HomeMy WebLinkAbout003-SL The Goldenberg Group
In Re: The Goldenberg Group, : File Docket: 11-001-L
Respondent : X-ref: Order No. 003-SL
: Date Decided: 3/3/11
: Date Mailed: 3/7/11
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 as to the alleged
delinquency and/or deficiency of registration statement(s) and/or expense report(s)
required to be filed pursuant to Pennsylvania’s lobbying disclosure law, 65 Pa.C.S. §
13A01 et seq., hereinafter referred to as the “Lobbying Disclosure Law.”
The Investigative Division initiated these proceedings by filing with the State Ethics
Commission and serving upon Respondent a Notice of Alleged Noncompliance. 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 is a final Order, and it is publicly available upon issuance. Reconsideration
may be requested, but a request for reconsideration will not affect the finality of this
adjudication or its availability as a public document. Any reconsideration request must be
received at this Commission within thirty days of the mailing date noted above 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), 21.29 (d)-(f), and 63.4(19).
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I. ALLEGED NONCOMPLIANCE:
That The Goldenberg Group, in its capacity as a principal registered with the
Pennsylvania Department of State pursuant to the Pennsylvania Lobbying
Disclosure Law (65 Pa.C.S. § 13A04), failed to timely file quarterly expense reports
st
pursuant to 65 Pa.C.S. § 13A05, for the first (1), second (2nd), third (3rd), and
st
fourth (4th) quarter(s) of 2007 and the first (1) quarter of 2008.
II. FINDINGS:
1. Respondent is The Goldenberg Group and was a registered principal as that term is
defined by the Pennsylvania Lobbying Disclosure Law (“Lobbying Disclosure Law”),
Act 134 of 2006, 65 Pa.C.S. § 13A01 et seq.
a. Respondent registered as a principal with the Department of State on March
8, 2007.
b. In filing its principal registration, Respondent identified its registered mailing
address as:
350 Sentry Parkway
Blue Bell, PA 19422
c. A termination of the Respondent’s principal registration was filed on or about
October 29, 2009.
d. On or about December 1, 2010, through communication with Amy Yeckley,
Legal Assistant for the Pennsylvania Department of State, Respondent
informed the Department of State that its principal registration was
erroneously terminated and that same should be “reversed.”
e. Respondent’s principal registration was “reactivated” on December 1, 2010.
2. The Lobbying Disclosure Law, specifically 65 Pa.C.S. § 13A04, states the following
regarding the registration of an entity as a principal:
§ 13A04. Registration
a. GENERAL RULE. Unless excluded under section 13A06 (relating to
exemption from registration and reporting), a lobbyist, lobbying firm or a
principal must register with the department within ten days of acting in any
capacity as a lobbyist, lobbying firm or principal. Registration shall be
biennial and shall begin January 1, 2007.
b. PRINCIPALS AND LOBBYING FIRMS.
1. A principal or lobbying firm required to register under subsection (a)
shall file a single registration statement setting forth the following
information with the department:
i. Name.
ii. Permanent address.
iii. Daytime telephone number.
iv. E-mail address, if available.
v. Name and nature of business.
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vi. Name, registration number and acronym of any affiliated
political action committees.
vii. Name and permanent business address of each individual who
will for economic consideration engage in lobbying on behalf of
the principal or lobbying firm.
viii. Registration number when available.
****
d. AMENDMENTS.—
1. If there is a change of information required for the registration
statement under subsection (b)(1) or (2) or (c), an amended
registration statement shall be filed with the department within 14
days after the change occurs.
2. When there is a change in information required for the registration
statement under subsection (b)(3), an amended registration statement
shall be filed with the department within 14 days of the end of the
year in which the change occurs.
65 Pa.C.S. § 13A04(a), (b), (d).
3. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations
provide further information in relation to registration periods and reporting periods:
§ 51.3. Registration periods and reporting periods.
a. Registration under section 13A04 of the act (relating to registration) shall be
biennial. The first registration period which commenced January 1, 2007,
continues through December 31, 2008. Subsequent registrations shall
commence on January 1 of each odd numbered year.
51 Pa. Code § 51.3.
4. In 2007, Respondent entered into an agreement with Public Affairs Strategies Inc.,
the purpose of which was to retain Public Affairs Strategies Inc. to engage in
lobbying activity on behalf of Respondent.
a. On Respondent’s principal registration statement for the registration period
January 1, 2007, through December 31, 2008, Respondent identified its
affiliation start date with Public Affairs Strategies, Inc. as 1/1/2007.
b. Respondent does not identify an affiliation end date for Public Affairs
Strategies, Inc.
