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In Re: John Keller, : File Docket: 10-045
Respondent : X-ref: Order No. 1603
: Date Decided: 4/12/12
: Date Mailed: 5/3/12
Before: Louis W. Fryman, 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 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.
I.ALLEGATIONS:
That John Keller, a public official/public employee in his capacity as a Member and
Chairman of The Harrisburg Authority, 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 a private pecuniary gain of a member of his immediate
family and/or a business with which a member of his immediate family is associated by
participating in discussions and actions of the Authority to award contracts valued in
excess of $500 to J2 Consulting, a business with which his son is associated, when the
contracts were entered into with J2 Consulting without an open and public process and
when he subsequently participated in actions of the Authority to approve payments issued
to J2 Consulting; and when he used the authority of his public position to obtain computer
equipment and accessories purchased by the Authority and converted these items for his
personal use.
II.FINDINGS:
1. John Keller served as a Member of the Board of Directors (“Board”) of The
Harrisburg Authority (“THA”) from March 1990 until January 2008.
a. Keller was appointed to the THA Board by Harrisburg Mayor Stephen Reed
in 1990 and was re-appointed by Reed in 1993, 1998, and 2002.
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2. Keller served as Chairman of the Board of THA from 2004 through 2005 and from
January 2007 to September 5, 2007.
a. Keller was removed as Chairman by vote of the Board on September 5,
2007.
b. Keller served as Vice-Chairman from 1999 through 2003 and in 2006.
3. Keller has been employed as a professional bus driver with Capital Area Transit
(“CAT”) since 1977.
4. THA was formed by the City of Harrisburg pursuant to the provisions of the
Municipality Authorities Act of 1945 in May 1957.
5. Articles of Incorporation for THA have been amended by Harrisburg City Council by
way of ordinance from when it was first established in 1957 through its current
existence.
a. When THA was formed in 1957, it was known as the Harrisburg Sewerage
Authority.
b. On July 17, 1978, the term of its existence was extended through May 31,
2028.
c. On December 1, 1987, the Harrisburg Sewerage Authority was renamed the
Harrisburg Water and Sewer Authority.
d. On January 23, 1990, the Harrisburg Water and Sewer Authority was
renamed The Harrisburg Authority.
6. Articles of Incorporation for THA provide the following:
To engage in acquiring, holding, constructing, financing, improving, maintaining and
operating, owning and leasing projects of the kind and character contemplated by
law for a general purpose authority, as authorized and permitted by, and also as
limited by provisions of the Municipality Authorities Act, the Act of May 2, 1945, P.L.
382, as amended or supplemented, and by any other applicable statute or law.
7. The THA Board consists of five Members serving staggered terms.
8. Individuals serving on the THA Board are not compensated.
9. Authority by-laws created the officer positions of Chairman, Vice-Chairman,
Secretary, Treasurer, and one or more Assistant Secretary/Treasurer(s).
10. The by-laws of THA effective June 26, 2006, through October 2007, under Article III
Officers, identify the functions of the Chairman and Vice-Chairman:
Chairman -
a. The Chairman shall function as the Chief Executive Officer of
the Authority exercising the executive and administrative powers of the
Authority. The Chairman shall preside at all meetings of the Authority, and
shall submit to the Authority such recommendation and information as the
Chairman may consider proper. Except as otherwise authorized by
resolution of the Authority, the Chairman shall execute all contracts, deeds,
bonds, or other instruments made by the Authority in its name. The
Chairman shall appoint all members of committees, established by resolution
of the Authority. The Chairman shall notify the Mayor of the City of
Keller, 10-045
Page 3
Harrisburg, at least one month in advance, of the expiration of the term of
office of any member of the Authority. In addition, the Chairman shall notify
the Mayor of the City of Harrisburg of any resignation of a member of the
Authority, stating the unexpired term thereof. He shall, in the intervals
between meetings, consult with the various officers and employees of the
Authority regarding the business of the Authority and perform such other
duties as directed by the Authority.
