HomeMy WebLinkAbout1582 Keyton
In Re: Kenneth G. Keyton, : File Docket: 09-044
Respondent : X-ref: Order No. 1582
: Date Decided: 3/3/11
: Date Mailed: 3/10/11
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.
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.
Keyton, 09-044
Page 2
I.ALLEGATIONS:
That Kenneth G. Keyton, a public official/public employee in his capacity as a
Highway Equipment Manager 3 for the Bureau of Maintenance and Operations,
Transportation Equipment Division of the Pennsylvania Department of Transportation,
violated Sections 1103(a) and 1105(b) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S.
§§ 1103(a) and 1105(b), when he used the authority of his public position for the private
pecuniary benefit of himself and/or a business with which he is associated by soliciting
and/or accepting items of monetary value from Commonwealth vendors and a
Commonwealth sub-vendor and when he solicited and/or accepted contributions from
Commonwealth vendors for KDH Racing, a business with which he is associated; when he
failed to report income, gifts, hospitality and lodging, and office, directorship or
employment in [KDH] Racing, and his financial interest in KDH Racing on Statements of
Financial Interests filed for the 2006, 2007 and 2008 calendar years; and when he utilized
Commonwealth equipment and supplies in furtherance of his private business interests as
a race car owner.
II.FINDINGS:
1. Kenneth G. Keyton was employed by the Pennsylvania Department of
Transportation (PennDOT) from approximately September 9, 1974, until his
resignation effective December 23, 2008.
2. Prior to his retirement, Keyton’s most recent positions with PennDOT were Highway
Equipment Manager II and III.
a. Keyton was a Highway Equipment Manager II from approximately May 8,
1999, until August 6, 2007.
b. Keyton was a Highway Equipment Manager III from approximately August 6,
2007, until December 23, 2008.
3. PennDOT personnel records include job descriptions for the positions of Highway
Equipment Manager II and III.
a. In his capacities as Highway Equipment Manager IIand II [sic], Keyton was a
public employee as that term is defined in the Ethics Act.
4. In addition to the general job duties outlined in the PennDOT personnel records for
the positions of Highway Equipment Manager II and III, Keyton participated in pre-
bid meetings with potential PennDOT vendors, assisted and/or developed
equipment bid specifications, identified vendors from state contract and participated
in delivery inspections of equipment to ensure contract compliance.
a. As a Highway Equipment Manager III (August 6, 2007-December 23, 2008)
Keyton was the Section Chief in the Equipment Division overseeing the
aforementioned activities.
5. PennDOT’s Equipment Division utilizes a fleet model philosophy regarding
equipment purchases.
a. Equipment and vehicles are replaced annually, on a rotating basis, based on
established life cycles for the various equipment and vehicles.
b. Heavy equipment such as dump trucks, backhoes and other excavating
equipment are rotated out based on this schedule.
Keyton, 09-044
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c. Light duty vehicles and other power equipment are replaced based on
condition, departmental needs and available funding.
6. PennDOT equipment and vehicle purchasing is done on a fiscal year basis based
on available contracts.
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a. PennDOT’s fiscal year is July 1 through June 30 of the next year.
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b. Equipment and/or vehicles ordered by June 30 have to be delivered by
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October 15 of that same year or the allocated funding would lapse.
7. PennDOT’s Equipment Division utilizes three (3) different contracts to make
purchases including:
a. A Department of General Services (DGS) contract for PennDOT.
b. A PennDOT specific contract.
c. A statewide Power Equipment Contract.
8. Items contained on each of these contracts are bid by the Commonwealth.
a. Some contracts will cover a multiple fiscal year time frame.
b. The same piece of equipment or vehicle may be on multiple contracts,
simultaneously, at different prices based on the bidding process.
9. Pre-bid meetings are held between Equipment Division employees and vendors in
order to develop specifications and foster competition among vendors to ensure the
lowest bid prices possible for PennDOT.
a. Keyton participated in pre-bid meetings in his official capacity as a Highway
Equipment Manager II and III.
10. PennDOT purchases get initiated by a specific request from a PennDOT
Maintenance District Office based on available budget funds and needs or as part
of the routine replacement of vehicles and equipment under the fleet model.
11. Once a need [was] identified, Keyton had the discretion to select a vendor for the
item from one of the three (3) contracts, to be finally approved by the Chief of the
Equipment Division and the Director of the Bureau of Maintenance and Operations.
a. The low bidding vendor is not always selected due to location, available
servicing and unique needs.
b. Unique needs can include non-standard equipment, specialized options and
availability.
12. For specialty items not on any of the three (3) contracts, Keyton had the discretion
and authority to contact vendors directly to develop specifications and solicit
quotes.
13. Prior to the acceptance of any equipment or vehicles by the Equipment Division, a
delivery inspection [was] conducted by Keyton and/or other employees under his
direct supervision.
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a. The purpose of the delivery inspection is to ensure that the
equipment/vehicle functions properly and was delivered in a condition that
complied with all bid specifications.
b. Upon completion of the delivery inspection Keyton [had] authorized clerical
staff to initiate the payment process following standard PennDOT purchasing
procedures.
14. Employees within PennDOT’s Divisions, including the Equipment Division, are
required to comply with Departmental and Commonwealth guidelines set forth in the
Department’s “Gifts and Favors Policy,” Major Work Rule #18, Supplemental
Employment Guidelines, Governor’s Code of Conduct, State Ethics Act and
Commonwealth internet user agreement.
a. PennDOT’s “Gifts and Favors Policy” was enacted on or about April 20,
2000, and updated effective December 3, 2007.
15. PennDOT’s December 3, 2007, Gifts and Favors Policy included the following
restrictions applicable to all PennDOT employees.
prohibited
a. You are from accepting a gift, gratuity, favor, entertainment, loan
or any other thing of monetary value (collectively referred to as “gift”) from a
person who:
(1) Is seeking to do business with the Commonwealth.
(2) Conducts operations or activities that are regulated by the
Commonwealth.
(3) Is engaged, either as principal or attorney, in proceedings before the
Commonwealth or in court proceedings in which the Commonwealth
is an adverse party.
(4) Has interests that may be substantially affected by the performance
or nonperformance of the employee’s official duty.
b. It does not matter if the gift was intended for the employee or anyone else
(family member, co-workers, etc).
c. The following is a list of examples of items that, if accepted, constitute a
violation of this policy. This is not an all-inclusive list, but will illustrate items
that could be offered by and must not be accepted from people or
businesses seeking to, or conducting business with, the Commonwealth.
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Sporting events or entertainment tickets
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Golf outings
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Vendor incentives or rewards – discount coupons or mail-in rebates
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Clothing – hats, shirts, or jackets
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Gift cards/certificates or cash
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Food, meals, beverages, or entertainment
d. It is a violation of the policy even if the gift was not solicited from the person
or business seeking to or conducting business with the Commonwealth (i.e.,
the gift was sent in the mail). In addition, even if the gift was not used or the
event not attended, its acceptance constitutes a violation of the policy. All
Keyton, 09-044
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gifts that are offered or received must immediately be reported to a
supervisor and returned to the person or business. If it is impractical to
return the gift (i.e., a fruit basket), donate the gift to charity and tell the
sender in writing not to send similar gifts in the future.
permitted
e. Listed below are exceptions; and as such, you are to accept the
following:
(1) Food Refreshment – Infrequent occasions of accepting food and
beverages of nominal value during meetings.
(2) Advertisements/Promotional Materials – Unsolicited pens, pencils,
note pads, calendars, or other nominal value items.