5. Public Affairs Strategies Inc. was an entity registered with the Pennsylvania
Department of State as a lobbying firm.
a. Public Affairs Strategies Inc. originally registered as a lobbying firm with the
Department of State on January 28, 2007.
b. Public Affairs Strategies Inc. was assigned identification number “F00273”
by the Department of State.
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c. In filing its registration for 2007-2008, Public Affairs Strategies, Inc. identified
Respondent, “Goldenberg Group” as a principal it represented, with an
affiliation start date of March 1, 2007.
d. Public Affairs Strategies, Inc. filed a notice of termination with the
Pennsylvania Department of State, terminating its registration, on August 30,
2008.
6. On or about April 17, 2008, Respondent amended its principal registration to
include the Delta Development Group, Inc. as a lobbying firm that represented the
interests of the Respondent.
a. Delta Development Group, Inc. originally registered as a lobbying firm with
the Department of State on January 28, 2007.
b. Delta Development Group, Inc. was assigned identification number “F01921”
by the Department of State.
c. In filing its registration for 2009-2010, Delta Development Group, Inc.
identified Respondent, “The Goldenberg Group Inc.” as a principal it
represented, with an affiliation start date of April 17, 2008.
d. Delta Development Group, Inc. ended its affiliation with Respondent on or
about September 30, 2009.
7. On or about October 15, 2008, Respondent amended its principal registration to
include The Dezzi Group, Ltd. as a lobbying firm that represented the interests of
the Respondent.
a. The Dezzi Group, Ltd. originally registered as a lobbying firm with the
Department of State on February 20, 2007.
b. The Dezzi Group, Ltd. was assigned identification number “F00596” by the
Department of State.
c. In filing its registration for 2009-2010, The Dezzi Group, Ltd. did not identify
Respondent, “The Goldenberg Group Inc.” as a principal it represented.
d. The Dezzi Group, Ltd. ended its affiliation with Respondent on or about
September 30, 2009.
8. Respondent filed an initial principal registration statement with the Pennsylvania
Department of State on March 8, 2007.
a. Respondent’s registration statement indicated that lobbying commenced on
March 1, 2007.
b. Respondent was assigned the principal registration number “P00719.”
9. On or about April 17, 2008, Respondent filed a second principal registration
statement with the Pennsylvania Department of State.
a. Respondent’s second principal registration statement indicated that lobbying
commenced on March 1, 2007.
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b. Tami E. Bubb, Associate with Delta Development Group, Inc., filed the
amended principal registration statement on behalf of the Respondent as a
third-party.
c. On or about November 18, 2009, it was noted that Respondent, The
Goldenberg Group, had duplicate principal registration filings.
1. Respondent was initially assigned principal registration number
“P00719.”
2. By way of duplicate filing, Respondent was also assigned principal
registration number “P09626.”
d. On December 22, 2009, the Department of State determined that the
duplicate registration was made in error and the registration for “P09626”
was deleted.
1. The registration fee associated with “P09626” was transferred to the
original registration (“P00717” [sic]) and all expense reports were
transferred to the original, “P00719” file.
e. Respondent was assigned the principal registration number “P00719.”
10. Section 13A05 of the Lobbying Disclosure Law sets forth, in part, the following
requirements for the contents of quarterly reporting forms filed by principals.
§ 13A05. Reporting.
(a) GENERAL RULE.-- A registered principal shall, under oath or affirmation, file
quarterly expense reports with the department no later than 30 days after the
last day of the quarter.
(b) CONTENT.—
(1) Each expense report must list the names and registration numbers
when available of all lobbyists by whom lobbying is conducted on
behalf of the principal and the general subject matter or issue being
lobbied.
(2) Each expense report shall include the total costs of all lobbying for
the period. The total shall include all office expenses, personnel
expenses, expenditures related to gifts, hospitality, transportation and
lodging to State officials or employees, and any other lobbying costs.
The total amount reported under this paragraph shall be allocated in
its entirety among the following categories:
(i) The costs for gifts, hospitality, transportation and lodging given
to or provided to State officials or employees or their
imme-diate families.
(ii) The costs for direct communication.
(iii) The costs for indirect communication.
(iv) Expenses required to be reported under this subsection shall
be allocated to one of the three categories listed under this
section and shall not be included in more than one category.
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65 Pa.C.S. § 13A05(a), (b).
11. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations
provide further instructions in relation to registration periods and reporting periods:
§ 51.3. Registration periods and reporting periods.
