HomeMy WebLinkAbout1604 Raysely
In Re: Stephen Raysely, : File Docket: 11-005
Respondent : X-ref: Order No. 1604
: Date Decided: 9/24/12
: Date Mailed: 10/5/12
Before: John J. Bolger, Chair
Donald M. McCurdy, Vice Chair
Raquel K. Bergen
Nicholas A. Colafella
Mark Volk
Mark R. Corrigan
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.” 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 Stephen Raysely, a public official/public employee in his capacity as a
Member of the Coplay Whitehall Sewer Authority, violated Sections 1103(a), 1104(a),
1104(d), and 1105(b)(6)(7)(8)(9)(10) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S.
§§ 1103(a), 1104(a), 1104(d) and 1105(b)(6)(7)(8)(9)(10), when he used the authority of
his office for the private pecuniary gain of himself and/or a member of his immediate family
when he charged items of a personal nature for himself and/or his wife to Authority
accounts and credit cards and subsequently participated in actions of the Authority to
approve payments for these expenses, including but not limited to voting to approve bill
lists and signing of checks authorizing payment; when he approved and received
compensation for attending conferences, meetings and conventions, which were not
approved by the appointing authority; when he failed to file a Statement of Financial
Interests for the 2006, 2007 and 2008 calendar years by May 1 of the succeeding calendar
year and then filed backdated SFIs giving the appearance that the forms were timely filed;
and when he failed to disclose on a Statement of Financial Interests filed for the 2008
calendar year gifts, transportation, lodging, hospitality, office directorship or employment in
any business, financial interest in any legal entity in business for profit and business
interests transferred to immediate family members.
Raysely, 11-005
Page 2
II.FINDINGS:
1. Stephen Raysely served as a Member of the Coplay Whitehall Sewer Authority
(“CWSA”) from approximately 1986 to December 2010.
a. During his tenure, Raysely held the positions of Treasurer and Assistant
Treasurer.
b. Raysely was appointed to the CWSA by Coplay Borough.
2. The CWSA was formed in 1963 as an Authority by Coplay Borough and Whitehall
Township.
a. The CWSA was formed pursuant to the provisions of the Municipality
Authorities Act of 1945, as amended.
b. The CWSA consists of seven Members, three of which are appointed by
Coplay Borough and the remaining four [of which are] appointed by
Whitehall Township.
3. The CWSA owns and operates a collection and conveyance sewage system that
consists of manholes, mains, interceptors, pump stations and sanitary service
laterals.
a. The CWSA currently services over 13,500 customers with approximately 120
miles of pipe.
b. The CWSA holds one regular Board meeting per month with special and
committee meetings being held on an as needed basis.
4. By-laws of CWSA were originally adopted on July 11, 1963, and amended in 1971,
1978, 1984, 1988, 1989, 1991, 1997 and 2010.
a. Some of the amendments included setting and increasing compensation and
reimbursements for Board Members/officers.
5. Article II, Section 1 of the CWSA by-laws provides for the creation of officer
positions as follows:
a. The Officers of the Authority shall be a Chairman, a Vice-Chairman, Second
Vice-Chairman, a Treasurer, a Secretary, and an Assistant-Secretary and
Assistant Treasurer and such other Officers as shall from time to time be
provided for by the Board.
b. Section 5. “Powers and Duties of the Treasurer” provides, in part:
The Treasurer shall receive and have charge of all money, bills, notes,
bonds and similar property belonging to the Authority except as otherwise
directed by the Board, and shall have the power to issue receipts and
acknowledgements for the payment of money and delivery of checks, drafts,
notes, acceptances or other evidences of indebtedness to the Authority.
c. Section 6. “Powers and Duties of the Assistant Secretary and Assistant
Treasurer” provides, in part:
Raysely, 11-005
Page 3
The Assistant Secretary and Assistant Treasurer shall possess the power
and may perform the duties of the Secretary and of the Treasurer in case of
their absence or disability.
6. The duties and responsibilities of the Treasurer and Assistant Treasurer were
changed by Resolution No. 241 approved on April 19, 1984, amending the by-laws.
a. Article V, Section 4. “Standing Committees” provides, in part:
The Chairman of the Authority shall make appointments to the following
committees which are to be chaired by the Officer designated; said
committee shall have the responsibilities spelled out herein:
Budget Committee: One Board member shall be appointed by the Chairman
and shall serve with the Treasurer, the said committee to be chaired by the
Assistant Treasurer of this Authority. The responsibility of this committee will
be to develope (sic) proposed operating budgets for the succeeding fiscal
year. This committee shall prepare the budget, provide a complete financial
plan for all Authority funds and activities for the succeeding fiscal year in
such a form as the Board may require.
7. Compensation for Members of the CWSA serving as officers has been set by the
CWSA Board of Directors since 1965 and increased periodically by Board
resolution between 1984 and 2007.
a. Resolution No. 25 approved May 12, 1965, set a monthly salary of $60.00
for all CWSA officers retroactive to January 1, 1965, with the exception of
Secretary who was to receive $75.00 per month.
b. Resolution No. 241 approved April 19, 1984, Article V, Section 5,
Compensation of Board Members and Employees [provided]:
Whenever an Authority Board member, appointee or employee, attends a
conference, convention or meeting other than a regular monthly meeting
they shall be reimbursed, when permitted by law, for expenses in
accordance with the following:
1. Travel expenses by whatever means of transportation the person
feels is most expedient.
2. Lodging and meals during the time required to travel and attend said
meetings.
3. Regular and associated conference fees.
4. A sum of $60.00 per day as reimbursement from the Authority for time
spent on Authority business.
The spouse of a Board member who accompanies said member to an
approved meeting will be reimbursed for lodging, meals and transportation
and regular and associated convention expenses.
All Board members shall be reimbursed for expenses incurred in pursuit of
performance of the duties of the respective committee assignments.
c. Resolution No. 241-A approved by the CWSA on October 28, 1988,
increased compensation for Board Members and officers for attendance at
Raysely, 11-005
Page 4
meetings [and] conventions and set reimbursements for attendance at
meetings [and] conventions:
Section 5 is hereby amended to read as follows:
Compensation of Board Officers and Employees.
Whenever an Authority Board Officer attends a conference, convention or
meeting other than a regular monthly meeting he shall be reimbursed, when
permitted by law, for expenses in accordance with the following schedule:
1. Travel expenses by whatever means of transportation the person
feels is most expedient. If private automobiles are used,
reimbursement will be at the then current accepted federal or state
allowance. The distance is to be calculated as direct mileage from
the Board Officer’s home to the place of the meeting and direct return
home.