(3) Award – Presentation for participation in the affairs of or acceptance
for meritorious public contribution or achievement from a charitable,
religious, professional, social, fraternal, or non-profit educational,
recreational, public service or civic organization.
(4) Thank You Gift – Acceptance of a plaque, memento, or gift of nominal
value offered as a token of esteem or appreciation on the occasion of
a public appearance, visit, or speech.
(5) Congratulatory Gift – A voluntary gift of nominal value or donation in a
nominal amount made on a special occasion such as marriage,
illness, or retirement.
(6) Personal Gift – Acceptance of something of monetary value from a
personal friend or relative when the circumstances make it clear that
the motivation for the action is a personal or family relationship. (If
the personal friend or relative is also a person or business seeking to
or conducting business with the Commonwealth, you must seek
approval from your Bureau Director or District Executive prior to
accepting a gift.)
f. NOTE: Gifts with a value of more than $100 are reportable on the
Governor’s Code of Conduct Statement of Financial Interests form. Gifts
with a value of more than $250 are reportable on the State Ethics
Commission Statement of Financial Interest form.
Department
g. Failure to comply with this policy is also a violation of the
Working Rules, Major Work Rule #18
: Acceptance of loans, offers,
gratuities, favors, service, or other proffered arrangements for personal
benefit from private parties or organizations doing business with the
Department or which in any way is connected with Department employment
is prohibited.
h. Keyton signed the acknowledgement of PennDOT’s Gifts and Favors Policy
on December 7, 2007.
16. Keyton in his official capacity as a Highway Equipment Manager II and III also was
required to comply with PennDOT’s Major Work Rules and conditions of
supplemental employment.
17. PennDOT’s Major Work Rule #18 relating to the receipt of gifts, etc. provides as
follows:
Keyton, 09-044
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“acceptance of loans, offers, gratuities, favors, services, or other
proffered arrangements for personal benefit from private parties or
organizations doing business with the Department or which in any
way is connected with Departmental employment is prohibited”
a. PennDOT’s gift policy provides that “You are prohibited from accepting a gift,
gratuity, favor, entertainment, loan or any other thing of monetary value from
a person who:
1. Is seeking to do business with the Commonwealth.
2. Conducts operations or activities that are regulated by the Commonwealth.
3. Is engaged either as principal or attorney in proceedings before the
Commonwealth or in court proceedings in which the Commonwealth is an
adverse party.
4. Has interests that may be substantially affected by the performance or non-
performance of the employee’s official duties.
18. Keyton was subject to PennDOT’s policy regarding approval of supplemental
employment as detailed in the following findings.
a. In February of 1997 Keyton applied for supplemental employment approval
to serve as the Assistant Varsity Football Coach of the Upper Adams School
District.
b. This supplemental employment request was approved by PennDOT on April
20, 1999.
19. On July 1, 1997, Keyton signed a general affidavit relating to conditions of his
supplemental employment. Keyton agreed to comply with the following nine (9)
conditions:
1. I may not conduct business with the Department or any state agency;
2. I may not represent any private interest on any matter, whether or not
for payment, before the Department or any state agency. “Represent”
means any action taken by a Department employee, including, but not
limited to, appearances by the employee, communications of any
nature by the employee, submissions by anyone of the employee’s
work whether or not it identifies the employee, or involvement by the
employee in any preliminary activities which become part of those
submissions. I will take reasonable precautions to ensure that my
work will not be submitted by anyone to the Department or any state
agency;
3. I may not use information or data obtained or derived from
employment with the Department or any state agency to further
business interests;
4. I may not accept private business conflicting with or accruing from
employment with the Department or any state agency;
5. I may not solicit work in connection with my supplementary
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employment during work hours or at facilities of the Department or of
any state agency;
6. I may not use the property of the Department or of any state agency
for my supplemental activities;
7. I must comply with Management Directive 205.14 and am prohibited
from conducting any private business in the Offices of the Department
or any state agency at any time before, during or after normal working
hours or anywhere during normal working hours; and
8. The above conditions apply at all times regardless of whether I am in
an active or an inactive employment status. Inactive employment
status includes, but is not limited to all periods of unpaid leave with or
without benefits, absences without leave and disciplinary
suspensions.
9. Violation of any of the above conditions may result in disciplinary
action against me by the Department of Transportation including, but
not limited to, suspension and/or dismissal.
20. On August 1, 2003, Keyton signed a Commonwealth Internet/E-mail User
Agreement. By signing the agreement, Keyton acknowledged the following
conditions:
1. I understand any of my electronic communications on Commonwealth
Internet/E-mail systems may be tracked, monitored, and read by all
authorized Commonwealth staff as determined by the agency head,
which may include executive level staff, legal staff, human resources
staff, network system administrators, and individuals in the
employee’s chain of command.
2. I understand that I have no expectation of privacy in any Internet/E-
mail communications on Commonwealth systems, as any such
communications are the property of the Commonwealth.
3. I understand that Internet/E-mail use is intended for carrying out
Commonwealth business activities.
4. I understand that these rules apply to Internet/E-mail access on any
Commonwealth computer networks, in Commonwealth work settings,
and via remote access and/or on Commonwealth equipment.
5. I will adhere to the security policies of the Commonwealth and its
agencies as well as the security policies of any other organizations I
communicate with electronically.
6. I will adhere to the nondiscrimination policies of the Commonwealth
as set forth in Executive Order 1996-9, Equal Employment
Opportunity, and Executive Order 1999-3, Prohibition of Sexual
Harassment in the Commonwealth, in all electronic communications.
7. I will NOT engage in any of the following:
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Use of any Commonwealth Internet/E-mail systems for the purpose of
personal financial gain.
Keyton, 09-044
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Use of any Commonwealth Internet/E-mail systems to view, access,
transmit, or create sexually suggestive, pornographic, or obscene
materials, or to view, access, transmit, or create any material that a
reasonable individual may find personally offensive or inappropriate.
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Use of any Commonwealth Internet/E-mail systems to engage in any
fundraising activities not specifically sponsored, endorsed, or
approved by the Commonwealth.
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Participate in Internet activities which inhibit my job performance or
present a negative public image, such as auctions or games.
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Any illegal activity in connection with my use of the Commonwealth’s
Internet/E-mail access, including, but not limited to, hacking, cracking,
or altering internal or external computer security systems.
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The creation of [sic] spreading of computer viruses or the like.
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Unauthorized transmission or receipt of proprietary material (i.e.,
copyrighted video or audio materials, software, or publications, as
well as trademarks or service marks).
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Participation or promotion of any activities that are prohibited by local,
state, or federal law. I understand that I may be prosecuted for
conducting any such activities on Commonwealth Internet/E-mail
systems.
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Use of any Commonwealth Internet/E-mail systems to violate or
infringe upon the rights of any other person.
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Use of any other authorized user’s password and/or equipment to
conduct unacceptable activities.
21. Keyton in his official capacity as a Highway Equipment Manager II and III was also
required to comply with the provisions of the State Ethics Act (Act 93 of 1998),
including financial disclosure requirements.
22. Between 2005 and December 2008, Keyton utilized the access he had to various
Commonwealth vendors and subcontractors in his official capacity as a Highway
Equipment Manager II and III to solicit and/or receive sponsorship for his personal
racing endeavors, gifts, and free or discounted repair work and discounts on
personal vehicle purchases.
a. Keyton had access to vendors as part of pre-bid meetings, delivery
inspections and other interactions discussing equipment specifications and
needs.
b. Keyton discussed his personal racing activities with Commonwealth vendors
and subcontractors while conducting official business and solicited
sponsorships from these vendors.
c. Keyton’s receipt of these items was not consistent with PennDOT’s major
work rule #18.
d. Keyton’s failure to disclose the receipt of gifts and sponsorships on
Statement of Financial Interests forms also concealed this activity from his
employer.