(b) Reporting under section 13A05 of the act (relating to reporting) shall be
quarterly within each calendar year: for January through March; April
through June; July through September; and October through December.
Quarterly expense reports shall be filed on or before the 30th day after the
quarterly reporting period ends.
51 Pa. Code § 51.3(b).
12. As a principal, Respondent is required to file, under oath or affirmation, quarterly
expense reports with the Department of State no later than thirty (30) days after the
last day of the quarter.
13. Section 13A05 of the Lobbying Disclosure Law additionally sets forth the threshold
with regard to reporting expenditures:
(d) THRESHOLDS FOR REPORTING.-- An expense report required
under this section shall be filed when total expenses for lobbying
exceed $2,500 for a registered principal in a reporting period. In a
reporting period in which total expenses are $2,500 or less, a
statement to that effect shall be filed.
65 Pa.C.S. § 13A05(d).
14. Section 13A03 of the Lobbying Disclosure Law defines the following terms:
“LOBBYING.”
An effort to influence legislative action or administrative
action in this Commonwealth. The term includes:
(1) direct or indirect communication;
(2) office expenses; and
(3) providing any gift, hospitality, transportation or lodging to a State
official or employee for the purpose of advancing the interest of the
lobbyist or principal.
“LEGISLATIVE ACTION.”
An action taken by a State official or employee
involving the preparation, research, drafting, introduction, consideration,
modification, amendment, approval, passage, enactment, tabling,
postponement, defeat or rejection of:
(1) legislation;
(2) legislative motions;
(3) a veto by the Governor; or
(4) confirmation of appointments by the Governor or appointments to
public boards or commissions by a member of the General Assembly.
“LEGISLATION.”
Bills, resolutions, amendments and nominations pending
or proposed in either the Senate or the House of Representatives. The term
includes any other matter which may become the subject of action by either
chamber of the General Assembly.
The Goldenberg Group, 11-001-L
Page 7
“DIRECT COMMUNICATION.”
An effort, whether written, oral or by any
other medium, made by a lobbyist or principal, directed to a State official or
employee, the purpose or foreseeable effect of which is to influence
legislative action or administrative action. The term may include personal
expenses and offices expenses.
65 Pa.C.S. § 13A03.
15. Respondent did not file a first quarter 2007 expense report by April 30, 2007.
16. Respondent did not file a second quarter 2007 expense report by July 30, 2007.
17. Respondent did not file a third quarter 2007 expense report by October 30, 2007.
18. Respondent did not file a fourth quarter 2007 expense report by January 30, 2008.
19. Respondent did not file a first quarter 2008 expense report by April 30, 2008.
20. The Regulations promulgated under the Lobbying Disclosure Law specifically
provide the following in relation to a delinquent filing:
§ 51.4. Delinquency.
(a) A registration statement or report required to be filed under section 13A04 or
13A05 of the act (relating to registration; and reporting) is delinquent if not
received by the Department on the date due as follows:
(1) Hard copy filings must be received by 5 p.m. in the office. For
quarterly expense reports, from 5 p.m. until 12 a.m. midnight, a hard
copy filing may be filed with the Department's designee. The filing
location and the Department's designee will be on the Department's
web site.
(2) Electronic filings may be filed until 12 a.m. midnight.
(b) A failure to timely file a registration statement, a quarterly expense report, a
separate expense report, a notice of termination or an amendment to one of
these filings constitutes a failure to register or report as required by the act;
delinquency continues until the filing is received by the Department in proper
form.
51 Pa. Code § 51.4(a), (b).
21. With respect to the filing requirements for quarterly expense reports, the
Regulations provide, in part:
§ 55.1. Quarterly expense reports.
(a) A quarterly expense report is required to be filed as set forth in this
section when the total lobbying expenses of a registered principal,
registered lobbying firm or registered lobbyist lobbying on the
principal's behalf, together, exceed $2,500 in a quarterly reporting
period. The threshold of $2,500 includes any economic consideration
paid by a principal to a lobbying firm or lobbyist for lobbying.
Individuals exempt under section 13A06 of the act (relating to
exemption from registration and reporting) need not register or report.
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Page 8
(b) For a quarterly reporting period in which the total lobbying expenses
of a registered principal, registered lobbying firm or registered
lobbyist lobbying on the principal's behalf, together, are $2,500 or
less, a statement to that effect shall be filed with the Department by
checking the appropriate block on the quarterly expense report form.
****
(d) The principal shall file a quarterly expense report or statement of
failure to meet the reporting threshold on or before the 30th day after
the quarterly reporting period ends.
