Funding provided by Blair Township to the DVFC was approved by the Board of
Supervisors as part of the routine payment of bills.
a. Bill lists are voted on in their entirety by a single motion covering all
disbursements for the previous month.
b. Itemized bill lists detail the payee for each payment issued.
c. Supervisors are provided with bill lists for review prior to voting by the
Secretary/Treasurer.
26. Burchfield regularly participated in the approval of Township bill lists which included
funding for the DVFC.
a. Since July 13, 2006, Burchfield participated in ten (10) separate Board of
Supervisors actions taken approving payments totaling $180,782.39 made to
the DVFC.
27. The following chart details Burchfield’s role in approving Township payments
totaling $180,782.39 to the DVFC.
MeetingRecorded
Check Date Check # Amount Date Action Vote
06/12/06 4467 $31,349.00 07/13/06 Vote 3-0
11/24/06 3101 $31,494.00 12/14/06 Motion, Vote 3-0
12/27/06 3148 $3,262.50 01/11/07 Motion, Vote 3-0
04/27/07 3355 $6,670.00 05/10/07 Vote 3-0
07/27/07 3531 $59,102.00 08/09/07 Motion, Vote 3-0
11/13/07 3717 $8,816.00 12/11/07 Motion, Vote 3-0
12/27/07 3811 $3,262.50 01/08/08 Motion, Vote 3-0
06/11/08 1003 $4,405.52 07/08/08 Vote 3-0
06/11/08 4102 $5,945.00 07/08/08 Included
08/25/08 1005 $25,141.87 09/09/08 Vote 3-0
09/11/08 4283 $1,334.00 10/14/08 Vote 3-0
12/30/08 4487 $3,262.50 01/13/09 Absent 2-0
12/31/08 1018 $16,556.20 01/13/09 Absent 2-0
28. In addition to the approval of individual payments issued to the DVFC, Burchfield
participated in discussions and official actions taken approving annual operating
budgets of the Township since 2006.
a. Annual operating budgets were approved as follows:
Burchfield, 08-066
Page 10
Calendar Year Date Approved
2006 December 8, 2005
2007 December 14, 2006
2008 February 12, 2008
b. Annual budgets included approval of allocations of tax monies to DVFC.
29. Blair Township operating budgets for calendar years 2006 through 2008 document
income and projected expenditures relating to the Township’s EMS tax. The
majority of the tax was provided to the DVFC to establish and maintain a substation
within the geographical boundaries of Blair Township.
a. The 2006 budget included $18,500 budgeted under category 411.00 (Fire),
split $4,000 for workers’ compensation and $14,500 under grants,
contributions and subsidies, and $31,500 budgeted under category 310.50
(Occupational Privilege tax), which was used to fund the DVFC Blair
Township Substation.
b. The 2007 budget has anticipated EMS tax revenues of $96,000 with
projected fire expenses under category 411 of: fire and workers’
compensation $4,000; EMS tax payment to DVFC $66,000; and
contributions, grants and subsidies of $14,500.
c. The 2008 budget has anticipated revenue from the Local Services tax of
$124,800.00, General Fund Fire contributions in the amount of $12,206.00,
foreign fire insurance of $33,000.00, and budgeted payments to the
volunteer fire company of $72,000.00.
30. The DVFC utilized a portion of the EMS tax/Local Services tax payments it received
from Blair Township for the payment of rent for a fire substation within Blair
Township.
31. The DVFC used property located at 1624 Old Route 220, Duncansville,
Pennsylvania, to serve as a fire substation within Blair Township from
approximately July 1, 2007, through December 13, 2008.
a. This property was owned and under the direct control of The Burchfield
Limited Partnership at all times relevant to this investigation.
b. Respondent David E. Burchfield, Sr. is the general partner and holder of a
95% ownership interest in the Partnership.
32. Ownership of the property at 1624 Old Route 220, Duncansville, Pennsylvania, was
transferred from David E. Burchfield and Linda L. Burchfield, husband and wife to
The Burchfield Limited Partnership on December 19, 2005.
33. During the Supervisors May 11, 2006, meeting it was publicly announced that the
DVFC had located a building to lease on a temporary basis.
a. The building’s location (1624 Old Route 220, Duncansville, Pennsylvania)
was discussed along with action by the Board of Supervisors to approve that
$29.00 of the $39.00 EMS tax collected be given to the DVFC to establish a
substation within the Township’s geographical boundaries.
b. Burchfield addressed the Board, indicating that the property in question was
owned by D.R.T.J. Partnership.
Burchfield, 08-066
Page 11
1. Burchfield disclosed to the Board that this was a partnership of his
family.
2. D.R.T.J. is a non-existent partnership.
3. Burchfield did not disclose that he had the majority ownership interest
in the property to be leased to the DVFC.
c. During this same meeting the DVFC was designated as the Township’s
primary volunteer fire company for the purpose of locating a substation
within the Township.
34. The DVFC wanted the financial support from Blair Township in order to locate a
substation within the Township.
a. The DVFC did not have sufficient financial resources to pay rent for a
building without additional financial support from Blair Township or
undertaking a large fundraising campaign.
b. At the time of the property search, the DVFC had a commitment from the
Township to support its efforts to locate a substation within the Township.
35. The D.R.T.J. Partnership referenced by Burchfield, Sr. during the May 11, 2006,
meeting of the Board of Supervisors is not registered with the Pennsylvania
Department of State Corporation Bureau.
a. D.R.T.J. represents the first letters of the first names of four (4) of the five (5)
one percent partners of The Burchfield Limited Partnership as noted below:
(D) David E. Burchfield, Jr.
(R) Richard Burchfield
(T) Tina Burchfield
(J) Jody Reading
b. Excluded [were the first initials of] David Burchfield, Sr. and his wife Linda
Burchfield.
36. Blair Township tax records confirm the property at 1624 Old Route 220,
Duncansville, Pennsylvania, as being owned by The Burchfield Limited Partnership.
a. This property is identified as tax parcel number 0400-03-26-2.
b. Tax bills are sent to The Burchfield Limited Partnership, 713 Route 764,
Duncansville, PA 16635.
c. This property has never been owned by the D.R.T.J. Partnership.
37. According to the minutes of the May 11, 2006, Supervisors meeting, Burchfield did
not publicly disclose that he is a 95% owner of The Burchfield Limited Partnership,
the entity owning 1624 Old Route 220, Duncansville, Pennsylvania.
a. Burchfield told representatives of the DVFC and the public that the property
was owned by his children.
b. Burchfield identified the family partnership of D.R.T.J.
Burchfield, 08-066
Page 12
38. On August 18, 2006, the Township Solicitor at the time, Frederick B. Gieg, Jr.,
Esquire, rendered an opinion to the Township Supervisors stating as follows:
“In that this Lease is between the Duncansville Volunteer Fire
Company and not the Township, but with a corporate entity of the
Burchfield family, I see no direct conflict. However, I have advised the
Duncansville Volunteer Fire Company to have their own Solicitor
directly review the Lease with the Burchfield entity so that there is no
conflict of interest. In that Township monies will be paid to the
Duncansville Volunteer Fire Company who will then possibly use
some of those monies to pay the rent, I would want the Duncansville
Volunteer Fire Company’s Solicitor to write an opinion that there is no
conflict in an indirect manner. I enclose the conflict section that could
indirectly be involved.”
a. No written opinion was ever provided from the DVFC Solicitor as to
whether a conflict of interest would exist with regard to the lease
between the DVFC and The Burchfield Limited Partnership.