23. Keyton created KDH Racing in or around 2005.
a. Keyton did not file any incorporation or other business organizational papers
for KDH Racing with the Pennsylvania Department of State Corporation
Bureau.
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Page 9
b. KDH Racing is the name given to the entity Keyton formed to advance his
stock car racing interests.
24. Keyton raced in the INEX Legends Series in the semi-pro class under the name
KDH Racing.
a. The INEX Legends Car Series was created in April of 1992 as an affordable
“spec class of racing.”
b. Drivers are “classified into four different divisions…the Pro Division is for the
experienced drivers. The Masters Division features drivers 40 years and
older. The Semi-Pro Division is the novice class, featuring drivers that are
new to the sport or have been inactive in other forms of racing for a
while…the Young Lions Division is designated for drivers between the ages
of 12 and 16.”
25. To participate in the INEX Legends Series, teams have expenses including the race
car, maintenance, upkeep, entry fees, travel, tool and equipment acquisition.
a. The cost of racing may be offset by winnings and sponsorships.
b. Sponsorships are generally in the form of money, parts, tools and/or
equipment or services.
26. While racing in the INEX Legends Car Series, Keyton had an informational drivers
page on the Central Pennsylvania Legends Car Series website.
a. The weblink for Keyton’s drivers page was
http://www.centralpalegends.com/Drivers/KennKeyton.htm.
b. Keyton’s drivers page link is no longer active.
27. Information contained on Keyton’s drivers page included name, age, occupation,
years racing, team name, car owner, INEX class, sponsors and a photo of the
actual car.
a. Keyton identified himself as the car owner, driving a 1937 Chevy Sedan in
the INEX semi-pro class for KDH Racing.
b. Sponsors were identified as River’s Truck Center, Stephenson Equipment,
Rosenberry’s Appliance Service, the Tire Mart and Amsoil.
1. Keyton included internet web addresses for River’s Truck Center and
Stephenson Equipment.
28. Stephenson Equipment and River’s Truck Center both were vendors with which
Keyton had professional dealings at PennDOT as part of contracts and/or
subcontracts.
a. The Tire Mart sold Goodyear brand tires to the Commonwealth through a
Department of General Services contract.
b. Rosenberry’s Appliance Service was owned by Keyton’s brother-in-law.
c. Amsoil was not a specific Commonwealth vendor.
Keyton, 09-044
Page 10
29. Keyton did not file any Federal, State, or local income tax returns for KDH
Racing.
a. Through his counsel, Aaron Martin, Keyton asserted that “his racing activity
was in the nature of a hobby and that no corporation or other juristic entity
was ever formed.”
b. Keyton did not report any income or claim any expense deductions from his
racing activities on Federal and State income tax returns jointly filed in the
names of Kenneth G. Keyton and Sheryl A. Keyton (spouse) for calendar
years 2005 through 2008.
30. Keyton was engaged in racing activities from or about April 2005 to or about June
2008.
a. Tracks Keyton raced at included Susquehanna, Path Valley, Big Diamond,
Lincoln and Grandview.
b. The purse for a race was generally $250-$300 for a win, dropping to $10-
thth
$25 for 15 to 24 finishing places depending on car count and track.
31. Between April 14, 2005, and June 15, 2008, Keyton did not receive in excess of
$1,300.00 for his racing activities in any calendar year.
32. Keyton solicited and/or received sponsorship and/or goods and services, for his
racing endeavors from Tire Mart, River’s Truck Center, Dover Area Animal Hospital,
Amsoil, Rossenberry’s Appliance Service, Stephensons Equipment, ITI Trailers &
Truck Bodies, Ingersoll Rand/Volvo Construction Equipment and Certified Power.
a. Keyton included some of these business names on Keyton’s race car, car
trailer or Legends Series driver’s page.
b. ITI Trailer & Truck Bodies, Ingersoll Rand/Volvo Construction Equipment
and Certified Power did not appear as sponsors.
c. Ingersoll Rand/Volvo Construction Equipment and Certified Power did not
provide Keyton with any goods or services.
33. At least three (3) of the sponsors of Keyton’s racing activities were Commonwealth
vendors who provided goods and/or services to PennDOT.
a. The following sponsor names appeared on either the car, car trailer or
Keyton’s driver’s page:
Car Commonwealth Vendor
Tire Mart Yes
River’s Truck Center Yes
Car Trailer
Dover Area Animal Hospital No
Amsoil No
Tire Mart Yes
Rosenberry’s Appliance Service No
Driver’s Page
River’s Truck Center Yes
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Stephensons Equipment Yes
Rosenberry’s Appliance Service No
Tire Mart Yes
Amsoil No
b. River’s Truck Center and Stephenson Equipment both had direct dealings
with PennDOT’s Equipment Division.
c. Dover Area Animal Hospital, Rosenberry’s Appliance Service and Amsoil
were private sponsors providing goods, services and/or financial support of
approximately $500.00 or less per year of sponsorship.
34. Between 2006 and 2008 Keyton received sponsorships, gifts, discounted and/or
free repair service from the following businesses that contracted with PennDOT:
Sponsorship
a.
BusinessTime frame Sponsorship/value
Tire Mart 02/21/06 (4) Tow Master Trailer Tires
approx. $530.00
Tire Mart Unknown (1) Battery approx. $70.00
Stephenson Equipment 02/07/07 $1,200.00 Sponsorship Money
Stephenson Equipment 01/08/08 $1,200.00 Sponsorship Money
Gifts/Discounted Travel and Lodging
b.
BusinessTime frame Value
Reading Truck Body10/23/08 Meal, $10.00 gift card, Cabela’s
jacket approx. value $25.00
Unknown total value
River’s Truck Center Approx. 1/6/07 Repairs and paint work on race car.
$600.00 value, paid $371.00 gain
approx. $265.00
35. Keyton obtained the items detailed in the previous finding based on the access he
had to those vendors in his position with PennDOT’s Equipment Division.
a. Tire Mart was the only contractor or subcontractor that did not have direct
dealings with Keyton as [it was] a supplier of Goodyear tires pursuant to a
DGS contract.
b. Keyton asserts that he knew some of these vendors before he began
working for PennDOT’s Equipment Division.
36. The Tire Mart, 4914 Jonestown Road, Harrisburg, PA 17109 was a family owned
and operated business from approximately 1968 until 2009.
a. Jack Dietel was the owner from approximately 2001 to 2009.
b. The Tire Mart was the authorized supplier of Goodyear Tires to DGS and
PennDOT.
c. Tire prices were set pursuant to a contract between DGS and Goodyear with
Tire Mart receiving a nominal delivery fee.
37. On February 21, 2006, the Tire Mart provided Keyton with four (4) Tow Master
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trailer tires size 205-75R15, including mounting, spin balancing and new valve
stems.
a. The approximate value of these tires was $530.00 including tax.
b. Keyton did not pay anything towards the cost of the tires.
c. These tires were for Keyton’s car trailer used to haul and store his race
car.
d. Keyton had a customer number of 28388 with Tire Mart.
38. The tires were given to Keyton as partial sponsorship of his racing activities.
a. The Tire Mart would provide some form of sponsorship to one or two race
teams per year.
b. In exchange for the tires, Keyton had the Tire Mart’s name lettered on both
his race car and the trailer.