****
(g) A quarterly expense report of a principal required to be registered
under the act must include at least the following information:
(3) The total costs of all lobbying for the period. The total must
include all office expenses, personnel expenses, expenditures
related to gifts, hospitality, transportation and lodging to State
officials or employees, and any other lobbying costs.
(i) The total amount reported under this paragraph shall
be allocated in its entirety among the following
categories:
(A) The costs for gifts, hospitality, transportation and
lodging given to or provided to State officials or
employees or their immediate families.
(B) The costs for direct communication.
(C) The costs for indirect communication.
(ii) Registrants shall use a good faith effort to allocate
expenses required to be reported under this subsection
to one of the three categories listed herein. A given
expense may not be included in more than one
category. . . .
51 Pa. Code § 55.1(a), (b), (d), (g).
22. By Warning Notice letter dated July 23, 2010, Respondent was served with notice
in accordance with Section 13A09 of the Lobbying Disclosure Law and Section
63.4(1) of the Lobbying Disclosure Regulations of the specific allegations that
Respondent failed to file quarterly expense reports for the first, second, third, and
fourth quarter(s) of 2007 and 2008.
a. Said Warning Notice was forwarded to:
THE GOLDENBERG GROUP
P00719
350 Sentry Parkway
Blue Bell, PA 19422
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Page 9
b. This is the same address as listed on Respondent’s principal registration
statement.
c. By submitting the principal registration statement, Respondent consented to
receipt of service of notices, other official mailings or process, at the address
listed on the registration statement.
23. Said Warning Notice letter set forth the nature of the alleged noncompliance and
the administrative and criminal penalties for failing to register.
24. Said Warning Notice letter provided Respondent an opportunity to cure the alleged
noncompliance and avoid the institution of these proceedings as to alleged
noncompliance by filing quarterly expense reports for the time period covering the
first, second, third, and fourth quarter(s) of 2007 and 2008 with the Department of
State within thirty (30) days from the mailing date of the Warning Notice letter.
25. The Lobbying Disclosure Law provides for civil and criminal penalties for failing to
comply with the registration statement filing and quarterly expense reporting
requirements thereof. Specifically, the Lobbying Disclosure Law provides, in part,
that:
1. Negligent failure to register or report, as required by the law, is punishable
by an administrative penalty not exceeding $50.00 for each late day. 65
Pa.C.S. § 13A09(c)(1).
26. On August 31, 2010, the State Ethics Commission received a telephone call from
Tami Bubb, employee of Delta Development Group, Inc.
a. Bubb indicated that the second, third, and fourth quarterly reports for year
2008 were timely filed with the Department of State, however they were filed
under the duplicate principal registration number of “P09626.”
b. Although the filings of the duplicate principal registration were to be
transferred to the original registration statement, a check of the public
records of the Department of State did not reflect same.
c. Bubb provided paper copies of the second, third, and fourth quarterly reports
for year 2008, as timely filed with the Department of State.
1. On September 3, 2010, the Department of State confirmed the timely
filing of said quarterly expense reports.
d. Per her August 31, 2010, telephone conversation with the State Ethics
Commission, Bubb indicated that she would forward an email communication
to a representative of the Respondent, in an attempt to seek compliance
regarding the outstanding quarterly expense reports.
27. On or about November 17, 2010, a representative of the Investigative Division of
the State Ethics Commission spoke with Steve Palmer, an employee/representative
of the Respondent.
a. Per the telephone conversation, Palmer was notified by the Investigative
Division that the compliance period had expired, however, if compliance was
achieved before Thanksgiving (November 25, 2010) no further action would
be pursued.
The Goldenberg Group, 11-001-L
Page 10
b. The aforementioned telephone conversation was followed by an email to
“Spalmer@goldenberggroup.com.”
28. Steve Palmer replied to the November 17, 2010, telephone and email
communication on or about November 30, 2010.
a. By way of reply email, Palmer indicated that he received the aforementioned
telephone message and was attempting compliance.
29. On December 29, 2010, Tami Bubb, employee of Delta Development Group, Inc.,
forwarded copies of what appeared to be all outstanding quarterly expense reports
of the Respondent to the Investigative Division of the State Ethics Commission.
a. Bubb’s email contained a “forwarded” message from Steve Palmer which
was addressed to the Department of State, indicating that all outstanding
quarterly expense reports were being “Federal Expressed” to the
Department of State, in addition to the fourth quarter 2010 report.