2. Lodging and meals included in convention or conference “package”
for the period required to travel and attend said meetings.
3. Regular and associated conference fees.
4. The sum of $100.00 per day as reimbursement from the Authority for
time spent on approved Authority business as compensation for
expenses not covered in the convention “package” format.
5. Any meetings, other than regularly scheduled or PMAA Regional
Meetings or meetings covered in Resolution 241, Section 5, Article 4,
which Board Officers are requested to attend by either the Chairman
or by written request of three Board Members, the Officer shall be
reimbursed for mileage as calculated above, meals, and receive the
sum of $100.00 per day for the time spent on the approved Authority
business.
6. All special meetings of the Board of the Authority called by either the
Chairman or by written request of three Board members, and which
Board Officers are requested to attend, shall entitle the Board
Officers attending to receive the sum of $100.00 for attendance at the
said meeting.
7. Compensation for Authority Board appointees and employees will be
covered by items 1, 2 and 3 above.
d. Resolution No. 241-B approved by the CWSA Board on October 19, 1989,
amended Resolution 241 and 241-A, Article 5, Section 5 [and] expanded
ways Board Members could be compensated and receive reimbursements
for attending meetings:
Compensation of Board Members and Employees.
Whenever an Authority Board Member attends a conference, convention, or
meeting other than a regular monthly meeting, he shall be reimbursed, when
permitted by law, for expenses in accordance with the following schedule:
1. Travel expenses by whatever means of transportation the Board
Member feels is the most expedient. If private automobiles are used,
Raysely, 11-005
Page 5
reimbursement will be at the then current accepted federal or state
mileage allowance. The distance is to be calculated as direct mileage
from the Board Member’s home to the place of the meeting and the
direct return home.
2. Lodging and meals included in the convention or conference
“package” for the period required to travel to and attend said meeting
and/or conference; or, if a Board Member chooses not to take the
conference “package,” said Board Member shall submit receipts for
all lodging and meals and expenses to the Chairman upon return from
the convention or conference for which receipts will be reimbursed to
the Board Member, provided, however, that in no event should
reimbursement be made to the Board Member for lodging and meals
totaling an amount in excess of the amount of any conference
“package” which may be available.
3. Regular and associated conference fees.
4. Board Members shall receive the sum of $100.00 per day as
reimbursement from the Authority for time spent on approved
Authority business.
5. Any meetings, other than regularly scheduled or PMAA Regional
Meetings or meetings covered in Resolution No. 241, Section 5,
Article 4, which Board Members are requested to attend by either the
Chairman or by written request of three (3) Board Members, the
Board Member shall be reimbursed for mileage as calculated above,
meals, and receive the sum of $100.00 for the time spent on the
approved Authority business.
6. Compensation and/or reimbursement for Authority Appointees and
Employees are covered by Items Nos. 1, 2 and 3 above.
e. On February 21, 1991, the CWSA Board of Directors repealed Resolution
Nos. 241, 241-A and 241-B and adopted Resolution No. 268 in order to re-
enact Section 2 of Resolution No. 241-B, which provided as follows:
Whenever an Authority Board Member (sic) or attends a conference,
convention, or meeting other than a regular monthly meeting, he shall be
reimbursed, when permitted by law, for expenses in accordance with the
following schedule:
1. Travel expenses by whatever means of transportation the Board
Member feels is the most expedient. If private automobiles are used,
reimbursement will be at the then current accepted federal or state
mileage allowance. The distance is to be calculated as direct mileage
from the Board Member’s home to the place of the meeting and the
direct return home.
2. Lodging and meals included in the convention or conference
“package” for the period required to travel to and attend said meeting
and/or conference; or, if a Board Member chooses not to take the
conference “package,” said Board Member shall submit receipts for
all lodging and meals and expenses to the Chairman upon return from
the convention or conference for which receipts will be reimbursed to
the Board Member, provided, however, that in no event should
reimbursement be made to the Board Member for lodging and meals
Raysely, 11-005
Page 6
totaling an amount in excess of the amount of any conference
“package” which may be available.
3. Regular and associated conference fees.
4. Board Members shall receive the sum of $100.00 per day as
reimbursement from the Authority for time spent on approved
Authority business.
5. Any meetings, other than regularly scheduled or PMAA Regional
Meetings or meetings, which Board Members are requested to attend
by either the Chairman or by written request of three (3) Board
Members, the Board Member shall be reimbursed for mileage as
calculated above, meals, and receive the sum of $100.00 for the time
spent on the approved Authority business.
6. Compensation and/or reimbursement for Authority Appointees and
Employees are covered by Items No. 1, 2 and 3 above.
f. The CWSA by-laws were amended on November 15, 2007, with no changes
being made to the compensation and reimbursements being paid to
Members.
8. The $100.00 per day compensation set by CWSA Resolutions for Board Members
while on CWSA business was never approved by either of the appointing
authorities.
9. The CWSA adopted Resolution 315 on June 21, 2007, titled “Authorizing Travel
and Related Expenses for Board Members and Employees at State, Regional and
National Conferences, Trade Shows and Conventions.”
a. The basis for this Resolution was to clarify the CWSA policy relating to the
reimbursement of certain expenses by Board Members, the manager and
employees attending state, regional and national conferences, trade shows
and/or conventions.
b. Provisions of Resolution 315 provide in part:
Expenses for all state, regional and/or national conferences, trade shows
and/or conventions which board members, the manager and/or designated
employees are requested to attend by either the chairman or by written
request of three (3) board members, shall be reimbursed as hereinafter set
forth:
1. All reasonable registration fees, that may include materials and
conference related functions, shall be paid and/or reimbursed by the
Authority.
2. The cost of any tours or activities unrelated to the conference, trade
show, and/or convention shall be paid for by the board
member/manager/ employee, if he/she desires to avail himself/herself
of the same.
3. For meals and/or incidental expenses:
a. All reasonable expenses for breakfast, lunch, dinner, tips,
taxes, fees and tips given to porters, baggage carriers,
Raysely, 11-005
Page 7
bellhops, hotel maids, stewards, official telephone and
telegraph charges shall be paid by the Authority.
Reimbursement shall not be made for alcoholic beverages.
b. Receipts shall be submitted to the Authority for all typical meal
and/or other necessary expenses.
c. Costs for tipping, for other than meals, should be listed as a
miscellaneous expense, which shall not require a written
receipt. The total amount of miscellaneous tips or tip shall not
exceed twenty five ($25.00) Dollars.