1. Keyton also provided Jack Dietel with a photo of the race car.
c. Keyton did not provide the Tire Mart with any other services in exchange for
the sponsorship.
39. Sometime between 2006 and 2008, the Tire Mart provided Keyton with additional
sponsorship in the form of an Interstate brand battery.
a. The approximate retail value of the battery was $70.00.
b. Keyton had access to Tire Mart as both a PennDOT employee and personal
customer.
40. Stephenson Equipment, Inc., 7201 Paxton Street, Harrisburg, PA 17111 is a vendor
specializing in the rental, sale and service of cranes and road equipment.
a. In 2007 and 2008 Stephenson Equipment, Inc. was a Commonwealth vendor
with equipment on PennDOT and DGS contracts.
41. Stephenson Equipment, Inc. advertises its business in trade publications and other
forms of advertising such as sponsorships.
a. Racing sponsorships are done as an effort to get the Stephenson Equipment
name out to potential customers.
42. Keyton solicited sponsorship funding from Stephenson Equipment, Inc. in 2007 and
again in 2008.
a. Stephenson Equipment, Inc. provided a sponsorship in the amount of
$1,200.00 for both 2007 and 2008.
43. Dennis Heller, President of Stephenson Equipment, Inc., authorized the annual
sponsorship of Keyton’s racing activities during 2007 and 2008 based on requests
he received from Keyton.
a. Heller met and knew Keyton only through Keyton’s position at PennDOT.
Keyton, 09-044
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b. Heller and Keyton had discussed Keyton’s racing activities on various
occasions during meetings related to PennDOT business.
c. Keyton provided Heller with sponsorship literature and a picture of his race
car.
44. On January 20, 2007, Keyton, on KDH Racing [residence address redacted]
stationery, issued a sponsorship invoice in the amount of $1,200.00 to Stephenson
Equipment, Inc. for the 2007 racing season.
a. [Residence address redacted] is Keyton’s primary residence.
45. Stephenson Equipment, Inc. issued business check number 32867, in the amount
of $1,200.00 to KDH Racing on February 7, 2007.
a. This check was for sponsorship of Keyton’s race car for the 2007 racing
season.
b. In exchange for the sponsorship money, Keyton placed the Stephenson
Equipment, Inc. name on his legends car series driver’s webpage, race car
and trailer.
c. Keyton did not provide any services to Stephenson Equipment, Inc. for the
sponsorship money.
46. On December 26, 2007, Keyton, on KDH Racing stationery, issued a sponsorship
invoice in the amount of $1,200 to Stephenson Equipment, Inc. for the 2008 racing
season.
a. Stephenson Equipment, Inc. issued business check number 8340, in the
amount of $1,200.00 to KDH Racing on January 8, 2008, for sponsorship of
Keyton’s race car for the 2008 racing season.
b. In exchange for the sponsorship money, Keyton placed the Stephenson
Equipment, Inc. name on his legends series driver’s webpage, race car and
trailer.
c. Other than placing the name of Stephenson Equipment, Inc. on his race car
and trailer, Keyton did not provide any services to Stephenson Equipment,
Inc. for the sponsorship money.
47. During the time frame when Keyton solicited and received sponsorship funding from
Stephenson Equipment, Inc., the company was conducting business with
PennDOT.
a. In the 2006-07 fiscal year, Stephenson Equipment, Inc. did $5,026,398.65 in
business with PennDOT.
b. In the 2007-08 fiscal year, Stephenson Equipment, Inc. did $4,271,135.64 in
business with PennDOT.
48. Keyton had access to Stephenson Equipment, Inc. (SEI) officials as a result of his
position with PennDOT.
a. Keyton met with Dennis Heller, SEI President solely through his PennDOT
Keyton, 09-044
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positions.
b. Sponsorship discussions were initiated during meetings related to the issue
of PennDOT contracts.
49. River’s Truck Center, 2975 Cape Horn Road, Red Lion, PA 17356 is a truck sales
and service facility marketing brands including Sterling, Western Star and
Mitsubishi.
a. River’s Truck Center was on the DGS contract for type 2, single axle trucks
prior to approximately 2005.
b. Since 2005, River’s Truck Center has sold the Commonwealth several trucks
through DGS bid awards.
50. Brad McKinsey, owner of River’s Truck Center (RTC), met Keyton as a result of
Keyton’s employment with PennDOT.
a. McKinsey would discuss bid specifications with Keyton as part of pre-bid
meetings for future equipment bidding.
b. McKinsey and Keyton developed a personal friendship and would socialize
beyond PennDOT business.
51. In or about January 2007 Keyton contacted McKinsey to perform repairs/painting to
Keyton’s race car.
a. At the time of Keyton’s request to McKinsey, RTC was providing services to
PennDOT.
52. On January 6, 2007, River’s Truck Center, Inc. issued repair invoice number 9801
in the amount of $371.00 to Ken Keyton, K.D.H. Racing.
a. This invoice was for work in the amount of $350.00 plus $21.00 tax.
b. The description of work was “paint parts for race car, customer supply paint”
with a notation paid cash 1-6-07.
53. River’s Truck Center, Inc. has a paint facility on-site.
a. Keyton did the prep work on the pieces to be painted.
b. The actual paint work was completed by a River’s Truck Center employee.
54. The approximate value of the paint services, as estimated by McKinsey, was
$600.00.
a. Keyton was charged $350.00.
b. Keyton saved $250.00 plus tax of $15.00 for a total of $265.00 off the fair
market value of this work as a result his relationship with McKinsey.
55. Keyton provided McKinsey with a photo of his completed race car which included
company lettering for River’s Truck Center.
a. Company lettering/logo on a race car is a form of advertising.
Keyton, 09-044
Page 15
b. The advertising on Keyton’s race car was not requested by McKinsey.
56. During the 2006-07 fiscal year, River’s Truck Center did $5,048,514.00 in business
with PennDOT.
57. ITI Trailers and Truck Bodies, Inc., 8535 Mason Dixon Highway, Meyersdale, PA
15552, was a supplier of dump bodies installed on Mack Trucks.
58. Leonard Lottig, owner of ITI Trailers and Truck Bodies, races sprint cars and had
seen Keyton race at Path Valley in the Legends car series.
59. During the spring of 2006 Lottig fixed the roll cage and did some paint work on
Keyton’s race car at no cost.
a. Keyton had wrecked his race car and was going to take it back to the
manufacturer in Charlotte, North Carolina, for repairs.
b. Lottig offered to repair the car at no cost.
c. The estimated cost of the repair work Lottig performed for Keyton was
$500.00.
d. Keyton offered to put the ITI Trailer and Truck Bodies, Inc. name on his race
car as a way of repaying Lottig for the repairs.
e. Lottig did not accept Keyton’s sponsorship offer.
60. ITI Truck Trailers and Truck Bodies did not have a contract with the Commonwealth
at the time Lottig made the repair to Keyton’s race car.
61. Keyton solicited sponsorship for his racing activities from two (2) other
Commonwealth vendors, Certified Power and Ingersoll Rand/Volvo Construction
Equipment.
a. Certified Power, 970 Campus Drive, Mundelein, IL 60060 supplies hydraulic
systems for trucks as a PennDOT subcontractor.
b. Ingersoll Rand/Volvo Construction Equipment, 621 Lowther Road,
Lewisberry, PA was an equipment vendor on the Commonwealth power
equipment contract.