1. On October 4, 2007, the by-laws were amended in that the Chairman
was to notify Harrisburg City Council at least one month in advance of
the expiration of the term of office of any Member of the Authority and
also to notify Harrisburg City Council of any resignation of a Member
of the Authority, stating the unexpired term thereof.
Vice-Chairman –
b. In the absence of the Chairman, the Vice Chairman shall
preside at all meetings of the Authority, and in the case of the resignation,
death, or inability of the Chairman to perform his duties, the Vice Chairman
shall perform the duties of the Chairman and shall perform such other duties
as directed by the Authority.
11. On October 24, 2007, the by-laws of THA were amended to make the officer
positions gender neutral.
a. The Chairman became known as the Chairperson and the Vice Chairman
was now identified as Vice Chairperson.
12. Jayme Keller is the son of John Keller.
13. Jayme Keller has been employed on a full-time basis with the Technology
Department of Harrisburg University since 2005.
a. Jayme Keller is currently the Manager of Technology Services.
14. From approximately July 2002 through September 2007, Jayme Keller had been
compensated by THA for performing computer maintenance services.
a. Between 2002 and 2006, Jayme Keller, as an individual, provided computer
services for THA Board Members and staff.
1. Based on Keller’s recommendation, THA staff began using the
services of Jayme Keller.
b. THA used the services of Jayme Keller based on the recommendation of his
father, THA Board Member John Keller.
c. John Keller, as a Member and Vice Chairman of the THA Board, advised the
Board that his son was available to provide computer services.
d. There was no official Board vote to authorize Jayme Keller to work on THA
computers.
15. No other computer maintenance contractors were considered when Jayme Keller
performed services for THA between 2002 and 2005.
16. Jayme Keller was compensated by THA for the computer repairs he performed from
2002 through 2005.
Keller, 10-045
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17. In or around the summer of 2006, Jayme Keller established a computer consulting
business known as J2 Consulting.
a. Jayme Keller is the sole proprietor.
18. Jayme Keller did not register or incorporate J2 Consulting as a business with the
Commonwealth of Pennsylvania.
a. Jayme Keller performed the functions of J2 Consulting in addition to his full-
time employment.
19. In or around the summer/fall of 2006, THA was looking to establish a website to
keep the public informed.
a. Complaints were made by residents that information about THA could not be
viewed online.
20. THA Board Members discussed using J2 Consulting to develop a THA website.
a. John Keller participated in Board discussions regarding the use of J2
Consulting.
b. THA Board Members were aware that J2 Consulting is owned by Jayme
Keller.
21. Minutes of the THA regular meeting for September 27, 2006, reflect THA Board
Members approving a motion to award work to J2 Consulting.
a. A motion was made by Mr. (Leonard) House, seconded by Mr. (John) Keller,
that the Authority engage the services of J2 Consulting at a monthly retainer
of $2,500.00 per month beginning October 1, 2006 for computer services.
Funding for the professional services will be provided by the Authority’s
Administration Account. The motion was unanimously approved.
b. The vote to approve the motion was 3-0. Keller was present and
participated in the vote.
22. The Board’s decision to utilize J2 Consulting was based in part on the computer
repair services that Jayme Keller previously performed on computers utilized by
THA Board Members and staff from 2002 through 2005.
23. At the time when the Board voted to award the computer retainer agreement to J2
Consulting, no other businesses were considered.
a. The retainer agreement was not advertised nor were quotes sought from
other potential vendors.
24. John Keller participated in THA Board actions approving resolutions for the
Administrative Operating Expense Budget Accounts for calendar year 2006 on
December 21, 2005, and for calendar year 2007 on January 24, 2007.
a. The approved resolutions authorized expenditures from THA accounts for
different vendors in 2006 and 2007, including J2 Consulting.
b. John Keller participated in approving these resolutions while serving as
Chairman of the THA Board.
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Page 5
25. Payments issued by THA from the Administration account require two signatures.
a. Board Members and the Executive Director of the Authority had signature
authority on the account.
b. No stamped signatures were used.