39. The DVFC did not execute a lease with Burchfield, Sr. d/b/a The Burchfield Limited
Partnership or any other individual or entity for the building located at 1624 Old
Route 220, Duncansville, Pennsylvania.
a. All discussions and negotiations as part of the lease were handled between
DVFC representatives and Burchfield, Sr.
b. No other representative of The Burchfield Limited Partnership participated in
any lease negotiations.
c. No formal lease was ever signed.
40. Business records of The Burchfield Limited Partnership include an unsigned
commercial lease agreement dated July 1, 2006, between The Burchfield Limited
Partnership and the Duncansville Volunteer Fire Company d/b/a as Blair Township
Fire Company for land and improvements known as 1624 Old 220 South,
Duncansville, PA 16635, containing a 6,150 square foot concrete building with a flat
roof.
a. The lease term is July 1, 2006, through June 30, 2011, with a five-year
renewal option.
b. Rent is specified during the initial term as $24,000.00 annually, payable in
monthly installments of $2,000.00 to the landlord at 713 Route 764, P.O. Box
178, Duncansville, PA 16635.
c. Terms relating to repairs include the provision that “during the lease term,
Tenant shall make, at Tenants [sic] expense, all necessary repairs to the
lease premises. Repairs shall include such items as routine repairs of floors,
walls, ceilings and other parts of the leased premises damaged or worn
through normal occupancy, except for major mechanical systems or the roof,
subject to the obligations of the parties otherwise set forth in the lease.”
d. The landlord is identified as being responsible for all property taxes while the
tenant, at the tenant's expense shall have the right, following landlord’s
consent, to remodel, redecorate and make additions, improvements and
replacements of and to all or any part of the leased premises from time to
time as tenant may deem desirable, provided the same are made in a
Burchfield, 08-066
Page 13
workman like manner and utilizing good quality materials. Tenant shall have
the right to place and install personal property, trade fixtures, equipment and
other temporary installations in and upon the leased premises, and fasten
the same to the premises. All personal property, equipment, machinery,
trade fixtures and temporary installations, whether required by tenant at the
commencement of the lease term or placed or installed on the leased
premises by tenant thereafter, shall remain tenant’s property free and clear
of any claim by landlord. Tenant shall have the right to remove the same at
any time during the term of the lease provided that all damage to the leased
premises caused by such removal shall be repaired by tenant at tenant’s
expense.
41. From July 2006 to December 2008, the DVFC utilized the property at 1624 Old
Route 220, Duncansville, Pennsylvania, owned by the partnership in which
Burchfield has a 95% ownership interest, to serve as a substation within Blair
Township.
a. The DVFC paid $2,000.00 per month for rent.
42. Blair Township was the source of funding used by the DVFC to pay rent to The
Burchfield Limited Partnership for 1624 Old Route 220, Duncansville, Pennsylvania.
a. Funding came as a result of the EMS tax and general donations from the
Township.
b. Funding to the DVFC was approved as part of annual Township budgets and
approval of monthly bill lists which authorized funding.
43. Burchfield d/b/a The Burchfield Limited Partnership accepted rental payments from
the DVFC during 2006 and 2007 while at the same time participating in Board
actions to provide funding to the DVFC in the form of EMS/Local Services tax
allocations.
44. The DVFC received invoices from The Burchfield Limited Partnership for the lease
of the property at 1624 Old Route 220, Duncansville, Pennsylvania.
a. From December 11, 2006, until April 2007, three (3) invoices totaling
$22,000.00 were received.
b. These invoices covered rent due from July 1, 2006, through April 2007.
c. No invoices were received by DVFC from Burchfield after April 2007.
1. Burchfield’s actions as a Blair Township Supervisor in relation to
approving funding to the DVFC became the subject of a State Ethics
Commission investigation on or about July 12, 2007.
d. No invoices were received from the D.R.T.J. Partnership.
45. Rental invoices were received by DVFC from The Burchfield Limited Partnership as
follows:
Date Amount Months
a.
12/11/06 $9,000.00 July 1, 2006 – December 2006
12/11/06 $4,000.00 January 2007 – February 2007
04/11/07 $4,000.00 March 2007 – April 2007
Burchfield, 08-066
Page 14
b. The December 11, 2006, invoice in the amount of $9,000.00 reflected a
$5,000.00 payment previously made by the DVFC.
46. Financial records of the DVFC confirm that a total of $22,000.00 in rental payments
were made to The Burchfield Limited Partnership for the use of building #5, 1624
Old Route 220, Duncansville, Pennsylvania, between November 2006 and May
2007. Payments were made as follows:
Date Ch. # AmountBank Endorsed
a.
11/15/06 1010 $5,000 Susquehanna Bank Burchfield Ltd. Partnership
12/13/06 1008 $9,000 Reliance Bank Burchfield Ltd. Partnership
02/12/07 1016 $4,000 Reliance Bank Burchfield Ltd. Partnership
05/18/07 1025 $4,000 Reliance Bank Burchfield Ltd. Partnership
Total $22,000
b. These funds were received by David Burchfield, Sr. d/b/a The Burchfield
Limited Partnership.
c. No rental payments were made to the D.R.T.J. Partnership.
47. All of the proceeds received from the DVFC for the rental of property at 1624 Old
Route 220, Duncansville, Pennsylvania, were retained by David Burchfield, Sr.
a. This income was included on joint tax returns filed by David Burchfield, Sr.
along with his wife, Linda Burchfield.
b. No portions of the rental payments were provided to any of the 1% partners
of The Burchfield Limited Partnership.
1. Linda Burchfield does hold a one percent interest in The Burchfield
Limited Partnership.
48. Burchfield disclosed income received from the DVFC on PA Schedule E of his
federal [sic] tax return filed for 2006.
a. PA Schedule E for three Burchfield properties identifies the properties:
1. Property A Commercial Rental Salvage Yard, 1628 Old Route 220,
Duncansville, PA.
2. Property B Commercial Property Building 5, 1624 Old Route 220,
Duncansville, PA.
3. Property C Residential Property at 169 Maple Hollow Road,
Duncansville, PA.
b. Burchfield reported income for Property B, Building 5, 1624 Old Route 220,
Duncansville, PA of $19,000.00. He reported deductions for repairs in the
amount of $196.00, utilities of $156.00, and depreciation expenses of
$4,370.00 for total expenses of $4,722.00. Adjusted income of $14,278.00
was reported.
c. Net gain of $14,278.00 was reported on form 8582AMT.
d. The amount of $14,278.00 is also listed as a gain on Form 8582, Capital
Gains/Losses.
Burchfield, 08-066
Page 15
49. Burchfield disclosed income received from the DVFC on IRS form 4562,
Depreciation and Amortization, filed by The Burchfield Limited Partnership for
calendar year 2007.
a. Form 4562 identifies four (4) properties for The Burchfield Limited
Partnership.
1. Property E Commercial Property – Building 5; 1624 Old Route 220,
Duncansville, PA.
2. Property F Residential Property, 169 Maple Hollow Road,
Duncansville, PA.
3. Property G Commercial, Inlows Drive, Duncansville, PA.
4. Property H Residential Property, 152 Maple Hollow Road,
Duncansville, PA.
b. Burchfield reported income from Property E, Building 5, 1624 Old Route 220,
Duncansville, Pennsylvania, of $8,000.00. He reported deductions for taxes
in the amount of $2,224.00, utilities of $830.00 and depreciation expenses of
$5,452.00.
50. Burchfield’s reported expenses on 1624 Old Route 220, Duncansville,
Pennsylvania, exceeded gross rents by $506.00 for 2007.
a. This was as a result of Burchfield ceasing to charge the DVFC rent as a
result of being investigated by the State Ethics Commission.
b. No rent was paid by DVFC after May 18, 2007, pending the State Ethics
Commission investigation.