4. Should any board member, manager or employee bring his or her
spouse or significant other to accompany him or her at any
conference, trade show, and/or convention, the total expense of said
spouse or significant other, including but not limited to transportation,
lodging, meals, and/or incidental expenses, shall be the sole
responsibility of the board member, manager and/or employee, and
will not be reimbursed by the Authority.
5. Any expenditures incurred by any board member, manager and/or
employee, for any item which is a separate item and/or expense for
any conference, trade show and/or convention that is not conference
related (i.e. golfing expense, entertainment expense, etc.) shall be the
sole responsibility of the individual board member, manager and/or
employee, and shall not be reimbursed by the Authority.
10. The CWSA adopted Resolution 332 on December 16, 2010, repealing amendments
to by-laws enacted on November 15, 2007.
a. The sole amendment enacted by Resolution 332 was setting of officers’
salaries effective January 1, 2011.
b. Resolution 332 provided as follows:
AND IT IS FURTHER RESOLVED THAT the Officers’ salaries for the year
commencing January 1, 2011, are as follows: The offices of Chairman, Vice-
Chairman, Secretary, Treasurer and Community Affairs/Public Relations
Officer will each be set at $300.00 per month, with the offices of Assistant
Secretary and Assistant Treasurer to be set at $250.00 per month each.
These salaries shall remain in full force and effect until changed by further
resolution of this Board.
c. Resolution 332 eliminated the second Vice-Chairman position and created
the position of Community Affairs/Public Relations Officer.
d. Raysely was not a Member or officer of the CWSA Board when these
salaries went into effect.
e. This was Raysely’s last meeting on the CWSA Board.
11. Members of the CWSA Board are annually appointed to officer positions with the
Authority.
a. Officer positions included: Chairman, First Vice Chairman, Second Vice
Chairman, Secretary, Assistant Secretary, Treasurer and Assistant
Treasurer.
Raysely, 11-005
Page 8
b. Between 2006 and 2010, officers were paid $300.00 per month while the
Assistant Secretary and Assistant Treasurer each were paid $250.00 per
month.
12. Members of the CWSA Board annually were appointed by the Chairman to serve on
various committees.
a. Committees were created and held meetings on an as needed basis.
b. Since 2006, committees included:
2006: Administration Committee, Operations Committee
2007: Administration Committee, Operations Committee
2008: Administration Committee, Operations Committee, Financial
Committee
2009: Administration Committee, Operations Committee, Financial
Committee
2010: Administration Committee, Operations Committee, Financial
Committee, EPA Compliance Committee, Liaisons.
13. Raysely held the officer positions of Assistant Treasurer during 2006, 2007, 2008
and 2010 and Treasurer during 2009.
a. As Treasurer, Raysely received $300.00 per month.
b. As Assistant Treasurer, Raysely received $250.00 per month.
c. Raysely also served on the following committees from 2006 through 2010:
2006: Administration Committee
2007: Administration Committee
2008: Administration Committee
2009: Administration Committee, Financial Committee
2010: Administration Committee, Financial Committee
14. Raysely’s duties as Treasurer (2009) and Assistant Treasurer (2006-2008, 2010)
are defined in by-laws of the CWSA.
15. Neither Coplay Borough, nor Whitehall Township, ever set, or established any
compensation, in the form of per diems, for their respective appointments to the
CWSA Board.
16. Board Members, including Raysely, regularly received per diems in the amount of
$100.00 for their attendance at state, regional and national conferences, trade
shows and/or conventions.
a. These $100.00 per diem payments were made based on provisions of
CWSA Resolutions 241, 241(A), 241(B) and 268.
b. None of these Resolutions were submitted to Coplay Borough or Whitehall
Township for similar approval.
c. These per diems were in addition to actual expenses for attending
conferences, conventions and trade shows.
Raysely, 11-005
Page 9
17. Raysely was not on the CWSA Board on April 19, 1984, when Resolution #241 was
adopted by the Board.
a. This Resolution included the establishment of a $60.00 per diem for
Authority Board Members and employees who attend a conference,
convention or meeting other than a regular monthly meeting.
18. Raysely was in attendance and participated in CWSA Board actions taken on
Resolution numbers 241(A), 241(B), 268 and 315.
a. Resolution #241(A) was approved by the CWSA Board on October 20, 1988.
b. Resolution #241(B) was approved by the CWSA Board on October 19, 1989.
c. Resolution #268 was approved by the CWSA Board on February 21, 1991.
d. Resolution #315 was approved by the CWSA Board on June 21, 2007.
19. Minutes from CWSA Board meetings include Raysely’s participation in official
action on Resolution #’s 241(A), 241(B), 268 and 315 as follows:
a. October 20, 1988:
“Motion made by Mr. Ludwig, Second by Mr. Backus to adopt Resolution
#241(A) with the exception of the proposed section 3, page 2, referring to
page 2, Article 5 entitled Standing Committees. On the motion to adopt
Resolution #241(A) with the above exception the vote is: 6 ayes, 1 nay, 0
absent, motion carried.” The no voter is not identified.
Present: Leonard Klingler, Richard Berner, Stephen Raysely, Louis Bodish,
Joseph Ludwig, James Herman, Alex Backus.
b. October 19, 1989:
“In order to clarify the compensation for Board Members and employees, the
following motion was made: motion made by Mr. Backus, Second by Mr.
Ludwig to amend Resolution #241(A), Section 3, Item 2. Lodging and all
meals included in convention or conference package for the period required
to travel and attend said meetings, if a Board Member chooses not to take
the conference package, said Board Member shall submit receipts for all
lodging, meals and travel expenses, not to exceed said convention package
allowance, to the Chairman upon return from the convention. 7 ayes, 0 nays,
0 absent, motion carried.”
Present: Leonard Klingler, Joseph Ludwig, Richard Berner, Louis Bodish,
Alex Backus, James Herman, Stephen Raysely.
c. February 21, 1991:
“Chairman Klingler reviewed Resolution #268 and noted that this language
has been removed from the CWSA by-laws and transferred to a separate
resolution on the recommendation of Attorney Stover. Motion made by
Raysely, Second by Mr. Herman to adopt Resolution #268 setting
compensation of Board Members, Officers and employees for attendance at
conferences, conventions or meetings other than regular monthly meetings.
7 ayes, 0 nays, 0 absent, motion carried.”
Roll call: Bodish, Raysely, Herman, Klingler, Berner, Ludwig, close; aye.
d. June 21, 2007:
Raysely, 11-005
Page 10
“Item #2 – Committee has been meeting and reviewed all old invoices in line
with direction of the Ethics Commission. Mr. Berner reviewed Resolution
#315 and authorized the Board to adopt Resolution #315 dealing with
related expenses for Board Members and employees at state, regional and
national conferences, trade shows and conventions. Motion made by Mr.