62. After a pre-bid meeting held during the fourth quarter of 2006, Keyton approached
Kevin Smith, owner and David Austin, Eastern Sales Manager of Certified Power
seeking sponsorship for his racing activities.
a. Smith and Austin attended the pre-bid meeting at PennDOT’s Equipment
Division’s office in Harrisburg, Pennsylvania.
b. Keyton approached the two (2) after the meeting and solicited a
sponsorship.
c. Keyton provided Smith and Austin with literature on his racing activities.
d. Keyton had access to Smith and Austin as a result of his Commonwealth
employment and the pre-bid meeting where Certified Power would be
Keyton, 09-044
Page 16
bidding on a PennDOT project.
e. Keyton did not specify a dollar amount, or other type of sponsorship.
63. Smith and Austin decided not to sponsor Keyton’s racing activities based on an
appearance of a conflict of interest.
64. After a 2006 meeting at PennDOT, Keyton approached James Buffington of
Ingersoll Rand/Volvo Construction Equipment soliciting a generator for his racing
business.
a. Buffington, a sales representative for Ingersoll Rand/Volvo Construction
Equipment was at PennDOT on official business.
b. Keyton had access to Buffington as a result of his Commonwealth
employment.
c. Keyton asked Buffington to donate a generator for his racing activities.
d. Generators sold by Ingersoll Rand/Volvo Construction Equipment are
industrial models valued between $3,500-$5,500.
e. Keyton did not offer a sponsorship in exchange for the generator.
1. Keyton did not offer to pay for the generator.
65. Buffington did not respond to Keyton’s request based on the appearance of a
conflict of interest.
a. During the 2006-07 fiscal year, Ingersoll Rand/Volvo Construction
Equipment did $206,188.00 in business with PennDOT.
66. On October 23, 2008, Reading Equipment & Distribution, a/k/a Reading Truck
Bodies, Inc., held a promotional event in a tent set up at Cabela’s, a retail sports
supply store, in Hamburg, Pennsylvania.
a. The reason for the event was to showcase additions to the company’s
product line.
b. Reading Truck Bodies sells truck bodies and other truck equipment.
c. Reading Truck Bodies was a Commonwealth subcontractor.
d. Dealers bidding PennDOT truck contracts would include Reading Truck
Bodies as part of their bid specifications to provide trucks to PennDOT.
67. The October 23, 2008, Reading Equipment & Distribution, Inc. event held at
Cabela’s was by invitation only.
a. This event was not open to the general public.
b. Invitation post cards were sent out to Reading Equipment & Distribution
customers in both the public and private sectors.
1. Invitations were sent to PennDOT.
Keyton, 09-044
Page 17
c. As part of the event, attendees were provided with a buffet style meal,
Cabela’s jacket and a $10.00 Cabela’s gift card.
d. The approximate value of the jacket was twenty-five dollars.
68. Individuals attending the event were requested to send an RSVP card.
a. The card included a space to complete indicating the size requested for the
free jacket.
b. Itinerary for event included the following:
10:30 a.m. to 11:00 a.m. – Registration and Walk Around
11:00 a.m. to 11:30 a.m. – Reading & Presentation
11:30 a.m. to 12:30 p.m. – Free Lunch Buffet
69. Keyton was the only PennDOT employee who attended the event.
a. Keyton submitted an attendance card for the event requesting an XL size
jacket.
70. PennDOT employees wanting to attend such trade events are to obtain the
approval of their immediate supervisor.
a. Keyton did not obtain permission from James Smith, his supervisor to attend
the event.
1. No PennDOT employees were authorized to attend the event.
71. Keyton attended this event during his regular working hours as a PennDOT
employee.
a. Keyton was compensated for 7.5 hours on October 23, 2008, the day of the
event.
1. Keyton’s hourly rate of compensation on October 23, 2008, was
$40.61/hour.
2. Keyton’s total pay on October 23, 2008, was $304.57 (7.5 hrs. x
$40.61/hour).
3. Keyton utilized at least (4) hours traveling to and from and attending
the Cabela’s event.
b. Keyton traveled to Cabella’s in a State owned vehicle assigned to PennDOT.
c. Keyton told Smith telephonically that he was going to Reading Equipment’s
shop for work purposes.
1. Reading Equipment and Distribution’s shop was not located in the
vicinity of Cabela’s.
d. Keyton’s vehicle log for October 23, 2008, confirms his travel as follows:
- Residence (York) to River’s Truck Center
- River’s Truck Center to Cabela’s (Harrisburg, PA)
- Cabela’s to State College
- State College to Residence (York)
Keyton, 09-044
Page 18
e. Keyton traveled approximately 110 miles in a State vehicle to attend the
Cabela’s event.
1. Beginning in August 2008 the mileage reimbursement rate was
$.585.
2. The cost to the Commonwealth of Keyton’s personal travel was at
least $64.35 (110 miles @ $.585/mi).
72. On October 24, 2008, Smith questioned Keyton regarding his attendance at the
Cabela’s event.
a. Other PennDOT employees were invited but did not attend the Cabela’s
event.
b. Smith had received information that Keyton attended the Cabela’s event.
c. Keyton admitted his attendance at the Cabela’s event.
73. Keyton’s receipt of gifts at the Cabela’s events would have been in violation of
PennDOT’s gift policy.
a. Keyton asserts that, per both the policy and practice of PennDOT at the
time, he was permitted to attend the Cabela’s event and receive the meal.
Keyton also asserts that he did not keep the Cabela’s jacket or gift card.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT KEYTON USED
COMMONWEALTH EQUIPMENT AND FACILITIES IN FURTHERANCE OF HIS
PRIVATE RACING ACTIVITIES.
74. Keyton in his official capacity as a Highway Equipment Manager II and III had
access to Commonwealth equipment and facilities including, but not limited to:
a. Phones
b. Internet connection
c. Office space
d. Copy and fax machines
e. Computer
75. Keyton was assigned a Dell laptop computer ID #PDEDLT461036XP for
Commonwealth use.
a. Keyton utilized this computer for sponsor requests and related literature in
furtherance of his KDH racing activities during 2006 and 2007.
76. A forensic examination of Keyton’s Commonwealth laptop computer produced two
(2) separate sponsor solicitation letters and a brochure relating to Keyton’s
personal racing activities.
a. Keyton did not receive approval from PennDOT to use Commonwealth
computers in furtherance of his private racing endeavors.
77. Sponsorship solicitation letters were on Keyton’s Commonwealth computer for the
2006 and 2007 racing seasons.
Keyton, 09-044
Page 19
78. A two (2) page brochure soliciting sponsorship of Keyton’s racing team was also
found on Keyton’s Commonwealth computer.
a. The base information on the brochure was similar to the 2007 solicitation
letter.
b. Additional information contained in the brochure included a picture of
Keyton’s race car and contact information: “KDH Racing Ken Keyton
[residence address and cell phone number recacted].”
c. [Residence address redacted] was Keyton’s home address.
79. The two (2) solicitation letters and related brochure did not relate to Keyton’s
responsibilities at PennDOT.
a. PennDOT did not sponsor Keyton’s racing activities.
b. Keyton was not authorized to use Commonwealth equipment for his personal
racing endeavors.
c. Keyton’s maintenance of this information on his computer enabled him to
have it readily available when vendors stopped by his office at PennDOT.