51. On or about July 12, 2007, the Investigative Division of the State Ethics
Commission initiated an investigation regarding David Burchfield’s actions as a
Blair Township Supervisor in approving the DVFC as the primary fire department for
the Township and his role in approving funding to DVFC at a time when he was
leasing property to the DVFC.
a. The results of that investigation concluded with issuance of Order No. 1492,
finding Burchfield in violation of Section 1103(a) of the Ethics Act.
52. Order No. 1492, decided by the State Ethics Commission on September 22, 2008,
[approved a Consent Agreement submitted by the parties].
a. In Order No. 1492, the Commission held that David Burchfield, Sr.
(“Burchfield”), a public official in his capacity as a Supervisor for Blair
Township (“Township”) since approximately January 1998, violated Section
1103(a) of the Ethics Act when he participated in actions and deliberations of
the Township Board of Supervisors to designate the Duncansville Volunteer
Fire Company (“DVFC”) as the primary responding fire
department/emergency responder for the Township; participated in actions
and deliberations of the Board of Supervisors allotting funding to the DVFC
from the Township’s Emergency and Municipal Services Tax; and then
entered into a contract/agreement with the DVFC, in excess of $500.00, to
lease property/building space owned by him and/or members of his
immediate family through the “Burchfield Limited Partnership,” for use by the
Burchfield, 08-066
Page 16
DVFC as a substation within the Township.
b. The Commission further held that an unintentional violation of Section
1105(b) of the Ethics Act occurred when Burchfield failed to disclose, on
Statements of Financial Interests (“SFIs”) filed for the 2002, 2003, 2004,
2005, 2006, and 2007 calendar years, direct/indirect sources of income in
excess of $1,300; his office, directorship, or employment in any business
entity; and his financial interests in any legal entity engaged in business for
profit.
c. Per the Consent Agreement of the parties, Burchfield was directed to make
payment in the amount of $10,000.00, payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics Commission
th
by no later than the thirtieth (30) day after the mailing date of the Order.
d. Per the Consent Agreement of the parties, Burchfield was further directed to
file amended SFIs for the 2002, 2003, 2004, 2005, 2006, and 2007 calendar
years, providing complete disclosure as required by the Ethics Act, and in
particular, reflecting all direct/indirect sources of income in excess of
$1,300.00 and fully disclosing his directorship or employment in any
business entity and financial interest in any legal entity or business for profit,
and to forward to the Commission copies of all of the aforesaid filings for
th
compliance verification purposes by no later than the thirtieth (30) day after
the mailing date of the Order.
e. Order No. 1492 was mailed to Burchfield’s attorney, Darlee Sill, Esquire on
October 10, 2008.
f. Burchfield maintains that he agreed to the terms of the Consent Agreement
only so as to avoid the further expense and effort of resolving the matter
through alternative means.
53. On October 28, 2008, Linda Burchfield issued check number 56192 in the amount
of $10,000.00 from The Burchfield Organization, Inc. General Account (account
ending 6324) at Reliance Bank, payable to the Commonwealth of Pennsylvania.
a. This check was issued to pay the amount David Burchfield, Sr. was
assessed in reference to State Ethics Commission case No. 07-089, Order
No. 1492.
54. The DVFC did not pay any rent directly to Burchfield, Sr. or The Burchfield Limited
Partnership after May 18, 2007, even though the fire company continued to occupy
space in Burchfield’s building.
a. Burchfield did not invoice the DVFC after May 18, 2007.
b. The DVFC continued to occupy the property until approximately December
2008.
55. Between May 2007 and the time when the DVFC moved out of the property,
nineteen months rent totaling $38,000.00 was owed on the property to Burchfield,
d/b/a The Burchfield Limited Partnership.
a. The $38,000.00 figure is based on the nineteen (19) month timeframe
between May 2007 to December 2008 at $2,000.00 per month.
b. Burchfield did not issue an invoice to the DVFC during the timeframe of the
Burchfield, 08-066
Page 17
State Ethics Commission’s investigation of him.
56. After the issuance of Order No. 1492, Burchfield continued to participate in Board of
Supervisors actions to issue payments to the DVFC.
a. At the times of his votes, DVFC was continuing to occupy the property at
1624 Old Route 220, Duncansville, Pennsylvania.
57. Burchfield participated in the approval of four (4) payments to DVFC between June
2008 and September 2008--during three separate meetings--totaling $36,826.39,
which were not included as part of the decision in State Ethics Commission case
No. 07-089, Order No. 1492. Burchfield’s official action authorizing these payments
was as follows:
MeetingRecorded
Check Date Check # Amount Date Action Vote
06/11/08 1003 $ 4,405.52 7/8/08 Vote 3-0
06/11/08 4102 $ 5,945.00 7/8/08 Included
08/25/08 1005 $25,141.87 9/9/08 Vote 3-0
9/11/08 4283 $ 1,334.00 10/14/08 Vote 3-0
$36,826.39
58. On September 22, 2008, Burchfield employee Lewis Moore provided an invoice to
the DVFC in the amount of $34,000.00.
a. Moore used the name of a fictitious real estate company, LEM Associates.
b. The invoice contained the following items:
“Assessment and Compensation Fee $30,000.00
Monthly Rental Fee for August 2008 $2,000.00
Monthly Rental Fee for September 2008 $2,000.00
Total amount due $34,000.00”
c. The amount of the invoice is the same amount that would have been due for
rent at that time for the DVFC’s use of the property owned by The Burchfield
Limited Partnership.
59. Lewis E. Moore is an employee of The Burchfield Organization.
a. Moore operates the Budget Rental Franchise of The Burchfield
Organization.
b. Information on the Burchfield Trucks website www.burchfieldtrucks.com
identifies Moore as the person who “operates the Budget Franchise of the
Burchfield Organization.”
60. Lewis E. Moore has shared a common residence with Tina M. Burchfield since at
least July 19, 2004.
a. Tina Burchfield is the daughter of Respondent David E. Burchfield, Sr.
b. PennDOT driver’s license records reflect that both Moore and Tina
Burchfield have resided at [address redacted] since approximately July 18,
2005.
Burchfield, 08-066
Page 18
c. Both had 169 Maple Hollow Road, Duncansville, PA 16635 as a common
address from July 19, 2004, to July 18, 2005.
61. Moore issued the invoice in the amount of $34,000.00 to the DVFC on or about the
same day the State Ethics Commission approved the Consent Agreement finding
David Burchfield, Sr. in violation of Section 1103(a) of the Ethics Act.
62. On or about September 22, 2008, Moore d/b/a LEM Associates Rental Properties
gave Bill Lloyd, Chief of the DVFC, an invoice in the amount of $34,000.00
addressed to the Blair Township Fire Department, 1624 Old Route 220 South,
Duncansville, PA 16635.
a. Moore gave Lloyd the invoice during a visit that Lloyd made to Burchfield
Truck Sales, 713 Route 264, Duncansville, PA 16635.
1. Moore gave Lloyd the invoice, conveying that the invoice was for
unpaid rent owed to Burchfield.
b. This invoice totaled the exact amount of rent owed by the DVFC for its use of
1624 Old Route 220 South, Duncansville, Pennsylvania, as of September
2008.
c. Lloyd accepted the invoice, believing it was for back rent owed on 1624 Old
Route 220 South, Duncansville, Pennsylvania.
d. At that time, Moore did not provide any services to the DVFC which
pertained to the $30,000.00 assessment and compensation fee line item
identified in the invoice.
1. Lloyd believed the amount billed by Moore was back rent owed along
with additional rental fees due for August and September 2008.