1. The fourth quarter of 2010 did not close until December 31, 2010.
2. The fourth quarter 2010 expense report was prematurely filed.
30. On January 3, 2011, the Department of State received Respondent’s outstanding
and premature principal quarterly expense reports.
a. The Department of State received the following quarterly expense reports:
1. First quarter 2007.
2. Second quarter 2007.
3. Third quarter 2007.
4. Fourth quarter 2007.
5. First quarter 2008.
6. Fourth quarter 2009.
7. First quarter 2010.
8. Second quarter 2010.
9. Third quarter 2010.
10. Fourth quarter 2010.
31. Per the quarterly expense reports filed January 3, 2011, Respondent expended no
less than $19,665.00 regarding lobbying activities, for calendar year 2007 and the
first quarter of 2008.
a. Respondent’s lobbying expenditures were as follows:
Year Quarter Expenditure
2007 First quarter $815.00
2007 Second quarter $4,500.00
2007 Third quarter $2,250.00
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2007 Fourth quarter $9,000.00
2008 First quarter $3,100.00
Total: $19,665.00
b. Respondent did not timely file quarterly expense reports to divulge the
expenditure of the above-referenced lobbying expenses.
32. The thirty-day deadline set forth in the said Warning Notice letter to respondent
expired August 23, 2010, prior to Respondent fully complying with the specific
requirements of the Lobbying Disclosure Law.
33. The Goldenberg Group’s employee, Steven Palmer, alleges that the acts of
noncompliance set forth in the Stipulation of Findings were the result of confusion
and misunderstandings between The Goldenberg Group and its several consultants
as identified in the Stipulation of Findings and The Goldenberg Group’s then lack of
familiarity with the compliance requirements.
a. Mr. Palmer further asserts that The Goldenberg Group now has improved
policies and procedures in place to properly and timely comply with all
requirements of Pennsylvania’s Lobbying Disclosure Law.
III.DISCUSSION:
In the instant matter, the alleged noncompliance is that The Goldenberg Group
(“Respondent”), as a principal registered with the Pennsylvania Department of State
(“Department of State”) pursuant to the Lobbying Disclosure Law, failed to timely file
quarterly expense reports pursuant to 65 Pa.C.S. § 13A05 for the first, second, third, and
fourth quarters of 2007 and the first quarter of 2008.
The relevant provisions of the Lobbying Disclosure Law are set forth in the Fact
Findings above. Certain relevant provisions of the Lobbying Disclosure Regulations, 51
Pa. Code § 51.1 et seq., are also set forth in the Fact Findings.
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.
In 2007, Respondent entered into an agreement with Public Affairs Strategies Inc.,
the purpose of which was to retain Public Affairs Strategies Inc. to engage in lobbying
activity on behalf of Respondent.
Respondent registered as a principal with the Department of State on March 8,
2007. On its principal registration statement, Respondent identified its affiliation start date
with Public Affairs Strategies, Inc. as January 1, 2007. Respondent’s registration
statement indicated that lobbying commenced on March 1, 2007. Respondent was initially
assigned the principal registration number “P00719.”
In filing its registration for 2007-2008, Public Affairs Strategies, Inc. identified
Respondent as a principal it represented, with an affiliation start date of March 1, 2007.
Public Affairs Strategies, Inc. filed a notice of termination with the Pennsylvania
Department of State, terminating its registration, on August 30, 2008.
On or about April 17, 2008, Respondent filed a second principal registration
statement with the Pennsylvania Department of State. Through the duplicate filing,
Respondent was assigned a second principal registration number, specifically, “P09626.”
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Commencing on or about April 17, 2008, Respondent’s registration statement
indicated that lobbying firm Delta Development Group, Inc. represented the interests of
Respondent. Delta Development Group, Inc. ended its affiliation with Respondent on or
about September 30, 2009.
On or about October 15, 2008, Respondent amended its principal registration to
include The Dezzi Group, Ltd. as a lobbying firm that represented the interests of the
Respondent. The Dezzi Group, Ltd. ended its affiliation with Respondent on or about
September 30, 2009.
A termination of the Respondent’s principal registration was filed on or about
October 29, 2009.
On or about November 18, 2009, it was noted that Respondent had duplicate
principal registration filings.
On December 22, 2009, the Department of State determined that the duplicate
registration was made in error and the registration for “P09626” was deleted. The
registration fee associated with “P09626” was transferred to the original registration
(“P00719”) and all expense reports were transferred to the original, “P00719” file.
Respondent was assigned the principal registration number “P00719.”