26. Between October 2006 and August 2007, Jayme Keller submitted J2 Consulting
invoices to THA that contained explanations of services provided.
27. In 2007, Jayme Keller’s services provided to THA, as J2 Consulting, also included
repairs to the computers of THA Board Members, including but not limited to John
Keller.
28. Pursuant to the contract approved by the THA Board on September 27, 2006,
Jayme Keller, as J2 Consulting, submitted twelve (12) invoices to THA.
a. The invoice for August 2007 included expenditures totaling $313.95 for parts
that were purchased.
29. Payments were issued to J2 Consulting by THA totaling $30,313.95, from October
2006 through August 2007.
a. John Keller signed check numbers 6430, 6456, and 6466 in his capacity as a
THA Board Member, totaling $7,500.00.
30. Jayme Keller maintains a joint share account (Account No. xxxx-xx) along with John
Keller at the CAT Federal Credit Union.
a. The account was established on June 14, 1990.
b. John Keller is a joint owner of the account.
31. Payments made to J2 Consulting by THA were deposited by Jayme Keller into the
joint share account at the CAT Federal Credit Union.
32. As a result of new Board Members being appointed to THA in or about August
2007, all consulting contracts, including the computer consulting contract THA had
with J2 Consulting, were reviewed and considered for termination.
a. The THA Board voted on September 5, 2007, to terminate J2 Consulting’s
contract effective immediately.
33. Minutes of the September 5, 2007, meeting reflect the following discussions and
actions of the THA Board regarding the termination of the J2 Consulting retainer
agreement, John Keller’s role in authorizing the contract, and his role in approving
payments:
Ms. Torres advised that she had spoken with Mr. La Torre to inquire as to the
services being provided to the Authority. She advised that she had not been able
to get in touch with Jayme Keller of J2 Consulting as of tonight’s meeting.
Mr. Papenfuse advised that he wanted to comment on Items L and M that are on
today’s agenda. He advised that the services of J2 Consulting and La Torre
Communications were being terminated for their services [sic] due to the Authority
having tough budget contracts and that the board doesn’t feel that they are in the
Authority’s best interests at this time.
Keller, 10-045
Page 6
Mr. Papenfuse went on to point out that he is troubled with the J2 Consulting
contract because it was revealed that J2 Consulting is actually run and operated by
Jayme Keller, son of former Chairman John Keller. He advised that although The
Harrisburg Authority does not currently have a policy regarding nepotism, he feels
that it seems improper and has the appearance of impropriety. He also notes that
Mr. Keller voted for his son’s contract, rather than abstain from the vote and further
advised that he believed that feeling that J2 Consulting’s contract may have been
terminated, Mr. Keller requested Authority staff to process the payment for the
September retainer in advance last week. He would like an investigation into this
matter and requested that the most recent payment to J2 Consulting in the amount
of $2,500.00 be returned to the Authority.
He also pointed out that Jayme Keller is employed by the Harrisburg University and
that items regarding the Harrisburg University had previously been voted on by
former Chairman John Keller repeatedly without abstaining from the vote. He
requested that a clear message be sent to the people of Harrisburg that while
nepotism may have been something tolerated in the past on various boards and
authorities, it is not something that will be tolerated by this Authority any longer.
Mr. Papenfuse advised that he wanted to publicly request that former Chairman
John Keller resign from the Authority based specifically on the nepotism issue and
the impropriety that has been cast on the dealings of the Authority.
Ms. Bryce advised that she voted in favor of terminating these two contracts based
on the recommendation by Ms. Torres as to budgetary constraints. She advised
that J2 Consulting was not terminated merely because Jayme Keller is Mr. Keller’s
son. She advised that while we are under a budgetary crisis, if the Authority is able
to have these services provided on a volunteer basis, the Authority should utilize
that service. Ms. Bryce, as owner of an IT company, and Mr. Papenfuse, employing
IT personnel within his own business, have offered such services to the Authority
on a free of charge basis and wanted it on the record that these services will not be
neglected. It was also noted that Ms. Torres advised that she was not pleased with
the IT services currently being provided to the Authority and that the services need
to be improved upon. Ms. Bryce indicated that every effort will be made to improve
the IT services and the Authority’s website with volunteers in this time of budgetary
crisis.