63. Lloyd was aware that Moore was an employee of David Burchfield, Sr. and in a
relationship with Burchfield, Sr.’s daughter at the time.
a. Lloyd did not make a distinction between Moore and Burchfield regarding
ownership of 1624 Old Route 220 South, Duncansville, Pennsylvania.
b. Lloyd believed Moore was acting as an agent of Burchfield, Sr. regarding the
invoice Moore handed to him.
64. Lewis Moore did not register with the Pennsylvania Department of State
Corporation Bureau to operate under the business names LEM Associates, LEM
Associates Rental Properties, or Lewis E. Moore.
a. Moore has done no business as LEM Associates other than submitting the
invoice to the DVFC.
65. Lewis E. Moore individually or d/b/a LEM Associates/LEM Associates Rental
Properties did not have any executed lease agreements with the DVFC for the
DVFC’s use of 1624 Old Route 220 South, Duncansville, PA 16635.
a. Moore also did not have any executed agreements with The Burchfield
Limited Partnership to act as a rental agent or collection agency on behalf of
The Burchfield Limited Partnership.
Burchfield, 08-066
Page 19
b. DVFC was occupying the property owned by The Burchfield Limited
Partnership.
c. In September 2008, 1624 Old Route 220 South, Duncansville, Pennsylvania,
was owned by Burchfield d/b/a The Burchfield Limited Partnership.
66. On September 26, 2008, Darlee Sill, Esquire, Counsel for both David E. Burchfield,
Sr. and Lewis Moore, prepared an Article of Agreement between David E.
Burchfield, Sr., general partner of The Burchfield Limited Partnership, and Lewis E.
Moore for the sale of the property located at 1624 Old Route 220, Duncansville,
Pennsylvania.
a. The selling price is stated as $250,000.00 with interest at the rate of six
percent per year, payable in twelve (12) consecutive monthly installments,
including principal and interest, of $1,000.00 per month. The first installment
th
to be due on the 26 day of September 2008 and to continue regularly on
th
the 26 day of each month thereafter, for a total of twelve (12) consecutive
months, the balance then due.
b. Burchfield maintains that negotiations with regard to the sale of 1624 Old
Route 220 South, Duncansville, Pennsylvania, had been ongoing prior to
September 26, 2008.
c. This transaction did not materialize.
67. The LEM Associates Rental Properties’ September 22, 2008, invoice in the amount
of $34,000.00 submitted to the Blair Township Fire Department (DVFC) was dated
four (4) days prior to the Article of Agreement between David Burchfield, Sr. d/b/a
The Burchfield Limited Partnership and Moore.
68. Neither Lewis E. Moore individually nor d/b/a LEM Associates or LEM Associates
Rental Properties had an ownership interest in 1624 Old Route 220 South,
Duncansville, Pennsylvania, while the property was occupied by the DVFC.
a. Neither Moore nor LEM Associates/LEM Associates Rental Properties had
executed agreements to collect rent on behalf of David Burchfield, Sr. or The
Burchfield Limited Partnership.
b. Moore, as an employee of The Burchfield Organization/The Burchfield
Limited Partnership, submitted the invoice to the DVFC in order to collect
rent owed on property owned by The Burchfield Limited Partnership.
69. On October 1, 2008, David Skurnick, Treasurer of the DVFC, issued check No.
1002 in the amount of $34,000.00 to LEM Associates in payment of Moore’s
September 22, 2008, invoice.
a. In the memo portion of the check is written “rental-firehall.”
b. This check was drafted on Reliance Bank account No. XXXXXX7744.
c. The reverse side of this check was signed Lewis E. Moore, followed by LEM
Associates.
70. The DVFC Reliance Bank account No. XXXXXX7744 was established to provide a
specific accounting of EMS tax and Local Services tax revenues received from Blair
Township.
Burchfield, 08-066
Page 20
a. DVFC provided documentation to the Township confirming use of these
funds within Blair Township.
b. Internal DVFC accounting for this $34,000.00 payment to Moore was listed
under the category of rent.
c. This account was funded with Blair Township monies including general
donations and EMS tax/Local Services tax revenues.
71. Prior to the receipt of check No. 1002 from the DVFC, Moore did not have any bank
accounts for LEM Associates.
a. On October 2, 2008, Lewis E. Moore, d/b/a LEM Associates, 710 Broad Ave
Ext., Duncansville, PA 16635, opened a checking account at Reliance Bank,
account No. XXXXX14484.
b. This account was opened with an initial deposit of $34,000.00 from DVFC
check No. 1002.
c. Moore’s e-mail address on file with Reliance Bank at the time of the account
opening was [e-mail address redacted].
72. On October 4, 2008, Lewis Moore issued a starter check in the amount of
$34,000.00 drafted on Reliance Bank account No. XXXXX14484 to Duncansville
Fire Co. No. 1.
a. In the memo portion of the check is written “return rent.”
b. This check was debited from the account on October 10, 2008.
c. After the issuance of the check to DVFC, a $100.00 balance remained in the
LEM Associates account.
73. The $34,000.00 payment made by the DVFC to Moore was discussed during the
Blair Township Supervisors October 14, 2008, meeting.
a. Minutes of the October 14, 2008, meeting reflect that Supervisor
Prendergast questioned the $34,000.00 expenditure for property rent on the
DVFC financial report dated October 1, 2008. David Skurnick, Treasurer of
the Duncansville Volunteer Fire Company, was present at the meeting and
[the meeting minutes reflect that] “Mr. Skurnick stated that the expenditure
was a mistake and was returned just this past week. Chairman Burchfield
asked if financial records were received from the other Volunteer Fire
Companies. Supervisor Bush commented that she spoke with each of them,
but had only received the information from Duncansville VFC. Supervisor
Prendergast asked where the $34,000.00 mistake went. Mr. Skurnick stated
that it was a mistake between the Fire Company and the Burchfield
Organization. Chairman Burchfield stated that the Burchfield Organization
did not have anything to do with it. Mr. Skurnick clarified that the mistake
was between LEM Associates and the Fire Company. Supervisor
Prendergast asked who LEM Associates was. Mr. Skurnick stated he didn’t
know. Supervisor Bush stated that LEM is Lewis E. Moore. Supervisor
Prendergast asked Mr. Skurnick if Lewis Moore is affiliated with the
Burchfield Organization, he stated honestly he didn’t know.”
The Board also discussed revising the allocation for the Local Services tax.
“Supervisor Prendergast proposed that the Blair Township Police
Burchfield, 08-066
Page 21
Department and the Blair Township Highway Department each receive 30%
of the LST money and that the Volunteer Fire Company receive the
remaining 40%. Chairman Burchfield asked Dave Skurnick if the Fire
Company could get along with less money. Mr. Skurnick responded that
they have already made commitments based on the resolution that had been
passed by the Township. Supervisor Prendergast confirmed the
commitments as the property and the building. Supervisor Bush stated that
by a unanimous vote a commitment was made; verifying the participants
were Chairman Burchfield, past Supervisor Palmer Brown, and Supervisor
Bush. She stated that based on that commitment that the Fire Company in
turn has made commitments. Supervisor Bush stated that the Fire Company
intends to build a Fire Hall in Blair Township. Supervisor Prendergast asked
if the decision was made to support the VFC when the Township was
operating on a budget surplus. Supervisor Bush reaffirmed that a
commitment was made.”