80. When questioned regarding his acceptance of gifts, hospitality, and lodging from
vendors he dealt with and acceptance of sponsorship of his racing activities, Keyton
gave the following explanations:
a. He said he supervised and managed the section in the division responsible
for buying equipment for the Commonwealth assuring that it meets
specifications and approving payment for the equipment.
b. He was familiar with the Governor’s Code of Conduct and Department’s Gifts
and Favors policy.
c. His understanding was not to take gifts or favors from vendors.
d. He acknowledged signing the Gifts and Favors policy, knowing that a
violation of the policy will result in discipline up to and including termination.
e. His knowledge of the State Ethics Act was limited to knowing he had to
annually file a Statement of Financial Interests form.
f. He did not have a supplemental employment form on file for his racing
activity.
g. He had a racers profile page which included sponsor names on the legends
series website.
h. He won very little money racing, $45-$50, never required to fill out
paperwork for the money.
i. He was sponsored by a veterinarian, chiropractor, Tire Mart and Stephenson
Equipment.
1. Stephenson Equipment is a sponsor Keyton dealt with in his
Commonwealth position.
Keyton, 09-044
Page 20
j. Other gifts he received from vendors included hats, trinkets and occasional
meals.
k. River’s Truck Center, a PennDOT vendor, painted some parts for him in
2007 [for which he paid].
l. He attended the fall event sponsored by Reading Equipment held in
Cabela’s parking lot.
1. He was not sure if he had permission from James Smith to attend.
2. He denied receiving any of the promotional items offered (jacket, gift
card, meal).
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT KEYTON FAILED TO
REPORT GIFTS, HOSPITALITY AND LODGING AND HIS OFFICE, DIRECTORSHIP OR
EMPLOYMENT IN KDH RACING AND HIS FINANCIAL INTERESTS IN KDH RACING ON
STATEMENTS OF FINANCIAL INTERESTS FILED FOR THE 2006, 2007 AND 2008
CALENDAR YEARS.
81. Keyton in his official capacity as a Highway Equipment Manager II and III was
annually required to file a Statement of Financial Interests form by May 1 containing
information for the prior calendar year.
82. Statements of Financial Interests forms filed by Keyton with PennDOT include the
following filings:
Calendar Year
a. : 2008
Dated
: 04/19/09 on form SEC-1 REV 1/09
Position
: Former Highway Equipment Manager 3
Creditors
: None
Direct/Indirect income
: Transportation
All other financial interests
: None
Calendar Year
b. : 2007
Dated
: 04/08/08 on form SEC-1 REV 1/08
Position
: Highway Equipment Manager 3
Creditors
: None
Direct/Indirect income
: Transportation
All other financial interests
: None
Calendar Year
c. : 2006
Dated
: 03/22/07 on form SEC-1 REV 1/07
Position
: Highway Equipment Manager 2
Creditors
: None
Direct/Indirect income
: PennDOT Equipment Division
All other financial interests
: None
83. In addition to filing SFIs annually, Keyton also was required to complete a
Governor’s Code of Conduct Form.
a. Code of Conduct forms include information for the prior calendar year: (i.e.,
2009 filing contains information for the 2008 calendar year).
Keyton, 09-044
Page 21
b. Keyton annually completed Code of Conduct forms between 2004 and
2008.
c. Keyton reported ‘none’ under the categories for gifts on forms filed in 2004
through 2008.
84. Keyton did not disclose the receipt of sponsorship on any Statements of Financial
Interests or Governor’s Code of Conduct forms filed for the 2006, 2007, and 2008
calendar years.
85. Keyton failed to list Leonard Lottig d/b/a ITI Trailers and Truck Bodies, Inc. on his
Statement of Financial Interests form filed for the 2006 calendar year.
a. Lottig provided welding, repair and paint work on Keyton’s race car valued at
$500.00 (plus tax $530.00) at no cost to Keyton.
b. Lottig knew Keyton as a result of Keyton’s PennDOT employment.
86. Keyton failed to list River’s Truck Center on his Statement of Financial Interests
form filed for the 2007 calendar year.
a. Keyton was billed $371.00 with tax for work valued at $636.00 including tax.
b. Keyton received a discount value of $265.00 ($636.00 value - $371.00 paid
= $265.00 discount).
87. Keyton failed to list Stephenson Equipment on his Statement of Financial Interests
forms filed for the 2007 and 2008 calendar years.
a. Stephenson Equipment provided Keyton with $1,200.00 in sponsorships in
both the 2007 and 2008 calendar years.
88. Keyton, in his public position, solicited and received gifts, sponsorships and free or
discounted services from vendors of PennDOT which were prohibited by Governor’s
Code of Conduct and PennDOT policies.
89. Keyton’s solicitation and receipt of items prohibited by the Governor’s Code of
Conduct and PennDOT policies resulted in a private pecuniary gain to Keyton as
follows:
Source 2006 2007 2008
a. Sponsorships:
Stephenson Equipment $1,200.00 $1,200.00
Tire Mart $530.00
b. Free Services:
Tire Mart (battery) $70.00
ITI Trailers/Truck Body $530.00
c. Gifts:
Reading Truck Body $35.00
d. Discounted Services:
River Truck Center $265.00______________
$1,130.00 $1,465.00 $1,235.00
Keyton, 09-044
Page 22
III.DISCUSSION:
As a Highway Equipment Manager II for the Pennsylvania Department of
Transportation (“PennDOT”) from approximately May 8, 1999, until August 6, 2007, and as
a Highway Equipment Manager III for PennDOT from approximately August 6, 2007, until
December 23, 2008, Respondent Kenneth G. Keyton, hereinafter also referred to as
“Respondent,” “Respondent Keyton,” and “Keyton,” was a public employeesubject to the
provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101
et seq.
The allegations are that Keyton violated Sections 1103(a) and 1105(b) of the Ethics
Act when he used the authority of his public position for the private pecuniary benefit of
himself and/or a business with which he is associated by soliciting and/or accepting items
of monetary value from Commonwealth vendors and a Commonwealth sub-vendor and
when he solicited and/or accepted contributions from Commonwealth vendors for KDH
Racing, a business with which he is associated; when he failed to report income, gifts,
hospitality and lodging, and office, directorship or employment in KDH Racing, and his
financial interest in KDH Racing on Statements of Financial Interests (“SFIs”) filed for the
2006, 2007 and 2008 calendar years; and when he utilized Commonwealth equipment and
supplies in furtherance of his private business interests as a race car owner.
Per the Consent Agreement, the Investigative Division has exercised its
prosecutorial discretion to nol pros the alleged violation(s) of Section 1105(b) of the Ethics
Act except for the alleged violation of Section 1105(b)(6). Based upon the nol pros, we
need not address those portions of the Section 1105(b) allegation that are no longer
before us.
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
Keyton, 09-044
Page 23
a member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official/public employee from
using the authority of public office/employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official/public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the Statement of Financial Interests form must provide.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(b)(6) of the Ethics Act requires the filer to disclose on the Statement of Financial
Interests the name and address of the source and the amount of any gift or gifts valued in
the aggregate at $250 or more and the circumstances of each gift.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Respondent Keyton was employed by PennDOT from approximately September 9,
1974, until his resignation effective December 23, 2008. Keyton was a Highway
Equipment Manager II from approximately May 8, 1999, until August 6, 2007. Keyton was
a Highway Equipment Manager III from approximately August 6, 2007, until December 23,
2008.
In his capacities as a Highway Equipment Manager II and III, Keyton was a public
employee as that term is defined in the Ethics Act, and he was required to comply with the
Ethics Act. Keyton was also subject to the Governor’s Code of Conduct and certain
PennDOT policies, which prohibited him from accepting a gift, gratuity, favor,
entertainment, loan, or any other thing of monetary value from a person seeking to do
business, or conducting business, with PennDOT.