Item M:
A motion was made by Ms. Bryce, seconded by Mr. Papenfuse, that the
Chairman and/or Special Administrative
Board of Directors authorize the
Assistant to terminate the contract with J2 Consultants.
The motion was
unanimously approved.
John Keller was not present at the September 5, 2007, special meeting.
34. John Keller, as Chairman and a Member of the THA Board, provided information to
McKillip and Torres regarding J2 Consulting.
35. John Keller, as the THA Board Chairman, directed that payment be made for the
questioned August 2007, J2 Consulting invoice.
a. Keller directed that payment be made to J2 Consulting following the August
24, 2007, Board meeting.
36. On September 10, 2007, Solicitor Foreman, Torres, and McKillip were involved in a
series of emails regarding a notice of termination to be sent to J2 Consulting, a
request for the return of the September payment, and conflict of interest.
Keller, 10-045
Page 7
a. On September 10, 2007, at 2:16 p.m., McKillip forwarded an email to
Foreman advising that John Keller (Chairman) had directed that payment be
made to J2 Consulting:
“The check was actually cut on August 24, 2007 immediately after the
Regular 8/22/07 Monthly Meeting at the direction of the Chairman. The
check has cleared our account as of 8/27/07.”
37. By correspondence dated September 10, 2007, Jayme Keller was notified by
Michele Torres, then Special Administrative Assistant for THA, that effective
September 5, 2007, the THA Board of Directors had terminated the J2 Consulting
contract.
a. Jayme Keller was directed to return any software or equipment in his
possession.
38. The primary purpose of J2 Consulting being appointed to provide computer
consulting work was to establish and maintain the website for THA.
39. Following the loss of business from THA, in August 2007, Jayme Keller
discontinued providing services under the name J2 Consulting.
40. John Keller’s use of the authority of his public position, including participating in
THA Board discussions and voting to enter into a retainer agreement with J2
Consulting, resulted in a private pecuniary gain to Jayme Keller.
The following findings relate to allegations that John Keller used the authority of his
public position to obtain computer equipment and accessories purchased by the
THA and retain those items for his personal use, following his THA Board service.
41.In or around 1998 or 1999, THA decided to purchase computer equipment for Board
Members that could be utilized and kept at their homes.
a. John Keller was a THA Board Member and was in agreement with this
practice.
b. The purpose of purchasing computer equipment was to eliminate the amount
of paperwork the Board Members would have to keep and store at their
homes.
42. There were no formal resolutions or motions by the Board approving this practice.
a. No formal policy was enacted by the Board regarding the use of the
computers by Board Members.
43. The computer equipment was to be utilized by Board Members for THA business.
44. The computer equipment was purchased through THA’s Administration account.
a. There was no vote of the Board authorizing purchases of equipment for
Board Members.
45. THA’s unwritten practice was that when a Board Member or Senior Staff employee
either resigned or was replaced, they were responsible for either returning the
equipment or paying for the estimated cost.
Keller, 10-045
Page 8
46. John Keller was provided with two laptop computers, one desktop computer, a
scanner, and two printers at THA expense between April 1998 and July 2005.
47. John Keller was replaced as a THA Board Member in or around January 2008.
48. On March 13, 2008, John Keller was advised by correspondence from then THA
Executive Director Michele Torres, that due to the expiration of his term as a THA
Board Member, he was required to return all equipment to THA that was provided to
him by March 31, 2008.
a. This included all electronic and computer equipment.
49. John Keller was invoiced by the THA Board Chairman on April 18, 2008, for
equipment in his possession.
a. Attached to Ellison’s letter was an invoice in the amount of $2,445.00 for
equipment provided to Keller by THA.
b. Payment in the form of a check was requested by May 15, 2008.