74. On or before November 13, 2008, Moore again submitted an invoice to the
Duncansville Fire Company Number 1, d/b/a Blair Township Volunteer Fire
Company, 1624 Old Route 220 South, Duncansville, PA 16635.
a. The undated invoice was in the amount of $38,000.00.
b. This invoice listed educational services, supplies and equipment including:
Equipment
100 Watt Radio
Portable Radios
Pagers and Chargers
Hazmat Gear
Backboards
Disposal Supplies
Oxygen Regulators
Pediatric Spine Boards
Medical Gloves
Masks
Trousers
Educational Services
CPR for Health Care Providers
Basic Trauma, Life Support
Emergency Vehicle Operators Course
Infectious Control
c. This invoice was on stationery for Lewis E. Moore, Health and Safety
Instructor.
75. The DVFC had no written agreement for Lewis Moore to provide any training
service or products prior to November 2008 or since.
a. DVFC did not receive from Moore any of the equipment listed in his second
invoice.
b. The DVFC treated the invoice as a bill for the rent owed for the 1624 Old
Route 220 South, Duncansville, Pennsylvania property owned by Burchfield.
76. Chief Lloyd considered the invoice as back rent owed for the 1624 Old Route 220
South, Duncansville, Pennsylvania, property.
Burchfield, 08-066
Page 22
a. Moore gave Lloyd the second invoice while Lloyd was at Burchfield’s place
of business, Burchfield Truck Sales.
1. Lloyd was getting a DVFC fire truck serviced.
2. Moore and Lloyd did discuss rent and Moore informed Lloyd that he
had equipment available if needed by the DVFC.
b. No written agreement was ever entered into between the DVFC and Moore
for equipment and/or educational services.
77. The sole purpose of Moore’s November 13, 2008, invoice to the DVFC was to
collect rent for the DVFC’s use of the property at 1624 Old Route 220 South,
Duncansville, Pennsylvania.
a. At the time of Moore’s invoice, the DVFC had not paid any rent since May 1,
2007.
b. Total rent due, including rent for November, would have been $38,000.00.
78. On November 13, 2008, David Skurnick transferred $45,000.00 from the DVFC
Reliance Bank account (ending in 7744) to a DVFC General Fund account (ending
in 0781) at Omega Bank.
a. This $45,000.00 transfer was comprised solely of funds the DVFC received
from Blair Township.
b. Skurnick moved the funds into the DVFC General Fund account so he would
not have to account for the funds’ disposition to the Blair Township Board of
Supervisors.
79. On November 13, 2008, Skurnick, in his official capacity as Treasurer of the DVFC,
issued check No. 6210 in the amount of $38,000.00 from the Omega Bank account
ending in 0781 to Lewis E. Moore.
a. Nothing was written in the memo portion of this check.
b. The check was made payable to Lewis Moore.
c. Internal accounting records of the DVFC confirm this payment being made to
Moore for rent.
d. The only property the DVFC was renting at the time was 1624 Old Route
220, Duncansville, Pennsylvania, which was owned by The Burchfield
Limited Partnership.
80. DVFC Treasurer David Skurnick issued the $38,000.00 payment as back rent owed
for the 1624 Old Route 220, Duncansville, Pennsylvania, property.
a. Skurnick calculated that the DVFC owed the $38,000.00 in rent covering the
period from May 18, 2007, through December 13, 2008.
b. Skurnick further believed that the $38,000.00 invoice was issued by Moore
claiming monies owed for equipment and training so that the back rent owed
to Burchfield could be paid while circumventing any ethics issues.
Burchfield, 08-066
Page 23
c. The DVFC did not receive any of the items detailed on Moore’s invoice.
d. The only reason Skurnick issued the $38,000.00 check was because he
believed the DVFC owed rent to Burchfield pursuant to the prior rental
agreement.
81. The DVFC did not receive any of the equipment, supplies or training detailed in
Lewis E. Moore’s $38,000.00 invoice.
a. Moore failed to comply with an Investigative Division subpoena requesting
documentation of the acquisition costs of equipment and materials contained
on his invoice to the DVFC.
82. In an effort to conceal that the payment was for rent owed to Burchfield, Lewis
Moore opened a checking account at Mainline National Bank, 325 Industrial Park
Road, P.O. Box 660, Ebensburg, PA 15931, on November 14, 2008.
a. The account was opened one (1) day after Skurnick issued the $38,000.00
check to Moore.
b. The $38,000.00 payment was credited to Moore’s account on November 18,
2008.
83. Between November 26, 2008, and December 17, 2008, Moore wrote four (4) checks
for cash from this account totaling $23,500.00. These checks were cashed as
follows:
a.
Ch# Date Amount Payee
1001 11/26/08 $3,000.00 Cash
1003 12/02/08 $7,500.00 Cash
1004 12/05/08 $7,000.00 Cash
1005 12/17/08 $6,000.00 Cash
Total $23,500.00
b. A review of the bank transaction information contained on the back side of
each of the checks cashed found that each was cashed, on the same day
that the check was written, at Mainline National Bank.
84. As of January 26, 2009, the account balance in Moore’s account at Mainline
National Bank was approximately $14,363.85.
a. After being served with a subpoena by the Investigative Division of the State
Ethics Commission on January 26, 2009, through December 2009, Moore
did not withdraw any additional funds from his Mainline National Bank
account.
b. From December 2009 through May 2010, Moore made various small
withdrawals and payments from his Mainline National Bank account.
85. In May 2010, Moore made the following cash deposits into his Mainline National
Bank account:
Date Amount
5/24/2010 $9,500.00
5/25/2010 $9,500.00
Burchfield, 08-066
Page 24
5/26/2010 $8,800.00
Total $27,800.00
86. On May 27, 2010, Lewis Moore issued check No. 1025 in the amount of $38,000.00
to the Duncansville [Volunteer] Fire Company.
a. Accompanying the check was a letter from Moore’s attorney indicating that
the funds were being returned because the DVFC would not be building a
new fire station and it would therefore not need the training and equipment
which was to be provided by Lewis Moore.
87. Lewis Moore maintains that he kept the $23,500.00 in cash withdrawals from
November and December 2008 under a mattress in his home from the date he
withdrew the funds until he deposited the cash back into his account at Mainline
National Bank in May 2010.
a. $4,300.00 more in cash was deposited into Lewis Moore’s Mainline National
Bank account in May 2010 than was withdrawn from his same account in
November and December 2008.
1. No explanation for the source of the additional $4,300.00 has been
provided.
88. Lewis Moore, neither individually nor as LEM Associates, claimed as income on
federal and state tax returns for 2008 any portion of the $38,000.00 he received
from the DVFC.
a. On September 2, 2009, Lewis Moore’s accountant, Tom Monahan, advised
him as follows regarding reporting the $38,000.00 he received from the
DVFC for tax purposes:
"Good morning Lewis,
I’ve reviewed and thought about the issue we discussed yesterday
regarding the retainer you received from Blair Twp./Duncansville Fire
Dept. Technically because you are a cash basis taxpayer you should
have reported the income in the year you received it. We’re not going
to amend the 2008 returns. Our argument is that you were paid
however you had to wait for them to complete the building before
training could begin. We will claim the income in 2009. We will also
take any expenses you have paid for by the end of 2009. We suggest
that if there are books/training materials that may need to be
purchased in 2010, to pay for them in 2009. The in [sic] 2010 we
should only have a few expenses (mileage, etc) to take against no
income.”
89. All of the contacts relating to the invoices Moore gave to Lloyd occurred at
Burchfield’s place of business, Burchfield Truck Sales.
a. Lloyd was at Burchfield’s place of business on two occasions on DVFC-
related business when given the invoices by Moore.
b. Both invoices were in the exact amounts of the rent owed by the DVFC to
Burchfield.
c. When giving Lloyd the invoices, Moore never identified that he was
operating independent of Burchfield.