Berner, Second by Mr. Schreiner to approve Resolution #315 authorizing
travel and related expenses for Board Members at state, regional and
national conferences, trade shows and conventions. 6 ayes, 1 nay (Mr.
Raysely), 0 absent, motion carried.”
Present: Leonard Klingler, Richard Berner, Robert Sendel, Donald Close,
John Schreiner, James Walter, Stephen Raysely.
20. Between February 2006 and November 2009 Raysely received $100.00 per diems
for 25 days totaling $2,500.00 for his attendance at various meetings, conventions
and seminars as a CWSA representative.
a. During this same time frame, Raysely simultaneously was compensated as
the CWSA Treasurer or Assistant Treasurer.
b. Raysely received the $100.00 per diems during this time frame pursuant to
CWSA Resolution No. 241(A), 241(B) and 268, all of which Raysely
approved.
c. These per diems were in addition to expenses claimed by Raysely for
attending such events.
21. The $100.00 … per diems received by Raysely while attending meetings,
conventions and seminars as a CWSA official were not related to any actual
expenses for his attendance.
a. All of Raysely’s expenses for attending events were paid by the CWSA.
22. Raysely’s receipt of the $100.00 per diems set forth in Resolution No. 241(A),
241(B) and 268 [was] never authorized as compensation by Coplay Borough or
Whitehall Township, the appointing municipal entities to the CWSA Board.
23. During the same time Raysely was receiving $100.00 per diems for attending
various meetings, conventions and seminars as a CWSA representative, the CWSA
paid directly and/or reimbursed Raysely for all expenses including:
a. Travel
b. Lodging
c. Meals
d. Registration fees
24. Records of the CWSA reflect Raysely received $100.00 per diem compensation for
attending the following events:
a. Tennessee Convention 2/15/06-2/19/06 5 days - $500.00
b. Tennessee Convention 2/14/06 1 day - $100.00
c. PMAA Convention 9/10/06-9/13/06 4 days - $400.00
Raysely, 11-005
Page 11
d. PMAA Seminar 3/08/07 1 day - $100.00
e. PMAA Region II Meeting 10/04/07 1 day - $100.00
f. PMAA Convention 9/07/08-9/10/08 4 days - $400.00
g. PMAA Blue Ridge CC Meeting 10/02/08 1 day - $100.00
h. NJWEA Conference 11/18/08-11/19/08 2 days - $200.00
i. PMAA Training 3/12/09 1 day - $100.00
j. PMAA Convention 9/13/09-9/16/09 4 days - $400.00
k. PMAA Meeting 10/01/09 1 day - $100.00
25. The CWSA Board votes to approve monthly bill lists in their entirety, by a single
motion.
a. Bill lists included per diems paid to Raysely and other Board Members.
b. Once the bill lists are approved, checks are manually signed by two (2)
Board Members.
c. Board Members with signature authority on CWSA accounts are the
Chairman, Treasurer and Assistant Treasurer.
26. Raysely received per diem payments issued to him through the CWSA bill paying
process.
a. Raysely used his official position as the CWSA Treasurer and/or Assistant
Treasurer to approve per diem payments issued to him including signing the
front side of checks issued to him.
27. Raysely, in his official capacity as a Member of the CWSA Board, signed the front
side of all but one (1) of the per diem checks issued to him.
a. Raysely did not sign the front side of check number 19305, dated February
13, 2006, in the amount of $100.00.
b. Raysely’s signature is on the front side of the remaining ten (10) checks
issued to him totaling $2,400.00.
28. Raysely received eleven (11) per diem payments totaling $2,500.00, which were
issued between February 2, 2006 and October 5, 2009.
29. In addition to signing the front side of per diem checks issued to himself, Raysely
also participated in CWSA Board action taken approving monthly bill lists on eleven
(11) occasions from February 6, 2006, through October 5, 2009.
30. Between 2008 and 2011 representatives from the State Ethics Commission made
presentations on the State Ethics Act at the PMAA Board Member training seminars
held in Bethlehem, PA.
a. The State Ethics Commission conducted trainings on March 10, 2008, March
12, 2009, March 10, 2010, and March 10, 2011.
Raysely, 11-005
Page 12
31. Members of the CWSA annually attended Ethics training at PMAA training seminars
between 2008 and 2011. Training records identify the following attendees:
a. March 10, 2011:
Joe Bonshak, James Hahn, Michael Hobel, II, Joseph Marx, Jr., John F.
Schreiner, Robert Sendel.
b. March 10, 2010:
Richard J. Berner, Joseph Marx, Jr., James A. Roth, John F. Schreiner,
Robert Sendel.
c. March 12, 2009:
Unknown.
d. March 10, 2008:
Richard J. Berner, Donald J. Close, Michael D. Hobel, II, John F. Schreiner.
32. A training handbook on Ethics for Authority Board Members is handed out at each
training session.
a. Included as part of the handbook is a synopsis of State Ethics Commission
Opinions and Orders involving municipal authorities.
b. Specifically included are Order Numbers 1434, Tancredi and 1439, Matta,
which contain Commission decisions that the receipt of per diems violated
provisions of the Ethics Act.
33. During either the March 10, 2008, or March 10, 2010, PMAA Board Member
training, CWSA Board Member John F. Schreiner discussed compensation issues
including the receipt of per diem payments with a representative of the State Ethics
Commission.
a. Schreiner made reference to the conversation during the CWSA’s April 15,
2010, Board meeting.
b. By 2010, Raysely stopped receiving per diem pay from the CWSA.
34. Minutes from the CWSA April 15, 2010, meeting include discussion as part of
“address(ing) the Board” on the $100.00 per diems and travel expenses.
There was a discussion as to whether Authority board members may receive the
$100.00 per diem in addition to receiving paid time off for attending a conference. It
was verified that the board members do receive the $100 per diem. During the
discussion, a representative of the Authority stated that he had discussions with
representatives of the State Ethics Commission and spoke with a separate attorney
regarding this matter, specifically, what type of compensation was appropriate. Mr.
Raysely was involved in a discussion with an individual present at the meeting as to
whether Authority board members are allowed to receive the per diem in addition to
other employer compensation.