50. THA never received any payment from John Keller nor did he ever return the
equipment.
51. John Keller received a private pecuniary gain when he retained computers and
related equipment purchased by THA.
III.DISCUSSION:
As a Member of the Board of Directors (“Board”) of The Harrisburg Authority (“THA”)
from March 1990 until January 2008, Respondent John Keller, hereinafter also referred to
as “Respondent,” “Respondent Keller,” and “Keller,” was a public officialsubject to the
provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101
et seq.
The allegations are that Respondent Keller violated Sections 1103(a) and 1105(b)
of the Ethics Act: (1) when he used the authority of his public position for the private
pecuniary gain of a member of his immediate family and/or a business with which a
member of his immediate family is associated by participating in discussions and actions of
THA to award contracts valued in excess of $500 to “J2 Consulting,” a business with which
his son is associated; (2) when the contracts were entered into with J2 Consulting without
an open and public process; (3) when he subsequently participated in actions of THA to
approve payments issued to J2 Consulting; and (4) when he used the authority of his
public position to obtain computer equipment and accessories purchased by THA and
converted these items for his personal use.
Per the Consent Agreement, the Investigative Division has exercised its
prosecutorial discretion to nol pros allegation(s) under Section 1103(f) of the Ethics Act.
Based upon the nol pros, we need not address the Section 1103(f) allegation(s) 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
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interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest."
Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a
member of his immediate family or a business with which he or
a member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official/public employee from
using the authority of public office/employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official/public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the Statement of Financial Interests form must provide.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Respondent served as a Member of the THA Board from March 1990 until January
2008. Respondent served as Chairman of the THA Board from 2004 through 2005 and
from January 2007 to September 5, 2007. Respondent was removed as Chairman by vote
of the THA Board on September 5, 2007. Respondent served as Vice-Chairman of the
THA Board from 1999 through 2003 and in 2006.
Respondent has a son named Jayme Keller. Since 2005 Jayme Keller has been
employed on a full time basis with the Technology Department of Harrisburg University,
where he is currently the Manager of Technology Services.
From 2002 through 2005, Jayme Keller, as an individual, provided computer
services for THA Board Members and staff based upon Respondent’s recommendation.
Jayme Keller was compensated by THA for such services.
In or around the summer of 2006, Jayme Keller established a computer consulting
business known as “J2 Consulting.” Jayme Keller was the sole proprietor.
In or around the summer/fall of 2006, THA Board Members discussed using J2
Consulting to develop a THA website. THA Board Members were aware that J2
Keller, 10-045
Page 10
Consulting was owned by Jayme Keller. Respondent participated in Board discussions
regarding the use of J2 Consulting.
At a THA Board meeting held September 27, 2006, Respondent seconded a motion
and participated in the unanimous vote of the Board to engage the services of J2
Consulting at a retainer of $2,500.00 per month beginning October 1, 2006, for computer
services, with funding for such services to be provided by the Authority’s Administration
Account. The Board’s decision to utilize J2 Consulting was based in part on the computer
repair services that Jayme Keller had previously performed on computers utilized by THA
Board Members and staff from 2002 through 2005. At the time when the Board voted to
award the computer retainer agreement to J2 Consulting, no other businesses were
considered. The retainer agreement was not advertised, and quotes were not sought from
other potential vendors.
Respondent participated in THA Board actions approving resolutions for the
Administrative Operating Expense Budget Accounts for calendar year 2006 on December
21, 2005, and for calendar year 2007 on January 24, 2007. The approved resolutions
authorized expenditures from THA accounts for vendors including J2 Consulting.
Respondent participated in approving these resolutions while serving as Chairman of the
THA Board.
Payments issued by THA from the Administration account require two signatures.
The THA Board Members and Executive Director had signature authority on the account.
Pursuant to the contract approved by the THA Board on September 27, 2006,
Jayme Keller, as J2 Consulting, submitted twelve invoices to THA. From October 2006
through August 2007, payments totaling $30,313.95 were issued to J2 Consulting by THA.