Burchfield, 08-066
Page 25
d. Moore made no distinction between himself and any of Burchfield’s various
business entities.
e. Moore never advised Lloyd or the DVFC that he was the landlord or that he
would be billing the fire department for back rent.
f. Moore systematically removed cash from the account where he deposited
the $38,000.00 payment from the DVFC until being subpoenaed by the
Investigative Division of the State Ethics Commission.
90. The following timeline highlights relevant events detailed [in the above Fact
Findings].
Finding Date Event
No.
1 January 1998 Burchfield, Sr. becomes Blair Township Supervisor
60 July 19, 2004 Lewis Moore and Tina Burchfield share common
residence
6 12/14/94 Burchfield, Sr. President of The Burchfield
Organization, Inc.
8,9 10/25/05 Burchfield, Sr. general partner/95% owner of The
Burchfield Limited Partnership
54 May 2007 Burchfield, Sr. stopped invoicing the DVFC for rent
18 01/07/08 Voted to reaffirm the distribution of EMS tax
57 07/08/08 Voted to approve $4,405.52 payment to DVFC
57 07/08/08 Voted to approve $5,945.00 payment to DVFC
57 09/09/08 Voted to approve $25,141.87 payment to DVFC
52 09/22/08 SEC votes to accept Burchfield’s Consent
Agreement
62 09/22/08 LEM Associates $34,000.00 invoice to DVFC
66 09/26/08 Article of Agreement between Burchfield, Sr. and
Moore (never executed)
69 10/01/08 DVFC issues ch #1002 in the amount of $34,000.00
to LEM Associates
71 10/02/08 Moore opens a checking account at Reliance Bank
in his name d/b/a LEM Associates and deposits the
$34,000.00 payment
72 10/04/08 Lewis Moore issues a starter check in the amount of
$34,000.00 from his Reliance Bank account back to
the DVFC
52 10/10/08 SEC Order No. 1492 issued to Burchfield
73 10/14/08 The $34,000.00 payment discussed during the Blair
Township Board of Supervisors meeting
57 10/14/08 Voted to approve $1,334.00 payment to DVFC
53 10/28/08 $10,000.00 payment from The Burchfield
Organization, Inc. to Commonwealth of PA in
settlement of State Ethics Commission case 07-089,
Order No. 1492
74 On or before Moore submits $38,000.00 equipment and training
11/13/08 invoice to DVFC
78 11/13/08 Skurnick transfers $45,000.00 from DVFC’s Blair
Township funds to DVFC General Fund account
79 11/13/08 DVFC ch #6210 in the amount of $38,000.00 issued
to Lewis Moore
82 11/14/08 Moore opens checking account at Mainline National
Burchfield, 08-066
Page 26
Bank
82 11/18/08 Moore deposits DVFC’s $38,000.00 check into his
Mainline National Bank account
83 11/26/08 Moore writes ch #1001 to cash ($3,000.00)
83 12/02/08 Moore writes ch #1003 to cash ($7,500.00)
83 12/05/08 Moore writes ch #1004 to cash ($7,000.00)
83 12/17/08 Moore writes ch #1005 to cash ($6,000.00)
1 02/20/09 David Burchfield, Sr. resigns as Blair Township
Supervisor
85 5/24/2010 Moore makes a cash deposit of $9,500.00
85 5/25/2010 Moore makes a cash deposit of $9,500.00
85 5/26/2010 Moore makes a cash deposit of $8,800.00
86 5/27/2010 Moore issues check No. 1025 totaling $38,000.00 to
the DVFC
III.DISCUSSION:
As a Supervisor for Blair Township (“Township”), Blair County, from approximately
January 1998 until February 20, 2009, Respondent David Burchfield, Sr. (hereinafter also
referred to as “Respondent,” “Respondent Burchfield,” and “Burchfield”) was a public
official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics
Act”), 65 Pa.C.S. § 1101 et seq.
The allegations are that Burchfield violated Section 1103(a) of the Ethics Act when
he used the authority of his public position for private pecuniary gain, including but not
limited to participating in actions of the Board of Supervisors to provide payments and/or
donations to the Duncansville Blair Township Fire Department, which said funds were
used to pay rental on a facility owned by Burchfield.
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
Burchfield, 08-066
Page 27
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.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Burchfield served as a Township Supervisor from approximately January 1998 until
February 20, 2009, when his resignation from said office became effective. The Township
Board of Supervisors consists of three Members.
Professionally, Burchfield has business interests in The Burchfield Organization,
Inc. (“The Burchfield Organization”), The Burchfield Limited Partnership, and Burchfield
Auto Sales.
The Burchfield Organization was incorporated in December 1994. Burchfield has
been President of The Burchfield Organization since approximately December 1994.
Burchfield is also the Chief Executive Officer and an employee of The Burchfield
Organization.
Burchfield has had a 95% ownership interest in The Burchfield Limited Partnership
since its creation on or about October 1, 2005. Burchfield’s wife and children hold the
remaining 5% ownership interest in The Burchfield Limited Partnership. The limited
partnership application filed with the Pennsylvania Department of State identifies
Burchfield as the general partner of The Burchfield Limited Partnership.
Prior to 2006, the Township did not have any fire protection based within the
geographical boundaries of the Township. The Township’s fire and emergency response
needs were split among five volunteer fire companies located in communities surrounding
the Township, including the Duncansville Fire Company #1 d/b/a The Duncansville
Volunteer Fire Company (“DVFC”). In 2005, DVFC did not have a station or substation
within the geographical boundaries of the Township.
In or about April 2005, the Board of Supervisors began discussing designating one
of the volunteer fire companies as a primary first responder and one or more of the other
volunteer fire companies as backup(s) for emergency calls within the Township. At the
Board of Supervisors May 11, 2006, meeting, Burchfield seconded a motion, and the
Supervisors unanimously voted, to designate DVFC as the primary fire company for the
Township and to forward a portion of the Emergency and Municipal Services (“EMS”) tax
collected by the Township to DVFC to establish a substation within the Township’s
geographical boundaries.
During the May 11, 2006, meeting, it was publicly announced that DVFC had
located a building/property (hereinafter referred to as “the Property”) within the Township
to lease on a temporary basis. The Property, located at 1624 Old Route 220,
Duncansville, Pennsylvania, is owned by The Burchfield Limited Partnership. Burchfield
addressed the Board of Supervisors and indicated that the Property was owned by
D.R.T.J. Partnership, a partnership of his family. D.R.T.J. Partnership does not exist and
has never owned the Property. Burchfield did not publicly disclose during the meeting that
he was a 95% owner of The Burchfield Limited Partnership, the entity that owned the
Burchfield, 08-066
Page 28
Property, but told representatives of DVFC and the public that the Property was owned by
his children.
All discussions and negotiations with regard to the lease of the Property were
handled between DVFC representatives and Burchfield. Business records of The
Burchfield Limited Partnership include an unsigned commercial lease agreement for the
Property dated July 1, 2006, between The Burchfield Limited Partnership and DVFC d/b/a
Blair Township Fire Company. The lease term is July 1, 2006, through June 30, 2011, with
a five-year renewal option. Rent is specified during the initial term as $24,000.00 annually,
payable in monthly installments of $2,000.00. No formal lease for the Property was ever
executed between DVFC and The Burchfield Limited Partnership or any other entity or
individual.
From July 2006 to approximately December 13, 2008, DVFC used the Property to
serve as a substation within the Township. Between December 11, 2006, and April 2007,
DVFC received three invoices totaling $22,000.00 from The Burchfield Limited Partnership
for the lease of the Property, covering rent due from July 1, 2006, through April 2007, at
the rate of $2,000.00 per month. No invoices were received from D.R.T.J. Partnership.