On or about December 1, 2010, Respondent informed the Department of State that
its principal registration was erroneously terminated and that same should be “reversed.”
Respondent’s principal registration was “reactivated” on December 1, 2010.
Pursuant to Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05,
and Section 51.3 of the Lobbying Disclosure Regulations, 51 Pa. Code § 51.3, expense
reports are filed on a quarterly basis. When a registered principal’s total expenses for
lobbying exceed $2,500 for a reporting period/quarter, the principal is required to file a
quarterly expense report with the Department of State by no later than 30 days after the
last day of such quarter. For a reporting period in which total expenses are $2,500 or less,
a statement to that effect must be filed by the principal. Thus, a registered principal must
file either a quarterly expense report or a statement of failure to meet the reporting
threshold by no later than the 30th day after each quarterly reporting period ends. 51 Pa.
Code § 55.1.
With regard to Respondent’s expense reports, the parties have stipulated as
follows. Respondent did not file a first quarter 2007 expense report by April 30, 2007.
Respondent did not file a second quarter 2007 expense report by July 30, 2007.
Respondent did not file a third quarter 2007 expense report by October 30, 2007.
Respondent did not file a fourth quarter 2007 expense report by January 30, 2008.
Respondent did not file a first quarter 2008 expense report by April 30, 2008.
Failure to timely file a quarterly expense report constitutes a failure to report as
required by the Lobbying Disclosure Law, and the delinquency continues until the filing is
received by the Department of State in proper form. 51 Pa. Code § 51.4.
By Warning Notice letter dated July 23, 2010, Respondent was served with notice of
the alleged noncompliance in accordance with Section 63.4(1) of the Lobbying Disclosure
Regulations. The Warning Notice letter provided Respondent an opportunity to cure the
alleged noncompliance and avoid the institution of these proceedings by filing quarterly
expense reports for the first, second, third, and fourth quarters of 2007 and 2008 with the
Department of State within thirty (30) days from the mailing date of the Warning Notice
letter.
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On August 31, 2010, the State Ethics Commission received a telephone call from
Tami E. Bubb (“Bubb”), Associate with Delta Development Group, Inc., who indicated that
the second, third, and fourth quarterly reports for year 2008 were timely filed with the
Department of State, however they were filed under the duplicate principal registration
number of “P09626.” Although the filings of the duplicate principal registration were to be
transferred to the original registration statement, a check of the public records of the
Department of State did not reflect same. Bubb provided paper copies of the second,
third, and fourth quarterly reports for year 2008, as timely filed with the Department of
State. On September 3, 2010, the Department of State confirmed the timely filing of said
quarterly expense reports.
Per her August 31, 2010, telephone conversation with the State Ethics Commission,
Bubb indicated that she would forward an email communication to a representative of
Respondent, in an attempt to seek compliance regarding the outstanding quarterly
expense reports.
On or about November 17, 2010, a representative of the Investigative Division of
the State Ethics Commission spoke with Steve Palmer (“Palmer”), an
employee/representative of the Respondent. Per the telephone conversation, Palmer was
notified by the Investigative Division that the compliance period had expired, however, if
compliance was achieved before Thanksgiving (November 25, 2010) no further action
would be pursued. The aforementioned telephone conversation was followed by an email
to “Spalmer@goldenberggroup.com.”
Palmer replied to the November 17, 2010, telephone and email communication on
or about November 30, 2010. Palmer indicated that he received the aforementioned
telephone message and was attempting compliance.
On December 29, 2010, Bubb forwarded copies of what appeared to be all
outstanding quarterly expense reports of the Respondent to the Investigative Division of
the State Ethics Commission. Bubb’s email contained a “forwarded” message from Steve
Palmer which was addressed to the Department of State, indicating that all outstanding
quarterly expense reports were being “Federal Expressed” to the Department of State, in
addition to the fourth quarter 2010 report.
On January 3, 2011, the Department of State received Respondent’s outstanding
quarterly reports for the first, second, third, and fourth quarters of 2007, the first quarter of
2008, the fourth quarter of 2009, and the first, second, and third quarter of 2010, together
with Respondent’s early quarterly expense report for the fourth quarter of 2010.
Per the quarterly expense reports filed January 3, 2011, Respondent expended no
less than $19,665.00 regarding lobbying activities for calendar year 2007 and the first
quarter of 2008, as detailed in Fact Finding 31 a.