35. Minutes of the CWSA Board meeting of December 16, 2010, confirm discussion
and actions of the Board to amend the CWSA by-laws.
a. CWSA Solicitor John Stover reported on Resolution 332, which was
discussed and voted on at the meeting. The Resolution addressed the
nd
elimination of the position of the 2 Vice Chairman and the creation of the
Raysely, 11-005
Page 13
Community Affairs/Public Relations Officer. Additionally, setting the monthly
salaries for the Treasurer and Secretary at $300.00 a month with all other
officers paid at the rate of $250.00 per month was discussed. It was
recommended that, commencing January, 2011, the Chairman, Vice
Chairman, Secretary, Treasurer, and Community Affairs/Public Relations
Officer will each receive $300.00 per month in salary with the Assistant
Secretary and Assistant Treasurer each being paid $250.00 per month in
salary. Attorney Stover recommended the approval of Resolution 332 which
authorized the Board to execute the By-Laws as amended.
b. The revisions to the by-laws as stated in Resolution 332 were approved by
unanimous vote upon motion by Berner and seconded by Raysely.
The following Findings relate to the allegation that Raysely used CWSA credit cards
for personal expenses.
36. The CWSA had approximately four (4) credit card accounts for use on official
Authority business between 2006 and 2010.
a. Card number ending 5496 was issued to Stephen Raysely.
b. Card number ending 5504 was issued to John Schreiner.
c. Card number ending 2507 was issued to Donald Close.
d. Card number ending 5258 was in the name of CWSA.
37. Payment of expenses charged to the aforementioned credit card accounts were
paid as part of the CWSA’s routine payment of bills.
a. Bills to be paid are initially reviewed by the Authority Business Manager to
create a bill list.
b. The created bill list is provided to CWSA Board Members as part of their
monthly meeting packet.
c. Other information in the monthly meeting packets include account
statements, prior meeting minutes, correspondence, legal fees and the
Manager’s report.
d. Meeting packets are provided to CWSA Board Members approximately one
week prior to their monthly meeting.
38. Raysely attended the 2006 PMAA Conference and Trade Show held at the Hershey
Lodge and Convention Center from September 10, 2006, to September 13, 2006.
a. While attending the 2006 PMAA Conference, Raysely played golf at the
Wren Dale Golf Club, 100 Hanshue Road, Hummelstown, PA, 17036.
39. Raysely’s CWSA issued credit card ending in 5496 included charges totaling
$698.70 on his October 2006 statement for his attendance at the 2006 PMAA
Conference.
a. Three (3) separate charges comprised the $698.70 total.
b. Two (2) of the charges were made at the Wren Dale Golf Club, totaling
$317.50.
Raysely, 11-005
Page 14
i. The Wren Dale Golf Club charges were for expenses related to green
fees, cart rentals and miscellaneous expenses related to Raysely’s
golf outing.
c. The remaining charge in the amount of $381.20 was made at the Hershey
Lodge and Convention Center and was related to appropriate reimbursable
expenses.
40. The CWSA issued check number 12288, dated October 18, 2006, in the amount of
$1,823.10, payable to Platinum Plus for Business to pay this bill and balances of
$435.53 on card # ending 5504, John F. Schreiner, and $688.87 on card # ending
5258, Donald J. Close.
a. This payment was listed on a monthly bill list dated October 31, 2006, and
approved by the CWSA Board on November 16, 2006.
b. Raysely participated in CWSA Board action taken on November 16, 2006,
approving this payment by 7 to 0 vote.
c. CWSA check #12288 was signed by Authority Board Members Stephen
Raysely and Donald Close.
d. This payment included personal golf charges incurred by Raysely of
$317.50.
The following Findings relate to allegations that Raysely failed to timely file
Statement of Financial Interests forms for the 2006, 2007, 2008 calendar years,
backdated the 2006, 2007, and 2008 SFIs and failed to disclose on an SFI filed for the
2008 calendar year gifts, transportation, lodging, hospitality, office directorship or
employment in any business, financial interest in any legal entity in business for
profit and business interests transferred to immediate family members.
41. Raysely, in his official capacity as a Member of the CWSA Board, was annually
required to file a complete Statement of Financial Interests form by May 1,
containing information for the prior calendar year.
42. The CWSA protocol regarding the distribution and retention of SFIs was for blank
SFI forms to be distributed by the Business Manager to Board Members and
employees each January.
a. Completed SFIs are maintained in a secure office area by the Business
Manager.
43. On April 12, 2011, the Investigative Division of the State Ethics Commission
conducted a Statement of Financial Interests Compliance Review at the CWSA. At
that time, SFIs for the following calendar years were on file for Raysely: 2005, 2006,
2008, 2009, 2010.
44. On April 25, 2011, David A. Harleman, Manager of the CWSA, sent Raysely’s SFIs
for calendar years 2007 and 2008 to the State Ethics Commission.
45. The SFI provided by Harleman for Raysely’s calendar year 2008 filing was a copy
of the same form obtained by the SEC on April 12, 2011.
a. This form included no responses for boxes 11 through 15: 11, Gifts; 12,
Transportation, Lodging, Hospitality; 13, Office, Directorship or Employment
Raysely, 11-005
Page 15
in Any Business; 14 Financial Interest in Any Business for Profit and 15
Business Interests Transferred to Immediate Family Member.
46. Raysely filed SFIs for calendar years 2006 through 2008 on forms for the following
calendar year, giving the impression that the forms were backdated, as follows:
a. Raysely dated his calendar year 2006 SFI January 18, 2006, on form SEC-1
Rev. 01/07.
1. SFIs with a form revision date of SEC-1 Rev. 01/07 were not provided
to municipal entities until December 22, 2006.
b. Raysely dated his calendar year 2007 SFI January 20, 2007, on form SEC-1
Rev. 01/08.
1. SFIs with a form revision date of SEC-1 Rev. 01/08 were mailed to
municipal entities between January 4, 2008, and January 8, 2008.
c. Raysely dated his calendar year 2008 SFI January 15, 2008, on form SEC-1
Rev. 01/09.
1. SFIs with a form revision date of SEC-1 Rev. 01/09 were provided to
municipal entities on or after January 5, 2009.
d. During an interview with an investigator from the State Ethics Commission
on April 9, 2012, Raysely provided the following explanations regarding
Statement of Financial Interests forms filed.
i. Raysely indicated that he listed the wrong year on the current date
line at the bottom of forms filed for calendar years 2006 through 2008.
ii. Raysely indicated that he failed to provide any response to line
numbers 11 through 15 on his SFI form filed for the 2008 calendar
year.
iii. There is no evidence of record contradicting Raysely’s assertions.