Between November 2006 and May 2007, DVFC paid $22,000.00 in rental payments
to The Burchfield Limited Partnership for use of the Property. These funds were received
by Burchfield, d/b/a The Burchfield Limited Partnership. No rental payments were made to
D.R.T.J. Partnership. All of the proceeds received from DVFC for rental of the Property
were retained by Burchfield and reported on Burchfield’s tax returns filed jointly with his
spouse.
DVFC used payments it received from the Township’s collection of the EMS/Local
Services tax and general donations from the Township to pay the rent for the Property.
During the relevant time period, Burchfield, as a Township Supervisor, participated in
various actions of the Board of Supervisors pertaining to funding for DVFC, including: (1)
discussions and actions regarding the approval of Township budgets containing
allocations of funding to DVFC; (2) votes to reappoint DVFC as the Township’s primary
volunteer fire company; (3) votes to reaffirm the distribution of portions of the EMS/Local
Services tax collected by the Township to DVFC; and (4) votes to approve Township bill
lists including payments to DVFC , as detailed in Fact Findings 17a-c, 18a-f, 26a, 27, 28.
On or about July 12, 2007, the State Ethics Commission initiated an investigation
regarding Burchfield’s actions as a Township Supervisor in approving DVFC as the
primary fire department for the Township and his role in approving funding to DVFC at a
time when he was leasing property to DVFC. In Burchfield, Order 1492, issued October
10, 2008, the State Ethics Commission approved a Consent Agreement between
Burchfield and the Investigative Division of the Commission. The approved Consent
Agreement resulted, inter alia, in a finding that Burchfieldviolated Section 1103(a) of the
Ethics Act when he participated in actions and deliberations of the Township Board of
Supervisors to designate DVFC as the primary responding fire department/emergency
responder for the Township; participated in actions and deliberations of the Board of
Supervisors allotting funding to DVFC from the Township’s EMS tax; and then entered into
a contract/agreement with DVFC, in excess of $500.00, to lease property/building space
owned by him and/or members of his immediate family through The Burchfield Limited
Partnership, for use by DVFC as a substation within the Township. Per the Consent
Agreement of the parties, Burchfield was directed to make payment in the amount of
$10,000.00, payable to the Commonwealth of Pennsylvania. Burchfield’s spouse
subsequently issued a check in the amount of $10,000.00 from the general account of The
Burchfield Organization, Inc., payable to the Commonwealth of Pennsylvania.
Even though DVFC continued to occupy the Property until approximately December
13, 2008, DVFC did not receive any invoices from Burchfield after April 2007 and did not
Burchfield, 08-066
Page 29
pay any rent directly to Burchfield or The Burchfield Limited Partnership after May 18,
2007. Between May 2007 and December 2008, DVFC owed The Burchfield Limited
Partnership rent totaling $38,000.00, based on nineteen months at the rate of $2,000.00
per month.
Between July 8, 2008, and October 14, 2008, Burchfield participated in three
separate actions of the Board of Supervisors to approve four payments totaling $36,826.39
to DVFC, as detailed in Fact Finding 57.
Lewis E. Moore (“Moore”) is an employee of The Burchfield Organization, and he
operates the Budget Rental Franchise of The Burchfield Organization. Moore has shared
a common residence with Burchfield’s daughter, Tina M. Burchfield, since at least July 19,
2004.
On September 22, 2008, Moore, d/b/a LEM Associates/LEM Associates Rental
Properties (“LEM”), gave Bill Lloyd (“Chief Lloyd”), Chief of DVFC, an invoice in the
amount of $34,000.00, during a visit that Chief Lloyd made to Burchfield Truck Sales for
DVFC-related business. At that time, DVFC owed $34,000.00 in rent for its use of the
Property. Moore/LEM did not have any ownership interest in the Property or any executed
agreements to act as a rental agent or collection agency on behalf of Burchfield or The
Burchfield Limited Partnership. Moore, as an employee of The Burchfield Organization,
submitted the invoice to DVFC in order to collect rent owed on the Property. Moore
conveyed to Chief Lloyd that the invoice was for unpaid rent owed to Burchfield. Chief
Lloyd believed that Moore was acting as an agent of Burchfield regarding the invoice and
that the invoice was for back rent owed on the Property.
On September 26, 2008, Darlee Sill, Esquire, Counsel for both Burchfield and
Moore, prepared an Article of Agreement between Burchfield as general partner of The
Burchfield Limited Partnership and Moore for the sale of the Property. This transaction did
not materialize.
On October 1, 2008, David Skurnick (“Skurnick”), Treasurer of DVFC, issued a
check in the amount of $34,000.00 to LEM Associates in payment of the September 22,
2008, invoice from Moore. In the memo portion of the check was written “rental-firehall.”
The check was drawn on a DVFC account at Reliance Bank that was funded by Township
monies, including EMS/Local Services tax revenues and general donations. DVFC
provided documentation to the Township to confirm that such funds were used within the
Township.
On October 2, 2008, Moore, d/b/a LEM Associates, opened a checking account at
Reliance Bank with an initial deposit of $34,000.00 from the DVFC check issued on
October 1, 2008. On October 4, 2008, Moore issued a starter check to DVFC in the
amount of $34,000.00, drawn on the newly opened checking account at Reliance Bank. In
the memo portion of the check was written “return rent.” This check was debited to the
Reliance Bank checking account on October 10, 2008.
At the Board of Supervisors meeting on October 14, 2008, Skurnick, after being
questioned about the $34,000.00 expenditure on the DVFC financial report dated October
1, 2008, initially indicated that the expenditure was a mistake between DVFC and The
Burchfield Organization and that it had been returned. After Burchfield stated that The
Burchfield Organization did not have anything to do with it, Skurnick stated that the
mistake was between DVFC and LEM Associates.
On or about November 13, 2008, Moore gave Chief Lloyd a second invoice while
Chief Lloyd was at Burchfield Truck Sales getting a DVFC fire truck serviced. This
undated invoice was on stationery for Lewis E. Moore, Health and Safety Instructor and
was in the amount of $38,000.00 for equipment, supplies, and educational services listed
Burchfield, 08-066
Page 30
on the invoice. DVFC had no written agreement with Moore for the provision of any
equipment or educational services, and it did not receive from Moore any of the equipment,
supplies, or educational services listed on the invoice. The sole purpose of the invoice
was to collect rent owed for DVFC’s use of the Property, which at that time totaled
$38,000.00 as DVFC had not paid any rent since May 1, 2007.
Chief Lloyd considered Moore’s second invoice to be for back rent owed for DVFC’s
use of the Property, and DVFC treated it as such. On November 13, 2008, Skurnick
transferred $45,000.00 from the DVFC Reliance Bank account to a DVFC general fund
account at Omega Bank. This $45,000.00 transfer was comprised solely of funds that
DVFC received from the Township. Skurnick moved the funds into the DVFC general fund
account so he would not have to account for the funds’ disposition to the Board of
Supervisors. Skurnick believed that the $38,000.00 invoice issued by Moore claimed
monies owed for equipment and training so that the back rent owed to Burchfield could be
paid while circumventing any ethics issues.
Skurnick calculated that DVFC owed $38,000.00 in rent covering the period from
May 18, 2007, through December 13, 2008. On November 13, 2008, Skurnick issued a
check payable to Moore in the amount of $38,000.00 drawn on the DVFC general fund
account at Omega Bank. Nothing was written in the memo portion of this check. The
check was issued as payment for rent owed by DVFC for use of the Property.