On August 1, 2003, Keyton signed a Commonwealth Internet/E-mail User
Agreement, acknowledging that he would not use any Commonwealth Internet/E-mail
systems for the purpose of personal financial gain or to engage in any fundraising
activities not specifically sponsored, endorsed, or approved by the Commonwealth.
While serving as a Highway Equipment Manager II and III for PennDOT, Keyton’s
job duties included participating in pre-bid meetings with potential PennDOT vendors,
assisting and/or developing equipment bid specifications, selecting vendors from state
contracts, participating in delivery inspections of equipment, and authorizing clerical staff
to initiate payment for equipment pursuant to PennDOT purchasing procedures. While
serving as a Highway Equipment Manager III, Keyton was the Section Chief in the
Equipment Division overseeing the aforementioned activities.
In a private capacity, Keyton was engaged in car racing activities from or about April
2005 to or about June 2008. Keyton raced under the name “KDH Racing.”
In his public position, Keyton utilized the access he had to Commonwealth vendors
and subcontractors through his positions as a Highway Equipment Manager II and III to
solicit and receive gifts, sponsorships and free or discounted services. Keyton had access
to vendors as part of pre-bid meetings, delivery inspections and other interactions
discussing equipment specifications and needs. Keyton discussed his personal racing
Keyton, 09-044
Page 24
activities with Commonwealth vendors and subcontractors while conducting official
business and solicited sponsorships from these vendors.
“Stephenson Equipment, Inc.” and “River’s Truck Center, Inc.” were vendors with
which Keyton had professional dealings at PennDOT.
Keyton solicited sponsorship funding from Stephenson Equipment, Inc. in 2007 and
2008. Stephenson Equipment, Inc. provided to Keyton $1,200.00 in sponsorship money in
both February 2007 and January 2008. Dennis Heller (“Heller”), President of Stephenson
Equipment, Inc., authorized the annual sponsorship of Keyton’s racing activities during
2007 and 2008 based on requests he received from Keyton. Keyton met with Heller solely
through his PennDOT positions. Sponsorship discussions were initiated during meetings
related to the issue of PennDOT contracts. Heller and Keyton had discussed Keyton’s
racing activities on various occasions during meetings related to PennDOT business.
During the time frame when Keyton solicited and received sponsorship funding from
Stephenson Equipment, Inc., the company was conducting millions of dollars worth of
business with PennDOT.
Brad McKinsey, owner of River’s Truck Center, Inc., met Keyton as a result of
Keyton’s employment with PennDOT. McKinsey would discuss bid specifications with
Keyton as part of pre-bid meetings for future equipment bidding. In or about January 2007
Keyton contacted McKinsey to perform repairs/painting to Keyton’s race car. At the time of
Keyton’s request to McKinsey, River’s Truck Center, Inc. was providing services to
PennDOT. On or about January 6, 2007, River’s Truck Center, Inc. provided to Keyton
repairs/paint work on Keyton’s race car for a price that was discounted by approximately
$265.00. During the 2006-07 fiscal year, River’s Truck Center, Inc. did more than five
million dollars worth of business with PennDOT.
Commonwealth vendor “Tire Mart” sold Goodyear brand tires to PennDOT through
a Department of General Services contract. Keyton had access to Tire Mart both as a
PennDOT employee and personal customer. On February 21, 2006, Keyton received from
Tire Mart four Tow Master Trailer Tires including mounting, spin balancing and new valve
stems, valued at approximately $530.00. These tires were for Keyton’s car trailer used to
haul and store his race car. The tires were given to Keyton as partial sponsorship of his
racing activities. Between 2006 and 2008, Tire Mart provided Keyton with additional
sponsorship in the form of an Interstate brand battery valued at approximately $70.00.
The parties have stipulated that Keyton obtained the aforesaid items based on the
access he had to the aforesaid vendors in his position with PennDOT’s Equipment
Division.
In 2006, Keyton unsuccessfully solicited a sponsorship and generator for his racing
activities from representatives of two other Commonwealth vendors. Keyton had access to
these representatives as a result of his Commonwealth employment. Neither vendor
complied with Keyton’s request, based upon the appearance of a conflict of interest.
During the spring of 2006, Leonard Lottig, owner of “ITI Trailers and Truck Bodies,
Inc.” fixed the roll cage and did some paint work on Keyton’s race car at no cost to Keyton.
Lottig knew Keyton as a result of Keyton’s PennDOT employment. Lottig offered to repair
the car at no cost. The estimated cost of the repair work was $500.00. ITI Trailers and
Truck Bodies, Inc. did not have a contract with the Commonwealth at the time Lottig made
the repair to Keyton’s race car.
On October 23, 2008, Keyton attended a “by invitation only” promotional event held
by Commonwealth subcontractor “Reading Equipment & Distribution,” a/k/a “Reading
Truck Bodies, Inc.” Attendees were provided with a buffet style meal, Cabela’s jacket and
Keyton, 09-044
Page 25
a $10.00 Cabela’s gift card. The approximate value of the jacket was twenty-five dollars.
Keyton attended this event as a PennDOT employee, but without authorization from his
supervisor. Keyton asserts that he did not keep the Cabela’s jacket or gift card.
As detailed in Fact Finding 89, Keyton’s solicitation and receipt in 2006, 2007, and
2008 of items prohibited by the Governor’s Code of Conduct and PennDOT policies
resulted in a private pecuniary gain to Keyton in the total amount of $3,830.00.
In his official capacity as a Highway Equipment Manager II and III, Keyton had
access to a Commonwealth laptop computer. Keyton utilized his Commonwealth laptop
computer for sponsor requests and related literature in furtherance of his KDH racing
activities during 2006 and 2007. A forensic examination of Keyton’s Commonwealth laptop
computer produced two separate sponsor solicitation letters for the 2006 and 2007 racing
seasons and a brochure relating to Keyton’s personal racing activities. Keyton was not
authorized to use Commonwealth computers in furtherance of his private racing
endeavors. Keyton’s maintenance of the aforesaid information on his computer enabled
him to have it readily available when vendors stopped by his office at PennDOT.
Keyton did not disclose the receipt of gifts/sponsorships on his SFIs filed for the
2006, 2007, and 2008 calendar years. Keyton failed to list Tire Mart and Leonard Lottig
d/b/a ITI Trailers and Truck Bodies, Inc. on his SFI form filed for the 2006 calendar year.
Keyton failed to list River’s Truck Center, Inc. on his SFI form filed for the 2007 calendar
year. Keyton failed to list Stephenson Equipment, Inc. on his SFI forms filed for the 2007
and 2008 calendar years. Keyton’s failure to disclose the receipt of gifts/sponsorships on
SFI forms concealed this activity from his employer.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a violation of Section 1103(a) of the Ethics
Act occurred in relation to Keyton’s use of the
authority of his public position resulting in a
private pecuniary benefit to himself and/or KDH
Racing, an entity with which he is associated,
when he solicited and/or accepted items of
monetary value from Commonwealth vendors
and Commonwealth sub-vendors; when he
solicited and/or accepted monetary contributions
from Commonwealth vendors in relation to same;
and when he utilized Commonwealth equipment
and supplies in furtherance of his private interest
in KDH Racing.
b. That a violation of Section 1105(b)(6) occurred
when Keyton failed to report gifts valued in the
aggregate at $250.00 or more on his Statements
of Financial Interests filed for the 2006, 2007,
and 2008 calendar years.
Keyton, 09-044
Page 26
c. The remaining Section 1105(b) violations are
hereby nol prossed.