Palmer alleges that the acts of noncompliance set forth in the Stipulation of Findings
were the result of confusion and misunderstandings between Respondent and its several
consultants, as well as Respondent’s then lack of familiarity with the compliance
requirements. Palmer asserts that Respondent now has improved policies and procedures
in place to properly and timely comply with all requirements of the Lobbying Disclosure
Law.
Negligent failure to register or report as required by the Lobbying Disclosure Law is
punishable by an administrative penalty of up to $50.00 for each late day. 65 Pa.C.S. §
13A09(c)(1). Per the Consent Agreement, the parties are in agreement that Respondent
was delinquent in filing its quarterly expense reports for calendar years 2007 and 2008 for
a total of 165 days.
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Page 14
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Lobbying Disclosure Law 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 conclusions
in relation to the above deficiencies:
a. That The Goldenberg Group, in its capacity as a
Principal registered with the Pennsylvania Department
of State pursuant to the Pennsylvania Lobbying
Disclosure Law (65 Pa.C.S. § 13A04), failed to timely
file Quarterly Expense Reports pursuant [to] 65 Pa.C.S.
stndrd
§ 13A05, for the First (1), Second (2), Third (3), and
thst
Fourth (4) Quarter(s) of 2007 and the First (1)
Quarter of 2008.
b. That the transgressions of the Lobbying Disclosure Law
outlined in paragraph (a) above are deemed to be
negligent in nature.
c. The Goldenberg Group was deficient in filing its
Quarterly Expense Reports for calendar year 2007 and
2008, by a total of 165 days, calculated as set forth
below:
i. Respondent received official Notice of the
delinquent quarterly expense reports by
way of Warning Notice dated July 23,
2010;
ii. Respondent did not file the outstanding
Quarterly expense reports for calendar
years 2007 and 2008 within the stated
cure period;
iii. Respondent filed all delinquent Quarterly
expense reports with the Pennsylvania
Department of State for calendar years
2007 and 2008 on January 3, 2011;
iv. For purposes of this Consent Agreement
only, the delinquent period was
calculated from the date of mailing of the
Warning Notice (July 23, 2010), until the
actual date of filing of the delinquent
Quarterly Expense Reports with the
Pennsylvania Department of State
(January 3, 2011), said period being one
hundred sixty-five days (165).
4. The Goldenberg Group agrees to pay an administrative penalty, by
way of certified check or money order, in the amount of $8,250.00
(165 days x $50.00 per diem) in settlement of this matter, payable to
the Commonwealth of Pennsylvania, and forwarded to the
Pennsylvania State Ethics Commission upon execution of this
The Goldenberg Group, 11-001-L
Page 15
agreement.
a. Said settlement payment (certified check or money
order) is to be held by the Investigative Division until
suchtime as the Commission accepts this Consent
Agreement and Issues a Final Order. Upon issuance of
the Final Order of this matter by the Commission, the
Investigative Division will submit said settlement
payment for deposit into the Treasury of the
Commonwealth.
5. To the extent it has not already done so, The Goldenberg Group
agrees to file all outstanding Quarterly Expense Reports for the
Quarter(s) that said entity was/is Registered as a Principal with the
Pennsylvania Department of State, within fifteen (15) days of the
execution of this agreement.
a. The Goldenberg Group agrees to timely file all future
Quarterly Expense Reports for the Quarter(s) that said
entity is/remains a Registered Principal with the
Pennsylvania Department of State, in accord with the
Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. §
13A01 et seq.) and the Regulations of the Lobbying
Disclosure Law (51 Pa. Code. § 51.1 et seq.)
6. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; impose no further
sanctions and make no specific recommendations to any law
enforcement or other authority to take action in this matter as to either
The Goldenberg Group, or any individual or representative of The
Goldenberg Group. 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 1-3.
In considering the Consent Agreement, it is clear that Respondent as a registered
principal failed to timely file quarterly expense reports with the Department of State for the
first, second, third and fourth quarters of 2007 and the first quarter of 2008, as required by
Section 13A05 of the Lobbying Disclosure Law.
Accordingly, we hold that Respondent The Goldenberg Group, in its capacity as a
principal registered with the Department of State pursuant to the Lobbying Disclosure Law,
65 Pa.C.S. § 13A04, failed to timely file quarterly expense reports pursuant to 65 Pa.C.S. §
13A05, for the first, second, third, and fourth quarters of 2007 and the first quarter of 2008.
We shall accept the recommendation of the parties for a determination that the
transgressions of the Lobbying Disclosure Law outlined immediately above are deemed to
be negligent in nature.
The parties have agreed that Respondent was delinquent in filing its quarterly
expense reports for calendar years 2007 and 2008 for a total of 165 days.