In an effort to conceal that the payment was for rent owed to Burchfield, Moore
opened a checking account at Mainline National Bank in Ebensburg, Pennsylvania, on
November 14, 2008. The $38,000.00 payment from DVFC was credited to this account on
November 18, 2008.
Between November 26, 2008, and December 17, 2008, Moore made four cash
withdrawals totaling $23,500.00 from the Mainline National Bank account. As of January
26, 2009, the balance in Moore’s account at Mainline National Bank was approximately
$14,363.85. After being served with a subpoena by the Investigative Division of the State
Ethics Commission on January 26, 2009, Moore did not withdraw any additional funds from
his Mainline National Bank account until December 2009. From December 2009 through
May 2010, Moore made various small withdrawals and payments from his Mainline
National Bank account.
In May 2010, Moore made three cash deposits totaling $27,800.00 into his Mainline
National Bank account. Moore maintains that he kept the $23,500.00 in cash that he
withdrew from his Mainline National Bank account in November and December 2008 under
a mattress in his home until he deposited the cash back into the account in May 2010. No
explanation has been provided for the source of the additional $4,300.00 in cash that
Moore deposited into his Mainline National Bank account in May 2010.
On May 27, 2010, Moore issued a check in the amount of $38,000.00 to DVFC.
Accompanying the check was a letter from Moore’s attorney indicating that the funds were
being returned because DVFC would not be building a new fire station and therefore,
DVFC would not need the training and equipment which was to be provided by Moore.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
Burchfield, 08-066
Page 31
a. That a technical violation of Section 1103(a) of the
Public Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Burchfield, in his capacity as a
Blair Township Supervisor, approved payments and/or
donations to the Duncansville Blair Township Fire
Department which said funds were used to pay rental
on a facility owned by a business with which Burchfield
is associated.
4. Burchfield agrees that he will not seek or accept any
consideration, in any form, from the Duncansville Fire
Department, representative of unpaid rent for any of the
months in which the Duncansville Fire Department occupied
any buildings owned by Burchfield, the Burchfield
Organization, the Burchfield Limited Partnership, past or
present employees of Burchfield, or members of Burchfield’s
immediate family.
5. Burchfield agrees that he will neither seek nor hold any
position of public office or of public employment in the
Commonwealth of Pennsylvania at any time.
6. Burchfield agrees, subject to paragraph 7 below, that any
future contracts between the Duncansville Fire Department
and Burchfield, a member of Burchfield’s immediate family, or
any business with which Burchfield or a member of his
immediate family is associated must be made at fair market
value to be determined by an independent and disinterested
party.
7. The foregoing is not intended to prohibit Burchfield, a member
of Burchfield’s immediate family, or any business with which
Burchfield or a member of his immediate family is associated
from providing goods or services to the Duncansville Fire
Department for less than fair market value as a gift or
donation.
8. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. Such, however, does
not prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent’s failure to
comply with this agreement or the Commission’s order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 1-2.
In considering the Consent Agreement, we accept the parties’ recommendation for a
finding of a technical violation of Section 1103(a) of the Ethics Act.
Burchfield used the authority of his office when he participated in three separate
actions of the Board of Supervisors between July 8, 2008, and October 14, 2008, to
approve four payments totaling $36,826.39 to DVFC. Moore, an employee of The
Burchfield Organization, submitted invoices to DVFC on September 22, 2008, and on or
about November 13, 2008, in order to collect rent DVFC owed to The Burchfield Limited
Burchfield, 08-066
Page 32
Partnership for DVFC’s use of the Property, which property was owned by The Burchfield
Limited Partnership. Given Burchfield’s status as the general partner and 95% owner of
The Burchfield Limited Partnership, The Burchfield Limited Partnership is a business with
which Burchfield is associated as defined under the Ethics Act. See, 65 Pa.C.S. § 1102.
In response to Moore’s invoices, DVFC issued two payments to Moore, one in the amount
of $34,000.00, and the other in the amount of $38,000.00, for rent owed for DVFC’s use of
the Property. Each payment was comprised of funds, including EMS/Local Services tax
revenues and general donations, that DVFC received from the Township. Each payment
was initially deposited into a bank account and then subsequently returned to DVFC by
Moore.
Based upon the totality of the circumstances, we accept the disposition proposed by
the parties.
We hold that a technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S.
§ 1103(a), occurred when Burchfield, in his capacity as a Township Supervisor, approved
payments and/or donations to the DVFC - Blair Township Fire Department, which said
funds were used to pay rental on a facility owned by a business with which Burchfield is
associated.
Per the Consent Agreement of the parties, Burchfield is directed to neither seek nor
accept any consideration, in any form, from DVFC, representative of unpaid rent for any of
the months in which DVFC occupied any buildings owned by Burchfield, The Burchfield
Organization, The Burchfield Limited Partnership, past or present employees of Burchfield,
or members of Burchfield’s immediate family. Burchfield is further directed to neither seek
nor hold any position of public office or of public employment in the Commonwealth of
Pennsylvania at any time.
Further, per the Consent Agreement of the parties, any future contracts between
DVFC and Burchfield, a member of Burchfield’s immediate family, or any business with
which Burchfield or a member of his immediate family is associated must be made at fair
market value to be determined by an independent and disinterested party. This is not
intended to prohibit Burchfield, a member of Burchfield’s immediate family, or any business
with which Burchfield or a member of his immediate family is associated from providing
goods or services to DVFC for less than fair market value as a gift or donation.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Non-compliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
1. As a Supervisor for Blair Township (“Township”), Blair County, from approximately
January 1998 until February 20, 2009, Respondent David Burchfield, Sr.
(“Burchfield”) was a public official subject to the provisions of the Public Official and
Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
2. A technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred when Burchfield, in his capacity as a Township Supervisor, approved
payments and/or donations to the Duncansville Volunteer Fire Company - Blair
Township Fire Department, which said funds were used to pay rental on a facility
owned by a business with which Burchfield is associated.
In Re: David Burchfield, Sr., : File Docket: 08-066
Respondent : Date Decided: 10/19/10
: Date Mailed: 10/26/10
ORDER NO. 1565
1. A technical violation of Section 1103(a) of the Public Official and Employee Ethics
Act, 65 Pa.C.S. § 1103(a), occurred when David Burchfield Sr. (“Burchfield”), in his
capacity as a Supervisor for Blair Township (“Township”), Blair County, approved
payments and/or donations to the Duncansville Volunteer Fire Company - Blair
Township Fire Department (“DVFC”), which said funds were used to pay rental on a
facility owned by a business with which Burchfield is associated.
2. Per the Consent Agreement of the parties, Burchfield is directed to neither seek nor
accept any consideration, in any form, from DVFC, representative of unpaid rent for
any of the months in which DVFC occupied any buildings owned by Burchfield, The
Burchfield Organization, The Burchfield Limited Partnership, past or present
employees of Burchfield, or members of Burchfield’s immediate family.
3. Per the Consent Agreement of the parties, Burchfield is further directed to neither
seek nor hold any position of public office or of public employment in the
Commonwealth of Pennsylvania at any time.
4. Per the Consent Agreement of the parties, any future contracts between DVFC and
Burchfield, a member of Burchfield’s immediate family, or any business with which
Burchfield or a member of his immediate family is associated must be made at fair
market value to be determined by an independent and disinterested party. This is
not intended to prohibit Burchfield, a member of Burchfield’s immediate family, or
any business with which Burchfield or a member of his immediate family is
associated from providing goods or services to DVFC for less than fair market value
as a gift or donation.
5. Compliance with Paragraphs 2, 3, and 4 of this Order will result in the closing of this
case with no further action by this Commission.
a. Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
___________________________
Louis W. Fryman, Chair