4. Keyton agrees to make payment in the amount of $3,500.00 in
settlement of this matter payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Keyton agrees to not accept any reimbursement,
compensation or other payment from the Commonwealth of
Pennsylvania representing a full or partial reimbursement of
the amount paid in settlement of this matter.
6. Keyton agrees to file accurate and complete Statements of
Financial Interests for calendar years 2006, 2007 and 2008
disclosing all gifts within thirty (30) days of the issuance of the
final adjudication in this matter. Copies of said forms shall be
forwarded to the State Ethics Commission for compliance
verification purposes.
7. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. Such, however, does
not prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent's failure to
comply with this agreement or the Commission's order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 2.
In considering the Consent Agreement, we agree with the parties that a violation of
Section 1103(a) of the Ethics Act occurred when Keyton solicited and/or accepted items of
monetary value from Commonwealth vendors and Commonwealth sub-vendors, when he
solicited and/or accepted monetary contributions from Commonwealth vendors, and when
he utilized Commonwealth equipment and supplies in furtherance of his private interest in
KDH Racing.
Keyton used the authority of his public positions as a Highway Equipment Manager
II and III when he utilized the access he had to Commonwealth vendors and
subcontractors to solicit and receive gifts, sponsorships and free or discounted services.
Keyton had access to vendors as part of pre-bid meetings, delivery inspections and other
interactions discussing equipment specifications and needs. Keyton discussed his
personal racing activities with Commonwealth vendors and subcontractors while
conducting official business and solicited sponsorships from these vendors.
As detailed in Fact Finding 89, Keyton’s solicitation and receipt in 2006, 2007, and
2008 of items prohibited by the Governor’s Code of Conduct and PennDOT policies
resulted in a private pecuniary gain to Keyton in the total amount of $3,830.00.
Keyton also used the authority of his public positions when he used his access to a
Commonwealth laptop computer for sponsor requests and related literature in furtherance
of his KDH racing activities during 2006 and 2007. Keyton was not authorized to use
Commonwealth computers in furtherance of his private racing endeavors.
Keyton, 09-044
Page 27
Based upon the above, we hold that a violation of Section 1103(a) of the Ethics Act,
65 Pa.C.S. § 1103(a), occurred when Keyton solicited and/or accepted items of monetary
value from Commonwealth vendors and Commonwealth sub-vendors, when he solicited
and/or accepted monetary contributions from Commonwealth vendors, and when he
utilized Commonwealth equipment and supplies in furtherance of his private interest in
KDH Racing, an entity with which he is associated. Cf., McCarty, Order 1259; Sindiri,
Order 1572.
We further hold that a violation of Section 1105(b)(6) of the Ethics Act, 65 Pa.C.S. §
1105(b)(6), occurred when Keyton failed to report gifts valued in the aggregate at $250.00
or more on his SFIs filed for the 2006, 2007, and 2008 calendar years. Keyton failed to list
Tire Mart and Leonard Lottig d/b/a ITI Trailers and Truck Bodies, Inc. on his SFI form filed
for the 2006 calendar year. Keyton failed to list River’s Truck Center, Inc. on his SFI form
filed for the 2007 calendar year. Keyton failed to list Stephenson Equipment, Inc. on his
SFI forms filed for the 2007 and 2008 calendar years.
As part of the Consent Agreement, Respondent Keyton has agreed to make
payment in the amount of $3,500.00 payable to the Commonwealth of Pennsylvania and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
Respondent has also agreed to not accept any reimbursement, compensation or
other payment from the Commonwealth of Pennsylvania representing a full or partial
reimbursement of the amount paid in settlement of this matter.
Respondent has further agreed to file with PennDOT complete and accurate SFIs
for calendar years 2006, 2007, and 2008--disclosing all gifts--within thirty (30) days of the
issuance of the final adjudication in this matter, and to forward copies of all such filings to
this Commission for compliance verification purposes.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Keyton is directed to make
payment in the amount of $3,500.00 payable to the Commonwealth of Pennsylvania and
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forwarded to this Commission by no later than the thirtieth (30) day after the mailing date
of this adjudication and Order.
Per the Consent Agreement of the parties, Keyton is further directed to not accept
any reimbursement, compensation or other payment from the Commonwealth of
Pennsylvania representing a full or partial reimbursement of the amount paid in settlement
of this matter.
To the extent he has not already done so, Keyton is directed to file with PennDOT
complete and accurate SFIs for calendar years 2006, 2007, and 2008--disclosing all gifts--
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by no later than the thirtieth (30) day after the mailing date of this adjudication and Order,
and to forward copies of all such filings to this Commission for compliance verification
purposes.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
Keyton, 09-044
Page 28
1. As a Highway Equipment Manager II for the Pennsylvania Department of
Transportation (“PennDOT”) from approximately May 8, 1999, until August 6, 2007,
and as a Highway Equipment Manager III for PennDOT from approximately August
6, 2007, until December 23, 2008, Respondent Kenneth G. Keyton (“Keyton”) was a
public employeesubject to the provisions of the Public Official and Employee Ethics
Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
2. Keyton violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he
solicited and/or accepted items of monetary value from Commonwealth vendors and
Commonwealth sub-vendors, when he solicited and/or accepted monetary
contributions from Commonwealth vendors, and when he utilized Commonwealth
equipment and supplies in furtherance of his private interest in KDH Racing, an
entity with which he is associated.
3. A violation of Section 1105(b)(6) of the Ethics Act, 65 Pa.C.S. § 1105(b)(6),
occurred when Keyton failed to report gifts valued in the aggregate at $250.00 or
more on his Statements of Financial Interests filed for the 2006, 2007, and 2008
calendar years.
In Re: Kenneth G. Keyton, : File Docket: 09-044
Respondent : Date Decided: 3/3/11
: Date Mailed: 3/10/11
ORDER NO. 1582
1. Kenneth G. Keyton (“Keyton”), a public employee in his capacities as a Highway
Equipment Manager II and III for the Pennsylvania Department of Transportation
(“PennDOT”), violated Section 1103(a) of the Public Official and Employee Ethics
Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when he solicited and/or accepted items of
monetary value from Commonwealth vendors and Commonwealth sub-vendors,
when he solicited and/or accepted monetary contributions from Commonwealth
vendors, and when he utilized Commonwealth equipment and supplies in
furtherance of his private interest in KDH Racing, an entity with which he is
associated.
2. A violation of Section 1105(b)(6) of the Ethics Act, 65 Pa.C.S. § 1105(b)(6),
occurred when Keyton failed to report gifts valued in the aggregate at $250.00 or
more on his Statements of Financial Interests (“SFIs”) filed for the 2006, 2007, and
2008 calendar years.
3. Per the Consent Agreement of the parties, Keyton is directed to make payment in
the amount of $3,500.00 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the
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thirtieth (30) day after the mailing date of this Order.
4. Per the Consent Agreement of the parties, Keyton is further directed to not accept
any reimbursement, compensation or other payment from the Commonwealth of
Pennsylvania representing a full or partial reimbursement of the amount paid in
settlement of this matter.
5. To the extent he has not already done so, Keyton is directed to file with PennDOT
complete and accurate SFIs for calendar years 2006, 2007, and 2008--disclosing all
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gifts--by no later than the thirtieth (30) day after the mailing date of this Order, and
to forward copies of all such filings to the Pennsylvania State Ethics Commission for
compliance verification purposes.
6. Compliance with Paragraphs 3, 4 and 5 of this Order will result in the closing of this
case with no further action by this Commission.
a. Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
___________________________
Louis W. Fryman, Chair