47. Raysely realized a private pecuniary gain of $1,317.50 as a result of unauthorized
per diems and personal expenses.
a. The unauthorized per diems are calculated as follows:
i. The per diem that was in place when Raysely was appointed to the
CWSA by Coplay Borough was $60.00.
ii. The CWSA Board, which included Raysely, improperly raised the per
diem rate to $100.00.
iii. The amount by which the per diem rate was increased due to the
CWSA Board’s actions was $40.00 ($100.00 - $60.00).
iv. As a result of the increased per diem rate, Raysely realized a
pecuniary gain of $40.00 on 25 occasions which totals $1,000.00 in
per diems ($40.00 x 25).
b. The private pecuniary gain realized by Raysely is based on 25 per diems at
$40.00 each ($1,000.00) plus golf fees of $317.50 totaling $1,317.50.
Raysely, 11-005
Page 16
III.DISCUSSION:
As a Member of the Coplay Whitehall Sewer Authority (also referred to herein as
“CWSA” and “Authority”) from approximately 1986 to December 2010, Respondent
Stephen Raysely, hereinafter also referred to as “Respondent,” “Respondent Raysely,”
and “Raysely,” has been 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 Raysely, in his capacity as a Member of the
CWSA Board of Directors (“CWSA Board”), violated Sections 1103(a), 1104(a), 1104(d),
and 1105(b)(6)-(10) of the Ethics Act:
(1) When he charged items of a personal nature for himself and/or his wife to Authority
accounts and credit cards and subsequently participated in actions of the Authority
to approve payments for these expenses, including but not limited to voting to
approve bill lists and signing of checks authorizing payment;
(2) When he approved and received compensation for attending conferences,
meetings and conventions, which were not approved by the appointing authority;
(3) When he failed to file a Statement of Financial Interests (“SFI”) for the 2006, 2007
and 2008 calendar years by May 1 of the succeeding calendar year and then filed
backdated SFIs giving the appearance that the forms were timely filed; and
(4) When he failed to disclose on an SFI filed for the 2008 calendar year gifts,
transportation, lodging, hospitality, office directorship or employment in any
business, financial interest in any legal entity in business for profit and business
interests transferred to immediate family members.
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
Raysely, 11-005
Page 17
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 1104(a) of the Ethics Act provides that each public official/public employee
must file a Statement of Financial Interests for the preceding calendar year, each year that
he holds the position and the year after he leaves it.
Section 1104(d) of the Ethics Act provides that no public official shall be allowed to
take the oath of office, enter or continue upon his duties, or receive compensation from
public funds unless he has filed a Statement of Financial Interests as required by the
Ethics Act.
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, Section 1105(b)(6)-(10) of the Ethics Act
requires the filer to disclose the following information on the Statement of Financial
Interests: (1) 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; (2) the name
and address of the source and the amount of any payment for or reimbursement of actual
expenses for transportation and lodging or hospitality received in connection with public
office or employment where such actual expenses exceed $650 in an aggregate amount
per year; (3) any office, directorship or employment in any business entity; (4) any financial
interest in any legal entity engaged in business for profit; and (5) any financial interest in a
business with which the filer is or has been associated in the preceding calendar year
which has been transferred to a member of his immediate family.
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.
The CWSA Board consists of seven Members, three of which are appointed by
Coplay Borough and four of which are appointed by Whitehall Township. Respondent
Raysely was appointed to the CWSA Board by Coplay Borough. Raysely served as a
Member of the Board from approximately 1986 to December 2010. Raysely served as
CWSA Assistant Treasurer during 2006, 2007, 2008 and 2010 and Treasurer during 2009.
As Treasurer, Raysely received $300.00 per month. As Assistant Treasurer, Raysely
received $250.00 per month.
The CWSA Board has approved various Resolutions providing for the payment of
per diems to CWSA Board Members and other CWSA representatives attending
conferences, conventions, and meetings other than regular monthly meetings. Such per
diems, hereinafter also referred to as “Conference Per Diems,” were in addition to actual
expenses for attending the events. Per the Municipality Authorities Act, compensation
provided for authority board members must be established by the appointing authority(ies)-
-in this case, Coplay Borough and Whitehall Township. 53 Pa.C.S. § 5610(d). The
payment of Conference Per Diems to CWSA Board Members was not approved by Coplay
Borough or Whitehall Township.
Raysely, 11-005
Page 18
When Raysely was first appointed to the CWSA Board, CWSA Resolution No. 241
was already in place and provided for a Conference Per Diem rate of $60.00 per day. On
October 28, 1988, the CWSA Board, including Raysely, approved Resolution No. 241-A,
which increased the Conference Per Diem rate to $100.00 per day. The parties have
stipulated that the CWSA Board improperly raised the Conference Per Diem rate to
$100.00 per day.
On October 19, 1989, the CWSA Board, including Raysely, approved Resolution
No. 241-B, which continued to provide for a Conference Per Diem at the rate of $100.00
per day.
On February 21, 1991, the CWSA Board repealed Resolution Nos. 241, 241-A and
241-B and adopted Resolution No. 268, which continued to provide for a Conference Per
Diem at the rate of $100.00 per day. Raysely participated in the approval of Resolution
No. 268.
Between February 2006 and November 2009, Raysely received Conference Per
Diems at the rate of $100.00 per day for 25 days for his attendance at various meetings,
conventions and seminars as a CWSA representative. Raysely received the Conference
Per Diems during this time frame pursuant to CWSA Resolution Nos. 241-A, 241-B and
268, all of which Raysely approved. The aforesaid Conference Per Diems received by
Raysely while attending meetings, conventions and seminars as a CWSA official were not
related to any actual expenses for his attendance. All of Raysely’s expenses for attending
such events were paid by the CWSA. Raysely’s receipt of the Conference Per Diems set
forth in Resolution Nos. 241-A, 241-B, and 268 was never authorized as compensation by
Coplay Borough or Whitehall Township.
Raysely used his official position to approve Conference Per Diem payments issued
to him, including signing the front side of checks issued to him. As an authorized signatory
for the CWSA, Raysely signed the front side of ten of the eleven CWSA checks issued to
him between February 2, 2006, and October 5, 2009, which included Conference Per
Diems. The ten aforesaid checks that Raysely signed totaled $2,400.00. Raysely did not
sign the front side of check number 19305, dated February 13, 2006, in the amount of
$100.00.
By 2010, Raysely no longer received Conference Per Diems from the CWSA.
Raysely was issued a CWSA credit card that was to be used for official CWSA
business. While attending the 2006 PMAA Conference and Trade Show held at the
Hershey Lodge and Convention Center from September 10, 2006, to September 13, 2006,
Raysely charged to his CWSA issued credit card expenses totaling $317.50 that were
related to a golf outing.