Respondent signed, as an authorized THA signatory, check numbers 6430, 6456 and
6466, totaling $7,500.00.
As a result of new Board Members being appointed to THA in or about August 2007,
all consulting contracts, including the computer consulting contract THA had with J2
Consulting, were reviewed and considered for termination. On September 5, 2007, the
THA Board voted to terminate J2 Consulting’s contract effective immediately. Minutes of
the September 5, 2007, meeting reflect discussions of the THA Board regarding
Respondent’s role in authorizing the contract and approving payments. THA Board
Member Papenfuse (“Papenfuse”) advised that he wanted to publicly request that
Respondent resign from THA based specifically on the nepotism issue and the impropriety
that had been cast on the dealings of THA. Papenfuse advised that he believed that--
feeling that J2 Consulting’s contract might be terminated--Respondent had requested
Authority staff to process the payment for the September retainer in advance. Papenfuse
indicated that he would like an investigation into this matter and requested that the most
recent payment to J2 Consulting in the amount of $2,500.00 be returned to THA.
Respondent was not present at the September 5, 2007, special meeting.
The parties have stipulated that Respondent, as THA Chairman, directed that
payment be made for the questioned August 2007 J2 Consulting invoice. The Stipulated
Findings indicate that the check for the invoice had been cut on August 24, 2007,
immediately after the Board’s August 22, 2007, regular monthly meeting, at the direction of
Respondent, and that the check had cleared THA’s account as of August 27, 2007.
By correspondence dated September 10, 2007, Jayme Keller was notified by
Michele Torres, then Special Administrative Assistant for THA, that effective September 5,
2007, the THA Board had terminated the J2 Consulting contract. Following the loss of
business from THA, in August 2007, Jayme Keller discontinued providing services under
the name J2 Consulting.
Keller, 10-045
Page 11
The parties have stipulated that Respondent’s use of the authority of his public
position, including participating in THA Board discussions and voting to enter into a
retainer agreement with J2 Consulting, resulted in a private pecuniary gain to Jayme
Keller.
During Respondent’s service on the THA Board, the THA provided computer
equipment to Board Members to use and keep at their homes. The computer equipment
was to be utilized for THA business. THA’s unwritten practice was that when a Board
Member either resigned or was replaced, the Board Member was responsible for either
returning the equipment or paying for the estimated cost.
Between April 1998 and July 2005, Respondent was provided with two laptop
computers, one desktop computer, a scanner and two printers at THA expense.
Respondent was replaced as a THA Board Member in or around January 2008.
On March 13, 2008, Respondent was advised by correspondence from then THA
Executive Director Michele Torres that due to the expiration of Respondent’s term as a
THA Board Member, Respondent was required to return all THA equipment by March 31,
2008. This included all electronic and computer equipment.
On April 18, 2008, Respondent was invoiced in the amount of $2,445.00 for THA
equipment in his possession. Payment in the form of a check was requested by May 15,
2008.
THA never received any payment from Respondent. Respondent never returned
the aforesaid equipment to THA. The parties have stipulated that Respondent received a
private pecuniary gain when he retained computers and related equipment purchased by
THA.
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 Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a) occurred in relation to Keller’s use of the
authority of his public position by participating in
discussions and actions of The Harrisburg
Authority to award contracts valued in excess of
$500 to J2 Consulting, a business with which his
son is associated;
b. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a) occurred in relation to Keller
participating in actions of The Harrisburg
Authority to approve payments issued to J2
Consulting, including the direction that payment
be made for a disputed August 2007 invoice,
and when he executed payment checks as the
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Page 12
Authority signatory, for payment of J2 Consulting
invoices;
c. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a) occurred in relation to Keller obtaining
computer equipment and accessories purchased
by The Harrisburg Authority, and retaining these
items for his personal use, after his term ended;
d. As part of a negotiated settlement agreement,
the allegations arising under § 1103(f) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1103(f), namely that a violation
occurred when Keller, as a Member of the
Harrisburg Authority, entered into contracts with
J2 Consulting, a business with which he and/or
an immediate family member are associated,
without an open and public process, are hereby
nol prossed;
e. All actions by Keller prior to October 2005,
relating to Keller’s use of the authority of his
public position by participating in discussions
and actions of The Harrisburg Authority to award
contracts and/or approve payments issued to
Jayme Keller and/or J2 Consulting, occurred
beyond the five year statute of limitations set
forth in section 1108(m) (65 Pa.C.S. § 1108(m))
of the Ethics Act, as interpreted by the
Commission.