As part of the Consent Agreement, Respondent agreed to pay an administrative
penalty in the total amount of $8,250.00 (165 days x $50.00 per day) in settlement of this
The Goldenberg Group, 11-001-L
Page 16
matter, payable to the Commonwealth of Pennsylvania and forwarded to this Commission
upon execution of the Consent Agreement. The Consent Agreement provided that said
settlement payment would be held by the Investigative Division until this Commission
would accept the Consent Agreement and issue a final Order, whereupon the Investigative
Division would submit said settlement payment for deposit into the Treasury of the
Commonwealth.
To the extent it had not already done so, Respondent further agreed to file all
outstanding quarterly expense reports for the quarter(s) that Respondent had been
registered as a principal with the Department of State, within fifteen (15) days of the
execution of the Consent Agreement. The Consent Agreement was fully executed as of
February 7, 2011.
Respondent also agreed to timely file all future quarterly expense reports for the
quarter(s) that it is/remains a registered principal with the Department of State, in
accordance with the Lobbying Disclosure Law and the Lobbying Disclosure Regulations.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, we approve the Consent
Agreement that has been submitted by the parties.
This Commission hereby levies one administrative penalty against Respondent The
Goldenberg Group in the total amount of $8,250.00 for its delinquent quarterly expense
reports for the first, second, third, and fourth quarters of 2007 and the first quarter of 2008.
We take administrative notice that Respondent has already made payment of the
aforesaid administrative penalty in the total amount of $ 8,250.00 through this Commission
to the Commonwealth of Pennsylvania, as per the Consent Agreement of the parties. We
further take administrative notice that per the Department of State’s web site,
Respondent’s principal registration expired as of December 31, 2010.
As for Respondent’s agreement to file all future quarterly expense reports in
accordance with the Lobbying Disclosure Law and the Lobbying Disclosure Regulations,
we note that failure to do so may result in further proceedings before this Commission.
In that Respondent has already made payment of the aforesaid administrative
penalty in the total amount of $ 8,250.00 in accordance with the Consent Agreement of the
parties, and has now filed quarterly expense reports for the quarters at issue in this case,
this case is closed.
IV.CONCLUSIONS OF LAW:
1. As a principal registered with the Pennsylvania Department of State (“Department
of State”), The Goldenberg Group was subject to the reporting requirements of
Section 13A05 of Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure
Law”), 65 Pa.C.S. § 13A05.
2. The Goldenberg Group, in its capacity as a principal registered with the Department
of State pursuant to the Lobbying Disclosure Law, 65 Pa.C.S. § 13A04, failed to
timely file quarterly expense reports pursuant to 65 Pa.C.S. § 13A05, for the first,
second, third, and fourth quarters of 2007 and the first quarter of 2008.
3. The transgressions of the Lobbying Disclosure Law outlined in paragraph 2
immediately above are deemed to be negligent in nature.
4. The prerequisite service of a warning notice in accordance with Section 63.4(1) of
The Goldenberg Group, 11-001-L
Page 17
the Lobbying Disclosure Regulations, 51 Pa. Code § 63.4(1), was satisfied.
5. Based upon the totality of the circumstances in this case, the imposition of an
administrative penalty in the total amount of $8,250.00 (165 days x $50.00 per day)
is warranted.
In Re: The Goldenberg Group, : File Docket: 11-001-L
Respondent : Date Decided: 3/3/11
: Date Mailed: 3/7/11
ORDER NO. 003-SL
1. The Goldenberg Group, in its capacity as a principal registered with the
Pennsylvania Department of State (“Department of State”) pursuant to
Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure Law”), 65 Pa.C.S. §
13A04, failed to timely file quarterly expense reports pursuant to 65 Pa.C.S. §
13A05, for the first, second, third, and fourth quarters of 2007 and the first quarter
of 2008.
2. The transgressions of the Lobbying Disclosure Law outlined in paragraph 1
immediately above are deemed to be negligent in nature.
3. This Commission hereby levies one administrative penalty against The Goldenberg
Group in the total amount of $8,250.00 for its delinquent quarterly expense reports
for the first, second, third, and fourth quarters of 2007 and the first quarter of 2008.
4. In that The Goldenberg Group has already made payment of the aforesaid
administrative penalty in the total amount of $ 8,250.00 in accordance with the
Consent Agreement of the parties, and has now filed quarterly expense reports for
the quarters at issue in this case, no further action is required in this case and this
case is closed.
BY THE COMMISSION,
___________________________
Louis W. Fryman, Chair