CWSA check number 12288, dated October 18, 2006, paid for expenses including
Raysely’s aforesaid golf outing expenses. On November 16, 2006, Raysely participated in
a unanimous vote of the CWSA Board to approve a monthly bill list that included this
payment. Raysely also signed CWSA check number 12288 as one of two authorized
signatories for the CWSA.
The parties have stipulated that Raysely realized a private pecuniary gain in the
amount of $1,317.50, calculated as the sum of the following: (1) $1,000.00, consisting of
the improper $40.00 increase in the Conference Per Diem rate, in which Raysely
participated, multiplied by 25 days for which Raysely received Conference Per Diems; and
(2) Raysely’s aforesaid golf outing expenses in the amount of $317.50 that were charged
to and paid by the CWSA.
Raysely, 11-005
Page 19
As for Raysely’s SFIs, on April 12, 2011, the Investigative Division of this
Commission conducted an SFI Compliance Review at the CWSA. At that time, SFIs for
calendar years 2005, 2006, 2008, 2009, and 2010 were on file for Raysely.
On April 25, 2011, the CWSA Manager provided Raysely’s SFIs for calendar years
2007 and 2008. The SFI provided by the CWSA Manager for Raysely’s calendar year
2008 filing was a copy of the same form obtained by the Investigative Division on April 12,
2011. The parties have stipulated that Raysely’s SFI for calendar year 2008 included no
responses for the boxes numbered: 11 (gifts); 12 (transportation, lodging, hospitality); 13
(office, directorship or employment in any business); 14 (financial interest in any legal
entity in business for profit); and 15 (business interests transferred to immediate family
member).
Raysely’s SFIs for calendar years 2006, 2007, and 2008 appeared to be backdated.
The dates that Raysely listed on these forms were prior to the dates the forms were
available to filers. During an interview with a Commission investigator, Raysely indicated
that he listed the wrong year on the “current date” line at the bottom of the forms. The
parties have stipulated that there is no evidence of record contradicting such assertion.
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 when Raysely charged items
of a personal nature for himself and/or his wife to
Authority accounts and credit cards and
subsequently participated in actions of the
Authority to approve payments for these
expenses; and
b. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1103(a), occurred when Raysely participated in
actions and received compensation for attending
conferences, meetings and conventions, which
were not approved by the appointing authority;
and
c. That no violation of Section 1104(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1104(a), occurred in relation to Raysely’s
failure to file a Statement of Financial Interests
for the 2006, 2007 and 2008 calendar years by
May 1 of the succeeding calendar year, as there
is insufficient evidence to prove that the
statements were filed after the May 1 deadline
for each year; and
Raysely, 11-005
Page 20
d. That no violation of Section 1104(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1104(a), occurred when Raysely backdated
SFIs giving the appearance that the forms were
timely filed, as there is insufficient evidence to
prove such was done intentionally; and
e. That a violation of Section 1105(b) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1105(b), occurred in relation to Raysely’s
failure to disclose on a Statement of Financial
Interests filed for the 2008 calendar year gifts,
transportation, lodging, hospitality, office
directorship or employment in any business,
financial interest in any legal entity in business
for profit and business interests transferred to
immediate family members.
4. Raysely agrees to make payment in the amount of $1,317.50
in settlement of this matter payable to Coplay Whitehall Sewer
Authority and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Raysely agrees to file an amended Statement of Financial
Interests with Coplay Whitehall Sewer Authority, through the
Pennsylvania State Ethics Commission, for the 2008 calendar
year within thirty (30) days of the issuance of the final
adjudication in this matter.
6. Raysely agrees to not accept any reimbursement,
compensation or other payment from Coplay Whitehall Sewer
Authority representing a full or partial reimbursement of the
amount paid in settlement of this matter.
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 2-3.
T he first recommended violation of Section 1103(a) relates to Raysely’s use of a
CWSA issued credit card in September 2006 to pay for golf outing expenses totaling
$317.50. Raysely used the authority of his public position as a CWSA Board Member
when he: (1) charged the golf outing expenses to the CWSA issued credit card; (2)
participated in the CWSA Board vote to approve a monthly bill list that included payment
for such expenses; and (3) signed, as an authorized CWSA signatory, the CWSA check
that paid for such expenses. As a direct result of Raysely’s actions, the CWSA paid for
golf outing expenses charged by Raysely in the amount of $317.50.
Raysely, 11-005
Page 21
We are mindful of the judicial decision in Bixler v. State Ethics Commission, 847
A.2d 785 (Pa. Commw. Ct. 2004) (holding that a net profit in the amount of $561.77
resulting from business transactions between a township supervisor’s employer and the
township would fall within the “de minimis” exclusion to the definition of “conflict of
interest”). If the parties had not determined to enter into a Consent Agreement, we could
have been presented with issues as to whether, under the circumstances of this case,
Bixler would apply as to the aforesaid golf outing expenses charged by Raysely.
However, given that the parties have entered into a comprehensive Consent
Agreement and are in agreement that the finding of a violation of Section 1103(a) as to
such golf outing expenses would be appropriate as part of an overall settlement of this
case, we shall accept the parties’ proposed disposition.
Accordingly, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S.
§ 1103(a), occurred when Raysely charged items of a personal nature for himself and/or
his wife to CWSA accounts and credit cards and subsequently participated in actions of
the CWSA to approve payments for these expenses. We note that this determination in
this case based upon the agreement of the parties should not be considered as precedent
for other cases, which would be determined based upon their own facts and
circumstances.
The second recommended violation of Section 1103(a) relates to Raysely’s receipt
of unauthorized compensation in the form of Conference Per Diems for 25 days during
which he attended various meetings, conventions and seminars as a CWSA
representative. As noted above, the Conference Per Diems were in addition to actual
expenses for attending the events, and the payment of Conference Per Diems to CWSA
Board Members was not approved by Coplay Borough or Whitehall Township.
Raysely was not a mere passive recipient of the unauthorized Conference Per
Diems. Although the CWSA Board itself had “approved” a Conference Per Diem rate of
$60.00 per day prior to Raysely becoming a Member of the CWSA Board, in 1988, Raysely
actively participated as a CWSA Board Member in increasing the Conference Per Diem
rate to $100.00 per day. The parties have stipulated that the CWSA Board improperly
raised the Conference Per Diem rate to $100.00 per day. Raysely actively participated in
subsequent actions of the CWSA Board that maintained the Conference Per Diems at the
rate of $100.00 per day. Between February 2006 and November 2009, Raysely received
Conference Per Diems at the rate of $100.00 per day for 25 days. Raysely received the
Conference Per Diems during this time frame pursuant to CWSA Resolution Nos. 241-A,
241-B and 268, all of which Raysely approved.