4. Keller agrees to make payment in the amount of $10,000.00 in
settlement of this matter payable to The Harrisburg Authority
and forwarded to the Pennsylvania State Ethics Commission
within thirty (30) days of the issuance of the final adjudication
in this matter.
a. The settlement amount of $10,000.00
incorporates payment for any computer
equipment retained by Keller, as invoiced by the
Harrisburg Authority.
5. Keller agrees to not accept any reimbursement, compensation
or other payment from The Harrisburg Authority representing a
full or partial reimbursement of the amount paid in settlement
of this matter.
6. 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.
Keller, 10-045
Page 13
Consent Agreement, at 1-2.
In considering the Consent Agreement of the parties, we agree with the parties that
a violation of Section 1103(a) of the Ethics Act occurred in relation to Respondent’s use of
the authority of his public position by participating in discussions and actions of THA to
award contracts valued in excess of $500 to J2 Consulting, a business with which
Respondent’s son is associated.
I n or around the summer/fall of 2006, THA Board Members discussed using J2
Consulting to develop a THA website. Respondent participated in Board discussions
regarding the use of J2 Consulting.
At a THA Board meeting held September 27, 2006, Respondent seconded a motion
and participated in the unanimous vote of the Board to engage the services of J2
Consulting at a retainer of $2,500.00 per month beginning October 1, 2006, for computer
services, with funding for such services to be provided by the Authority’s Administration
Account.
The parties have stipulated that Respondent’s use of the authority of his public
position, including participating in THA Board discussions and voting to enter into a
retainer agreement with J2 Consulting, resulted in a private pecuniary gain to
Respondent’s son, Jayme Keller.
We hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred in relation to Respondent’s use of the authority of his public position by
participating in discussions and actions of THA to award contracts valued in excess of
$500 to J2 Consulting, a business with which Respondent’s son is associated. Cf., Cole,
Order 1579.
We further agree with the parties that a violation of Section 1103(a) of the Ethics
Act occurred in relation to Respondent participating in actions of THA to approve payments
issued to J2 Consulting, including the direction that payment be made for a disputed
August 2007 invoice, and when he executed payment checks as the THA signatory for
payment of J2 Consulting invoices. Cf., Owen, Order 1537; Gold, Order 1461; Vaughn,
Order 1450.
Respondent used the authority of his public office when he participated in THA
Board actions approving resolutions for the Administrative Operating Expense Budget
Accounts for calendar year 2006 on December 21, 2005, and for calendar year 2007 on
January 24, 2007. The approved resolutions authorized expenditures from THA accounts
for vendors including J2 Consulting. Respondent participated in approving these
resolutions while serving as Chairman of the THA Board.
From October 2006 through August 2007, payments totaling $30,313.95 were
issued to J2 Consulting by THA. Respondent signed, as an authorized THA signatory,
check numbers 6430, 6456 and 6466, totaling $7,500.00.
Respondent, as THA Chairman, directed that payment be made for the questioned
August 2007 J2 Consulting invoice. The Stipulated Findings indicate that the check for the
invoice had been cut on August 24, 2007, immediately after the Board’s August 22, 2007,
regular monthly meeting, at the direction of Respondent, and that the check had cleared
THA’s account as of August 27, 2007.
Based upon the above, we hold that a violation of Section 1103(a) of the Ethics Act,
65 Pa.C.S. § 1103(a), occurred in relation to Respondent participating in actions of THA to
approve payments issued to J2 Consulting, including the direction that payment be made
Keller, 10-045
Page 14
for a disputed August 2007 invoice, and when he executed payment checks as the THA
signatory for payment of J2 Consulting invoices.
As for the parties’ recommendation for the finding of a third violation of Section
1103(a), the Stipulated Findings establish that between April 1998 and July 2005,
Respondent was provided with two laptop computers, one desktop computer, a scanner
and two printers at THA expense. Such equipment was to be utilized for THA business.
THA’s unwritten practice was that when a Board Member resigned or was replaced, the
Board Member was responsible for either returning the equipment or paying for the
estimated cost. Respondent was replaced as a THA Board Member in or around January
2008. Despite being advised by THA to return such equipment or pay for it, Respondent
neither returned nor paid for the equipment. The parties have stipulated that Respondent
received a private pecuniary gain when he retained computers and related equipment
purchased by THA.
We hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred in relation to Respondent obtaining computer equipment and accessories
purchased by THA and retaining these items for his personal use after his term ended.
As part of the Consent Agreement, Respondent has agreed to make payment in the
amount of $10,000.00 in settlement of this matter payable to The Harrisburg Authority and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter. The settlement amount of $10,000.00 incorporates payment for
any computer equipment retained by Respondent, as invoiced by THA.
Respondent has agreed to not accept any reimbursement, compensation or other
payment from THA representing a full or partial reimbursement of the amount paid in
settlement of this matter.
As for the allegation that Respondent violated Section 1105(b) of the Ethics Act, it
appears that the Investigative Division in the exercise of its prosecutorial discretion has
elected to non pros that particular allegation.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Respondent is directed to
make payment in the amount of $10,000.00 payable to The Harrisburg Authority and
th
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, Respondent is further directed to not
accept any reimbursement, compensation or other payment from THA representing a full or
partial reimbursement of the amount paid in settlement of this matter.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
1. As a Member of the Board of Directors (“Board”) of The Harrisburg Authority
(“THA”) from March 1990 until January 2008, Respondent John Keller (“Keller”) was
a public officialsubject to the provisions of the Public Official and Employee Ethics
Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
Keller, 10-045
Page 15
2. Keller violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he
used the authority of his public position by participating in discussions and actions
of THA to award contracts valued in excess of $500 to J2 Consulting, a business
with which Keller’s son is associated.
3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Keller participating in actions of THA to approve payments issued to J2
Consulting, including the direction that payment be made for a disputed August
2007 invoice, and when he executed payment checks as the THA signatory for
payment of J2 Consulting invoices.
4. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Keller obtaining computer equipment and accessories purchased by THA
and retaining these items for his personal use after his term ended.
In Re: John Keller, : File Docket: 10-045
Respondent : Date Decided: 4/12/12
: Date Mailed: 5/3/12
ORDER NO. 1603
1. As a Member of the Board of Directors (“Board”) of The Harrisburg Authority
(“THA”), John Keller (“Keller”) violated Section 1103(a) of the Public Official and
Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when he used the
authority of his public position by participating in discussions and actions of THA to
award contracts valued in excess of $500 to J2 Consulting, a business with which
Keller’s son is associated.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Keller participating in actions of THA to approve payments issued to J2
Consulting, including the direction that payment be made for a disputed August
2007 invoice, and when he executed payment checks as the THA signatory for
payment of J2 Consulting invoices.
3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Keller obtaining computer equipment and accessories purchased by THA
and retaining these items for his personal use after his term ended.
4. Per the Consent Agreement of the parties, Keller is directed to make payment in the
amount of $10,000.00 payable to The Harrisburg Authority and forwarded to the
th
Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after
the mailing date of this Order.
5. Per the Consent Agreement of the parties, Keller is further directed to not accept
any reimbursement, compensation or other payment from THA representing a full or
partial reimbursement of the amount paid in settlement of this matter.
6. Compliance with paragraphs 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