Raysely used the authority of his public position to approve Conference Per Diem
payments issued to him, including signing, as an authorized signatory for the CWSA, ten
of the eleven CWSA checks issued to him between February 2, 2006, and October 5,
2009, which included Conference Per Diems. The ten aforesaid checks that Raysely
signed totaled $2,400.00. Raysely did not sign the front side of check number 19305,
dated February 13, 2006, in the amount of $100.00.
The parties have stipulated that Raysely realized a pecuniary gain in the total
amount of $1,000.00 from the aforesaid Conference Per Diems, which the parties have
calculated by multiplying the improper $40.00 increase in the Conference Per Diem rate by
the aforesaid 25 days for which Raysely received Conference Per Diems.
Based upon the Stipulated Findings, we hold that a violation of Section 1103(a) of
the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Raysely participated in actions and
received compensation for attending conferences, meetings and conventions, which
compensation was not approved by the appointing authority.
Raysely, 11-005
Page 22
The Consent Agreement of the parties proposes that this Commission find no
violation of Section 1104(a) of the Ethics Act as there is insufficient evidence to prove that
the 2006, 2007, and 2008 calendar year SFIs were filed late or intentionally backdated.
We hold that no violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a),
occurred in relation to Raysely’s alleged failure to file an SFI for the 2006, 2007 and 2008
calendar years by May 1 of the succeeding calendar year, as there is insufficient evidence
to prove that the statements were filed after the May 1 deadline for each year.
We hold that no violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a),
occurred when Raysely backdated SFIs giving the appearance that the forms were timely
filed, as there is insufficient evidence to prove such was done intentionally.
The Consent Agreement proposes that the Commission find a violation of Section
1105(b) of the Ethics Act as to Respondent’s failure to disclose information on his SFI for
calendar year 2008.
We hold that a violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b),
occurred in relation to Raysely’s failure to disclose on an SFI filed for the 2008 calendar
year gifts, transportation, lodging, hospitality, office directorship or employment in any
business, financial interest in any legal entity in business for profit and business interests
transferred to immediate family members.
It appears that the Investigative Division in the exercise of its prosecutorial
discretion has elected to non pros the portion of the allegations pertaining to Section
1104(d).
As part of the Consent Agreement, Raysely has agreed to make payment in the
amount of $1,317.50 payable to Coplay Whitehall Sewer Authority and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Raysely has also agreed to not accept any reimbursement, compensation or other
payment from CWSA representing a full or partial reimbursement of the amount paid in
settlement of this matter. Raysely has further agreed to file an amended SFI for calendar
year 2008 with the CWSA, through this Commission, within thirty (30) days of the issuance
of the final adjudication in this matter.
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, Raysely is directed to make
payment in the amount of $1,317.50 payable to Coplay Whitehall Sewer 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, Raysely is further directed to not accept
any reimbursement, compensation or other payment from CWSA representing a full or
partial reimbursement of the amount paid in settlement of this matter.
To the extent he has not already done so, Raysely is directed to file an amended
SFI for calendar year 2008 with CWSA, through this Commission, by no later than the
th
thirtieth (30) day after the mailing date of this adjudication and Order.
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.
Raysely, 11-005
Page 23
IV.CONCLUSIONS OF LAW:
1. As a Member of the Coplay Whitehall Sewer Authority (“CWSA”) from
approximately 1986 to December 2010, Respondent Stephen Raysely (“Raysely”)
has been a public officialsubject to the provisions of the Public Official and
Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
2. Raysely violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he
charged items of a personal nature for himself and/or his wife to CWSA accounts
and credit cards and subsequently participated in actions of the CWSA to approve
payments for these expenses.
3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Raysely participated in actions and received compensation for attending
conferences, meetings and conventions, which compensation was not approved by
the appointing authority.
4. No violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred in
relation to Raysely’s alleged failure to file a Statement of Financial Interests (“SFI”)
for the 2006, 2007 and 2008 calendar years by May 1 of the succeeding calendar
year, as there is insufficient evidence to prove that the statements were filed after
the May 1 deadline for each year.
5. No violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Raysely backdated SFIs giving the appearance that the forms were timely
filed, as there is insufficient evidence to prove such was done intentionally.
6. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to Raysely’s failure to disclose on an SFI filed for the 2008 calendar year
gifts, transportation, lodging, hospitality, office directorship or employment in any
business, financial interest in any legal entity in business for profit and business
interests transferred to immediate family members.
In Re: Stephen Raysely, : File Docket: 11-005
Respondent : Date Decided: 9/24/12
: Date Mailed: 10/5/12
ORDER NO. 1604
1. As a Member of the Coplay Whitehall Sewer Authority (“CWSA”), Stephen Raysely
(“Raysely”) violated Section 1103(a) of the Public Official and Employee Ethics Act
(“Ethics Act”), 65 Pa.C.S. § 1103(a), when he charged items of a personal nature
for himself and/or his wife to CWSA accounts and credit cards and subsequently
participated in actions of the CWSA to approve payments for these expenses.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Raysely participated in actions and received compensation for attending
conferences, meetings and conventions, which compensation was not approved by
the appointing authority.
3. No violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred in
relation to Raysely’s alleged failure to file a Statement of Financial Interests (“SFI”)
for the 2006, 2007 and 2008 calendar years by May 1 of the succeeding calendar
year, as there is insufficient evidence to prove that the statements were filed after
the May 1 deadline for each year.
4. No violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Raysely backdated SFIs giving the appearance that the forms were timely
filed, as there is insufficient evidence to prove such was done intentionally.
5. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to Raysely’s failure to disclose on an SFI filed for the 2008 calendar year
gifts, transportation, lodging, hospitality, office directorship or employment in any
business, financial interest in any legal entity in business for profit and business
interests transferred to immediate family members.
6. Per the Consent Agreement of the parties, Raysely is directed to make payment in
the amount of $1,317.50 payable to Coplay Whitehall Sewer Authority and
forwarded to the Pennsylvania State Ethics Commission by no later than the
th
thirtieth (30) day after the mailing date of this adjudication and Order.
7. Per the Consent Agreement of the parties, Raysely is further directed to not accept
any reimbursement, compensation or other payment from CWSA representing a full
or partial reimbursement of the amount paid in settlement of this matter.
8. To the extent he has not already done so, Raysely is directed to file an amended
SFI for calendar year 2008 with CWSA, through this Commission, by no later than
th
the thirtieth (30) day after the mailing date of this adjudication and Order.
9. Compliance with Paragraphs 6, 7 and 8 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,
___________________________
John J. Bolger, Chair